Four in five consumers say they’d rather manage their finances online rather than in-person, according to a J.P. Morgan Chase study. Oftentimes, conducting your affairs digitally is quick and easy. Purchasing and managing your car insurance online is no different. With the ability to chat with an insurance agent online and compare multiple quotes, many people opt to buy auto insurance online.
If you’re interested in purchasing car insurance digitally, this article outlines the best online car insurance companies, how to find out what coverage type you want and the potential pros and cons of buying auto insurance on the web.
What to know before purchasing car insurance online
First and foremost, you will likely need details like your vehicle identification number (VIN), your driver’s license number and prior insurance history before actually buying a policy. These specifics may change your quoted insurance premium, especially if you received a quote by only providing partial information.
Since you won’t be sitting down with a licensed insurance agent to guide you through the process, you may want to answer the following questions before purchasing insurance online.
- If you have a loan or lease on your car, does your financial institution require you to have certain minimum limits and deductibles? If you need a full coverage policy, you’ll want to know before you have to choose an option.
- If you do not have a loan or lease, do you want full coverage or are you comfortable with liability only coverage? Although most states have minimum liability coverage – many experts recommend purchasing additional coverage. If you were to get in a car accident without sufficient coverage, you’d likely have to pay damages and medical bills out of pocket.
- Do you want a company that provides a mobile app? If you prefer to manage your auto insurance online, you may want to choose a provider that offers an easy-to-use mobile app. Some carriers, like Allstate, offer digital app features like “QuickFoto Claim” which allows you to submit claims and photos of your accident in the app.
- Do you want a bundling discount for future policies? Many auto insurance providers offer bundling discounts where you can save for holding multiple insurance policies from the same carrier.
- How important is it for your company to have a support phone number in case you have questions? Make sure the company you choose has reliable customer service if that’s important to you. Some companies, like State Farm and Progressive offer 24/7 customer service hotlines.
- What is the claims process and do you feel comfortable with it? Some claims can be processed through a mobile app, while other companies may have you file them on a computer or over the phone. Find out what you prefer and what your potential carriers offer.
Figure out what types of coverage you want
The policy type that will be right for you depends on your specific circumstances and preferences. Below are several of the most popular options.
- Bodily injury and property damage liability: This pays out for costs of injuries and damaged property to others when you cause an accident.
- Uninsured/underinsured motorist coverage: If you’re involved in an accident with someone who doesn’t have enough coverage to cover costs associated with the crash, this coverage will kick in to pay for medical bills and property damage.
- Collision coverage: Regardless of fault, collision coverage pays out when you hit something or someone.
- Comprehensive coverage: Comprehensive coverage kicks in to pay for repairs from any type of covered damage, whether from hitting an animal, damage from inclement weather or vandalism.
- Medical payments coverage: This pays out to cover your and your passengers’ medical bills in the event of a crash, regardless of fault.
- Personal injury protection insurance: PIP pays out regardless of fault and covers losses due to an accident, including costs such as medical expenses, funeral expenses and even lost wages .
Best online car insurance companies
Now that you may want to shop online for car insurance, you are probably wondering where to start. There are dozens of popular auto insurers out there, but not all of them may be right for you. We reviewed numerous auto insurance companies by examining factors like customer satisfaction, ease of the online application process, available discounts, mobile app availability and claims satisfaction to help you to find a company that might be right for you. Out of the companies we reviewed, these were the standout features we identified for each one:
|Company||A Good Option for…|
|Geico||Convenient mobile app|
|Allstate||Customer support options|
|Amica||Easy application process|
|State Farm||Online claims management|
Geico is a company that offers quick and easy quotes and generally cheap rates. Geico ranks highly for customer satisfaction, utilizes a user-friendly quoting system and makes it simple to file a claim. Geico’s mobile app is a standout in the industry. Policyholders can do everything from making policy changes to paying a bill and filing a claim within the app. You can even download your proof of insurance ID cards for easy access. Plus, Geico’s website allows you to complete certain tasks without even logging in, which is great for anyone who easily forgets their password.
Learn more: Geico Insurance review
Allstate offers users a multi-functional website. Better yet, Allstate makes it simple to get direct customer support if handling your policy yourself becomes overwhelming. You can even reach Allstate via e-mail or through a digital chat. Allstate offers a variety of discounts and plenty of agents nationwide in the event that you need to talk to someone face-to-face after you have purchased your online policy.
