Buy Auto Insurance Online

January 19, 2018 · Posted in General Articles on Car Insurance 
by Matt Hellstrom

The Internet has changed the insurance industry, especially in the vehicle insurance category. As constituted currently, the auto insurance business is almost nothing like what it used to be before the world wide web existed. Before the advent of the net, for two-thirds of the people who carried vehicle insurance, re-signing with the same insurer was something you just did when renewal time came around. That is no longer the case. Now the Internet rivals the phone and in a few years’ time, the majority of us will buy auto insurance.

A generation ago, insurers would get uncomfortable when approached by a new car insurance customer. If they had just acquired a car and had no insurer – that was one thing. But if the would-be client already had an automobile insurer and they just wanted to switch companies, they were typically viewed with suspicion and their application scrutinized closely.

These days, the underwriting process is made transparent as shoppers learn what are the triggers for actuarial insurance analysis. No longer needing days or weeks to learn your final rate, instant quotes have made the process of shopping for car insurance less onerous.

One of the nicest things about buying auto insurance online is the way it lets you compare rates for full coverage versus just getting liability. This is particularly significant for those who live in so-called ‘no fault’ insurance’ jurisdictions.

No-fault insurance, in its broad sense, describes an insurance policy that says the insurance company agrees to pay the policy holder’s losses regardless of who is at fault. Basically, a policyholder and any passengers in the policy holder’s vehicle are reimbursed for losses in a traffic accident by the policyholder’s insurer without reference to whose fault the accident was.

In the narrow sense of the term, and as the phrase ‘no-fault insurance’ is most commonly used, the term refers to a certain type of state or locally-mandated vehicle insurance law that is common in the US and Canada. This type of insurance is also called first-party coverage. Additionally, the policyholder and any passengers are limited or restricted in some way as regards their rights to sue for damages by other parties in the civil courts.

These kinds of insurance laws are meant to curtail the stresses placed on the civil court system by limiting the need to establish fault, which is all well and good. But they also mean you will take a hit on your insurance rates if you are in an accident that was not your fault in any way. If you are going to have your rates increased regardless, for any car over 5 years old, the collision and theft provisions become problematic. At this point, it behooves you to buy auto insurance online, not only for the convenience but the cost savings you can instantly review.

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