How to Buy Cheap Car Insurance Online

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 insurer to ask for discounts. While it isn't a guarantee, the agents at your current insurer might be able to help you identify 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 or by doing some of the following:

Buying online vs. with an agent?

When purchasing auto insurance at a physical location, you'll choose between a captive agent and an independent agent. Captive agents can get quotes from one insurance company, while an independent agent offers rates from multiple companies.

Buying car insurance online

Purchasing insurance online is cheap and convenient, since you can save time and money by comparing quotes from multiple insurers at home.

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

When buying online, you should have a solid understanding of what you want covered under your auto insurance policy. And to make sure you're receiving the best price, compare quotes with the same level of coverage from multiple insurance companies online.

Along with buying policies online, many insurance companies also offer the ability to file a claim, enroll in 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 when using a captive agent is that they're only able to offer policies from one insurer. 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 make sure you're getting the best price, gather multiple quotes from different captive and independent agents before making a decision.

Buying car insurance from a broker or independent agent

Independent agents, also known as insurance brokers, have the benefit of being able to 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 try to sell you more coverage than you need, because their commission is often based on the cost of your insurance (a percentage, for instance). This is less of a risk with captive agents, who usually earn a salary on top of commission.

Another drawback is that insurance brokers won't have relationships with insurance companies that employ captive agents or work directly with customers. You'd have to contact captive agents in your area, and potentially go online, to compare prices for those insurers.

Purchasing auto insurance through an independent agent is a good option if you want the ability to compare multiple quotes with minimal effort while still getting in-person guidance. Before you sign up for a policy, ask about any broker fees you might have to pay or that might be lumped in with your quotes.