Overstock.com, the online retailer, has established its own insurance agency, and now you can request auto, home, & small business insurance quotes through its website, and purchase policies through the same shopping cart customers use to make other Overstock.com purchases. Can you really get online insurance quotes from multiple companies from Overstock.com, and buy a policy from the Overstock.com website? Is it a good way for people to purchase insurance, or does Overstock.com offer better prices than other insurance companies or insurance agencies? I tested the “insurance” tab at the Overstock.com website to get insurance quotes, as well as researched how Overstock.com is providing insurance, and I’ll tell you the advantages, and significant disadvantages, of using Overstock.com to insure your cars and/or home.
Buying Auto or Home Insurance from Overstock.com
Getting an auto insurance quote through the Overstock.com website
Getting an auto insurance price quote is easy through the Overstock.com website. Click on the Overstock.com Insurance tab on the top left side of the Overstock.com homepage. On the insurance page, you are prompted to put in your zip code and select a type of insurance quote. The site requested basic information about me and my car to qualify and rate me, but required me to register for Overstock.com, before giving me a price. Registration was quick and easy, requesting only I provide my e-mail and set up a password, with no need to send me an e-mail with a link for verification, which most site registrations require. However, unlike other companies providing online auto insurance quotes, there does not seem to be a way to save your information, and return to it later. You may have to start all over again, if you don’t buy a policy immediately.
The Overstock.com website quoted me monthly and 6 month rates for recommended coverage from two companies, 21st Century Auto Insurance & Safeco Auto Insurance, with the option to buy online or by contacting an agent, but I have two major concerns:
1. In my state of Oregon, I know both 21st Century & Safeco use credit information to rate auto insurance policies. The Overstock website did not ask me for required information, like my social security number, drivers license number, or vehicle identification number, so things like the exact model of my car, my driving record, and credit report were not verified. Receiving an applicant’s credit report is particularly important for accurate auto insurance quoting, with the actual price possibly being hundreds of dollars more or less, once credit is checked. So, Overstock.com gave me auto insurance quotes, but I don’t think you can rely on them to be accurate, when you purchase the policy.
2. When getting an auto insurance quote, no questions are asked about the coverage you need. There are three options for minimum, higher, and even higher liability & uninsured motorist coverage, but no explanation of coverage or other options. One of the most important things when insurance shopping is determining the coverage you need, and everyone’s coverage needs are specific to them. This website (and I’ve seen insurance company websites guilty of doing the same thing) reduces choosing coverage into misleading categories of minimum, average, and better than average options.
Getting a property insurance (home/condo/renters) quote through the Overstock.com website
I own a condo, but I could not get an online insurance quote for my condo, due to what I think is a programming error. Although I answered the question as “no,” when asked about any claims in the last 5 years, the site would not let me proceed to the next page, stating I needed to complete information about the dates & nature of my claims. I couldn’t see any way to get around this glitch.
However, I think what questions about coverage I was asked by the Overstock.com site before I encountered the glitch, aren’t very clear to the non-insurance agent, and I think it would be difficult for the average consumer to understand the importance of what they were being asked. Renters insurance is simple enough to get accurate quotes & buy online. But an accurate home, condo, or mobile home insurance quote, with coverage meeting the needs of the property owner, requires a conversation with an agent or an insurance company representative, because specific information about the building to be insured is required, and coverage options vary in importance among customers. Once an agent determines the amount of coverage your home needs, and your personal need for coverage, it’s easier to use insurance company websites to compare home insurance coverage.
Overstock.com Insurance Agency: the pros and cons
PRO:
I only see one pro to getting insurance quotes or buying your insurance through Overstock.com. That pro is convenience. If you are on Overstock.com, at least getting an auto insurance quote online is simple, though you may be quoted only two companies. I’d recommend calling the company for a property insurance quote other than renters insurance, but the agency has extended operating hours, so contacting them early in the evening may be possible when local insurance agencies are closed.
