When it comes to buying auto insurance, more consumers are shopping online versus calling up insurance carriers. A record 4 million auto insurance policies were purchased online in 2023. That’s an increase of 200% since 2006, according to the U.S. Online Auto Insurance Report by ComScore. It’s not that surprising given the way everything we do is moving online.
Buying auto insurance online is a quick and easy way to get the coverage you need to insure your vehicles. And it's more secure and reliable than ever before.
Three Steps For Buying Auto Insurance
1. Review Your Existing Auto Insurance Policy
Examine the auto insurance 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.
Or if you first bought your auto insurance coverage when your car was new, you may not have adjusted your collision coverage over the years. Older cars typically don't need as much coverage as newer ones.
Take a good look at your auto insurance policy to make sure you’ve been given every available discount. If your car insurance company is like most, you’ll be able to review your policy online and make any adjustments.
2. Comparison Shop For Car Insurance
It's important to shop around when buying auto insurance. Insurance rates can 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 start your search, 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 auto insurance 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.
Using a reputable site like AllState is a super easy way to save money when buying auto insurance. And it's fast! You can get quotes after just a few clicks.
With either option, you can get auto insurance quotes in minutes. Then you can make a side-by-side comparison to see which company offers the best price.
3. Check The Auto Insurer's 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.
For example, A.M. Best 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.
In Conclusion
Buying auto insurance online is easier than ever before. Not only can you save a lot of money, you can save time.
Once you’ve found the best auto insurance coverage, from the best company, at the best price, go to that company’s website and apply.
After 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.
Be More Responsible, Buy Less Car And Save On Auto Insurance
Cars are expensive enough. The more expensive of a car you buy, the more you have to pay for auto insurance. As a result, buy the cheapest and most reliable car you can.
Follow my House-To-Car Ratio guide for fiscal responsibility. If you want to eventually reach financial freedom, you should have a house-to-car ratio of at least 50. Cars are guaranteed to depreciate in value, houses tend to appreciate in value.
Buy Real Estate Instead Of An Expensive Car
To invest in real estate without all the hassle and unexpected costs, check out Fundrise. Fundrise offers funds that mainly invest in residential and industrial properties in the Sunbelt, where valuations are lower and yields are higher. The firm manages over $3.5 billion in assets for over 500,000 investors looking to diversify and earn more passive income. The minimum investment amount is only $10.
Another great private real estate investing platform is Crowdstreet. Crowdstreet offers accredited investors individual deals run by sponsors that have been pre-vetted for strong track records. Many of their deals are in 18-hour cities where there is potentially greater upside due to higher growth rates. You can build your own select real estate portfolio with Fundrise.
I've personally invested $954,000 in private real estate since 2016 to diversify my holdings, take advantage of demographic shifts toward lower-cost areas of the country, and earn more passive income. We're in a multi-decade trend of relocating to the Sunbelt region thanks to technology.
Both platforms are sponsors of Financial Samurai and Financial Samurai is an investor in Fundrise funds.
I presume it can be a fact however , often times there are segments i do not understand
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.
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.
I always start with a larger company’s quote first and then see if smaller insurers can beat that rate.
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!
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
I’ve been a 16 year user of USAA as well! Love them! Service is awesome too.
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?
You have definitely got to insure your teenager for everything you’ve got. In fact, look into getting an UMBRELLA POLICY if you can. Check this out:
https://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/
That umbrella policy is interesting. To be honest, I didn’t even think about my 16 year old causing possible liability issues for us. I guess I was living in my naive little world.
Thanks for the info- I will look into it!