Types of Car Insurance: What’s the Best Way to Buy Insurance?

Insurance is a vital element for you and your vehicle and we assist you in choosing the best methods to get it affordably in this article.

Some car owners underestimate the importance of picking out a suitable insurance provider and usually end up paying even more than standard costs.

While a lot of resources may recommend the best way to buy insurance online, we will assist you in distinguishing the old-fashioned way or to buy virtually.

Moshe Strugano Says

Fundamentally, there are three ways you can buy auto insurance: individual mediators, captive insurance agents, and online.

If you are among those car owners who have a penchant for personal services and are on the verge of maintaining relationships in person, you could choose your policy from a certified agent.

car insurance types and how to choose

If you have a lack of time and cannot meet up with agents, then it is online insurance which could work for you. We will now further discuss between the two types of captive and individual mediators to further enhance your insurance buying spree.

Purchasing via individual mediators

Being a responsible car owner, it is vital for you to purchase a policy from individual agents and compare their offerings before plunking your cash on one.

Most of these individual mediators deal with a variety of insurance offering companies and the agent should be more than happy to discuss different deals with you. Because any specific company does not hire individual agents permanently, they will not force you into buying a particular cover. 

In many cases, such independent agents will offer you the best advice and even suggest you the best insurance cover for your car. On a downbeat note, independent agents earn a commission on each policy they sell and hence are under constant pressure to sell more covers as feasible.

Purchasing via captive insurance agents

Insurance company allotted agents come in handy if you have been loyal to a particular insurer. Such agents are under a bond with an insurance company and they should be able to inform you about all the packages available under their roof. 

Hence, such agents are capable of assisting you with the perfect auto insurance and could also have special authority to tailor-make a bespoke policy according to your requirements.  One negative aspect with captive agents is that they usually take their own time in answering your queries when compared to individual mediators who are bound with commissions.

Purchasing auto insurance online

Virtual buying is unarguably one of the best ways to acquire a tailor-made insurance cover for your prized set of wheels. You will discover several reputed portals that will compare various major insurance providers so that you can analyze and determine which company suits your needs in the best ways possible. 

However, if you are not technologically savvy, it could take some time figuring out how the virtual system works. If you have a friend or a relative who is techno-savvy, you may take their help to determine the best insurer for your car.

Usually, online insurance comparison websites are user-friendly and you will be easily able to compare several insurance companies at a time. Here also make sure to tick all the boxes of your requirement before entering your credit/ debit card details for issuing the payment. Online auto insurance saves a lot of time and is comparatively cheaper than real agents.

Types of Auto Insurance: Which One to Choose?

Just as the market is teeming with scores of genuine car accessories,  similarly you have various types of car insurance to boot.

Conventional car insurance will determine the estimate for your chosen policy by taking various aspects such as your credit score, gender, driving history and age before grating you a final quote. Usually, the more risk you entail as a driver on the given factors, the higher your premium costs will become. Conventional car insurance allows you to choose minimum, medium and high IDV which is a plus point. 

Insurance based on usage incorporates a telemetric device attached to your car which records your driving behavior and calculates the premium accordingly. You may opt for such a service if you are a sedate driver as the device notes bad driving habits such as hard braking and sudden acceleration. Car owners who drive sedately can benefit a lot from usage based insurance.

Per mile car insurance companies also make use of a telemetric gadget but are more focused on your car’s usage. The device merely calculates the amount of miles you log in monthly (or annually) and calculate the premium consequently.

Per mile insurance of now is limited to certain states but is widely expanding due to the best convenience it offers. It is, however, not suggested for car owners who munch a lot of miles.

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