Saving Money by Buying Insurance Online

If you like to do things the old fashioned way, you will probably buy auto insurance from an insurance agent, either one who works for a single company, or an independent agent who can provide quotes from several different insurance companies.  Some agents will hold your hand through the process, but they have overhead, so there is always some extra fee built into the premium to allow him to pay his bills.  It will take him time to research and collect the quotes for you, but eventually he will get back to you with some choices for your policy.  Nothing wrong with that.

But, if you like to do things the twenty-first century way, you will gather several auto insurance quotes online in very little time and possibly have a policy before the end of the day.  Of course, whichever way you choose, some of the work needs to be done in advance, by you.  You will need to research and decide what coverages you should have, how much of each type and what deductibles work best for you.  You can get help with educating yourself about these choices right there online, as well.  Most of the insurance websites offer customer service by phone or e-mail to answer all your questions.  So when you’re ready to shop, the World Wide Web is waiting for you, and you can save some money by cutting out the middle man.

All you need to do to buy insurance online is to answer some questions on your computer, and you will have quotes shortly.  Concentrate on price, service and saving time, and you’ll do fine.  Begin by setting aside about an hour or so and have your records available, such as your current insurance policy (if you have one), your driver’s license number and your vehicle registration.  Sip some coffee and start shopping.

Where do you go?
You have some options for online insurance policy shopping.  Some insurers will sell you insurance online directly, such as Progressive, Geico and Liberty Mutual.  Each of their forms will take you about 10 minutes to fill out.  Others work through online agents, or resellers, like InsWeb, Insurance.com and Esurance, which take all your information and then work as a clearinghouse to gather competitive quotes for you from multiple insurers.  Each online form you fill out will take you about 15 minutes to complete.  You may end up with quotes from companies you’ve heard of and companies you haven’t.  If price is your main concern, you can go with the least expensive quote, but do check out the company first. (See Take Notes, below)

Is it Safe to Buy Auto Insurance Online?
Make sure that the web pages where you fill out your information are protected by SSL Encryption so that no hackers can gain access to your information. To make sure the web pages are secure, look for the little lock on the bottom of your web browser’s screen when you get to the pages you need to fill out.

Take Notes
While you are researching companies, it is a good idea to make notes in a separate computer file or on a piece of paper divided into categories. This will keep you from duplicating your efforts. When you visit the different online insurance sites, you should take note of several things:

•    Annual and monthly rates for the different types of coverage — make sure to keep coverage limits the same so that you can make "apples-to-apples" comparisons.
•    An 800 number to call for questions if there are some you can't get answered online.
•    The insurance company's payment policy (When is your payment due? What happens if you're late in making a payment?)
•    Discounts offered by the insurance company that pertain to you.
•    The insurance company's consumer complaint ratio from your state's Department of Insurance Web site.
•    The insurance company's A.M. Best and Standard & Poor's ratings to determine the financial strength of the company and to be certain they do business in your state.

The Internet has proven to be a very effective means for consumers to do price comparisons when shopping for auto insurance. The vast majority of online insurance sellers are legitimate companies that are safe to do business with. 

The speed at which you will have a policy will depend on whether the website selling the insurance is run directly by the insurance carrier or a reseller, (online agent) and also on how they do business.  In some cases the online insurer can issue a policy online right away and give you a proof of insurance form to print out for your records. With the resellers, it may take a few days.  They may even call you to discuss your options first.

Claims
Even if you purchase your auto insurance online using the Internet, if and when you have a claim, your claims process will usually be handled over the phone. You should be provided with customer support phone numbers to use when filing a claim, so it should be just as easy as if you had purchased your auto insurance from a local agent.

Now it’s up to you
The ability to purchase auto insurance online is a luxury that today’s consumers can enjoy.  You can do it at home at your leisure or in your office.  The task of searching, comparing and purchasing auto insurance may seem overwhelming, but most of the online insurance sites are very intuitive and help is there for the asking.  If, however, shopping online for insurance is too far out of your comfort zone, stick to your friendly, neighborhood insurance agent; although it may take a bit longer and you might pay a little more, you’ll still get the coverage you want and the handholding experience you need.