CNNdotCOM Tools: Buying insurance online

(CNN) -- At a time when consumers are searching for just about everything on the Internet, they may not think to search for their insurance online. But finding the best price for an insurance policy may be getting a little easier, thanks to insurance marketplaces like Quotesmith and Insweb. These sites allow users to fill in personal criteria, then get a list of estimated pricing quotes in seconds.

So is it possible to get an insurance policy without ever dealing with an agent at all?

"For certain types of insurance, like auto insurance, you will be able to get a policy right on the spot and drive your car and get into an accident that evening," says Owen Thomas of eCompany magazine. "Other forms of insurance, it really depends on the state. Certain states such as Massachusetts don't let you get an insurance policy without dealing with a broker."

QUICKVOTE What is your preferred method of buying insurance? by telephone visit with an insurance agent online other View Results   ALSO Find the latest on online insurance

If you are already insured with a company you trust, checking out the company's online resources may prove to be a good idea anyway.

"Insurers have their own Web sites. You can get a lot of customer service information, you can sign up to have email updates, you can even pay your premiums online," Thomas says.

If you're unhappy with your current policy, you can go to sites like quotesmith.com for additional resources.

"Then there are insurance marketplaces, where you can apply once and get several quotes back from multiple insurers. Quicken insurance (has) an insurance marketplace where you can get quotes from all kinds of insurers. You actually get quite a range of prices. This is clearly an industry that has not seen a lot of direct price comparison in the past," Thomas says.

Be ready to get quite a variety of prices for essentially the same product. "Honestly after the first time I did this, I was left wondering, 'What am I actually getting if the price varies that much?'" Thomas says.

Some types of insurance may not turn into successful online products. It may prove difficult for providers to get people to trust the idea of getting health insurance online, for example. "It's tricky," says Thomas. "You have to reveal a lot of personal information about various medical conditions to get a health insurance policy. It's hard to get a good deal on health insurance online because it's hard to get a good deal on health insurance everywhere."

According to eCompany magazine, the Internet is making the insurance industry more efficient. It is allowing companies to save money internally - savings that consumers hope will be passed on to them.

Staples installing Internet kiosks
January 31, 2001
Postal services look for their online niche
January 23, 2001
IRS online didn't tax patience in 2000
January 3, 2001
Medical insurers team up to develop online transaction system
November 20, 2000
CNNdotCOM Tools: Legal services online
November 18, 2000

Standard & Poor's
Epinions.com
Insurance.com
InsWeb Insurance Online
Quotesmith.com

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.