You can complete both minor and major tasks, such as getting your car insured, online with your phone or laptop. Purchasing car insurance online is quick, simple, and secure compared to the traditional method.
You will admit that purchasing auto insurance the old-fashioned manner is far more time-consuming and required a lot more paperwork than purchasing it online. However, this online procedure takes only minutes to finish and almost never requires paper records.
What is the new development? The response is that modern technology and fast internet are available to us. Convenience and time savings have increased significantly with the aid of these two items alone.
In this article you will find useful tips to buy car insurance online. Continue reading.
Table of contents
The Process of Buying Car Insurance Online
To buy auto insurance, you can choose from three methods: contacting an agent who works for a company, working with a broker who is independent from any company, or buying car insurance online.
Follow these steps to get car insurance online:
#1. Get an Online Car Insurance Quote
You can start by getting a quote from either a website of an insurer or a free car insurance quote tool. You will have to give the following details to get your quote:
- Your name and address
- Driver’s license number
- Your vehicle’s make, model and year
- Your vehicle’s identification number (VIN)
- Any car accidents, tickets or insurance claims you had in the past few years
#2. Compare Quotes
Once you give the required details, you may get instant car insurance quotes from some sites that show you the price for the coverage level you choose. Other companies may request your phone number or email address and send an agent to talk to you about your quotes and choices. Contact several companies so you can compare insurance plans.
#3. Select Coverage
If you buy a policy online from an insurer, they will help you with the purchase process, which should be simple. You will have to choose the coverage you need and any extra options like roadside help, towing or accident forgiveness.
#4. Pay
Choose a payment method and enter the required information. You may be able to pay with a credit card for most insurers, but some may have a fee for this. Another option is to pay by bank by giving your routing number and account details.
#5. Print Your Card
You can print your insurance card at home as the last step. You may also receive an I.D. card from your insurer by mail.
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What To Know When Buying Car Insurance
There are some important things to consider if you want to buy auto insurance online.
Where Can I Buy Car Insurance Online?
You can get coverage online from most of the big auto insurers. If a provider does not let you sign up and buy online, you have to talk to an agent before you finish your policy. But you can still do most of the purchase process on the provider’s website.
You can do it in an hour or less if you have basic information about you, your driving history and your car ready. Your online car insurance policy can start as soon as you pay the first time.
Online Auto Insurance Companies
Below is a table that shows which big insurance providers have car insurance online:
| Car Insurance Company | Online Car Insurance Quotes | Online Car Insurance Purchase |
| Geico | Yes | Yes |
| USAA | Yes | Yes |
| Progressive | Yes | Yes |
| The Hartford | Yes | Yes |
| Nationwide | Yes | Yes |
| State Farm | Yes | No |
| Liberty Mutual | Yes | No |
| AAA | Yes | No |
| Allstate | Yes | No |
| Farmers | Yes | No |
How Does Buying Car Insurance Work?
Most companies have a similar process for buying insurance online. You can get any normal type of coverage you want online from an insurer that offers car insurance online, using your computer or phone. But for special auto coverages like classic car insurance, you might need to talk to an agent and tell them your situation.
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Types of Car Insurance
These are the common types of car insurance:
- Bodily injury liability insurance
- Property damage liability coverage
- Underinsured/uninsured motorist coverage
- Medical payments coverage (MedPay)
- Personal injury protection (PIP)
- Collision insurance
- Comprehensive insurance
Liability Insurance
Most states require bodily injury and property damage liability coverage. Bodily injury liability covers the medical expenses of the other people in an accident that you cause. Property damage covers the repair costs of the other people’s cars. Your own injuries or car repairs are not covered by either type of liability insurance.
Uninsured Motorist and Medical Expense Coverages
If someone who has no insurance or not enough insurance causes an accident, uninsured/underinsured motorist insurance covers the repair and hospital costs. MedPay and PIP are medical expense coverages that cover your medical costs after an accident, depending on the rules for at-fault and no-fault states.
