Insurance Audit Information

Some people – especially those who have never had a car, or have only just bought one – are not familiar with the different types of car insurance. Car insurance usually has three levels and the most basic level is called Third Party Insurance. Compulsory third party car insurance basically means that if you have an accident that damages other people or their property, the insurance will pay for it. Having third party insurance is a great load off your mind, as paying for another person?s car, or for their medical bills could be extremely expensive. But while it is compulsory, it does not cover the damage to your own car or person. Third Party Fire and Theft adds a small benefit to you in that it pays for any damage to your car by fire or the theft of your car, as well as still paying for damages to any other party involved in an accident – if is your fault. It costs more than compulsory third party car insurance The most expensive but best car insurance is called comprehensive car insurance. This will pay for accidental damage to the other party, their car and property plus your own car and the things inside it that were damaged, even if the accident was your fault. It also includes damage to your car by fire or theft. And it may also include additional coverage just for a broken windscreen or for the hire of a rental car. These are generally considered extras so may not be covered by all comprehensive car insurance plans.

Many people are still wondering as to whether or not the Car Insurance Online plans are actually the cheapest they can get. In order to explain how much cheaper they are, we need to look at it in a business prospective. These online auto insurance companies have a call center filled with representatives that make a middle income wage and very few other higher paid employees. They do not have all of the over-head as the standard independent agent does and their main goal in business is to get bulk policies written on a daily basis.

With regards to the local auto insurance offices, they have to pay for a secretary and make sure that they make enough money to live off from. Virtually everyone in the office is an insurance agent which means that they demand a higher income versus call center representatives. They have office rent, gas, bills and the like. Their focus is on personal service and for this you will pay more.

In the end, it is clear to see that the online auto insurance plans are by far much cheaper then any local agent could ever hope to offer. However, in choosing them, you do get both the good and the bad. A local agent cost more, but any time there is a problem day or night, you can speak to the same person and get the problem resolved. The online companies also have 24 hour hotlines, but this too goes to a call center and the chances of you speaking to a different person every time is very good.

So what it comes down to is as to whether or not you could live without this personal service. More and more people are turning away from the local independent insurance agents because they have found no use for their personalized service and prefer to save the substantial amount in their monthly premiums in the process. If you feel as if this personalized service is a waste of money too, then for you the online Car Insurance Quotes will most likely be your best option.

That is all that the difference between the online auto insurance companies and the local agents. The local agents increase their monthly premium rates so that they are being paid even if you have to call them in the middle of the night because your car broke down on the side of the road. With the online service, you still have someone to call, but the difference is that every time you call, you may have to speak to someone entirely different. Ultimately the choice of savings is up to you, but if you want the extra cash every month and are not as worried bout personalized service, then by far, online auto insurance is drastically cheaper.