California consumers now have a new tool to use when shopping for renters or homeowners insurance policies.
Last week, state Insurance Commissioner Dave Jones announced the launch of a new online coverage comparison tool that allow consumers to compare coverage features offered by many of the more than 100 insurance companies licensed to sell home insurance in California.
Coverages available for search include homeowner, condominium owner and renter insurance.
“The best coverage decisions are informed ones,” Jones said in a statement. “The new online comparison tool will help consumers understand their options and find the coverage and features offering the best protection to meet their needs.”
Creators say the Homeowner Coverage Comparison Tool provides consumers a valuable service by not only supplying price, but by pointing out key differences between policy features offered by each insurer.
The department hopes the tool will lead consumers to make more educated insurance decisions, particularly as the state faces increased danger from threats like wildfire.
“Discovering you do not have the right coverage to protect your family and assets after a loss has disastrous consequences,” said Amy Bach, director of United Policyholders. “The marketplace is changing rapidly and this tool will help consumers keep up with their best options and avoid making potentially costly coverage mistakes.”
The launch of the tool should prove useful to independent insurance agents and brokers, who still sell the majority of homeowners and renters policies. This remains true even for younger consumers, who are often characterized as being more prone to work with direct writers and purchase insurance online.
According to a recent study sponsored by software provider
Applied Systems, 27% of insurance consumers under the age of 35 do use online search engines to research different insurance companies and compare prices, but close to 40% do their purchasing in person with an agent.
“The myth says that [consumers] want to do everything online always—that’s just not true,” said Michael Howe, senior vice president of product management with Applied Systems. “They definitely want to talk to a human, it’s just that they also have a strong preference for different platforms at different points in the shopping and purchasing cycle.”
