Auto Insurance - The Consumer's Guide

1. Obtain your agent or brokers licensing information to make sure that you are buying auto insurance from a properly licensed agent or broker. You can do this by obtaining a business card which usually would have a license number on it due to state laws. If you are purchasing online, you can find the websites licensing information under "about us". If you have a hard time finding licensing information, you may want to think twice about the website you are visiting. One you obtain a license number, you can visit your state's department of insurance and check the status of the license.

2. It is important to understand the difference between an insurance company and an insurance broker. Brokers are not insurance companies; they are independent insurance salespersons. The broker represents you, the client in order to find insurance on your behalf through the represented companies. An insurance company usually preforms the underwriting, claims handling and billing on behalf of their own company.

3. Make sure you receive the proper paperwork and copies of your applications including proof of insurance and payment receipts. When you apply for insurance, the broker will probably help you complete an insurance application form. This form will be sent to the insurance company. Read the application carefully before singing or agreeing electronically. Do not sign if the application has blanks or is incorrect. Also keep a copy of the auto insurance application for your records. Be sure to understand your payment plans or installment plan. Some companies will include billing charges if you make installments rather than paying the terms premium in full.

4. Take your time and ask questions. Read all forms carefully, take your time. Dent let anyone try to rush you. Ask questions; a broker or agent should take the time to explain everything slowly and with words you understand. If a broker makes any promise to you, get it in writing. Never sign any form that is empty, have the broker draw a line through those spaces before you sign.

5. Find out more about auto insurance. Insurance is expensive, you can save a lot of money, possibly hundreds of dollars each year, after year, by learning more about insurance. A good place to start is you state's Department of Insurance website. Be sure to obtain several quotes from licensed insurance agencies or companies to ensure you are receiving the best rate possible. Some websites offer quotes from multiple online auto insurance companies. One such website is http://www.OnlineAutoInsurance.com. They offer quotes through several top rated auto insurance companies, and in some states, you can purchase the policy online.

Make sure to go over the above five steps to ensure quality and savings when you buy auto insurance.