Insurtech Startups Like Savvy are Transforming How Drivers Buy Car Insurance

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

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Shopping for car insurance used to be a hassle, requiring drivers to fill out long forms for each insurance provider you were considering. Once you filled in your private information, every single provider you got quotes from would add you to a mailing list, sending you promotional emails long after you’d finished shopping. 

With so much hassle, following the recommendation to switch providers every year doesn’t seem worth it — even those who do so save an average of $560 per year. By abandoning the lead-gen model, providing free help in switching, and integrating with popular mobile finance apps, Savvy is revolutionizing how drivers buy car insurance.

Death of the Lead-Gen Model

Comparison sites aren’t necessarily new to the car insurance scene. Until recently, however, most of these comparison sites operated on a lead-gen model. For customers, that means that the comparison site made money by selling your personal information to third-party insurance providers — whether or not you had any interest in purchasing from those providers.

After filling in the form at a lead-gen comparison site, customers would face an onslaught of spam email, phone calls and messages from tons of insurance companies. Newer comparison sites like Savvy and its competitors like Insurify and The Zebra ZBRA have abandoned that model. 

Instead, these newer companies operate as licensed insurance brokers. Rather than making money by selling your data, they make money by getting a commission if you end up buying a policy through their websites.

For customers, this means that your information won’t be shared with dozens of other companies. Even after Savvy pulls quotes for you, it will keep your data anonymous until you click through to an insurance provider that you’re interested in. 

Free Policy Switching Assistance

While 75% of drivers shop for car insurance on the internet, only 20% actually buy a policy online. Even though trends show that people increasingly prefer the convenience of buying online, car insurance has lagged behind because there hasn’t really been a convenient, streamlined way to buy insurance without speaking with a live agent at some point in the process.

Savvy hopes to solve that problem by providing free assistance in buying car insurance. Once a shopper finds a quote they like, Savvy will help them make the switch — all the way from canceling their current policy through to opening their new one. This service is offered free of charge.

In-App Integration

One of the most innovative trends that’s simplifying finance for consumers is the rise of in-app integration, and Savvy is one of the leading examples of how that can change the car insurance space. Currently integrated into seven of the top 50 mobile finance apps, Savvy’s insurance comparison tool can now be used inside a shopper’s favorite finance app. 

This integration helps consumers make shopping for car insurance a regular part of managing their financial lives. Since most experts recommend switching providers every year to avoid annual rate hikes and benefit from new customer discounts, the ability to make that switch from the mobile app the shopper already uses to manage their finances will make it much simpler to actually follow that recommendation.

See also: Best Car Insurance

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.