Tag: online insurance

How Online Auto Insurance Works In the U.S.

Auto insurance is a necessity for any household. Not only is it required by law but also coverages you in the case of medical bills and property damage.  In an attempt to remain competitive in the digital age, auto insurance companies have taken their businesses online providing automobile owners flexible and reasonable rates. A simple online search for a car insurance quote results in: paid ads by insurers including Geico, State Farm, Allstate and Progressive, third party companies specializing in contract negotiations and local businesses offering rate comparisons. We explore why you should consider an online auto insurance, how to get an online auto insurance quote and things you should look out for. 

Why choose an online auto insurance provider

  • It is relatively cheap. You can choose your coverage, source for quotations, make payments and compare coverages all in the comfort of your home. It is especially attractive to people with fewer assets needing less-complicated coverages, and who are price-sensitive. 
  • Choosing the online platform avails to you unbiased reviews of the company’s business. You get access to the pros and cons of their products long before you make the purchasing decision. 
  • As the online landscape is still new to most insurance companies, you may be able to take advantage of the multiple offers and discounts offered. In an attempt to remain competitive and attract buyers to their websites, insurance companies will run reward systems and offers making the car insurance bought online relatively cheaper.  
  • Buying an auto insurance can be rather daunting. Online auto insurance companies have, in light of this, created user-friendly interfaces that ease of the decision-making and ultimately the purchase. Reputable companies have invested in making the process seamless and the transactions safe. 

How to Get Online Auto Insurance Quotes

  • Figure out the location you will need to use while filling out the paper work

The term used for this during most applications the “garage location.” This implies the specific location where the vehicle getting the coverage will be parked most of the time. While this may be a no-brainer for individuals with just one car and one residence, automobile owners with multiple homes and vehicles may find it rather challenging. 

  • Find out the full information on the vehicle

While it is not necessary to give the agent your license plate number or details of your driver’s license, it is important to have the right information at hand. For most companies including , they will require you to have information on the make, model and year of the car at hand. You should also seek to know the vehicle identification number (VIN) before you reach out to the insurance company. Finally, most companies will require you to highlight any safety features and aftermarket features in each of the vehicles listed. Also of importance is information on the expected annual mileage, the vehicle’s primary use and the type of coverage you are looking for. 

  • Have ready any information on the driver(s)

When filling out the insurance coverage paperwork, you may be required to offer factual information on the driver and other individuals who’ll be handling the vehicle. You will need to have information on such inquiries as: how many miles you drive to work and back, particulars on the primary driver of the said vehicle, how long they have been drivers and finally the dates of any minor or major traffic violations by the said driver. Before a quote is drafted, you will also need to indicate the credit scores for all the drivers who will be handling the automobile. 

  • Search online for companies that offer quotes and connect with an independent agent

Finding the right company to get a quote from can be a hassle especially when you are looking to purchase your very first coverage. That is where an independent agent comes in. A quick search online of online auto insurance providers that offer free quotes churns out an overwhelming number. An independent agent will know which site provides the most accurate quote and compares all the quotes from the different companies. They’ll shop, compare and assemble all the information you require to get the best vehicle insurance coverage. 

What you should look for when choosing an online auto insurance coverage

  • A simple online application process
  • User-friendly account management tools
  • Availability of numerous integrated discounts for example multi-car or safe driver discounts
  • Ease in creating custom coverages
  • Availability of optional add-ons. These could range from a simple package of accident forgiveness to new car replacement. 
  • Go for direct to consumer insurers like Geico as not only do you get better packages, you can have your agent custom make an umbrella coverage. 
  • Seek to speak live to a representative instead of simply settling for the online quote that fits a standard situation. 

Even though the internet has made getting an auto insurance quote online rather easy and straight-forward, it can still be daunting especially for first-timers. Within just a few minutes, you can get rate-comparisons and quotes from multiple providers. Invest into getting the best online auto insurance quotes as they are a great tool to have in your research and price shop. 

Online Car Insurance Explained

Having your car insured is one of the best things you can do as a responsible car owner. It provides coverage not only for damage and loss on your part but also to affected persons as well, such as in the case of road mishaps. More importantly, it gives you peace of mind and an assurance that, should there be an incident on the road, you and other people affected will be insured. 

How does online car insurance work?

Online car insurance is an insurance policy captured online which handles expenses as a result of an accident, theft or third party liability. It is mandatory and it protects you from financial emergencies and legal liability resulting from collision, bodily injury and damage to you, your vehicle and other persons.  There are now various companies which offer car insurance online with low premiums to choose from. 

Benefits of online car insurance

There are many advantages if you purchase your car insurance policy online:

It requires no agents at all.

There is no need for a middleman such as an insurance agent or broker if you purchase car insurance online. You can easily search for car insurance companies and get quotes directly from them without having to go through the trouble of dealing with various agents. 

It is budget-friendly.

Securing your car insurance online saves you time and money. With just a few clicks you can easily contact car insurance companies to get an informed decision.  Also, since you’re dealing with car insurance companies directly you’ll save money since you don’t have to pay an agent or broker. 

There are online reviews to help you decide.

Confused with what car insurance company to choose? You need not worry as the internet has a rich resource of online reviews to help you decide. Check out a company’s customer ratings and what past clients are saying about their customer service and support.  Opt for a reputable car insurance company backed with years of experience in the industry. 

You can purchase anytime you want.

Buying car insurance online is convenient as you don’t have to adhere to office hours. You can access a car insurance company’s website anytime and you can buy car insurance regardless of the time of day. 

It has a fuss-free and user-friendly process.

Since you’re mostly doing the work yourself, purchasing car insurance online provides easy access and convenience.  There is no waiting time required in processing insurance documents and as a result, you’ll also be able to save more time and effort.  Also, your online financial transactions are secure. 

Disadvantages of online car insurance 

While there are benefits if you buy car insurance online it also has its disadvantages. These are:

You have to rely on your own expertise.

Since you’re buying your car insurance online it also means you’re a one-man army who has to rely on your own expertise. This can be a real struggle especially if it’s not really your cup of tea. You have to double your efforts in researching answers to your insurance-related inquiries since there is no agent to assist you. 

You have to file a claim on your own. 

As mentioned earlier, you’re doing everything alone and this also means filing claims on your own at a time of loss or accident. This can be hard as you tend to be in a lot of pressure and stress during such an unfortunate time. 

You have to be computer-savvy. 

Purchasing car insurance online can be stressful if you don’t have ample computer skills as you have to fill in all the needed information for your car insurance quote. 

You have to call an 800 number and an automated system. 

While there is ample information available online, still there will be times when you have to speak to a person through an 800 number to clarify insurance-related concerns.  However, this can be frustrating as you have to go through an automated system which can put you on hold at long intervals. 

Essential tips when buying online car insurance 

These are just some of the tips that will guide you in purchasing car insurance online:

  • Be sure to compare car insurance policies from at least a few companies.
  • Make sure that you know your requirements and the coverage you wish to buy.
  • Always use a car insurance calculator, an online tool that gives a rough estimate of your car insurance policy cost.
  • Be sure to declare the accurate insured declared value of your car. 
  • Price should not be your only basis when choosing your car insurance company.
  • Choose only relevant add-ons for your car insurance policy.
  • Take things slowly and don’t rush with your decisions.
  • Be sure to determine the cost of the policy for 12 months (they often have 6 month premiums)

With online car insurance, you are assured that expenses will be covered promptly. It also ensures that you, your loved ones and other people affected are covered in case of accident or theft.