In the past, auto insurance was not a necessity, as some people sought it out and others did not. However, nowadays, an auto coverage policy is one of the crucial things in your life, if you own a car. People need adequate coverage, no matter how luxurious or modest their car is.

The way people buy insurance has also changed. In the past, buying auto insurance just meant meeting your neighborhood agent and asking for it. But now, it’s something different, as you have many other options at your disposal from where you can insure your vehicle, with some completely new coverage options.

Buying car insurance: which method to choose?

When you want insurance for your car, you may not know where to get it. Should you deal with an insurance agent or should you go online? You can choose between different options to take out your car insurance. This includes:

  1. Purchase of captive agents

  2. Buying from independent agents

  3. buy online

People who prefer personal services and like to build face-to-face relationships should definitely buy their policy from an agent. But, since there are different agents, they must decide which one is the best for them.

Among these, some are called ‘independent agents’, selling insurance for numerous companies, and some are ‘captive agents’, selling insurance for a single company. Let’s look at the different features of these brokers, so you can quickly and easily decide which broker is right for you.

1. Purchase of captive agents

You must purchase your coverage from a captive agent, if you are engaged with a specific insurance company. Since captive agents deal with only one company, they will be aware of all the different insurance options that company offers. And therefore they can help you create the right package based on your needs. However, captive agents may take more time to answer your questions and learn about your needs than independent agents who work on commission.

2. Buy from independent agents

You should buy a policy from an independent agent, if you want to check the different insurance provided by different companies, since independent agents deal with several companies and not just one particular insurance company. This way you can get a better rate.

And since independent agents aren’t directly employed by any company, they won’t push a specific product and tell you the right things about all insurance. Therefore, independent agents can help you find affordable auto coverage. However, since they work on commission, they are under more pressure to reach an agreement as soon as possible.

3.Buy online

The third option is to bypass the insurance agents entirely and work directly with the online company. However, for this you have to do most of the work yourself. You should do extensive research on the different coverage providers, what they offer, their insurance rates, and what all of their policies cover. You can then talk to the company that best suits your needs to get the coverage itself.

Among these, some insurance companies that employ agents do not require you to work with them and some of them do not employ agents at all. Buying car insurance online is one of the best options for you if you are short on time and want to get cheap car insurance, as it saves you from paying a commission to an insurance agent. If you’re unsure about your auto insurance needs, buying auto insurance online, without an insurance agent, can cause you to buy the wrong insurance, too little, or too much insurance.

Select your type of coverage

In addition to deciding which company to go with, you also need to consider what policy you want. There are three main types of policies, including traditional, usage-based, and mileage auto insurance. So take a look at these three auto insurance coverage programs before settling on any particular auto insurance.

1. Traditional car insurance

In this type of auto insurance, insurers determine the policy quotes with the help of various personal factors such as your age, driving record, gender, credit score, etc. In general, the more risky you are as a driver based on these factors, the higher your insurance rates will be. In this, you can opt for a minimum amount of coverage based on state law or you can select from a long list of different types of auto insurance coverage.

2. Usage-Based Car Insurance

Unlike traditional auto insurance, where insurers presuppose your driving skills based on a list of different risk factors and your accident history, usage-based auto insurance providers offer you auto insurance by seeing you in action in real life. In this type of car insurance, like Drivewise from Allstate or Snapshot from Progressive, you get a telematics device, which you have to plug into your car. This device records how you drive and your driving behavior, especially your bad driving habits such as harsh acceleration or braking.

So if the device registers that you are a low-risk driver, then you can save your money with usage-based auto insurance. However, if you report frequently driving late at night or driving fast, then it would not help you save money on your auto insurance. Also, many usage-based auto insurance programs are not available in all states. So if you’re in business for an insurance company, you may need to change your company, should you move to a different state.

3. Car insurance by the mile

Car mileage insurance providers also use a telematics device, but they focus on just one thing: how little or how much you use your car. However, this type of auto insurance is still new and not available in all states. Among others, Metromile is the best car insurance provider per mile and is available in seven states so far, which are California, Illinois, Oregon, Pennsylvania, New Jersey, Washington, and Virginia.

Also, per-mile providers use the same elements traditional insurers use to determine your auto insurance rates, but you can save some money through your telematics device. If you don’t use your car much and use it only for emergencies, then your premium can be significantly reduced. However, if you normally drive your car, then there is less chance that you will save money with it.

Shopping around

No matter how you shop for your insurance, whether you’re looking for a dedicated agent or signing up directly with an auto insurance provider, you should shop around for the best rates. Find out and do not settle for the first offer that comes your way. This is because the rates for the same policy can differ from company to company by thousands of dollars. Therefore, comparing different car insurance offers is the best possible way to get a good deal.