McAfee Secure sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

Car Insurance on the Internet

Car insurance on the Internet is one of the fastest growing businesses in the online marketplace, and the fastest growing area of auto insurance overall. Its growing popularity and ever increasing market share have made it much more than a niche area of the overall industry. More and more customers exclusively go online when they search for policies, and more providers are offering their products in this format in response to increased demand. The advantages of Internet car insurance are numerous. For providers, they can reach a broader range of potential consumers without regard to geographical restrictions, and can offer lower prices thanks to the savings they enjoy on certain operating and administrative costs. And for consumers, car insurance on the Internet is a faster and easier way to get insured, and usually comes with a lower price tag to boot.

Internet Policies Greatly Benefit Providers

Online auto insurance plans are great for car coverage providers for a variety of reasons. First of all, they offer a much more cost effective medium for them to offer their products. There are many financial savings attached to the online formula. Administrative costs are much lower for providers, as are the costs of actually selling a policy. In addition, going to this format in part or in whole saves significant retail or office space. Since so much is done online that used to be done in person, a great deal of money is saved. This is on top of the savings related to not having to pay the middleman, or agents at agencies who sell insurance policies on behalf of insurers. When these agents sell plans they are paid a commission, which ends up costing insurers for every single policy sold.

Online Coverage Great for Consumers

And of course, that extra cost is normally passed down to customers. When the extra expenses of selling through agents or at a storefront do not exist, there is no need to charge and extra premium to cover these costs. For this reason, auto insurance companies are able to lower the prices they charge for auto insurance plans they sell online and still make more money themselves.

Splitting the difference benefits both the provider and the customer. The direct online access we have as customers gives us the ability to get better coverage for less money. We can take on more comprehensive plans and still remain within our budgets, a boon to all of us who have to watch every dollar we spend. When it comes to expenses like auto insurance, as consumers we are used to the idea that some of our money is going to have to go out each month to take care of our obligations in these areas. But there is no reason for us to just sit back and watch as our premiums grow out of control. And that leads to the next reason why online auto insurance is so great for the consumer.

Internet car insurance gives consumers more control over the prices they pay for their protection. In earlier years, insurers could get away with a take it or leave it approach toward local drivers when it came to their pricing strategies. But these days, with the proliferation of online auto insurance and the abundance of choices we all have, there is no reason to put up with this kind of mentality with an auto coverage carrier. If you don't like the price being offered or if your current provider keeps raising your rates, you can log on and take your premium dollar elsewhere. Of course, it is important to bear in mind that if you ever choose to switch auto insurance providers in the middle of a policy period, you'd better have a pretty good reason for doing so, because switching mid policy is not easy and will probably cost you some money. And if you don't do it right, your record may even show a lapse in coverage even if you had insurance the whole time.

Internet Insurance Continues to Grow

Auto policies on the Internet continue to grow both in popularity and influence as time goes by. In the future, we can expect to see even more of the traditional providers joining in the fray as we have recently witnessed, as they come to the conclusion that offering their wares in this manner is probably the only way to compete with this still new method of getting insured. The old hassle of getting a new plan is gone. You don't have to sit on the phone all day or drop everything to hit the local agency to try and find a plan that fits you. You can find Internet car insurance coverage with your computer any time of day, any day of the week.


FREE Quotes, Multiple Insurers

Zip Code