Tips on How to Get Car Insurance Online

April 18, 2024

Auto insurance rates surged by a record-breaking 24% in 2023 due to insurers’ colossal losses from climate disasters, serious car accidents, and expensive vehicle repairs. While prices for auto insurance online are now stabilizing, chances are we’ll see the annual costs for full-coverage auto insurance increase by approximately 7% by the end of the year.

A graph showing an expected surge in the annual cost of full-coverage car insurance in 2024

Source: Insurify

Does this mean purchasing auto insurance will become less affordable compared to 2023? It’s hard to predict, but obtaining car insurance online is a matter of personal responsibility for every conscientious driver.

Buying Car Insurance Online Step-by-Step

Getting car insurance online will provide you with financial protection during a road incident. It can significantly reduce the amount you’ll have to pay out. However, you should understand that the more insurance cases your policy covers, the more expensive it will be. Therefore, the very first step to take before turning to online car insurance companies is to determine the extent of coverage you need.

Cheap car insurance online may involve minimal coverage, which may be sufficient to meet the requirements of the state where you are located. However, the amounts may not be enough to compensate for the damage to your personal vehicle, as well as medical expenses or repair costs (based on the scale of the accident).

Full auto insurance online can compensate for the damage to your vehicle if the accident was your fault and cover instances of theft and vandalism. It’s logical to assume that a policy with full coverage costs approximately twice as much as the minimum coverage.

Prepare the Documents

To buy auto insurance online instantly, without delaying the moment by collecting the necessary documents, prepare in advance:

  • Basic personal information – name, age, and marital status
  • Contract with the insurance company if you have already chosen the provider
  • Driver’s license information, including those who may use the policy
  • Information about your car’s mileage, as well as the frequency of trips and current mileage
  • Details about the car, such as whether you own or lease it, as well as the VIN
  • Driving history for the past 5 years, including drivers using your policy, as well as fines, accidents, and other violations
  • Insurance credit score, which may affect the cost of car insurance quotes

That’s the basic information that an insurance agent may require to find cheap auto insurance online for you.

Analyze Policy Prices at Different Insurance Companies

If you want to buy auto insurance online instantly, it’s worthwhile to compare the pricing at different companies. You can do this by visiting their website or contacting an insurance agent by phone.

The policy pricing is calculated individually in each case, as many factors influence it. Here are some pricing examples from different companies where you can get insurance online with checking account:

A list of insurance companies selling car insurance online and their average annual rates

Source: ValuePenguin

There are several types of agents you can contact to buy insurance online, including:

Captive Insurance Agents

Captive agents typically work for a specific insurance company. Their main task is to help you find the most suitable policy and corresponding rates. They can be especially helpful if you want to purchase car insurance online for multiple vehicles or need different types of coverage.

A captive agent can help you understand any unique situation you may have. Keep in mind that such agents only sell policies from one insurance company. They may be highly motivated to sell you more services, as it directly affects their commission.

Independent Brokers and Insurance Agents

These professionals work with several insurance companies, both large and local, so that they can offer you different policy options.

What’s the difference between an independent broker and an independent insurance agent? Brokers earn a commission, which they must disclose to their clients. This way, you’ll know exactly how much they earn by selling you insurance services.

Specialized Agencies

These companies specialize in policies for drivers considered high-risk. For example, those who have been fined for drunk driving or have been in accidents multiple times.

Many national and local agencies exclusively serve this category of drivers. They find the best vehicle insurance online options from insurance companies willing to cover the expenses of people with unsatisfactory driving records.

What Should You Know About Auto Insurance Online?

Auto insurance is a form of financial protection for drivers in the event of an accident. If you own a vehicle that is fit for operation, you must have at least basic insurance coverage by law. This is also known as third-party insurance. Driving without insurance entails at least a fine and, at most, vehicle seizure, license suspension, and a 6-point reduction in driving privileges.

Auto insurance is divided into three levels:

Fully comprehensive This insurance covers a wide range of insurance events and applies to the driver, their vehicle, and third parties involved in the accident. This type of policy provides compensation in case of fire, theft, or vandalism, as well as covering medical expenses and legal costs.
Third-party This is the minimum insurance coverage required by law. This type of policy provides compensation for damages and injuries caused to third parties or their property. However, if your personal vehicle is stolen or damaged, the coverage does not include compensation for losses.
Third-party, fire, and theft Coverage extends to third parties injured in an accident for which you are at fault. This policy does not protect the driver or their vehicle. However, you can expect compensation in case of theft or damage to your car. This includes expenses for repairs or replacement.