Collision and Comprehensive Insurance
Both comprehensive and collision coverage are part of a full-coverage car insurance policy. Collision coverage covers the repair costs of your car no matter who is at fault for an accident. Comprehensive coverage covers your car from damages caused by the environment, such as:
- Animals
- Falling objects
- Natural disasters like fire and floods
- Theft
- Vandalism
Remember that a full-coverage policy is usually required by auto lenders and leasing companies, but no U.S. state requires comprehensive and collision coverage.
You may want to check out Liability insurance vs. Full-coverage car insurance: What are the differences?
Best Way To Buy Auto Insurance
Your situation determines the best way to buy insurance. Car insurance bought online usually costs the same as car insurance bought from an agent — but you might pay a bit more if you use an insurance broker. Here are some key differences between buying insurance from an agent or online:
- Online: Buying car insurance online can be a good idea if you know what auto insurance coverage you want. You can save time and money by buying online. Many of the national providers we recommend have online auto insurance quotes and buying options.
- Agent: Working with an agent may be better for you if you are not sure what car insurance you need. An agent can help you with your questions and find the best coverage options for you.
See also: 15 Best Cheap Car Insurance in Pennsylvania 2023
Should I Buy Car Insurance Online?
Don’t base your choice of insurer on whether you can buy a policy online or not. You should pick your insurer based on which company has the best car insurance rates and coverage for your situation. If that company also has online car insurance quotes, you may benefit from using them.
Buying car insurance online is usually cheaper, as you don’t have to pay any agent fees or markups. But an agent can help you with the purchase process and choose the best coverage for you. Agents can also find car insurance discounts that you may not be aware of.
In any case, do some research on any provider before you agree to a policy. Even if you prefer to work with an insurance agent, it can be smart to check quotes online first. This way, you can have a better idea of the price of car insurance and which companies to reach out to.
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Car Insurance Rates Online
Average rate estimates show that full coverage car insurance has an average price of around $167 per month or $2,008 per year for good drivers. These estimates do not have policy discounts that you may be eligible for, such as a homeowners discount or a discount for combining auto with home insurance, renters insurance or life insurance. Some other usual discounts are:
- Defensive driving course discount
- Good student discount
- Military discount
- Safe driving discount
- Safety features discounts
- Teen driver discount
See also: How To Get Cheap Car Insurance In 2023
Cheap Online Car Insurance Companies
Different providers have different car insurance prices, naturally. This is how the main providers compare based on the price for full-coverage policies:
| Car Insurance Provider | Average Monthly Cost | Average Annual Cost |
| Geico | $133 | $1,596 |
| USAA | $126 | $1,512 |
| Progressive | $169 | $2,038 |
| Travelers | $133 | $1,595 |
| Nationwide | $119 | $1,433 |
| State Farm | $138 | $1,657 |
| Auto-Owners Insurance | $135 | $1,619 |
| Erie Insurance | $122 | $1,458 |
| Allstate | $217 | $2,598 |
| Farmers | $264 | $3,169 |
See also: Classic Car Insurance 2023: What Is It? And How Does It Work?
10 Tips To Buy Car Insurance Online
#1. Know Your Requirements
There are two kinds of car insurance policies – the one that only covers third-party liabilities and the one that covers both third-party liabilities and your own damage. You should buy a comprehensive coverage that includes both third-party liabilities and your own damage.
Also, consider your daily needs for your car. How frequently do you drive? Where do you usually park? And so on. Choose the coverage you want to buy according to your needs.
#2. Compare Car Insurance
To compare policies offline, you would need to ask your insurance agent or some insurance companies for the quotes and features of car insurance policies. You would then manually compare the policies and choose the best one.
You can avoid the longer route by buying a car insurance policy online. Car insurance lets you compare policies and their coverage at once. You can go to the insurer’s websites, compare car insurance and pick the best plan for you.
See also: How To Get Car Insurance Without A License In 2023
#3. Use A Car Insurance Calculator
A car insurance calculator is an online tool that gives you a rough idea of how much your car insurance policy will cost. You can input various details about yourself and your car to find out the approximate price of your policy. Before using the calculator, you should learn some terms related to insurance. This will help you adjust the values for better outcomes. Here are some:
- Insured Declared Value (IDV): The estimated value of your car.
- No Claim Bonus (NCB): A discount for not making a claim
- Deductible: The amount you pay for the claim
- Add-on: Extra coverages
- Third party: Someone who is not the owner of a car, insurer, or passenger in an insured car.
#4. Don’t Make Price The Sole Priority
People usually like low-priced products and services when they compare them. But this can make you underinsured if you do the same for car insurance. It will go against the reason why you buy car insurance. A low-cost policy may not cover everything and you may end up paying more from your own pocket if something bad happens.
See also: How Much Does Car Insurance Cost in 2023?
#5. Set The Right IDV
As we said before, Insured Declared Value (IDV) is the estimated market value of your car. IDV also determines the price of a car insurance policy. You have to choose how much IDV you want to set as the owner. Remember that, a higher value will make your car insurance policy more expensive. But a lower value may not cover you enough.
#6. Select Only Relevant Add-ons
Add-ons will expand the range of your car insurance policy, meaning you will have more coverage. But buying unnecessary Add-ons will make your policy more expensive. And you will have coverage for scenarios that are very unlikely to happen.
For instance, you may not need a passenger cover if you usually drive by yourself. You may not need an Accessory cover if your car has only accessories fitted by the company.
#7. Keep Your Details Handy
Having your details ready will make the process faster. You can insure your car in minutes. A good tip is to have a copy of the old policy with you when you renew your car insurance.
See also: 15 Best Cheap Car Insurance in Georgia in 2023
#8. Understand No Claim Bonus
You will get a No Claim Bonus when you renew your policy if you did not make a claim while the policy was in force. It is a discount that your insurer gives you for your careful driving when the car insurance policy was valid. NCB can reduce the price of your car insurance policy by up to 50%. You can secure this discount with the NCB Protector Add-on that lets you keep the NCB even if you make up to two claims.
#9. Set The Correct Amount of Deductibles
There are two kinds of deductibles – Compulsory and Voluntary. The compulsory deductible is based on the cubic capacity of your car’s engine. You can choose the voluntary deductible that you want to pay when you settle a claim. Remember that, a higher deductible will make your car insurance policy cheaper. But you may get a smaller claim amount.
#10. Don’t Rush
Take your time when you buy a car insurance policy. Read the inclusions – the scenarios that allow you to make a claim, and exclusions – the scenarios that prevent you from making a claim. Make sure to review the terms & conditions and ‘fine print’ after you get your car insurance policy. This will make it easier for you to file a claim.
See also: How Much Does Car Insurance Cost In California | 2023
FAQs
As long as you’re shopping with a legitimate insurance company, it’s safe to buy auto coverage entirely online. Many of the top auto insurers in the country allow you to buy coverage through their websites.
Our research shows USAA typically offers the cheapest car insurance, with rates about 42% cheaper than the national average. Drivers also tend to find cheap rates from Erie Insurance, Auto-Owners Insurance, State Farm and Geico.
Yes, nearly every major insurer offers a way to get quotes for car insurance online, though some require you to contact an agent before you can finalize your purchase. However, many companies allow you to complete the entire process on the internet, from quote to purchase.
You can get the same type of insurance coverage whether you buy car insurance online, call an agent or visit a company in person. While the online quotes and purchasing process can offer convenience, some people prefer to call insurers directly or visit local agents.
Conclusion
Buying car insurance online can be a quick and easy way to get coverage for your vehicle. You can compare quotes from different providers, choose the coverage you need and pay online.
However, you should also do some research and read the terms and conditions before you buy a policy. By following these tips, you can find the best car insurance online for your situation.
References
- Cartoq.com – 10 Tips to Buy Car Insurance Online
- Marketwatch.com – How to Buy Car Insurance Online
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