Car Insurance: A Buyer’s Guide

You’ve decided which car you’re going to buy. You’ve chosen the make, model, trim level, color, and the optional extras. But you’re not done figuring out the important stuff. The next thing you need to handle is buying the right insurance policy for the car of your dreams. While buying car insurance has become easier over the years, it can still be quite tedious. We’ve put together a quick guide to help you navigate the process and find the best insurance rate for your car.

Get A Quote

To get a quote quickly, keep all the following information ready. It’s what you will need to get an insurance policy.

The Requirements:

– Date of birth of all drivers to be listed on the policy

– Vehicle storage location address(es)

– Driver’s license information of all the drivers that will be covered by the policy

– Driving records of all the drivers that will be listed on the policy

– Vehicle Identification Numbers (VIN) of all vehicles that will be covered by the policy

– Insurance history of all the drivers that will be listed on the policy

You’ll need these to get an accurate quote from the insurance company. They may not be required upfront, but it’s better to have this for accuracy.

To create your quote, the insurance company will pull a Motor Vehicle Report (MVR). It is an abstract of your driving record and is used to project what kind of driver and client you are likely to be for the insurance company. This helps them price your policy.

Buying The Insurance

There are a few ways to buy car insurance for a new car. You can decide which of the following ways works best for you according to your personal preferences. Your options include buying your car insurance from an insurance agent who only works for one insurer, an agent or a broker who represents several insurance companies, through a car insurance company’s website. 

You can also consider an online insurance marketplace that lets you compare policies offered by different insurance companies. If you choose the last option, you may be able to avoid broker’s fees too.

Insurance Company Agent

This sort of agent is called a captive agent because they only sell policies for one insurance company. The advantage of talking to a captive agent is that they are likely to have in-depth knowledge about the coverage options offered by their company.

Independent Agent Or Broker

An independent agent or broker represents several insurance companies. Through these agents, you can compare premiums and coverage from all those insurance companies. Of course, the agent is also likely to push a policy that will get him higher commissions. So you’ll still need to do your homework.

Insurance Company Website

Here your experience can vary because different companies invest different amounts to offer customers a rich online insurance buying experience. But if you understand the kind of coverage you need and can handle it yourself, you can complete the process quickly. The issue is that you’ll have to visit multiple sites to see multiple quotes.

Online Insurance Marketplace

If you’d like to compare several insurance products conveniently, then this is the way to go. You’re likely to find the cheapest options here and save on any broker/agent fees too. And you’ll be able to see quotes from many insurance companies without having to visit each one’s website.