However, if you get an online auto insurance quote, it may not turn out to be accurate when you buy the policy. If Overstock.com quotes you a better price, make sure the price is verified, before you buy the policy. If you have any doubts about the price being finalized before you buy online, call the company before you buy.
Frankly, I don’t see this pro as a compelling reason to buy from Overstock.com. I was quoted 21st Century and Safeco for my auto insurance. I could get the same price and convenience by buying direct from 21st Century or Safeco.
CONS:
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1. Online prices may not be close to accurate.
2. Only two companies were compared online.
3. Overstock.com is no different than any other independent insurance agency, offering the same companies at the same price, but with no local agent to provide personal service.
If Safeco had the best price for me, why should I buy it from Overstock.com, and have my policy serviced by an outsourced call center? I can get the same coverage at the same price from a local independent insurance agent representing Safeco. The agent will remember me as a customer, provide proactive customer service, and be more familiar with the coverage and insurance laws in my state, than an out-of-state employee handling a high volume of customer calls from many states, representing many different insurance agencies, as well as the Overstock.com insurance agency.
Local independent insurance agencies in your community don’t have the financial resources to get in front of a very large amount of consumers, like Overstock.com, so you will have to seek them out. Most insurance companies selling through independent insurance agents have websites with easy-to-use agent locators. Put in your zip code, on the Safeco website for example, and you will see all the agents representing Safeco close to you.
Jeff Chesky, CEO of Insuritas, the company working with Overstock.com to provide insurance, believes the traditional insurance sales model of customers sitting down with an agent and discussing policies is dying, according to a recent Insurance Journal article. However, industry studies have shown most consumers research insurance companies & rates online, but when it’s time to buy, they contact the company or an agent. I believe it’s still wise to talk to insurance professionals about your coverage before buying.
From the article, Chesky says:
“Consumers don’t want a relationship with an agent or even a carrier,” says Chesky. “They just don’t want to spend money on something they didn’t use but still want to protect their investments and assets.”
If it turns out you never need your insurance, it doesn’t matter if you have inadequate coverage. But it’s not a smart move to buy insurance based on never needing it.
Is getting price quotes or buying insurance from Overstock.com a good idea?
If you already are shopping on Overstock.com at the time, and don’t mind spending a few extra minutes to see if they can offer you a better insurance rate, it can’t hurt to get a price quote — just make sure you are quoted accurately for the right coverage, if you decide to buy. But I think its better, if you are quoted a lower rate, to buy direct from the company, or through one of the company’s local agents, quoting the better price.
If you are seriously shopping your auto or home insurance, as I strongly recommend people do each year, you can ignore Overstock.com. You are not getting any better rate or service by buying from Overstock.com, and Overstock.com is working with the same national insurance companies most independent insurance agencies represent. Overstock.com., like Walmart’s recent announcement of offering online auto insurance quotes comparing companies, is not a new insurance company option at a lower price for consumers, but a way for existing companies like 21st Century, Safeco, & Travelers to reach more people.
One great thing, about Walmart & Overstock.com offering auto insurance company price comparisons online, will be the greater public awareness of the big differences in price among insurance companies for the same coverage. A lot of people pay too much for their insurance because they never shop for better rates, or if they do shop, they don’t check the rates of enough companies. Some companies charge twice as much as others for the same coverage, but no single company has low rates for everyone. With car & property insurance, you don’t get better service or coverage because you pay more. You have to shop with all the leading companies, to find the company with the best coverage and best price for you.
What do you think about buying auto or home insurance from Overstock.com? Comment or ask me questions on my facebook page. Follow me on Twitter for important insurance consumer news & new blog entries at CarInsWatch. Read my auto & home insurance company reviews rating each company’s pricing, claims handling and customer service for over 40 different companies; customer complaint analysis for the major insurance companies in each US State; term life insurance rate surveys and more, on my website’s home page at smartshopyourcarinsurance.com.