Updated: 10/14/2023
The Pros & Cons Of Digital Insurance Apps & Automatic Insurance Online
Insurance applications are more common in our fast changing digital environment. These mobile applications provide policyholders with a practical way to handle their insurance requirements, but like any technology, they have advantages and disadvantages of their own. We shall examine the benefits and drawbacks of insurance applications in this post.
Insurance applications and automatic insurance applications are designed for ease of use. That is their primary claim, selling point and goal. They have also started to claim they are cheaper because they “cut out the middleman” but there isn’t solid evidence to support that. So are these insurance apps worth it?
Are Insurance Apps Worth It?
For certain people they can be. Quick and easy online application and paperwork and Boom! You have car insurance or apartment insurance. But according to dialoguetech only 25% of people purchase insurance online, and almost 75% of people who attempted to purchase insurance online reported problems. This indicates that insurance apps seem to be simple or effective for only about 25% of insurance users.
The Pros To Using Digital Insurance Companies
Digital insurance companies can be massive time savers. If you only need one type of insurance coverage it is a quick and easy way to apply for insurance right from your living room couch. They have an algorithm or software that determines what would probably be the best insurance for you. After you apply and are approved you can start getting their insurance coverage. In the future when there are claims you don’t even have to deal with a human for many of the online insurance companies. Many of them have an AI bot that is able to give you answers to your questions and prompts.
Below is a breakdown of the positives of using insurtech for your insurance:
- Convenience: Insurance apps provide unmatched comfort. Anywhere there is an internet connection, policyholders may view their policies, make payments, submit claims, and get vital papers like insurance cards. This is very helpful in an emergency.
- Easy Policy Management: Without the trouble of making phone calls or going to a local office, policyholders may effortlessly update their personal information, add or remove coverage, and modify policy details using insurance applications.
- Digital Documentation: Insurance apps frequently let users keep their insurance identity cards and other crucial papers digitally. This lowers the possibility of misplacing physical copies and offers a greener alternative.
- Insurance Claim Submission: Submitting an insurance claim using an app is frequently quicker and easier than doing it the old-fashioned way. The claims process may be sped up by users submitting images, papers, and descriptions straight from their cellphones.
- Cost Transparency: Numerous insurance applications include solutions to aid consumers in comprehending the scope and price of their policies. This openness might aid consumers in making knowledgeable choices regarding their insurance requirements.
- Alerts & Notifications: To help policyholders remain on top of their insurance obligations, insurance applications may send policyholders critical updates, reminders, and payment alerts.
- Accessibility for People with Disabilities: These applications may be made with accessibility features to accommodate people with disabilities and make it simpler for them to handle their insurance on their own.
The Cons Of Using Digital Insurance Companies
While we are a little biased on this review, this information is a combination of research and data, and personal experiences we have heard or seen our clients go through. Learn all about the negative side of using a digital insurance company.
- Security Issues & Concerns: Because insurance applications are digital, there are issues with data security. Users must have confidence that cyber risks to their sensitive personal and financial information are effectively secured.
- Limited Human Interaction: While apps are convenient, they may not provide the tailored assistance and human touch that can be helpful when negotiating challenging insurance situations or making challenging claims.
- Technical Issues: Users of the app might run into connectivity issues, system failures, or other technical issues that would prevent them from accessing or managing their insurance.
- Complex Features: Some insurance applications may be difficult to use because of their complicated features and interfaces, especially for non-technical users.
- Limited Options for Coverage: Not all insurance kinds may be accessible through an app, necessitating interaction with a representative or agent for specialist coverage.
- User Privacy Concerns: Insurance applications may gather information about user activity and communicate it to third parties. It’s crucial to thoroughly read the app’s privacy settings and policy.
- Dependency on Technology: Relying only on insurance applications might lead to a users becoming dependent on technology, making it challenging for them to employ more conventional ways in the future.
AI Is Great, But Not Perfect
Using artificial intelligence with insurance is brilliant and such a huge time saver. Most insurance companies use AI even though they have an agent managing your policy and claim. Why does a licensed insurance agent manage the policy even though they use AI to help determine what insurance coverage you need? Because everyone’s situation is different. Having a person that can assess your situation for any outliers can determine what insurance you need specifically. If you use an online app for your insurance, the core question you will continually have is, “What does my policy cover specifically?” While the bot might be able to answer most of those questions, it does not have the human review to make sure nothing is missing from your insurance policy.
What If I Need More Than One Type Of Insurance?
Insurance apps can be great, if you only need the insurance they are providing. Some insurance apps only provide flood insurance or car insurance or renters insurance. What if I am a homeowner located in a flood zone with 2 vehicles, a motorcycle and a boat? Am I going to have 5 separate apps to manage insurance on everything? It would save time to go to one independent insurance agency. It will also save you money to have all of your insurance bundled together at one insurance company rather than managing multiple insurance policies.
The Danger Of Having Multiple Separate Insurance Policies
There are a few areas of risk involved with using applications for your insurance.
- Not Fully Covered: Insurance policies that are divided creates a greater likelihood for something to not be covered by your insurance. If you are working with one agent, they can inform you of any potential gaps in your insurance policy to help make sure you are fully protected. If your insurance policies are all through apps, you have essentially taken on the role of your own insurance agent without the education, knowledge, or experience.
- Information Security: There is also an increased likelihood of your information being stolen. With more and more applications that you provide your social security number to, bank info as well as personal info there are more chances for your data to be stolen.
- Personal Privacy: Some Insurance applications require you to allow them to track and retain data through your phone. From location data to driving speeds and activities.
Learn About Specific Insurance Apps
Learn more about insurance apps and how they each have pros and cons in the services they provide.
- Lemonade Insurance
- Ladder Insurance
- Root Insurance
- Neptune Insurance
Are Insurance Apps Good?
Numerous benefits provided by insurance applications can make the insurance process simpler for policyholders. They provide significant advantages in terms of accessibility, speed, and ease. These advantages must be contrasted with any possible drawbacks, such as worries about security, data privacy, and a decline in interpersonal contact.
The decision to use insurance applications should ultimately be dependent on the user’s comfort level with technology, the particular insurance requirements, and the value of individualized support throughout the insurance process. Understanding the benefits and drawbacks of insurance apps is crucial for customers since they are expected to continue to play a bigger role in the insurance sector as technology develops.
The Best Situation For Digital Insurance Agency Usage
Digital insurance apps have their time and place, but it is unlikely they will fit someone’s lifestyle and insurance needs for their whole life. If this article made you interested in comparing rates, contact Strickler insurance for a free insurance quote. We are located in Lebanon Pennsylvania and provide insurance in Pennsylvania, New Jersey, New York, Maryland, Delaware and Virginia. Contact us today for a free insurance quote!
