The ability to buy car insurance online is a tremendous convenience for customers. Consumers can obtain quotes and purchase an auto insurance policy without ever leaving their home or office. Documents are immediately available to print and coverage begins immediately.
Who am I buying my insurance from?
Most people who do not have a particular insurance provider that they are familiar with will most likely begin by searching online using a keyword phrase such as ‘buy car insurance online’. This will most likely deliver many results to choose from and it is important to be aware that the results will be divided into two very distinct categories.
The results will include car insurance sold through independent agencies and car insurance sold directly from the company, which is the actual insurance provider. Insurance agencies are licensed to sell insurance provided by a number of insurance companies and are paid a commission on the sale by the company but they are not the actual company that provides the insurance. This is very important to know in the event that you suffer a loss and need to file a claim.
There are both pros and cons associated with using an insurance agency. On the con side they are a third-party which will usually translate into a slightly higher premium. On the pro side customers can usually make their payments through the insurance agency (or online on their website). Insurance agencies can also assist in making changes to your policy such as adding or removing a car or driver or changing coverages. The insurance agency handles the transaction with the insurance company on your behalf. The services provided by insurance agencies can vary so it is important to have a good understanding of this process before purchasing the policy.
When a consumer makes their online insurance purchase directly from an insurance company, such a Geico, there is no third-party insurance agent involved. Cutting out the middle man can save the customer money but it will also require them to take full responsibility of their policy and work directly with the company on all transactions.
Is this a reputable insurance company to buy car insurance online from?
Once you have received your buy car insurance online quote and know which company your policy will be written with it is important to do some research on that company. Verify the company’s ratings and creditworthiness with Standard & Poor and A.M. Best. These organizations evaluate companies annually and assign a rating based upon their financial stability and overall performance.
It is also a good idea to verify the company with the Better Business Bureau to see if any complaints have been filed against them. Another easy way to uncover any negative information about the company is to do a search ‘company name, complaints’; if there have been any complaints listed about the company by unsatisfied customers you will most likely find them in these search results.
How much am I paying for my car insurance?
Car insurance pricing can be deceiving so buyers should do their homework and a little bit of arithmetic. All insurance providers know that the easiest way to get the customer to make the purchase is with the lowest payment possible needed to open the policy; however opting for a payment plan rather than paying the policy in full can result in a substantial increase in the total amount paid. Most insurance companies offer a discount on policies paid in full because it saves them the costs that would be incurred from issuing bills over the life of the policy. If you are unable to pay your policy in full then opt for the plan that has the least amount of payments to save on the fees generally associated with installment payments.
Most companies also offer lower down payments and discounted payments if you choose an electronic funds transfer payment plan. With this plan the company will ask you to authorize them to draft the payments directly from your bank account on the per-determined payment due dates. Paperless discounts are also another way to reduce the total amount paid for the policy. With this option you will not receive any documents mailed to your home or office. All of your documents will be sent to you in an e-mail and you can print them yourself if you choose to do so. This saves the company the expenses incurred on paper, printing and mailing costs and they transfer the savings to the customer.
It is very important to be aware of the fact that most insurance companies charge start-up fees for each policy they sell; if you select a payment plan rather than paying the policy in full the company will take this fee out of your down payment before applying any money to the policy itself. These fees are non-refundable and if you cancel your policy or let the policy lapse for non-payment of your first bill you will most likely wind up owing the company money to cover the period of time that you had coverage under the policy.
What is car insurance?
Quite simply put an insurance policy is nothing more than a piece of paper and a promise. On a more detailed level a car insurance policy has two main components: liability and physical damage. Your liability coverage is for other people and/or their property that you may become liable for in the event of an accident that is determined to be your fault. Your physical damage coverage covers your vehicles for damages in the event of theft, vandalism, weather-related damages or damages suffered in an accident that is determined to be your fault.
What is a good web site to use to buy car insurance online?
Here are some features and qualities you should look for when choosing a web site:
• Informative descriptions of each coverage
• Well functioning web site with no visible bugs or defects
• Availability of online chat with a representative or a telephone number you can use to call and speak with a live representative
• Better Business Bureau seal logo
• Secure Sockets Layer encryption (this helps keep your information secure)
• Confirmation numbers provided for all transactions
• E-sign documents
Once you have made the decision to buy car insurance online make sure to do your homework and be a savvy consumer to ensure you get the best policy for the price and are insured with a reputable company.