There are 3 basic ways to purchase auto insurance:
1. Directly from the insurance company
2. From an independent insurance broker
3. From an insurance agent
All of these methods have their advantages and disadvantages, and all can be beneficial depending on the needs of the consumer
1. Directly from the insurance company
The last way to purchase auto insurance is directly from an insurance company; wither online or over the phone. this is usually the cheapest method, as these companies set up large call centers in one location that handle calls from all over the country. This cuts their costs down dramatically. With everyone being able to use the internet, this has become the best way to get the cheapest auto insurance. Companies usually offer an additional discount when purchasing online or over the phone.
2. Auto Insurance Brokers
An insurance agent is like a broker, except that they work for a single insurance company. They will work at getting you the best coverage and the lowest rate but only from the company they work for.
3. Auto Insurance Agent
The insurance broker has always been a popular way to purchase insurance. They are independent in that they do not work for an individual insurance company. They basically work for you, and work at getting you the best rate. Years ago this used to be the best way to get auto insurance. You would go to an insurance broker, tell them what coverage’s you wanted and they would shop around and find you the best price.