Compared to the brick and mortar alternative, doing business is a lot cheaper. Take, for example, the costs avoided just by doing business online exclusively (This is very important to note if you really want to get the cheapest car insurance rate)…
i. You don’t need to rent or buy an office space. An office space can run into tens or 100′s of thousands depending on where it is and whether you are either renting or buying.
ii. You will have to handle utility bills that come with owning a space. Also add fees you might have to pay to the local council in order to have your sign up and other related expenses.
iii. Don’t forget how much it will cost to maintain one full-time employee. In the insurance industry you might actually have need for a few number of workers depending on the size of your agency.
However, look at how little you’d have to spend if you were to do business online…
i. Instead of office space running into 100′s of thousands, all you need is just a domain name and hosting (easily done for less than $100).
ii. You don’t have to think of utility bills but you just need a good web designer to design and set up your site. Depending on how well you shop you can do this for less than $1,000 for a world class set up.
iii. You really don’t need employees as your website can give people quotes 24/7 without complaints.
That’s serious money saved in running costs alone. Therefore, businesses that run online have fewer overheads and are more capable of helping you get cheap car insurence.