Car Insurance Quotes: What You Need to Know
Instant auto insurance quote – One of the best ways to find cheap car insurance quotes online is to shop around and compare coverage and rates from multiple companies.
Drivers are required to have auto insurance in almost every state. But if you find yourself with a handful of questions about car insurance, you’re not alone — and it’s wise to learn about insurance before you get quotes. Here’s everything you need to know about auto insurance quotes before you shop.
Instant auto insurance quote – What are auto insurance quotes for car insurance?
A car insurance quote is an estimate of how much you’ll pay for a policy. An insurance quote is calculated based on the information you provide, including your age, the car you drive, your driving history and where you live, among other factors.
Insurers each use their own unique formula to calculate a car insurance quote, so even if you provide the same information to Geico, Progressive or any other company, no two quotes will be the same. The more auto insurance quotes you get, the better chance you’ll have of finding the cheapest car insurance company for you.
How to get car insurance quotes
There are several ways you can get free auto insurance quotes. You can buy directly online or over the phone, from a “captive agent” (who works for only one company), or from an independent agent or insurance broker.
First, some pro tips. Whichever option you choose, make sure you:
Look into car insurance companies’ complaint records and customer satisfaction. Auto insurance reviews are a good place to start.
Get at least three car insurance quotes online or from an agent so you can evaluate whether you’re getting a good price for the coverage you want.
Understand coverage limits. When comparing quotes, check that each policy has comparable liability limits and deductibles.
Auto insurance quotes online or over the phone
Getting free auto insurance quotes online is one of the easiest ways to shop for car insurance. Most companies offer free online auto insurance quotes, including State Farm and Allstate, which let you start online but assign you a captive agent to finalize your quote on the phone. Purchasing a policy online (or over the phone) is referred to as buying car insurance “direct” from the insurer.
Buying insurance directly without the help of an agent gives you more freedom to adjust coverages and see auto insurance quotes for yourself, but there are also drawbacks.
Instant auto insurance quote – Captive insurance agents
You could also get a free car insurance quote through a captive agent. A captive agent works for one specific insurance company, such as Allstate, Farmers Insurance or State Farm.
Any agent’s job is to help figure out what policy is best for you and provide a car insurance quote. In return, he or she earns a commission — or percentage of your premium — when you buy a policy. Unlike other agents, a captive agent may or may not also receive a salary from the company they work for.
Independent insurance agents and brokers
If you want to talk through your car insurance options, but don’t want to limit yourself to one company, getting an auto insurance quote from an independent agent or broker might be a good choice.
Independent agents and brokers work with multiple insurers and can offer a wide range of options and policies. Big-name insurance companies such as Travelers and Progressive (as well as smaller companies) sell policies through independent agents. Because independent agents work on commission, they may strive to provide you the best customer service possible or, alternatively, steer you toward more expensive policies.
Independent brokers differ from independent agents in that they charge a broker’s fee and must disclose commission rates to customers. This transparency allows you to know exactly how much the broker is making from your business.
