How to buy car insurance? Just passing your driving test is only the beginning, now you have to learn how to keep your insurance low and save money.
When it comes to buying car insurance the days are long gone when to get car insurance you had to purchase it from your local insurance agent, even though this is still possible you might want to learn about other ways you can get car insurance. There are many ways to do it nowadays and to educate you we have listed them below teach you how to buy car insurance.
There are four main routes you can take to acquire car insurance:
- Use a captive agent (A captive agent is an insurance agent which works for a single company and earns commission from them based on insurance sales he/she makes).
- Use an independent agent (Independent agents can create policies for many insurance brokers. They can compare insurance prices, policies and more.
- Use an Insurer (A Insurer is a company that provides coverage for your vehicle by paying compensation resulting from loss, damages, injury, treatment or hardship in exchange for premium payments.)
- Use a Comparison Tool Online (You type your details in online via a website such as GoCompare or Compare the Market and it will automatically provide you with the cheapest quotes from multiple companies based on the information you have provided)
How to buy car insurance: Purchase with a captive agent
Getting car insurance quotes through a “captive” agent used to be the standard method to purchase car insurance. Captive agents work solely for one insurance company and go about as your primary purpose of contact from the day you purchase your policy.
Vast insurance companies have select agents in pretty much every location. They work out of there own office/homes etc. Liberty Mutual and a few other companies work this way.
Because they speak to only one company, captive agents might be restricted in the costs and policy highlights they can offer, which could be off-putting for customers searching for better terms.
- You don’t exactly comprehend what you need and like to have somebody help you with it all.
- You’re occupied and need to deal with extra insurance other than auto. Agents for extensive companies are generally ready to offer multiline policies and walk you through the way toward including, say, property holders or extra security, or even insurance for your business.
- You want to use one person only over a period of time and get to know them to remove the worries of being scammed.
How to buy car insurance: Purchase with an independent agent
Independent agents likewise have nearby workplaces in your town, yet not at all like captive agents, they don’t speak to one single company. Rather they speak to you, the client, and work with a wide range of suppliers to get the most competitive prices. Insurance brokers work together within a similar way, however, are part of bigger companies.
- You want an agent that has more flexibility than a captive agent and can get you better prices and coverage.
- You have a decent knowledge of how insurance works and you know what coverage you want, and you can turn down unnecessary add-ons.
- You want someone who has a greater knowledge of how regulations and policy details vary from one company to the next.
- They can give you a quote on the phone or online.
How to buy car insurance: Purchase with an Insurer
Many well-known companies already have implemented the features to be able to get a fast quote online, they are also fast on the phone so there is no compelling reason to search out an agent if choosing this path.
Numerous buyers intrigued by direct car insurance likely favour online quotes over telephone estimates simplicity. When you get a direct online quote, you can see your policy choices explained, and you can save and finish the process at your own convenience. There’s no stress — you enter your data yourself and don’t need to talk to anyone unless you want to.
- You need to get from start to finish as fast as possible.
- You have a decent knowledge of how car insurance functions and needn’t bother with an agent.
- The opportunity to create and deal with your policy all alone is engaging.
- You need a stress free shopping experience.
- You can browse through all the different quotes using them at your own leisure
How to buy car insurance: Purchase with an online comparison tool
The best way to achieve this is to acquire many different quotes from different companies using a tool such as GoCompare, looking at the reviews on the site and the offers you can get with each individual company you can easily sort out the best deals for you.
We see this as the best choice overall and the deals are much better in the long run, check out GoCompare, they have the best deals out of all the comparison tools today.
The up-side of this also is being able to see the types of insurance deals you don’t want and you can avoid them instantly without having all the bs over the phone, bear in mind that because all insurance companies are different prices will only go as low as they can be based on the information you have provided. If you see the lowest deal using the tool but it is not low enough it would be safe to conclude that this is the lowest offer you can achieve at this point in time.
Once you have chosen the provider you want to go with you have to complete the basic task you would normally do to purchase the coverage from them, you can use them directly over the phone or via a captive agent. Keep in mind although you have been offered a price using the tool online the final quote offer from the company could be slightly higher as the tool does not have all the information required to make the final quote, it is the best estimate it can provide based on the small amount of information entered by you.
- You can choose how much you want to spend and save.
- You are a new driver and want to learn how the insurance market works.
- You want to try a few different policy features and see if it gets you a different quote before you buy.
- You get the final say on the type of insurance you want.
Now here is some information for you to read to better understand how to buy car insurance before you decide on the path that best suits you in purchasing car insurance for yourself, below are a few explanations of a few used a lot insurance types:
Common Car Insurance
Insurance companies figure out the policy you require based on the information you provide them such as credit score, your driving style and history, gender, profession and even your age is a factor. This works out simply if you are a risk based on the information you provide then your insurance would cost you more.
Usage-Based Car Insurance
Usage-Based insurance companies worry about everything including how you drive, younger drivers especially males are more prone to drive in a racer style then female drivers, this would make them more of a risk. But not all young males drive this way and they don’t want to assume they all do, so they install a device in the car which records how they drive including accelerating, braking and more.
Now if they notice that you are driving safely then they will keep the rates low, but if they notice that you go out at night and speed around the streets all the time then they will see you as a bigger risk and charge you more.
Per-Mile Car Insurance
Per-mile also uses a device that plugs into the car much like the usage-based version, but it will only track one thing and this is how much you use your vehicle, now if you only drive your car here and there then you will see a significant decrease in your insurance premiums, but if you use the vehicle a lot then this may not be the best choice for you.
Whatever you decide to do you make to make sure it will be the right insurance policy for you, you do not want to commit to a policy you are going to hate in 3 months time, you need to take your time on it and do your homework.
We think the best way to get car insurance especially if its your first time is by using a Comparison Tool, companies seem to give newbies offers to acquire them as customers which is always a good thing for you. If you wish to use this route please click HERE.
We hope you have learned how to buy car insurance using this guide, if so share it with others to help them also.