Overstock.com and Wal-mart are introducing online sales for auto insurance. Research shows that while overall online shopping for insurance is down 3% in the part two years, the online market is still very lucrative for insurance companies. The two most popular months for shopping for car insurance are March and August.
Overstock.com’s CEO Patrick Byrne said that “Overstock’s mission is to offer high-quality products at low prices in order to save people money, and the launch of our insurance tab fits this mission beautifully. Our insurance tab is, in effect, an insurance exchange, which lets customers compare live quotes for insurance on residential, vehicle, and small business insurance, and bind insurance policies right from our site.”
Overstock.com is a discount online retailer that sells a range of products, including clothing, jewelry, furniture, electronics, and cars.
Wal-mart, on the other hand, had partnered with AutoInsurance.com to offer it’s customers a one-stop-shop service. Wal-mart will not be actually selling insurance, but will be directing customers to the website. Currently, it is only being offered in eight states: Arkansas, Louisiana, Mississippi, Missouri, Oklahoma, Pennsylvania, Tennessee, and Texas. Wal-mart has said that they plan on expanding nationwide and will also add more carriers than the ones they currently have which include Travelers, 21st Century, Progressive, and Safeco.
According to the latest J.D. Power Insurance Shopping Study, most consumers that change insurance providers due to poor service often end up regretting that they changed, due to higher costs in most instances.