When it is time to purchase car insurance there are several ways to go about it.

In every town or city insurance agency offices are abound. That is their business to sell insurance policies. Quite often, they represent several insurance companies at the same time in order to provide insurance for nearly everyone. Even if there have been previous driving problems there will be insurance available if you can afford the price.

You can conduct the business of obtaining insurance entirely over the telephone and fax machine, if you wish. The insurance agent will require information from you before being able to sell the appropriate policy. The agent will want to know the type of vehicle, including vehicle identification number (VIN), age of vehicle, any special features such as CD player or passenger side air bags, and mileage already accrued if the vehicle is purchased used. The agent will also want to see a copy of your driver’s license so he can verify what driving infractions you may have had in the past. He will ask your age, gender, marital status, occupation and intended use of the vehicle. He will ask if there will be a loan on the vehicle so he can apply for the correct coverage for you. A copy of your insurance coverage is always supplied to the lending institution. After you have supplied the necessary factual information, the agent will look at the policies currently being offered by different companies to get the best coverage for the least amount of money. The agent makes his living by selling policies and that means someone is paying him a commission to complete the sale.

There are several nationwide insurance companies that offer to provide a policy through the internet. They will require all the same information as a land based agency. Their web sites feature encrypted methods to provide privacy to the individual’s personal information. Progressive will furnish comparisons between their rates and most major nationwide insurance companies.

Another way to obtain vehicle insurance is to take advantage of insurance offered to members of certain organizations, such as AARP (American Assoc. of Retired Persons) or the various fraternal entities such as Moose. The amount charged to provide insurance through one of these may be lesser than that by other land based agencies, but more than a huge company such as Progressive. Many times people decide to take this route because a portion of the premium is returned to the organization.

Some lending institutions, such as GMAC (General Motors Acceptance Corporation) will offer to include insurance along with the vehicle loan. This is convenient and the most expensive way to purchase insurance. You will pay up to 40% more for your insurance by using this method of purchase.

Car insurance can also be purchased as part of an insurance package, i.e. you plan to insure the home and RV through the same company.