Is Buying Auto Insurance Online Cheaper?

Some auto insurance companies clearly state in their websites that they will offer lower quotes if you get them online and they will give discounts if you buy your policy directly on their website. Online quote, signing online and paperless discounts are some of the savings offered and premiums can be lowered by 4 – 12% depending on the number of saving opportunities and companies.

For example, Progressive offers a 7% discount for getting quotes online and it is still applicable if the policy is finalized by one of their telephone agents. They also offer further 9% savings on average for signing your documents and binding the policy digitally. Sign online discount is probably one of the easiest savings people can get. It doesn’t finish there as the company offers to further reduce their prices if you go paperless and receive your documents via email.

Progressive is one of the cheapest vehicle insurance companies along with GEICO for purchasing policies through their websites, instead of agents. Liberty Mutual offers a 12% online purchase discount on all types of coverage including liability and physical damages. Allstate has an eSmart discount of 10% for going paperless and having a digital policy called ePolicy. Mercury offers E-signature discount for signing your documents online, although doesn’t specify the amount.

In addition, many companies confirm in their literature that they offer cheaper quotes for motorists who come to them directly through their websites, rather than coming through an agency network because they have to pay them commissions not only for selling the policy but from future renewals as well. Esurance is actually a company selling policies only digitally and they confirm they can offer cheaper prices by going all digital.

Digital channels have already replaced the call centers and companies have reduced the number of agents available to answer customer questions. And since 2020, the Internet is the main communication channel and selling point for vehicle insurers and surpassed the agents. If car insurance is cheaper anywhere it is online and that is why many people choose this medium.

One of the most significant benefits of the Internet is that it allows people to compare prices conveniently, faster and through more companies. Online automobile insurance quotes from comparison websites and directly from insurers help reduce people’s premiums. Anyone can get on the Internet and start getting quotes from as many companies as they like without the need to talk to anyone or dial any number.

Under an hour they can get 10 quotes and compare them easily with each other. Essentially, people get cheaper auto insurance not because they get many more discounts but they find the cheapest provider. Then, it becomes irrelevant what types of discounts this company offers because it has already beaten all its competitors and provided the lowest price.

Here are some of the reasons why you have a better chance of finding cheaper automobile insurance online in comparison to agents and brokers.

  1. Many companies offer various discounts for buying a policy online and they apply cheaper rates for quotes received through their websites.
  2. There is no limit as to how many quotes you can get. It is normal that every broker or agent has their limits. However, you can use two or three different sources, comparison websites and go directly online.
  3. If you do it yourself, you can play around with coverage and deductibles and get new quotes until you find the optimum balance between price and protection. An agent won’t see how your premium would change for different coverage or deductible.
  4. You can check the effects of possible changes in life on your premium before they happen. For example, you can get insurance quotes for a car you want to buy. This takes the guesswork out of the equation and gives you real numbers to consider. Try asking an agent to give you estimates for a different car every other day until you decide on your new ride!

On top of the discounts, additional advantageous online quotes offer like 24/7 availability and how they facilitate shopping around helps people lower their car insurance costs. On the other hand, agents can offer sound advice, help you choose coverage and find great prices too. But on average, motorists are more likely to save money by shopping online.