Internet Effects Car Insurance

by Kathryn Lang

Many insurance companies, like Direct Line Car Insurance, have
been looking for creative ways to increase their profit margins.
One of the directions the situations that these companies are
looking at is the cutting of the middleman.

In the past, consumers were forced to work with an insurance
agent. For many years, this was a door-to-door sales position.
Later, the move was to branch offices. Today, technology has
stepped in and consumers can have direct contact with the
insurance companies through the internet.

By cutting out the middlemen, the insurance companies save the
huge commission fees that were paid out for the policy sales.
These savings are being passed on to the consumers.

Direct Line Car Insurance made its mark on the insurance
industry in 1985 when it launched its company with only one way
for consumers to purchase policies - by telephone. It exists
today as an insurance company whose main source of communication
with consumers is by the telephone.

Since that day, many companies have either started out as phone
sales, or made a move in that direction. The internet has only
increased the control that consumers have in their policy
decisions.

The internet has also forced insurance companies - Direct Line
Car Insurance included - to compete heavily for their consumer
base. The ease of comparison on the computer makes it necessity
for insurance companies to offer the best rates and the best
customer service or else risk losing consumers to the
competitors.

Increased competition means even better rates and perks for the
consumer.

The competition will only continue to grow as consumers become
more educated and shopping savvy. This will force companies to
expand their base. Direct Line Car Insurance is already on the
move. It is currently doing business in Germany, Italy, and
Spain. In 2001, it expanded into the United States with the
acquisition of All State insurance company.



About the author:
Kathryn Lang is an freelance writer, who has written articles
for various financial services sites promoting products such as
Direct Line Car Insurance and other insurance
services.