by Justin Evans

Created on: September 04, 2008

Internet Direct, Mutual Insurers, Independent Agents:
The first thing to consider when pruchasing car insurance is the supplier. While each of the three above offer certain positive features, you choice can directly affect your premium.

- Internet Companies are great when you are looking for something quick and easy. You can fill out your applications, choose you limits, pay your premium, and print your insurance card off in just a few minutes. Comapnies such as The General, Geico,and Esurance trive on that ease of use.The problem lies in the pricing and coverages. Internet companies generally have larger increases in rate based on negative factors. For instance, a small speeding ticket can push you rate up into a new rating bracket quicker than with other companies.

As to coverage, many drivers have little if no understanding of the true value of car insurance. Without having the advice of an actual agent, and insured could find themselves severely underinsured in the time of an accident. One exampe are state minimums for liability insurance. These minimums rarely ever provide adequate coverage in case of an accident and can leave the insured paying out of pocket.

- Mutual Insurers are a typical choice for most homeowners. Because these companies offer homeowners insurance, life insurace,and auto insurance they can typically offer lower rates by account underwriting. (writing all of you policies together)They also have agents, with proper knowledge of the coverage needs of the insured, who can help you decide what limis you need. The only downfall of a Mutal Insurer is the components of an application that can negatively affect your premium. Their rating model works heavily off of your location and MVR.

- Independent Agents are what I consider the best choice for purchasing car insurance. These agent have access to mulitple companies and can offer you several quotes relatively quickly. The companies they have access to are usually set into niches. For instance one company may prefer young drivers between the age of 18-22 or another will prefer insureds with an above average fico score. This access to several markets in my opinion can in most cases find the most suited company for you to place your insurance. Along with access to these niche markets, Idependent agents tend to have an advanced knowledge of coverage needs due to their constant interaction with several insurance companies.

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