Since 2000, direct insurance companies like AsiaDirect and Progressive have started to emerge as a top player in the insurance industry. The insurance industry calls these companies "direct" because they sell directly to you on the internet without an agent who can advise you on what coverage may be right for you, and they also offer only one company product. I read an article about the amount of money these companies spend on advertising, "The October 2010 Consumer Reports stated, those quirky characters in auto insurance TV ads might give you more laughs than actual savings. According to a 2009 survey, only 14 percent of consumers who compared premiums found that they had saved money my switching to these direct carriers".

Here is three main points why a local insurance agent is a must when buying insurance.

1. The first point and probably the most important one is when you buy from a local agent, they are there face to face to help you choose the right coverage. A local agent can gather some information about your assets and chose the proper liability coverage to protect you, your family, and your assets. They can also help you pick out the proper Comprehensive and collision deductible on your vehicles to match your budget and needs. Staying local and having an agent that cares if you are properly insured and getting the best value possible is the only way to go.

2. Claims! Nobody every thinks that they are going to have to file a claim. But if you ever have to, you want a local agent. A claims process can be a long ordeal when dealing with insurance companies. If there is ever a problem, you're going to want a local agent that is there to help. Otherwise, if you bought insurance direct online and did not have an agent, it is you vs. the insurance company. No one is on your side to defend your right.

3. Saves you money! In the long run, going with a good local independent agent will save you money. A general misconception about insurance is that going with a local agent will cost you more, incorrect. Some companies want you to go direct because then they don't pay the agent commissions out of their pocket. For example, Progressive rates are the same if you go through an agent or direct online except for one case. They have started an incentive for consumers to buy direct, where they offer a $50 discount on your first 6 months premium. After that your rate jumps back up level with what an agent can offer you. So, is $50 for 6 months worth not having an agent who will make sure you have the right coverage? I think not, but that is up for you to decide.

As you can see, having a local insurance agent is very important. Insurance companies are making it easier everyday to purchase insurance online and as insurance gets more and more complex you are going to want a local, caring agent who can help protect you.