Learn more: Allstate Insurance review
If you want an easy and hassle-free option, you might appreciate Amica’s online application process. You begin by entering in your address and answering just a few simple questions that will help determine if you are eligible for a quote. The application is then broken down into five simple sections — your information, vehicles, drivers, discounts and your quote summary. If you need to step away from your computer, you can save a quote and return to it later. As an added benefit, Amica received the second-highest rating from J.D. Power for claims satisfaction.
Learn more: Amica Insurance review
State Farm offers a convenient and well-designed claims management system that is easy to navigate. Choose the type of incident you are dealing with and the website will break the claims process down into five steps. Even third parties involved in an incident with a State Farm driver, but who are not insured with State Farm themselves, can create an account to track a claim. Additionally, there is a digital chat button on every claims page so you can easily chat with a representative if you have a question.
Learn more: State Farm Insurance review
Online insurance comparison websites
Online insurance comparison websites can help you purchase auto insurance online. These sites typically use artificial intelligence to match you with multiple companies and give you quotes.
For instance, online insurance comparison site Insurify is an insurance marketplace that can make your shopping process simpler. You simply fill out your information and preferences, and Insurify gives you quotes from multiple providers. The company is free to use and helps you save money by allowing you to compare quotes and purchase a policy all in one place.
Pros and cons of buying auto insurance online
Buying car insurance online may or may not be the best option for you. When deciding whether or not to buy insurance online, you may want to consider the following pros and cons.
|Generating quotes and buying all in one place||May not get personalized guidance from a licensed insurance agent|
|Quick and easy||Limiting your options to companies who offer to sell policies online|
|Typically no agent fees|
If you already know what type of policy you need and how much coverage you want, purchasing auto insurance can be a great option. You can generate a quote online to see how much you’d pay – and the process is typically quick and easy. Even better, you likely won’t have to pay an agent fee.
However, if you aren’t sure what type of policy would be right for you, it may be best to buy a policy in person or over the phone. That way, you can discuss your preferences and needs with a licensed insurance agent who can point you to the right policy for you.
Buying insurance online is usually quicker and easier, but buying it in person from an insurance agent may be a better option for those who don’t know what type of policy they want yet.
How to save on online auto insurance
Are you hoping to buy cheap auto insurance online? Buying car insurance online is not necessarily a cheaper option than more traditional methods. However, that does not mean that you will not be able to find affordable coverage.
The average cost of full coverage car insurance in the U.S. is $1,674 annually, but it’s possible to score lower rates. Here are some of the easiest ways to save money on your online auto insurance:
- Shop around: The online quoting process is usually simple, so it may be in your best interest to get a quote from more than one company. As long as you are getting quotes for the same coverage, you should be able to compare rates and select the one that is most affordable.
- Bundle your policies: You might qualify for a multi-policy discount if you insure more than one policy with the same insurance company. If you already have a homeowners or renters policy elsewhere, you may want to quote it alongside your car insurance policy to see how significant the discount is.
- Explore every discount: Many car insurance companies have several discounts available. You may be eligible for a reduced premium based on your driving record, your grades, your employer, your vehicle’s safety features and even your driving frequency.
When shopping around, remember that the cheapest price is not always the best option. Be sure that you are getting quotes for the coverage that you need and not just the cheapest available. If you are not sure how much coverage to purchase, it may be best to start your auto insurance search by talking to a licensed agent.
Frequently asked questions
What is the best online car insurance company?
The best online car insurance company will depend on what you are looking for in your car insurance. Whether you want an efficient claims portal or a convenient mobile app, you can shop around to help determine the best car insurance company for your situation.
Can I get car insurance immediately?
Typically, yes. In fact, purchasing car insurance online is a great way to get car insurance instantly as you can typically generate quotes and purchase a policy all in one place. Several carriers also allow you to purchase a policy quickly over the phone.
Is it cheaper to buy car insurance online?
Premiums vary from driver to driver based on several characteristics such as driving history, location and age. It may be cheaper to buy car insurance online because you typically won’t have to pay fees to agents. However, you could also find low rates in person as agents can point you to discounts that you may have missed online. All in all, it depends on your individual circumstances.