Therefore, before you get insurance online now, inquire about which level of coverage will most effectively meet your needs.

How Does Getting Auto Insurance Work?

Regardless of whether you decide to purchase car insurance online now or seek assistance from an insurance agent, the policy application process requires the following steps from you:

  • Determine which auto insurance types you need and which are not mandatory
  • Prepare and keep your personal information and information about your vehicle at hand in advance
  • Request car insurance online quote from at least three insurance companies for the same policy
  • Conduct a thorough analysis of each offer: compare limits, coverage amounts, and insurance premiums
  • Determine the most optimal option from all the offers and buy insurance online with checking account, or if you encounter difficulties, contact an insurance agent
  • Don’t forget to deactivate your old insurance policy if you have one

As you can see, buying online insurance is extremely simple if you follow these instructions.

How To Get The Best Car Insurance Deals

Naturally, no one likes to pay extra for any service. So, it’s quite logical that after the question, “How can you buy car insurance online?” you start considering multiple options and search for tips on how to get the most suitable insurance policy without breaking the bank.

The Cover Explore team has prepared valuable life hacks for you, which are definitely worth using if you’ve decided to purchase insurance online:

  • Consider where you will register the policy. If you think that there is only one company that provides same day insurance online at the lowest prices, you are mistaken. The set of insurance services that are cheaper in one state may cost significantly more in another.
  • Don’t ignore regional and local insurers. When choosing auto insurance online today, remember that such specialists often have higher customer satisfaction ratings compared to large insurance companies. They may also ask you to consider purchasing car insurance online at lower rates.
  • Pay attention to discount opportunities. Insurers often offer their customers very appealing discounts when buying online insurance is the customer’s end goal. Although the size usually depends on the insurance company and the state, the price reduction conditions may suit you.
  • Remember your credit rating. This is an important factor in getting a good price on car insurance you can buy online. Pay your credit card bills on time and avoid accumulating payments on it. Your flawless credit history guarantees that the insurer will offer lower policy rates.
  • Increase the deductible amount. For example, a higher deductible will be profitable if you want to purchase collision and comprehensive insurance. That’s because liability insurance does not involve paying the deductible if you cause harm to other people in an accident.
  • Consider purchasing a policy based on usage or pay-per-mile. This can be beneficial for drivers who don’t drive much. Based on this, the insurance agent calculates a very good discount. Your driving habits – how well you drive, what time of day, and your driving experience – directly influence this.

These simple recommendations will help you buy auto insurance online with checking account number without hurting your budget.

The Bottom Line: Getting Car Insurance Online

By and large, purchasing an insurance policy online differs little from a direct visit to an insurance agent. The only difference is that you won’t need to make any extra effort to get to the company’s office.

The only downside (and perhaps a plus for introverts) of buying insurance online vs. agent may be the lack of recommendations when choosing an insurance company. It’s worth mentioning that the online capabilities of each insurance enterprise vary, and this significantly affects the user experience. So, if you’re not sure if online insurance quotes are accurate, an insurance agent will guide you through all the basics, including the price range of various policies.

Frequently Asked Questions

Is it cheaper to buy car insurance online?

Yes, online insurance policies are cheaper compared to those offered by insurance agents since they do not include commissions and other fees in the cost.

Is purchasing online car insurance worth it?

Definitely yes, as you put in less effort to obtain it. However, it’s necessary to thoroughly prepare your documents and compare policy rates.

Are online car insurance quotes accurate?

Auto insurance online quotes can provide fairly accurate pricing for collision and comprehensive coverage. But the liability — perhaps the most crucial part of coverage — is considerably more difficult to quote without detailed customer information.

Victoria Berezhetska

Victoria Berezhetska is a Content Lead at Phonexa.com and an expert contributor to CoverExplore. She has a Bachelor of Science degree in Business Administration, with extensive working experience as a PR specialist and content writer. At CoverExplore, she helps customers find the right educational material through easily digestible blog posts and buying guides backing their insurance coverage choice. Victoria covers diverse topics around digital and insurance marketing, including auto, home, health, and life insurance.

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