Gone are the days of walking into an insurance broker’s office and walking out with chat and handshake-based coverage. Today, many purchase car insurances over the Internet, which is much more convenient and less intimidating.
Buying car insurance online can also save you much money, as some insurers offer better rates to customers online. It also allows you to get quotes from multiple insurers to ensure you are getting the best deal. Here are five steps you can take to find the cheapest car insurance when shopping online.
1. Look for insurance deals online only.
Some insurers offer lower auto insurance rates if you start the process of getting a quote online.
For example, Progressive rewards potential customers an average 4% discount for simply getting a quote on the insurer’s website (even if an agent terminates the quote with you over the phone), plus an average 8.5% discount if accept and sign your documents online. Likewise, Liberty Mutual says that potential clients can save 12% or more if they get a quote online rather than over the phone or in person. By completing this process online, you are saving the insurer time and labor so they can pass these savings on to you. Win / win!
2. Compare quotes from various insurers.
The Insurance Information Institute recommends comparing the rates of at least three auto insurers before committing to one. To obtain a rate quote, you will provide the insurer with preliminary information about yourself, the car you drive, and your driving history. Start with insurers you’re familiar with or recommended by friends and family, then broaden your search from there.
You may also consider using a rate comparison site like ValuePenguin or Insurify, which can provide multiple rate quotes in one place. These sites often ask for important information and then provide quotes from the insurers they partner with. These sites allow you to see which provider can offer you the best rate quickly. However, they can offer a minimal selection of insurance companies.
Although auto insurers tend to consider similar criteria, comparing rates is still essential. They all have slightly different formulas for setting rates. Because of this, it can be difficult to predict what type of rate you will get unless you get a quote.
Just a quick note on comparing premiums: there are different types of car insurance with varying levels of coverage. When shopping, be sure to reach the same or similar plans; This includes the policy supplements, the estimated mileage provided, and the deductible amount. For example, a quote for liability insurance from one company will be much lower than a quote for comprehensive non-deductible coverage from another.
3. Consider bundling insurance policies.
Insurers often offer customers car insurance plans if they are tied to other types of coverage. For example, Progressive offers an average 12% discount on auto insurance if you also use it for homeowners or renters insurance.
See if you can trade in other types of insurance you have and bundle them into one package with an agency to take advantage of the savings, or ask your current homeowner or renter insurance broker if they will give you a discount for adding auto insurance with them.
4. Don’t leave any discounts on the table.
There are numerous ways to save money on car insurance and add it to other types of insurance.
Multi-Policy Discounts: Some insurers offer discounts if you and other drivers in your household subscribe to an insurance plan together. Geico, for example, says its customers can enjoy a multi-car discount of up to 25%.
Group Discounts: Insurers can even partner with your employer to get a discount on coverage. Some insurers offer discounts for members of the military or for those who bank with certain credit unions.
Safety factors: You can save on your reward if you have a flawless driving record or don’t drive much. Also, you may be able to save money if your car has certain onboard safety features, such as antilock brakes or an anti-theft system.
5. Pay your premium at once
Paying your auto insurance premium every month may be more convenient and easier to budget for. However, it is generally not the most profitable strategy. Many insurers offer discounts if you are willing to pay the premium for the entire policy period at once, which can sometimes save you hundreds of dollars over a year.
This may not be an option for those on a tight budget, but it can lower your overall insurance cost a bit if you save enough. You may also find that some insurers will give you a small discount if you sign up to pay your premium by automatic payment.
Another option is to subscribe to usage-based insurance (pay per mile). Not all insurers offer it, but it allows you to pay only for the miles you drive, rather than the same amount each month, regardless of how much you drive. If you don’t frequently go, taking this route can translate into significant savings.
How to apply for car insurance online
If you know which car insurance company you want to use, register directly on their website. If you prefer to use a comparison site, you can start there and compare quotes first.
Regardless of whether you go directly to the site or use a third party, you will be prompted for various information about yourself, your driving history, and your vehicle.
Generally, you will need to provide your zip code, make, model, and year of your car; your age; your gender; Marital status; traffic and accident history, and your current insurance information. You will also be asked to estimate how many miles you drive annually. Once you have selected the type of coverage you want and the discounts you are entitled to, you will receive a quote. If you accept, you will need to complete some paperwork before your insurance takes effect.
Driving behavior: Some auto insurers offer discounts if you subscribe to their optional tracking programs, which usually take a smartphone app. These programs monitor your driving habits. If you drive in a way that insurers deem safe (such as not accelerating or braking hard), you can lower your rates.
For example, Esurance offers the DriveSense program, State Farm has the Drive Safe & Save discount, and Progressive offers Snapshot. Progressive Claims – People who enroll in your program save up to $ 145 a year. However, be careful that if programs like these consider your driving habits to be high risk, you may end up paying more.
Some Top Vehicle Insurance Companies in India
|Companies||Network Garages||Claim Settlement Ratio|
|Bajaj Allianz General Insurance||4,000+||88.83%|
|Bharti Axa General Insurance||5,200+||87.99%|
|Hdfc Ergo General Insurance||6,800+||91.23%|
|Icici Lombard General Insurance||8,800+||87.71%|
|Iffco Tokio General Insurance||4300+||95.30%|
|Kotak General Insurance||1,300+||82.81%|
|National General Insurance||3,100+||85.71%|
|New India General Insurance||3,000+||89.60%|
|Reliance General Insurance||6,200+||84.26%|
|Sbi General Insurance||16000+||89.51% in FY20|
|Tata Aig General Insurance||5,000+||90.49%|
|United India General Insurance||3,100+||82.93%|
|Universal Sompo General Insurance||3,500+||90.78%|