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Auto Insurance and the Internet

The Internet is a Powerful Tool When it Comes to Looking for Car Insurance, It Makes One Realize That Cost is Only One Factor When Choosing Standard Car Insurance.

Acquiring auto insurance is typically done over the Internet these days. The Internet has become a gateway into the auto insurance industry where first time buyers and those who are renewing their policies can go to take their pick on a bevy of auto insurance policies and premium quotes. Going online for your car insurance will, at the very least, make you realize that cost is only a factor in your decision making. There are several other things to consider.

It would be prudent to keep some important points in mind when shopping for your automobile insurance. The first thing you should know is that while there may be hundreds of insurance companies selling car insurance, there are only two ways for you to purchase one. The first is through a licensed agent offering different policies issued by different insurance companies, and the second is to go direct to the insurance company either by telephone or through their official website. Insurance agents sell two times more than online insurance companies but the trend towards an online purchase of auto insurance is steadily growing.

The six kinds of insurance coverage that come with a standard car insurance policy are liability, bodily injury, property damage, medical or personal injury, collision, and the uninsured or underinsured motorist. The minimum required coverage differs from state to state so you may want to check with your state to determine which of these six types of coverage you need and which are optional.

There is a list of information needed for insurers to give you an accurate premium quote. Take note of your vehicle’s make and model, its vehicle identification number or VIN, your zip code, and all the aftermarket accessories you have installed in your vehicle, especially the anti-theft and safety accessories. You will also need the license number of the people who will drive your vehicle and also the date when they first got their license. You should also have a copy of your own driving record and your credit score. Insurance companies tend to think that someone with a low credit rating will most likely file claims more.

There are ways you can do to bring down your premiums. Keep tabs of the number of miles you drive each year and if your mileage decreases significantly compared to the previous year, you will get a lower premium quote. If you insure all your vehicles as well as your home with one insurer then you can get a discount. You can also forgo the optional insurance coverage based on some circumstances. Comprehensive and collision coverage may no longer be practical for very old car models.

You should get at least three different premium quotes from various insurers. You can also call the insurance company or set up a meeting with an agent so you can ask all of your questions and clarifications. Each year, you need to evaluate the policy you have, the premium you are paying and the coverage you are getting in return. Premiums can vary according to an insurer’s overhead costs, the commissions paid to agents, and the levels of risk of its insured drivers. You can log on to insurance aggregator sites online where you can key in your information to get a number of insurance quotes from different insurers. There are online insurers who sell directly to drivers doing away with the cost of commission thereby lowering down the premium.

Do not submit your information to a website without first checking its security policy. You should also fix the settings of your web browser so that you are notified whenever you are leaving a secure connection. If you have set your mind on one insurer, you should check with your state’s insurance authorities for a background on your insurer. Through this you can find out about the states that the insurer is licensed, a sample price comparison, and a consumer guide. Some states even have complaint indices that tallies the number of complaints against a particular insurer against the number of policies issued.

You do not want to go for the cheapest quote as there are other factors to consider when picking car insurance. The terms of the policy are what you should zero in as it has to match your previous year’s policy so you can be sure that you have the same coverage. Study the agreement terms to avoid companies that would use cheaper materials in the repairs instead of original parts.

Finally, educate yourself on auto insurance by looking for consumer forums where you can ask your questions from other consumers who have had experiences purchasing auto insurance. You can also consult ratings organizations like Standard and Poor’s, which provide business and performance ratings on all businesses including insurance companies.