The Pros And Cons Of Buying Car Insurance Online

Having your own car can be extremely convenient. You won’t need to queue in lines, wait for the next bus to arrive, or walk to the nearest station. Moreover, buying your personal car ensures you can easily travel anywhere, especially when your destination is off the bus or train route.

If you followed our advice in “How to Buy Cheap Cars Online” and saved a lot on your first car, you may be wondering if you can get your new ride insured online as well. To help you decide, we’ve listed pros and cons of purchasing an insurance contract online.


Online insurance is more convenient

Purchasing insurance online is more convenient because you can easily research insurance plans, ask for quotes, and process insurance contracts anywhere and anytime. There are even digital tools that canvas quotes from various insurers. Some of the precise online quote finders out there simply ask you to fill a form with your zip code, age, and insurance history so they can gather appropriate quotes from around the web. With such tools available online, you don’t have to travel to various insurance offices to learn more about your options.

Online insurance is relatively cheaper

Online insurance is cheaper because you bypass the role of an insurance agent. If you’re getting insurance with the help of a captive agent, they would usually offer policies from the provider they work with. You won’t be able to compare and get cheaper quotes. Independent agents or brokers, on the other hand, have a significantly high markup as well as limited insurance quote selections. Aside from online insurance being cheaper without agent commission fees, some insurance providers even offer discounts if you get a quote directly from their online platforms. The best online auto insurance discounts can go as high as 4% to 12%.

Online insurance lets you compare plans easily

By researching and canvassing quotes online, you can make decisions independent of sales talk. You also have more time to gather and compare several insurance plans. This is especially important as Business Insider explains that having more plans to compare increases your chances of finding the most effective and cost-efficient coverage for you. For this method to be effective, however, you need to update your insurance selections every six months. This will help you capture the new deals that tend to emerge every now and then.


Online insurance isn’t available to just anyone

Just as how it affects insurance rates, your driving record can also affect your chances of getting insurance online. Sound Dollar notes that insurance companies would set a higher premium if you have a history of traffic violations, or if you have no driving record yet. In the same way, high-risk drivers usually can’t get their auto insurance approved online.

Online insurance is not offered by all insurers

Though we’ve mentioned that there are quote tools you can use to find auto insurance plans online, not all insurers have online transactions as an option. The Business Professor explains that some insurance companies prefer to work exclusively with captive agents. Some of these companies only entertain inquiries online but prefer policy sign-ups and the rest of the transaction to be coursed through an agent.

Buying a new car can be exciting. With the internet making it easier to insure your car, you now have more options with which to secure your new ride.