Basics Of Buying Auto Insurance Online

Lamborghini AventadorWhen it comes to purchasing car insurance, more consumers are putting down their telephone and picking up their mouse. A record 2.8 million auto insurance policies were purchased online last year. That’s an increase of 80% since 2006, according to the 2010 U.S. Online Auto Insurance Report by ComScore. It’s not that surprising given the way everything is moving online.

Shopping for car insurance online is a quick and easy way to get the coverage you need to insure your vehicles.


1. Review Your Existing Policy
Examine the coverage you now have to make sure it reflects your current situation. If a recent job change has you driving fewer miles each day, your lower mileage may entitle you to a lower rate. If you first bought your coverage when your car was new, you may not have adjusted your collision coverage over the years. Older cars may not need as much coverage as newer ones. Take a good look at your policy to make sure you’ve been given every available discount. If your insurance company is like most, you’ll be able to review your policy online and make any adjustments.

2. Comparison Shop
Insurance rates vary as much as 100% from one company to the next – for the exact same coverage. That’s why the best way to save money on car insurance is to compare rates. The Internet makes it easy to do just that. Before you log on, make sure you have a copy of your current auto insurance policy handy. That way
you can be sure you’re making an apples-to-apples comparison of the coverage you’re pricing.

Compare rates from at least three different companies. You can visit individual insurance company sites or visit a site that allows you to submit your information once and get a number of auto insurance quotes simultaneously. With either option, your quotes often delivered in just minutes. Then you can make a side-by-side comparison to see which company offers the best price.

3. Check Reputation
Don’t stop at price. Your auto insurance is only as good as the company that stands behind it. Check the financial stability of a company by visiting a rating agency website. A.M. Best, for example, assigns a grade that indicates a company’s ability to meet its financial obligations. To see how satisfied other consumers are with the companies you are considering, view consumer complaint data at your state’s department of insurance.


Once you’ve found the best coverage, from the best company, at the best price, go to that company’s website and apply. Once you’ve lock-in the policy you want, be sure to cancel the coverage you have with your existing insurance company. Ask about getting a refund of any unused premium.  With the internet nowadays, there’s really no reason to overpay much for anything.  Just make sure you have at least 3 price comparisons.

Recommendation For Saving Money

Check for lower insurance rates. Auto insurance is the second biggest expense to owning your car. Esurance is the leading online market place to help you find the most affordable and reliable auto insurance. They get you comparison quotes to make sure you’re getting the best deal. You can easily purchase auto insurance straight from their website if you like what you see. It is very important that everyone gets at least basic liability car insurance. You can total your car and be fine. But if you total someone else’s car and injure them, they can go after you for ALL your assets and wipe you out! Check for a better auto insurance quote via Esurance today.

Sign up for Uber and get a free ride! Uber is one of the cheapest and most convenient ways to get around town. They are much cheaper than a taxi (~30% less) and much more reliable because you hail them through an app and can track their progress. There’s never any cash or tip to pay since everything is linked to your Uber account. No more auto accidents, parking tickets, or maintenance costs either. If you sign up for Uber, you get your first ride up to $20 for free!

Earn Up To A $300 Bonus By Driving With Uber! Driving for Uber is a great way to make extra money when you want. I average $30.25/hour, and 20 hours a week. An extra $2,400+ a month in my pocket is fantastic spending money while having zero boss. If you sign up, after you 20th ride, Uber is giving up to a $300 bonus depending on your city right now! Sign up to be a driver today and maximize your underutilized, depreciating vehicle to make some money.

Updated on 7/1/2015

Sam started Financial Samurai in 2009 during the depths of the financial crisis as a way to make sense of chaos. After 13 years working on Wall Street, Sam decided to retire in 2012 to utilize everything he learned in business school to focus on online entrepreneurship. Sam focuses on helping readers build more income in real estate, investing, entrepreneurship, and alternative investments in order to achieve financial independence sooner, rather than later.

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  1. says

    I am still with the same insurance we started with about 10 years ago. I have compared rates though and my current company is still a good deal.

    One thing I have found interesting though is when it comes to insuring teenagers. Like a good girl, I called to add my son when he turned 16 and we ended up getting that extra car. Obviously, it increased the cost of our policy, but I didn’t want to risk the consequences if something happened. However, many people I know have not listed their 16 year olds and said it is the car that is insured, not the driver. That makes sense and I recognize the car is insured.

    So I wonder if I am just a dumb sucker?

  2. says

    i have had USAA for years and in the auto insuring business no one has ever come close to beating them. not everyone can go with USAA, and from what i have heard shopping around every 2-3 years/renegotiating significantly reduces premiums. i help my parents do the same. there are quote aggregators online that can fetch you all kinds of options when you fill out just one form. agreed, the web has simply made it easier and a no brainer

  3. says

    I’m happy to compare policies online and get quotes…but before choosing I always like to talk to someone on the phone. You never know what they can do, or what else you might find out!

  4. says

    Much like eemusings, I prefer to call before I make my purchase.

    I use the convenience of an online quote, but once I’ve basically decided, I give them a call. Last time I did this, I ended up saving over $100 because of something I overlooked.

  5. says

    We use USAA for insurance and our banking. I think they are terrific. If you think going to other companies will lead to more savings, you should check out USAA first. I think you have to be military or prior, though. I was a reservist.

  6. says

    I can’t remember when, but I do believe it is most convenient to talk to your insurance agent and ask questions you want to know about their policy and coverage.

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