Friday, February 3, 2012

Is online cheap auto insurance a good idea?

You may have seen the commercials with the clever spokespeople offering great rates on auto insurance online. It may seem like a good idea, but you may be wondering if it really is. Haven’t we all had a few bad experiences when making purchases solely based upon financial considerations?

Is purchasing online cheap auto insurance a good idea? The answer is a firm “it depends”. Purchasing a policy online is a great idea if you do not want to deal with the hassles of talking to an agent in the office, or if you feel that you may be tempted to over-insure your vehicle simply because you can not say “no”.
If you are careful and do your research before purchasing an auto insurance policy online, you may be able to find a good deal. If you just go online and purchase a policy because you liked the ad you saw on television, you may find that it isn’t such a good deal.

How do you make sure that you get a good deal when purchasing cheap auto insurance online? There are several things to do before you purchase that insurance.

  1. Know what you need before you buy auto insurance. Before you purchase any policy, you should have some idea about what types of things you need on that policy. For example, if you have a daycare business in your home and you will be transporting some of the kids to school in the morning, you will need a different sort of coverage than someone who just uses the car to drive to work and do errands.
  2. Make sure to understand exactly what you are getting for that great rate. Although the policy may seem like a great deal, it isn’t if you do not have the coverage that you need. Being under-insured means putting yourself and your family at great risk. Don’t take the chance: make sure that you have the coverage that you need even if it means a few dollars extra per month.
  3. Ask about auto insurance discounts that might be available. Things like an anti-theft system which has been installed in your card should help to bring down the rates. Other discounts can be applied if you have not had an accident as well. Of course, you want to look at the bottom line. If your insurance rate is reasonable, even without discounts, you probably shouldn’t be concerned.
  4. Check the insurance company’s rating. All insurance companies have a rating which verifies their financial strength. The financial strength of a company can be very important for people who are considering buying any type of insurance from that company. For example, you want to make sure that there will be money available if you need to process a claim or if you are sued after an accident. While a policy may be inexpensive, you might want to think twice about purchasing a policy from a company that is not so financially secure.
  5. Compare before you buy. Before you purchase a policy, you should compare that policy with your current policy. Look to see if the coverage is the same as your existing policy. If you were over-insured before or if your circumstances have changed, you may be able to down grade your policy. If the quote costs less money than your previous policy, but offers all of the coverage, then you definitely might want to consider purchasing your policy online.
  6. Obtain auto insurance quotes from several insurance companies before committing to one. Many companies offer insurance online. Because of this, it is important to compare online policies before purchasing one. Although it may sound like a lot of work, there is good news. Obtaining quotes online is quite easy. In addition, you will be able to get several quotes in a short amount of time.
  7. Check the effective dates. Even if your insurance coverage is a good deal, it won’t help if you are uninsured while waiting for your policy to take effect. Many insurance agencies can write policies that go into effect immediately. This is great if you need coverage right away. Other times, you may want to wait for your policy to go into effect when your current policy expires.
  8. What sort of customer service is available? The last thing to consider when determining if a policy is a good deal is how much customer service is available. Although you may not need assistance now, you will want to get the help you need if you are in an accident or if you lose your policy. It is not a good idea to purchase insurance from a company that does not have good customer support, no matter how inexpensive the policy is.
Companies with good customer service will allow customers to contact the company via phone, email, or even personal chat. A company will also have 24 hour service in case of a late night or early morning accident.

By now, you may be overwhelmed with the thought of going through the process to find insurance online. Keep in mind that the savings you can reap from such a policy will far outweigh the effort required to find a good policy. In addition, you will experience the rewards of your efforts each and every time you pay your discounted auto policy.

Using the tips you have learned, along with a little investment of time will help you to find the right online insurance policy which can give you the coverage you need at a rate you can afford. Compare auto insurance with our FREE ZIP code search. We will help you save on auto insurance quotes!

For Quotes and more information:

1 comment: