How to Buy Cheap Car Insurance Online

Best place to buy car insurance online

Both companies allow customers to buy car insurance online without going through an agent. Military members and their families will find the best deals with USAA.

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Best online car insurance quotes for full coverage

While Geico's rates are typically the cheapest, you might get better rates with Progressive when shopping online. That's because Progressive offers a discount of around 7% when you buy your policy online.

You can get a quote online from State Farm, Allstate or American Family. But you'll have to talk to an agent to finalize your policy.

How to buy car insurance online

1. Decide how much coverage you need

When shopping for auto insurance online, you should evaluate your coverage needs. The amount of coverage that's best for you depends on multiple factors. This includes the value of your car, how much you can afford to spend and what you want to protect.

If you're a new driver or looking for the cheapest policy, you should start by finding your state's minimum insurance requirements. This is the lowest amount of coverage you need to drive legally.

While minimum coverage is the cheapest option, you may need more protection. If you have a new or expensive car, you should include collision and comprehensive coverage. You want to balance having an affordable rate and enough coverage.

If you're switching to a new company, decide which features and coverages you'd like to keep from your current policy.

You can find your current auto insurance coverage in the declaration page that comes with your policy.

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2. Prepare the necessary info to get a quote

After you're familiar with your existing policy and what kind of policy you would like, you can search for quotes online. The process is simple; most companies have online forms to fill out for a free quote.

Many companies allow you to buy insurance online without going through an agent at all. The info you might need to get a quote includes:

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3. Get multiple online quotes

Cost is important to consider when shopping for auto insurance. However, you should also compare coverage options and the quality of customer service.

Most insurance companies offer discounts for car insurance. These may include discounts for being accident-free, completing a defensive-driving course or having anti-theft devices. These discounts can stack up and make your policy substantially cheaper.

You can also check out reviews of the best car insurance companies. Our reviews consider many factors, such as ratings from the National Association of Insurance Commissioners, J.D. Power and AM Best, to help you compare customer support and financial strength.

Once you pick the best company for you, you can sign up online and start your policy the same day or the next day in some states.

How to save money when buying car insurance online

Aside from comparing quotes across multiple companies, there are other ways to ensure you buy the cheapest coverage available.

First, reach out to your current company to ask for discounts. The agents at your current company might be able to help you find discounts that would lower your rates before you switch to a cheaper company.

You can also save a lot of money by bundling your auto and home insurance. Other ways to save on your car insurance include:

Buying online vs. with an agent?

When buying auto insurance at a physical location, you'll choose between working with a captive agent or an independent agent. Captive agents can get quotes from one insurance company, while independent agents offer rates from multiple companies.

Buying car insurance online

Purchasing insurance online is cheap and convenient. You can save time and money by comparing quotes from multiple insurance companies at home.

The only downside is that you get less guidance when choosing a car insurance policy. This could result in fewer discounts and less assistance if you need more complex coverage. While you can connect with an agent when needed, you won't always speak with the same person.

When buying online, you should understand what you want covered under your auto insurance policy. Compare quotes with the same level of coverage from multiple insurance companies online to ensure you're getting the best price.

Along with buying policies online, many insurance companies also allow you to file a claim, sign up for automatic billing, get monthly statements and update policy info online.

Buying car insurance from a captive agent

Captive agents can offer in-depth product knowledge because they only offer policies from one insurance company. These agents also have the added benefit of providing in-person support.

The downside of using a captive agent is that they can only offer policies from one company. If you're unfamiliar with auto insurance or have a specific insurer in mind, this may be a good option for you.

However, you won't know if you're getting competitive rates for your auto insurance. To ensure you're getting the best price, compare quotes from both captive and independent agents before deciding.

Buying car insurance from a broker or independent agent

Independent agents, also known as insurance brokers, offer rates from multiple companies for auto insurance. You can often get in-person, personalized support from these agents.

The drawback is that a dishonest agent could sell you more coverage than you need. That's because their commission is often a percentage of the cost of your insurance. This is less of a risk with captive agents, who usually earn a salary on top of commission.

Another drawback is that insurance brokers don't work with companies that have captive agents or work directly with customers. That means they typically can't compare quotes from major insurance companies. You'd have to contact captive agents in your area or go online to compare prices for those companies.

Getting auto insurance through an independent agent is a good option to compare multiple quotes with minimal effort while still getting in-person guidance. Before you sign up for a policy, you should ask about any broker fees.

Frequently asked questions about buying car insurance online