Buying car insurance direct means there is no intermediary. This gives the policyholder direct responsibility for the process, everything from getting quotes, buying car insurance, making policy changes, filing a claim, etc.
Our MyChoice team reviewed FSRA’s rules on how auto insurance is sold and proven in Ontario, RIBO’s standards for what a broker actually owes you, and the Facility Association’s terms for drivers who can’t get coverage in the regular market. We weighed these against the practical realities of online quoting and self-service policy management to map out who each buying channel actually suits.
Benefits Of Buying Car Insurance Directly From An Insurance Company
You Have More Time And Freedom To Decide
One of the main benefits of direct car insurance is the ability to research and make decisions at your own pace. Quotes can be collected via insurer websites, which is more convenient, quicker, and can be done from home. Most quotes require your licence and vehicle information (VIN). Completion time varies by insurer and application.
You’ll be able to compare quotes from different companies to make an informed decision on which is best for you. Many companies “can” bind coverage on the same day you apply for auto insurance, so you’ll be insured quickly.
The Purchasing Process Is Fast And Convenient
If you know what kind of coverage you’re looking for and how much coverage you require, you’ll find that buying directly is a lot easier. You can also contact an insurance company by phone to purchase car insurance direct. This removes the broker channel, although processing time varies.
You May Be Entitled To Discounts
Direct writers do not pay commissions to insurance brokers; however, that does not necessarily mean you’ll receive the cheapest car insurance rates. Insurance companies also advertise to attract customers, which can offset commission savings. Compare like-for-like quotes rather than assuming direct insurance is cheaper.
The Drawbacks Of Getting Car Insurance Direct
Owners of specialty vehicles, motorcycles, or RVs, as well as those seeking multi-vehicle insurance, may also find it difficult to buy direct.
You Do All The Heavy Lifting
When you purchase car insurance directly, you may have less independent help reviewing your choices. If you make a mistake, such as opting out of collision insurance on a financed car, no one will advise you of your error. You won’t know you made a mistake until you need to file a claim. Also, you’re responsible for researching coverage amounts.
If you choose insufficient liability coverage, you won’t know this is a problem until an accident happens.
If you purchase car insurance through a broker, they’re regulated by the RIBO. The RIBO regulations require brokers to advise you on coverage suited for your situation.
If this is your first time purchasing car insurance, you’ll find it hard to decipher the legal/insurance jargon. Without guidance from an insurance representative, you could easily purchase extra coverage you don’t require, or worse yet, end up overpaying for your insurance.
Not All Providers Offer Insurance Online
If you want to buy car insurance online, keep in mind not all insurance companies allow you to purchase a policy online. Some of the smaller insurance companies with great rates may not offer a way to apply for coverage via the internet. This means you may be missing out on great rates.
Also, if you’re considered a high-risk driver, it’s more likely you’ll be turned down when you apply for coverage online. Companies are stricter and won’t issue quotes for high-risk drivers. If you have a troubled driving record, a broker may help compare available high-risk markets to find affordable car insurance. The Facility Association insures non-standard/high-risk drivers that cannot obtain coverage elsewhere.
Who Should Buy Car Insurance Directly From An Insurance Company?
Drivers with a clean driving record that insure a standard vehicle can save money by shopping for car insurance on their own. If your insurance needs are straightforward and you don’t insure specialty items such as motorcycles, RVs, or specialty vehicles, consider getting quotes from different companies and comparing coverage.
If you enjoy comparison shopping each time you need to renew your auto insurance, you may save money by buying car insurance direct. Keep in mind you’ll be responsible for researching insurance companies and learning about insurance. If you insure more than one car, multi-vehicle discount availability depends on the insurer and channel.
If this describes you, buying direct may suit you; otherwise, consider an Ontario auto insurance broker.