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Guide: How to Buy Auto Insurance the Right Way

Auto insurance is a mandatory requirement in most states in the U.S. So if you intend to buy a car, you should start comparing your auto insurance options as well. To do this, you’ll need to get a quote from the insurance company, online, over the phone, or through a broker or agent. Here, we explain the various routes that you can take to purchase auto insurance.

Direct Purchase Over the Phone or Online

If you are directly purchasing the policy from the company, there’s no need for you to seek out a broker or agent. Online car insurance has become quite common, and you may even be able to get a quote from the insurance company over the phone. The advantage of getting a car insurance plan this way is that you can really do your research and compare your options – there’s no upselling or pressure from the broker or agent to go with a particular plan.

Auto Insurance from A Captive Agent

Captive agents work for a single insurance company and generally act as your point of contact. They typically get a commission from the company when they sell you an auto insurance policy, in addition to monetary support from the insurer they work for. This is a good route to take if you aren’t sure of what type of policy you need and require some assistance to figure out which plan will work best for your needs.

Auto Insurance from Independent Brokers or Agents

Unlike captive agents, independent brokers and agents don’t just work with one company. They, instead, work with multiple insurance providers and can get you a number of policy options to compare. Independent brokers and agents work solely on commission, which means there is a risk that they could try to upsell you on coverage options and policy features that you don’t really require. However, if you would like to compare policy options from different companies and want an expert to explain the intricacies of each policy, this may be a good option for you.

Regardless of how you decide to buy your policy, make sure to shop around and compare your options to ensure you get a good deal on your auto insurance coverage.

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