April 23, 2010

What To Check Before Buying An Auto Insurance Policy Online

Getting an online auto insurance quote is rapidly becoming commonplace. Almost every large auto insurance provider now offers this option as a part of their websites’ basic functionalities, and many consumers are far more comfortable obtaining quotes for auto insurance premiums and even purchasing them online. In many cases, the time saved and the ability to get multiple quotes to narrow down the option best for the specific consumer far outweighs the potential dangers in purchasing online insurance. Although many companies offer a safe way to get online insurance policies, here are a few things to check up on before signing on the virtual line.

The first is the company’s reputation. Often, an auto insurance quote that seems too good to be true–is. This may be because there are hidden fees or because it doesn’t cover what it should, but it can also be simply because the company does not treat its customers well. The cheapest online auto insurance quote in the world will not help a client if the company who issued it never responds to their calls or actually lives up to their promises. So, before buying a policy online, do a little homework on the company itself. What kind of reputation do they have, both online and according to people who actually use them? Do they answer their phones promptly, and do they treat customers fairly? It is essential to make sure that they do before agreeing to pay any auto insurance premiums.

Next, be sure to examine exactly what type of coverage this auto insurance company is agreeing to provide. Every state has a minimum amount of required liability and possibly even uninsured motorist coverage which all drivers must carry. Make sure to first of all check the minimum requirements are being met by the insurance policy. Next, make sure that the coverage that is being signed for actually matches what was offered. Many people are drawn in by the startlingly low auto insurance quotes offered on a website, only to discover that they offer virtually no useful coverage.

Lastly, check to make sure that the amount being paid and the methods of payment are fair. How much, exactly, are the monthly premiums? When will they be taken each month, and in what form? Does the company want a lump-sum up front? Too many people enter into auto insurance policy contracts without knowing the answers to these questions, and receive a large and expensive shock when their first month of coverage is up. When purchasing online insurance, as with buying any online product or service, research, preparation, and attention to detail are key in making sure the best coverage for the best value is purchased.