Can You Buy Car Insurance Online?

Can I Buy Car Insurance Online?

You can shop for and purchase auto insurance online and often get coverage the same day. Online tools such as insurance quote aggregation and comparison sites can make it easy to gather quotes and compare your coverage options. This lets you shop around and find the best available deal without having to make dozens of phone calls or fill out multiple forms.

Is It Cheaper to Buy Car Insurance Online?

Buying car insurance online is sometimes cheaper than calling an agent or visiting an insurance agency, but not always. It depends on your coverage needs and the insurance carrier's policies.

Quotes provided online may be lower than those you'd get by speaking with an insurance agent, because the agent's sales commissions can add to your costs. In addition, some insurance carriers offer discounts for getting online car insurance quotes or purchasing a policy entirely online. For instance, Progressive says people who get quotes online save an average of 7% on car insurance, and those who sign their insurance contracts online save an additional 10% on average.

However, some insurers have similar pricing whether you buy car insurance online or from an agent. In addition, independent insurance agents who sell policies from multiple carriers can sometimes uncover discounts you may not find when shopping online. Depending on your situation, this could save you money compared to buying car insurance online.

Learn more: Best Car Insurance Discounts

Pros and Cons of Buying Car Insurance Online

Buying car insurance online has both benefits and drawbacks you should be aware of.

How to Buy Car Insurance Online

Follow these steps to buy car insurance online.

1. Gather Your Information

To get a car insurance quote online, you'll need to provide information about yourself, the vehicle(s) you want to insure and any other drivers to be covered by your policy. Be prepared with:

• Name, address and birth date for every driver
• Year, make, model and vehicle identification number (VIN) for all vehicles
• List of any accidents or traffic tickets you or the other drivers have received in the past three to five years

Tip: Have your current auto insurance policy handy so you can get quotes for the same amount and type of coverage. This ensures you're making an apples-to-apples comparison of car insurance quotes.

2. Review Your Coverage Requirements

Most states require drivers to carry a certain minimum amount of liability coverage for bodily injury and property damage. Online tools typically use your address to limit quotes to policies that meet or exceed your state's minimum coverage levels, but it's still wise to be aware of local requirements.

Many states also require purchasing additional coverage, such as underinsured or uninsured motorist coverage or personal injury protection insurance. If your vehicle is financed or leased, your lender will typically require you to get comprehensive and collision coverage as well.

Be aware: If you're involved in an accident, minimum coverage may not be enough to pay for vehicle repairs and medical care. Insurance professionals typically recommend buying coverage of at least $100,000 per person and $300,000 per accident for bodily injuries and $100,000 for property damage.

Learn more: How Much Car Insurance Do I Need?

3. Enter Your Information and Choose Coverage Preferences

Once you've filled in the online form with information on vehicles and drivers, the quote-generation tool will likely ask you what coverage options you want. As mentioned above, you may want to increase your coverage levels beyond the state minimums to protect yourself financially in the event of an accident.

You may also be asked if you want additional insurance such as:

• Low- or no-deductible windshield and glass replacement coverage
• Roadside assistance or towing services
• Coverage for a rental car while your vehicle is being repaired due to a covered claim

Learn more: Car Insurance Add-Ons to Consider

4. Compare Quotes

After choosing your coverage options, request a quote. You may get a single quote or, if you use a car insurance comparison tool, receive several from multiple insurers.

To see how adjusting your coverage affects premiums, try adding or removing additional options to see how your rates change. Narrow down your results to one or two quotes that appear to be the best deals.

5. Read Reviews

Do a web search on the insurance providers you're considering to find customer reviews and ratings of the company's customer service. Look for indications that the company responds promptly to claims and is helpful and accessible when you have questions or need assistance. To verify an insurance company is financially stable, check ratings from companies such as A.M. Best, Fitch, Moody's and Standard & Poor's.

6. Complete an Application and Finalize Your Policy

Once you've chosen your preferred provider, you'll typically need to complete an application. The insurance company will assess your information, driving record and other factors and generate a final quote. If you're happy with it, finalize the purchase by paying your premium. You may need to sign an electronic document to confirm your coverage.

If you're using Experian's car insurance comparison tool, simply choose your preferred quote, and the tool confirms your rate and opens the policy for you. If you're switching insurance carriers, Experian can cancel your previous plan and request a partial, prorated refund.

Frequently Asked Questions

The Bottom Line

Shopping for car insurance online can be a convenient way to get the coverage you need quickly and affordably. To find the best rates, however, you'll want to compare quotes from several different insurance providers.

Whether you're getting car insurance for the first time or looking to switch coverage, Experian's free car insurance comparison tool makes it easy to compare car insurance online. Just input your information once to get quotes from multiple insurance carriers, choose a policy and start your coverage.