Google is on the move. No surprise, there. Earlier this year the company best known for its search engine, introduced an online insurance comparison tool — Google Compare — in California. It has since unveiled the product in more states, including Illinois.
Google.com/compare provides quotes from insurers including
MetLife, Elephant Auto Insurance, General Insurance, Freedom National, Titan Insurance, Safe Auto,
Liberty Mutual, and First Chicago Insurance Services.
Other well-known consumer-brand carriers, including
State Farm, Geico,
Allstate and Progressive, aren't available through Google.
Google Compare, which is free to use, receives commissions and fees from participating carriers. It works not as an insurer but as an agent of the insurer.
Google Compare provides quotes efficiently after people answer a series of questions. Quotes appear almost immediately. Geico claims 15 minutes with its site could save shoppers 15 percent, while Esurance, a unit of Northbrook-based Allstate, says it provides quotes in 7.5 minutes. Google is at least as fast, and the site provides users with phone numbers and "buy online" links.
Phil Lackman, CEO of Independent Insurance Agents of Illinois (IIAI), said he is not too concerned about Google getting more deeply into car insurance. “We knew it was coming and, really, and while Google is a powerful brand, it’s just another entry in the online market. We’ll see how it goes.”
He said a lot of people begin their search for insurance online but then decide they want to talk to someone who can give them advice and end up buying through an independent agent.
“Illinois is a very competitive market with hundreds of companies and thousands of agents, and there is certainly a trend toward online shopping and sales.” He said many Illinois agents already work through TrustedChoice.com, a website that enables consumers to shop for insurance online, and connect with an independent agent as part of that process.
He said millennials especially tend to buy things like insurance online. “It can seem like a commodity purchase, but as people mature and have families and collect assets, they begin to realize that they need advice from someone they can trust, someone they can have a relationship with,” he said.
Ryan Hite, owner of Eagle Rock Insurance Services, said he welcomes the competition. “I was expecting this and whether we like it or not, big tech companies like Google are getting into everyone’s business. I welcome it. This is a relationship business, and competition is good for the business.”
He said he routinely shops online and compares products and prices online. “But when you have a claim, or you have a complex issue that you need help with, you want to be able to talk to someone who values your business. You don’t want to file a claim online and call an 800 number hoping to talk to someone who can help. When you need help, you want a relationship. That’s what we provide.”
