Car insurance

April 14, 2015

Auto Insurance Online vs. an Agent

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If you own an uninsured car, you probably have come across the idea of getting your vehicle insured. However, there are various means for you to do it. You can buy car insurance online or purchase it from an agent. The question is… “Would you buy insurance for your car over the internet or from an agent? One thing is clear. Both have pros and cons. But if you will get your vehicle insured, you have to pick only either of them. You will better understand them as you go reading the entire content. Differences between them will be explained briefly. You can use them to stick to the one that will work for you.

Buying car insurance form an Agent

Car insurance agents can be classified into two — independent agent and captive agent. They basically have similar purpose but they differ is some other aspects, thus their advantages and disadvantages also differ.

Purchasing car insurance from Independent Agents

Independent auto insurance agents commonly work for/by themselves. Some are part of small firms. They can sell auto insurance coming from a variety of companies.

Pros

  • Independent car insurance agents are capable of providing you with rate quotes from various insurance carriers. They can give you lists of insurance carriers for your evaluation. This allows you to choose an offering that would give you the most advantageous treats.
  • They are not receiving commission and incentives. Since these agents do not receive such compensation for leading you to a policy or company, you are more likely to receive objective answers for your best interest. This way, you will be able to compare car insurance rates better.

Cons

  • Independent agents can charge you with extra fees for every extra service. The coat may even exceed your premiums. They may even ask higher prices for their impartial advice. This is something that most people are unable or unwilling to pay.

Purchasing car insurance from Captive Agents

Captive agents are employed by a particular auto insurance company. They are sometimes called ‘exclusive agents’. Almost every insurance company has these agents. They are part of the regular staff.

Pros

  • You will be able to understand things about your policy, more clearly because they will serve as personal representatives of their respective insurance companies. An insurance company can somehow personally interact with you through these agents. You will have a trustworthy person to react on things that seem not to turn to your favour. You will be given low cost car insurance premiums that their company has to offer.

Cons

  • It is not guaranteed that you will gain compensation for services they render. At times, the cost may even make your monthly premiums slightly higher.
  • You are more likely to receive bias answers. They would of course mind about the advantages that their company should earn.

Purchasing Car Insurance Online

These days, most insurance companies allow clients to directly buy policies. They can buy car insurance online or do it over the telephone. In just few minutes, you can already have rate quotes on various policies without needing any third party intervention.

Pros

  • You can get a quote and find an insurance policy as quickly as possible.
  • Slightly lower premiums. This is because you do not have to pay for an agent’s services regarding your policies.

Cons

  • Direct inquiries can be somehow misleading. You might be confused of certain policy terms.
  • You will do all the searching for auto insurance quotes comparison.
  • You don’t have that benefit of having an insurance agent that will work for you claims and other insurance issues.

These are the differences among these three car insurance options. You can choose the one that best suits your demands.

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