7 Simple Tips to Buy Insurance Online

These 7 simple tips to buy insurance online are perfect for anyone who wants the convenience and speed that accompanies these types of transactions. While not everyone agrees that the Internet is the best way to shop for car insurance, statistics prove more utilize this method every year.

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If you are one of the millions of Americans who use the Internet to shop, it should come as no surprise that you are ahead of the pack when it comes to looking for car insurance on the web.

The United States Census Bureau has a report showing how online retail sales have increased to almost 50%.

People who use online shopping methods appreciate the ease of this process and most importantly, the number of discounts available. It is the same with automobile insurance too. Most of the companies who utilize web-based transactions provide their customers with multiple ways to save money. This appeals to virtually everyone today and is the main reason why this trend continues to grow.

Of course, shopping for car insurance online is not always easy; however, the procedures are generally straightforward. If you follow specific guidelines, you can complete your research and purchase your policy within a fraction of the time that you would spend over the phone or in person.

Take Note of the Type of Vehicle You Have

A large portion of your online shopping experience for car insurance revolves around the type of vehicle you have. You should know certain things about your car. The most obvious question on the application is the year, make, and model.

They will also need to know the vehicle identification number. This helps them identify the status of your car. With so much fraud going on these days, they will need to consult with the National Crime Information Center (NCIC) as a precaution. This is standard procedure and only takes a few minutes.

The type of car you drive rates in their calculations in other ways too. For example, there are many standard or base model vehicles designed by various car-manufacturing companies. Each of these usually has several sub-models, indicated by a letter, number, or name.

In the case of the 2013 Ford Taurus, there are five different types to select. The base model is the SE and the cost is approximately $26,600. The remaining includes the SEL, Limited and SHO. Each one increases in price from $28,800, $33,000, and finally $39,200.

Along with the price variance, the options also differ. This means you may pay a different rate for car insurance with the SHO because of the extra features. If this model has advanced standard safety features, but the SE does not, they may consider the SHO to be a lower risk vehicle.

Review Your Personal History

To simplify the process of shopping online, you should review your personal history. Nowadays, the majority of car insurance companies are using credit scores as a way to calculate their rates. They do not base their decision on this one category, but they do spend time in this area as a way to see how you manage your finances.

When they see a low credit score or a sketchy credit history, they draw certain conclusions. Sometimes, they determine your risk as high if you are slow to repay your debts. Other times, they may believe your defaults in specific areas apply to your overall character. This can be damaging so you need to have this information in advance.

The three main credit bureaus include TransUnion, Equifax, and Experian and the auto insurance industry is very familiar with their reporting practices. You should make sure that you are on the same page with anyone who checks your credit history.

If you choose TransUnion not only will you receive a fast and safe credit report, but you can also take advantage of other features they offer.

Some of the more popular include alerts to your credit score, identity theft security, and an analysis of your debt or credit trends. These are excellent benefits you can use to safeguard your great credit and if necessary help repair any errors.

In addition to your credit history, you should also visit your local Department of Motor Vehicles online. You will want to see what your driving history looks like too. This is extremely important. The rate you receive from an Internet-based car insurance provider is consistent with your performance on the road.

Having too many tickets or violations will result in higher premiums.

For only a few dollars, you can order a copy of your driving record for the past three years. This is the same information the automobile insurance industry receives, so again you will have the same knowledge they have.

Verify Their License Status

This may seem obvious, however; a number of automobile insurance companies on the Internet sell their service without a license. In fact, it is surprisingly easy for them to continue these practices because they can hide behind a web address. Unless you have an occasion to use their services you will never find out.

These types of businesses do not report to any state-based regulatory commission, like the Department of Insurance or the National Association of Insurance Commissioners. They do not file their company’s records with the ratings companies and do not have memberships with any reputable authority.

Part of your research must include a license check with your state. Even if they originally filed for a license, make sure they continue to renew their status. This is another red flag for you to avoid. If they do not keep up with the major requirements, it is best that you stay far away. There is no guarantee that they will pay for a claim or even accept responsibility on your behalf.

Make Sure Your Choices Have Excellent Records

Now that you have a good idea of what you look like on paper, it is time for you to do the same with your choices. There are numerous online auto insurance companies available for you to select. This can slow you down or cause you to pay more if you do not explore their history.

If you are only concerned with the cheapest rates, this may not take you very long. You can go to a few sites and compare rates with multiple quotes. However, if you are a wise consumer, you know price is only one concern. You also want to make sure their claims process is easy and they have customer service agents available when you need them.

You also need to know how strong their finances are, especially in light of the economic meltdown of 2008. During this year, over 50 financial institutions in the United States fell short of meeting their obligations to their customers.

As a result, we now have five banks that control over $8 trillion of American consumer funds. At least, this is what the Federal Reserve reported as of 2012.

To avoid a financial pitfall, the car insurance company you choose to conduct business with must have strong, deep roots.

You cannot afford to invest your money in a fly-by-night organization that can easily file a Chapter 11 bankruptcy because of funds mismanagement. Therefore, to ensure that you have the best protection, your research must include reviewing their background.

Find out if they have affiliations with other, larger companies, like Geico and the Berkshire Hathaway Group. For the first few years that Geico was in operation, many people were extremely skeptical, until they realized this company was linked to a much larger, more established corporation.

You can complete these steps by going to A.M. Best or Standard and Poor’s and review their reports for free. While looking around, you should be able to discover their quarterly earnings for the past few years. You can also see how well they rate with customer satisfaction by going to the Better Business Bureau. The most reliable companies will have their information listed for public viewing anytime.

Compare Prices, Service, and Availability

Prices, service, and availability should be the top three reasons you choose a car insurance company online. You can find quick comparison quotes with just about any type of search engine and in the process, use their techniques for multiple estimates at one time. This will increase your results and help you get accurate rates.

The service they provide should be based on your personal needs and you should have various options. If you want to speak to someone in person, they should have a 24-hour customer service department. Since chatting is very popular for real-time issues, look for a company that offers this as well.

You should also have the ability to file a claim online, or at least start the process as soon as possible. After an accident, you may not want to speak to a live representative, but that should not hinder you from completing a simple form via the Internet.

Locate a company that allows you to begin the procedure with your cell phone using a mobile application. After you complete this step, they should follow-up within 24 to 48 hours.

If, at anytime you want to make changes to your policy, pay your bill or set-up automatic payments, this should be available too. Your car insurance provider should accept all methods of payment, including checks, credit and debit cards.

Read Everything Before You Make a Commitment

Once you complete your online application, you will arrive at a page called, terms, and conditions. Many customers barely give this section a glance; do not make this mistake. Train your eyes to read every single word in this area. Your entire policy rests on this document.

If you do not review this information carefully, you can sign away your rights very easily. This is especially true in no-fault states with tort laws and exceptions. If you reside in one of these states, it is vital that you use careful consideration with your selection of car insurance companies. Most require you to sign a separate document releasing your limits.

If you still have questions, you can find an attorney in your area who will guide you through the contract for a minimal fee. Far too many customers simply ignored the terms and conditions page and then fell victim to a serious car accident. As a result, they have limits included in their policies and cannot collect the proper compensation for damages.

Never Settle for Mediocrity or Complacency

Once you make your decision, sign and receive your policy, make sure they stay on their toes. This means, they should send you updates from time to time. They should also reach out to you for feedback.

The only way a company can really gauge how well they perform is to solicit this information from their customers.

If they begin to show signs of complacency, or your experience becomes mediocre, it may be time to start shopping around for a new provider. Remember, you are the customer and deserve a certain level of respect and consideration. Without your business, they cannot succeed.

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