Online Car Insurance Explained

someone explores online car insurance using a laptop

Advertisements for online car insurance play across television, appear while surfing the internet, or when pop up in magazines. These advertisements seem to be everywhere telling you exactly how easy it is to sign up for insurance and how you can handle claims in a more efficient manner than through an in-person insurance company.

While there is some truth to this, there are also other issues that might come up. By learning the ins and outs of online auto insurance, you can determine if it really saves you money or if you would be better off doing business with brick and mortar locations.

What Are the Differences in Price?

For starters, the price is generally less with an online auto insurance policy than with a traditional car insurance provider. While this isn’t always the case, when comparing different insurance providers side by side, costs are typically lower with online companies. However, you do need to keep in mind that price is not the only element of an insurance policy. Paying less money throughout the year is a nice feature. However, if you do not receive the desired service, the savings are ultimately unimportant.

How Do You Make Claims?

For most online auto insurance companies, you have to call their automated claims number and wait on hold. Then you talk to someone who is, most likely, thousands of miles away. From here, you then have to either take pictures with your cell phone and email the images. Alternatively, the company could send out an insurance representative who they basically rent out from another company. Having a person from another company can be a bit tricky. They are going to take care of all of their own clients first and work with customers from different providers last.

With online car insurance, you probably have to wait longer to have your car repaired. While the direct, over-the-internet method might work, you probably will have to wait around longer for your car to be fixed. If this is worth saving extra money throughout the month, then it does make an excellent option for your car insurance. However, if you can’t go several days without a vehicle, then you probably should explore traditional insurance.

Is Online Car Insurance Right for You?

Ultimately, it really comes down to what you are looking for and how demanding you are of your insurance company. An online insurance company is best when looking for limited coverage. However, if you believe you need continual assistance, it is best to have an in-person contact. This way, you can develop a relationship with the insurance agent and work through the situation without any middlemen.