Buy Car Insurance With Bitcoin
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It seems the entire world is in Bitcoin mania. This new form of digital payment has taken investors and speculators by storm in the last few years. The price has skyrocketed from under $1,000 to over $15,000 per coin. There is a lot of focus on the price of the virtual currency, but how widely is it used in everyday commerce? Can you buy car insurance with bitcoin and other useful services? What use is virtual money after all if you can’t use it to buy stuff that you need?
While you might be able to save 15% on car insurance with Geico, you can’t use Bitcoin to pay for your policy. At the moment there are no major U.S insurers offering any digital currency for payment towards a policy, even though Bitcoin has been around for over 8 years. One of the problems with offering this type of payment option at the moment, is not many people own bitcoin, while nearly everyone has a bank account or credit card.
Another issue is many people don’t know about bitcoin and other crypto-currencies, while others don’t even know how to buy them. This leaves businesses in a conundrum. If they invest in the technology to accept digital currency, there aren’t many consumers who would choose it as a payment option. If more consumers buy “crypto money,” then insurers and other businesses will be forced to meet that demand. At the moment, only a small amount of tech-savvy consumers are demanding merchants to use bitcoin.
Another possibility is a major insurer like Esurance could gain publicity and new customers by offering bitcoin as a payment option. This could potentially bring in new customers that are recent adopters of the technology. So who will be the first American auto insurance company to offer digital currency payment? Probably a direct insurer like Geico or Progressive that does most of their business online.
Although there are currently no automobile carriers offering bitcoin, for southern California residents, there is one insurance agency that does. Simi Valley Insurance has become a trendsetter and now offers bitcoin as a payment choice.
The idea came from David Rives, who had experience in insurance while working at Allstate for about a year. David’s granddaughter Christina was a big proponent of bitcoin and pushed hard to get it listed at the agency. Simi Valley Insurance only accepts bitcoin currently for auto policies. They offer home and life ins with normal payment methods, including credit cards and checks.
If a customer wants to buy auto insurance with bitcoin, they first need to get a phone quote. Next, payment can be made at the office or online via email. Once payment is verified, the client must go to the office and sign all the paperwork and get their insurance I.D. cards.
While paying for car insurance with Bitcoin might be the future in 5 years, for the moment it will not be as convenient as using your good old credit card. Most online insurers like The-General and Progressive have automatic payment options that will deduct your monthly premium payments using your credit card. This is a service many customers love and is not offered by Bitcoin. Another issue is most people don’t feel Bitcoin is safe and even more don’t know how it works.
Maybe in 10 years, the digital currency will replace credit cards. For now, they are just not as convenient for major purchases, especially those with installments like auto insurance, as credit cards are. Check to see if you can lower your auto insurance premiums at Good to Go Insurance online and easily save hundreds in 5 minutes or less.