Advice on Purchasing Online Auto Insurance

Tips for Buying Car Insurance Online 

• Don't Base Your Decision on Price Alone

Simply because a company provides you with a low-cost quotation does not imply that you should let them insure your vehicle. Examine the terms of your policy carefully to check that they correspond to your previous vehicle insurance policy and that you are receiving an identical level of coverage. Check the agreement's conditions to ensure that the firm does not compel the use of less expensive aftermarket materials for repairs instead of genuine factory components, which can pose safety risks. 

In addition to the complaint indexes kept by state bodies, you can consult consumer satisfaction databases on websites such as ConsumerReports.org and JDPower.com. Before purchasing a policy, you should also ensure that your insurance provider is financially solid. In addition to verifying with your state insurance department, rating agencies such as A.M. Best and Standard & Poor's are helpful tools for determining a company's financial state. Look for suggestions from friends and family as well.

•  Check the site of your state's insurance department.

Vehicle insurance is governed on a state-by-state basis, and your state's insurance agency generally contains a lot of necessary information for your search in the consumer information portion of its Web site. Check the National Association of Insurance Commissioners State Web Map for a connection to your state's insurance department. 

The level of information varies, but these sites frequently include profiles of the various insurance companies licensed in the state, sample pricing comparisons paid by competing agencies to cover popular vehicles, and consumer guides to auto insurance. Many insurance departments also offer complaint indexes, which compare the number of consumer complaints upheld against a specific company to the number of policies granted. This information can help you decide which company to sign with. 

Inquire with an agent if you are unsure whether a prospective insurer is licensed in your state. Report the company if they falsely claim to be licensed in your state.

•  Shop Around

Your automobile insurance policy should be reviewed once a year to evaluate how much you're paying in premiums and how much coverage you're receiving. The rate of the same insurance can vary significantly based on factors including how much the organization spends on advertising, the fees paid to the agent, and the risk ratings of the company's pool of covered drivers. 

To begin comparing rates, go to a site like NetQuote.com, Insure.com, or InsWeb.com, which allows users to enter information about their vehicle and driving history in return for a variety of quotations from various insurance providers. Many of the quotations are often obtained through insurance agents' follow-up e-mails and phone calls.  

Search for a security policy that assures any communications are reasonably safeguarded from third parties before submitting any sensitive information via a Website and configure your Web browser to warn you when you leave a secure connection.

•  Prepare Before You Search

Whether you shop for vehicle insurance online or in person, be sure you have all of the information you need to get an accurate price. Take note of your vehicle identification number (VIN), make, model, year, the zip code where you park it at night, and any aftermarket safety or anti-theft devices. 

Obtain the license numbers of all drivers who will be covered by the policy, as well as the date they were originally licensed, and a copy of your driving record. Get your credit score updated as well; your credit rating might affect your vehicle insurance prices, as some insurers believe those with weak credit are more likely to file claims. 

There are also some things you can do to receive lower insurance premiums. Calculate the number of miles you drove this year vs last year; a big drop in mileage may help you get a reduced price. Consider taking an online defensive driving course, insuring multiple vehicles (or your home) with the same insurance company, or opting for a higher deductible plan. You may even want to waive certain forms of insurance that are not required by law in your states, such as collision and comprehensive coverage on very old cars.

•  Searching Online Is Just One Option

While there appear to be an infinite number of firms offering auto insurance coverage these days, there are really just two ways to purchase automobile insurance: You can buy a policy in person from an agent, who is a licensed professional who sells policies on behalf of one or more insurance firms, or you can buy directly from an insurer via their website or phone. 

Online auto insurance purchases make up a modest percentage of total auto insurance sales, but they are becoming more popular. According to a 2011 survey by Internet marketing research firm ComScore, just 20% of new auto insurance plans were purchased online, with the remaining 43% obtained through an agent. However, in only two years, the number of internet sales has climbed by 5%, while the number of agent transactions has declined by 6%. In addition, according to a 2011 J.D.

Power & Associates study, 54 percent of new auto insurance owners requested a rate estimate online for the first time, marking the first time that a majority of respondents did so.

Want to learn more about purchasing auto insurance online? Check out these articles! 

Online car insurance quote comparison 

Online auto insurance 

Tips on cutting car insurance costs 

Things to know about switching your auto insurance

Checklist for Auto Insurance Online 

When acquiring auto insurance online, several danger signs should be observed. If you detect any of the following signs, you should reconsider your purchase.

•  It's almost too good to be true.

Some of the offers are genuine. Some appear to be too perfect to be true. If you come across such an offer, consider it a red flag and reject the transaction if it sends you to a suspicious landing page or publicly seeks needless information about your bank account.

•  Information overload

Online/digital insurers do not require a lot of information in order to provide auto insurance coverage. The buying process is extremely fast because there is no need for lengthy form-filling and documentation. If you believe the process is excessively long and requires superfluous personal/bank account information, you could contact the insurance and verify the same.

•  Policy Document: No or Fake

In exchange for the premium, you should receive the Policy Document. Some delays are tolerable, but if you haven't gotten the Policy Document in a while, you should call the insurer. They will notify you if there is a delay on their end. In addition, the policy must be authenticated by checking over data such as the approved signature, cover details, premium calculation, and so forth. 

Conclusion