How to Shop for Auto Insurance

The way it was
The twentieth century way of buying insurance was to find an agent, make an appointment, bring in all your paperwork, and wait, sometimes several days, for a quote.  Our parents’ generation has always shopped for and bought insurance this way.  Some in my generation still do.  You call your local agent, who is either independent or employed by one insurance company.  You ask that agent all of your questions and he or she helps you figure out what coverages you need. Later, if it’s an independent agent, he or she will give you a quote from one or more insurance companies.  If he or she works for only one company, you’ll know the premium pretty quickly.  If you have a claim, you may also call “your agent,” who often becomes the liaison between you and the insurance company.  It’s kind of a nice small town way of doing business.  With the advent of the Internet, however, the small town is rapidly shifting to your computer. 

The way it’s becoming
Buying auto insurance can be a confusing and daunting task.  There are so many ads on T.V., radio, newspapers and the Internet, that it is likely to overwhelm you before you even get started.  As with making any major investment, doing your homework and becoming educated are the most important ways to begin.  If you already have insurance, take out your policy and read it!  Know what coverages you have and what you are paying now.  If you don’t have insurance, then take stock of your assets and understand what coverages you need in order to protect them.  The most important thing is to ask lots of questions before you buy.

Ah, but who do you ask?  If you have questions, does that mean you must go to an insurance agent because you need someone knowledgeable to talk to?  Not necessarily.  Things are changing, but in insurance, a service-oriented industry, there is always someone to talk to, even if you choose to buy online.

The Internet has had a tremendous impact on the way we shop for and buy goods and services in this country.  One thing I’ve noticed, though, so far, is that while many people shop online, a few still hesitate to buy online. They often shop around to see what’s available, and then buy it locally.  That goes for insurance, too.  Many people shop the Internet for prices, and still check to see if their agent can do better.  It’s becoming clear, however, that usually your agent cannot do better.  With the lower overhead and speed of operating and serving online, insurance brokers and carriers can generally offer better rates and service you quicker via the Internet.

The way it is!
My friends, all you need to do to buy insurance online is to answer some questions on your computer, and you will have quotes, often money-saving quotes, within minutes.  If you need someone to hold your hand through the process, most of the websites offer customer service by phone or e-mail to answer all your questions.  “Impersonal,” you’re thinking. Hey, this is insurance, not a medical appointment!  The important aspects of buying insurance are the price you pay, the time you’ll save and the service you’ll get once you’ve bought it.  If you do your homework, you will get what you need over the Internet, and you will likely get it faster and cheaper.  The Internet is the twenty-first century way to go!