Wednesday, January 5, 2011

How to Buy Auto Insurance Online

Buying auto insurance online is a common enough occurrence, accounting for approximately 25 percent of all car insurance purchases. However, when you buy car insurance online, you can easily go wrong, if you are not careful. Even the choice of where to look for car insurance online carries with it the potential to open yourself up to a variety of risks:

Online auto insurance companies include Progressive.com and Esurrance.com – these companies provide you with car insurance coverage – in many cases, in minutes.

Privacy: When dealing with online car insurance brokers, it is very important that you read the privacy policy – no matter how long it is. Most online car insurance brokers have a privacy policy for their site, as well as separate privacy policies for each insurance company they deal with. If you are not careful, you could be revealing loads of personal information that could be used, sold, or otherwise unprotected.
 
Service: Also, keep in mind that buying car insurance online may be easy and convenient – it allows you to compare different options in minutes and get exactly the coverage you want. If you do not know what type of coverage you need, or you expect your insurance needs to change drastically in a short period of time, you may want to use a local insurance agent as online car insurance brokers and providers provide information but not guidance.

Coverage: One of the biggest risks you face when you use an online car insurance broker or provider is that you will not get the same value for your money that you would from a traditional car insurance company. Many online car insurance brokers and providers are able to offer super-low auto insurance rates because they cut back on coverage – potentially leaving you to cover common expenses out of pocket. For example, many online car insurance brokers and providers will cut back on your comprehensive coverage, meaning that you would not have coverage (or not have much) for weather-related damage (e.g. hail storm, lightning, flood), vandalism (e.g. car gets keyed, windows busted), or theft.

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