There are three ways you can purchase auto insurance.
1. Independent insurance broker
2. An insurance agent
3. Directly from your insurance company
All these methods have advantages and disadvantages. Each method can be beneficial depending the needs of the buyer.
1. Insurance broker
An insurance broker is a popular option for purchasing insurance. They work independently and do not work for one company. They are independent and work to get you the best rates. This used to be the best method to obtain auto insurance. The best way to get auto insurance was to go to an agent and tell them what coverage you need. They would then shop around for the best deal. However, they will need to be paid for their time. The broker’s fees and actual insurance can cause your insurance rates to go up. You might also find them working on commissions. This means they get money from the insurance company for every customer who buys insurance. It begs the question: Do they really care about your best interests? You might be tempted to buy insurance through a company based on the higher commission they receive. Or, you may be convinced to get more coverage to make up for the lower commission.
I believe brokers are obsolete due to the internet. All of the tools brokers need to compare auto insurance quotes can now be found online. You can easily compare insurance companies to find the one with the lowest premiums. Insurance brokers don’t add value to me. They seem to charge higher premiums and can be found online.
2. Insurance Agent
An insurance agent acts in the same way as a broker but they only work for one insurance company. They will try to get you the best coverage at the lowest rate, but only for the company they work.
3. Directly from your insurance company
You can’t buy auto insurance directly from an insurer online, but you can do so over the phone. This is often the most affordable option, since these companies have large call centers that can handle calls from all parts of the country. This reduces their costs dramatically. The internet has made it easy to find the best auto insurance rates. Many companies offer additional discounts when you buy online or by phone.
What is the best?
These three ways to buy auto insurance are compared and discussed above. Online quotes are the best way to find the lowest auto insurance premiums. It will let you compare all the insurance companies in your region and show you the lowest price. You can then call your local broker to find out if they can match or beat your quote once you know which companies have the lowest prices. Supporting local businesses is important. If a broker can match or beat your online price, why not purchase through them? You have two options if they are unable to match or beat their online price. If the company has an office near you, you can visit them and get insurance through their agent. You will get the same price you would find online. You can also purchase insurance directly from the company online or by phone. There are not always insurance agents or offices in every city. This means that you will have to order online or over the phone to get the best price. You may be eligible for an additional discount if your purchase is made online.
Some people are uncomfortable buying insurance online. The only option for them is to speak with a broker, agent or representative. However, online insurance can often be cheaper than buying it over the phone.