Auto insurance coverage has always been a mandatory requirement in many US states. Before the inception of online car insurance comparison sites, drivers used to obtain coverage via licensed insurance agents. Insurance providers only dealt professional insurance agents who upon successfully selling an auto insurance product to a client, received a percentage commission. And no, the commission wasn’t added to the product’s retail price.

The onset of the internet age changed all that. Almost everything can be done online. You can get an auto insurance quote and purchase the actual policy within the click of a button anywhere, anytime. You can still choose to buy an auto insurance policy from an agent.

Buying Auto Insurance Directly Online

If you are keen enough, you’ll notice that there has been an increase the number of insurance commercials on TV. Almost every online streaming site, media outlet or cable channel is bombarding you with adverts telling you to compare quotes online.

It’s actually pretty easy, go to an auto insurance online comparison site, fill in the details and get your quotes. If you are pleased with one particular quote, you just have to fill a few additional forms and get a policy.

Advantages of Buying Online

Fast and Convenient

The convenience that comes with buying car insurance online is unmatched. You can go online and get a quote anytime, day or night. In addition to that, its super-fast compared to when dealing with an agent. Usually, when dealing with an agent, you have to leave your details and wait for them to call you back.

It’s Cheaper

Theoretically, buying online eliminates the need for a middle man. Therefore, you will get a lower rate as opposed to dealing with an agent who gets paid through commission.

Disadvantages

Buying online can be cheap and fast, but it has its downsides too. Information is limited, and you don’t have the convenience of asking questions that come up. Dealing with an agent comes with more insight and understanding of the product you are about to purchase.

Buying Coverage via an Agent

The auto insurance agent system is still intact across the US for people who prefer to go old school. You can get their contacts from online guides or via the telephone directory. There are two types of insurance agents:

• Captive agents

• Independent agents

Buying Auto Insurance from a Captive Agent

Captive agents used to be the traditional means of obtaining auto insurance coverage. They sell coverage exclusively on behalf of one auto insurance provider. They have offices in different states. Upon purchasing coverage via a captive agent, they become your point of contact.

Any grievances or complaints will be reported to the agent who will, in turn, communicate to the insurer. Dozens of reputable auto insurance providers still sell coverage through captive agents. Because they deal with one insurer, captive agents aren’t your best choice if you want to compare quotes from multiple carriers.

When Should You Buy A Policy From A Captive Agent?

• If your goal is to build a lasting relationship with a particular insurer.

• You have a busy schedule, and you want someone to manage your insurance policies collectively. Captive agents offer the best deals on multiple policies.

• You don’t know much about auto insurance and, therefore, need personalized assistance.

Buying Auto Insurance Coverage From and Independent Agent

Independent agents also spread locally across the United States. Independent agents sell coverage from a group of auto insurers. Independent agents are motivated to provide a good service to keep you with the company since they are paid in commission.

However, they may also try to make you purchase unnecessary coverage or upsell the policy for the same reason. Several established insurance providers sell auto insurance products through independent agents.

When Should You Buy Auto Insurance Coverage From An Independent Agent?

• When you want to deal with someone with a better understanding of the complex parts of your policy. Owing to the fact that independent agents deal with multiple insurers, they tend to have a greater understanding of the workings of the insurance world.

• You know exactly how much coverage you need, so you can turn down unnecessary add-ons independent agents will try to sell to you.

• You prefer to deal with agents, but you also want to be able to choose the best quotes from a pool of insurers.

Benefits of Purchasing Coverage from an Agent

Buying coverage via an agent has its advantages over purchasing a policy online directly from the provider. Some of these advantages include:

Multi-Policy Discount

One of the biggest advantages of buying coverage from a captive agent is the multiline discounts they offer on multiple policies. Whether you want to bundle your homeowner’s and auto insurance policy or get a superior multi-policy discount on the vehicles in your household, a captive agent is your best bet.

Knowledge of the Local Market

Insurance agents operate from local offices. Their knowledge of the local insurance market will help them secure better coverage for you. Their familiarity with the area in terms of security level, population and theft rates can be used to your advantage.

Personalized Service

It is always better to deal with an actual person instead of automated voices when buying coverage. You won’t hold back; you will ask all the questions in your mind when you have a smiling face in front of you.

Better Deals

Chances of you getting a better deal are higher when dealing with an independent agent. Once you explain your personal auto insurance needs to them, they know exactly where to look and get you the best deal. They can even get you better quotes than you can get if choose to buy online.

Simple Language

Insurance agents, over time, have learned how to simplify auto insurance policy jargon. Therefore, they can explain the terms of your policy in layman’s terms which will help you understand your manuscript policy form better. Typically, these forms are drawn in standard industry wording which if you don’t understand, could affect you in one way or another.

Disadvantages

Purchasing auto insurance coverage from an agent can be time-consuming. If you are in a hurry, you are better off buying coverage directly online. There have been cases of unscrupulous agents who will take your money in exchange for a bogus coverage. If you choose to deal with an agency, make sure that you go for a reputable one.

Carefully weigh the pros and cons of both options and make the appropriate choice. Your choice to go with either an agent (captive or independent) or buy directly via a comparison site will depend on your priorities. If you choose to buy directly or via an independent agency, compare as many quotes as you can to reduce auto insurance costs.