In the
past, car insurance was not a necessity, as some people went for it and some
did not. However, today an auto coverage policy is one of the crucial things in
your life, if you own a car. People need proper coverage, no matter how
luxurious or modest their car is.
The way people
buy insurance has also changed. In the past, buying a car insurance just meant
to meet your neighborhood agent and ask him for it. But now, it is somewhat
different, as you have got lots of other options at your disposal from where
you can get your vehicle insured, with some entirely new coverage choices.
Buying car
insurance: Which method to choose?
When you
want insurance for your car, you might be puzzled as from where you should get
it. Should you deal with an insurance agent or should you go online? You can
choose among different options for getting your car insurance. This includes:
Buying from
captive agents
Buying from
independent agents
Buying
online
People, who
prefer personal services and like to form face-to-face relationships, should
certainly purchase their policy from an agent. But, since there are different
agents, they need to decide which one is the best for them.
Among
these, some are called 'independent agents,' who sell insurance for numerous
companies and some are 'captive agents,' who sell insurance for just one firm.
Let us see the different features of these agents, so that you can decide
easily and quickly the right agent for yourself.
1. Buying
from captive agents
You should
buy your coverage from a captive agent, if you are dedicated to a specific
insurance firm. Since captive agents deal with only one company, they will know
all the different insurance options offered by that company. And, thus they can
assist you to build the right package based on your needs. However, captive
agents may take more time to respond to your questions and to know your needs
as compared to independent agents who work for commission.
2. Buying
from independent agents
You should
buy a policy from an independent agent, if you want to check out the different
insurances provided by different companies, as independent agents deal with
several companies and not just one particular insurance firm. This way you can
get a better rate.
And, since
independent agents are not directly employed by any one firm, they would not
push one specific product and will tell you the right things about all the
insurances. Thus, independent agents can aid you to find inexpensive coverage
for your car. However, since they work for commission, they are under more
pressure to grab a deal as soon as possible.
3. Buying
online
The third
option is to skip insurance agents completely and to work directly with the
company online. However, for this you have to do most of the work yourself. You
have to conduct a thorough research on different coverage providers, what they
offer, the rates of their insurance, and what all their policies covers. Then,
you can talk to the company, that best fits your needs to procure the coverage
itself.
Among
these, some insurance companies that employ agents do not necessitate you to
work with them and a few of them do not employ agents at all. Buying auto
insurance online is one of the best options for you if you do not have much
time and want to get inexpensive car insurance, as it saves you from paying
commission to an insurance agent. If you are not sure about your car insurance
needs, then buying car insurance online, without an insurance agent can cause
you to buy the wrong, too little, or too much insurance.
Select your
type of coverage
Besides
deciding which company to go with, you must also consider which policy you
want. There are three main types of policies, including traditional,
usage-based, and per-mile car insurance. So, have a look at these three car
insurance coverage programs before you settle for one particular car insurance.
1.
Traditional auto insurance
In this
type of auto insurance, the insurers determine the quotes for the policy with
the help of various personal factors, such as your age, driving history,
gender, credit score, etc. Generally, the more risk you have as a driver as per
these factors, the more high your insurance rates will be. In this, you can opt
for a minimum coverage amount as per the state law or else you can select from
a long list of different types of auto insurance coverage.
2.
Usage-based auto insurance
As opposed
to the traditional car insurance, where insurers presume your driving skills
depending on a list of different risk factors and your accident history,
usage-based car insurance providers offer you car insurance by seeing you in
action in real. In this type of car insurance, like Allstate's Drivewise or
Progressive's Snapshot, you get a telematic device, which you have to plug-in
your car. This device records how you drive and your driving behavior,
especially your bad driving habits like accelerating or hard braking.
So, if the
device records that you are a low-risk driver, then you can save your money
with usage-based car insurance. However, if it records that you frequently
drive late at night or you drive fast, then it would not help you save money
with your car insurance. Additionally, many usage-based car insurance programs
are not available in each state. Therefore, if you are devoted to one insurance
company, then you may have to switch your company, in case you move to a
different state.
3. Per-mile
auto insurance
Per-mile
auto insurance providers also use a telematic device, but they focus on just
one thing, that is how little or how much you use your car. However, this car
insurance type is still new and is not available in every state. Among others,
Metromile is the best provider of per-mile car insurance and is available in
seven states until now, which are California, Illinois, Oregon, Pennsylvania,
New Jersey, Washington, and Virginia.
Additionally,
per-mile providers use the same elements as traditional insurers in determining
your car insurance rates, but you can save some money through its telematic
device. If you do not use your car much and use it only for emergencies, then
your premium may be cut significantly. However, if you normally drive your car,
then there are fewer chances of you saving money from it.
Shop around
No matter
how you purchase your insurance, whether you go for a dedicated agent or you
directly sign up with a car insurance provider, you must shop around in order
to get the best rates. Do some homework and do not just settle for the first
deal that comes your way. This is because rates for the same policy can differ
from one company to the other by thousands of dollars. Therefore, comparing
different car insurance offers is the best possible way to land up a good deal.
Taking the
time to pick the right insurance coverage can definitely save you money and
hassle down the road. Buck and Affiliates Insurance can help meet your auto
insurance needs in the Spokane, Washington area.
Article
Source: http://EzineArticles.com/expert/Robert_A_Jenkins/720993
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