For anyone out there looking for insurance, there is a new type of insurance in the market called direct insurance. Oh no. It is not different in terms of the coverage provided. It is different in terms of how the coverage is provided. Rather how the insurance provider works. An insurance provider who is direct deals with the consumers directly without the use of intermediaries. This means you do not have all those people, the brokers or middlemen, who pester you to take their policy. All you have is you and the insurance provider. This sort of insurance providers came into being in response to the competitiveness of the insurance market. And considering their advantages, they are here to stay.

1. Inexpensive – This is of course the primary advantage of direct insurance. You do not have middle men and the overhead costs are less. Hence the insurance providers have to pay less and they could use that money for your benefit. Much of it anyways. Thus you will have your insurance cheap when compared to other forms of insurance (after all, the intermediary’s commission is usually passed onto you in terms of premium. No intermediary, no passed on costs.).

2. No Middle Men – Since direct insurance companies do not use any middle men or intermediaries you will not have to listen to agents continuing on and on about policies which would be more advantageous to them than to you. You would be contacting the company directly and you could get to know premiums, coverage, and other details for yourself from the company.

3. Ease of Use – Direct insurance does not have the usual tangles which go with other types of insurance such as contacting agents, haggling with them etc. You deal directly with the company and you will have a hassle free negotiation.

4. Do it Online – You could buy your direct insurance online from the company’s website. Or you could do it by giving them a call. Very easy and almost instant. You may have to pay a deposit in some cases but that is about it. You can upload your documents online, use electronic signatures, set up a direct debit (if you want to) and you are done.

5. You Have the Freedom to Choose on Your Own – With direct insurance you will be choosing the coverage based on what the company has to offer, not based on the advice of any intermediary. You will be responsible and you will be the beneficiary. Simple.