There are several ways you can purchase auto insurance. You can buy it over the Internet at literally hundreds of different web sites. You can call an 800 number and buy it over the phone directly from an auto insurance company. You can call an insurance agent or an insurance broker. In some cases, you can buy from a bank or credit union.
It’s not surprising you can buy it in so many ways. After all, there are hundreds of insurance companies that sell auto coverage in your area.
How do these companies differentiate themselves? Some brag about their superior service when you have a claim. Some tout how easy it is to buy from them. And, often, auto insurance companies try to compete on price, just as if you were buying a plane ticket, a CD or a pop.
* Tip. Some people believe auto insurance is just a commodity. It’s not.
You’re not buying a soft drink. You’re protecting your financial well being … and the choices you make could affect you for the rest of your life.
If you think auto insurance is a commodity, consider this:
A person with a good driving record will pay three, five, even 10 times less than a driver with a couple of tickets, an accident or who has been cited for and convicted of driving under the influence.
A person who lives in a major city – say Toronto or Brampton- will pay three, four, even five times more than someone who lives in a rural area or small town, even though the two have the same driving records.