CarInsurance.com Insights
- Buying a policy online can be a quick and easy way to get coverage without the go-between.
- When you are concerned about obtaining only the coverage you need or want to have questions answered before purchase, you should speak with an agent.
- Insurance brokers are agents that work for you, and not for insurance companies, who can help you to compare quotes and shop for the best policy to fit your needs.
If you have questions about buying car insurance online or through an agent, this guide explains the key differences.
With more than 275 million registered automobile vehicles on the road, insurance companies are doing what they can to capture drivers’ attention and sell them a policy. Not only do the big names come up with eye-catching commercials, but they also simplify the process of obtaining a quote and purchasing insurance directly online—in some cases, cutting out the need for an agent.
There are approximately 1.4 million insurance agents, brokers, and service employees in the United States, according to Statista’s 2024 report, who can help you iron out the specifics of coverage, but do you always need to speak to one to get a good deal? You might have the same question as others: Is it cheaper to buy car insurance online or through an agent?
Is it cheaper to get car insurance online or through an agent?
Car insurance usually does not cost less simply because you buy it online instead of through an agent. Insurers base premiums on your risk profile, including your driving history, location, vehicle, coverage limits and deductible. The bigger difference is often the shopping experience: online tools can make it easier to compare quotes quickly, while agents can help explain coverage choices and uncover discounts.
Either way, drivers must carry at least the minimum car insurance required in their state. And more consumers are comparing their options as rates change. Quarterly year-over-year shopping growth climbed to 6.9%, while new policy growth followed suit, rising to 7.1%, according to the latest U.S. Insurance Demand Meter from LexisNexis Risk Solutions.
That said, auto insurance companies are trying to attract new customers and keep their current customers with loyalty discounts. As companies move toward telematics and AI, they also offer products directly to customers to streamline purchasing.
Pros of buying car insurance online
Here are the pros of purchasing insurance online versus through an agent:
- You can research matters more quickly. How often have you called an insurance company to ask a question or get a quote, only to find the expected 10-minute phone call runs 30 minutes or longer? It’s often easier to research policies independently than to call an agent and be put on hold or wait for a return call.
- You enjoy greater privacy. According to Lauren McKenzie, an insurance broker/agent with A Plus Insurance: “Some people may not feel comfortable providing information over the phone to an agent and prefer the privacy of being able to submit their answers online themselves.”
- You might find discounts online. Many car insurance companies offer a discount for purchasing a policy online. Called the “Online Purchase Discount” or a similar name, this discount is available only for online purchases. And you can obtain other discounts online when you get a quote, too. Discounts you might be eligible for include paperless billing, multi-car insurance (a multi-car discount), and preferred payment discounts, such as paying your policy in full or opting for automated payments.
- There’s less hassle involved. Finally, many consumers prefer buying insurance online rather than from an agent because they don’t need to talk to one. This can be a good option for people who understand what they want in a policy, know how to comparison shop and want a straightforward auto policy. The tech-savvy, auto insurance-educated, and efficient-minded shopper will likely find the no-hassle online purchasing option appealing.
Cons of buying car insurance online
The downsides to purchasing car insurance online include:
- You could choose more coverage than you need and overpay for your policy. Remember that your policy will only pay up to its limits. While online insurance quote tools typically correlate to coverage requirements in your state, an agent can help you make sense of the details. This is something to think about, given that insurance coverage systems vary across states, including no-fault and tort (at-fault) systems.
- You could end up with low liability limits. If so, that won’t protect you against legal action if you’re found at fault for an expensive accident. Remember, liability insurance is for the other guy – and the other guy might own a Tesla. “The disadvantage to purchasing a policy online without speaking with an agent first is the possibility of selecting incorrect coverages,” McKenzie says. “There are several different coverage options you can choose from to customize your auto policy.”
- You may be required to buy insurance through an agent. Mark Friedlander, senior director, media relations for the Insurance Information Institute in St. Johns, Florida, says that many carriers require coverage to be purchased through their agents, whether they’re exclusive or independent.
- Online quotes may not be as precise. “Online quotes should be considered as estimates and are typically not as accurate as getting a quote directly from the insurer or their agent,” cautions Friedlander.
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Pros of buying car insurance from an agent
Purchasing auto insurance from an agent has its benefits, such as:
- It can be advantageous for people with more complex needs. This could be the need to get a rideshare endorsement, add a teen driver, bundle with homeowners insurance or get gap coverage for a new vehicle. High-risk drivers could also benefit from speaking with an insurance agent, particularly an insurance broker who can provide quotes from multiple companies. “Buying online could potentially speed the process up, but I would rather clients go to Google and look for a trusted broker near them to be sure they get the best coverage at the best price,” says Noah White with Ark Insurance Group. “You always want to discuss bundling discounts with an agent. Also, if you have young drivers, there are often student discounts available. Tell them where you work and if you are a first responder, police officer, EMT, military, etc. These positions often bring more discounts.”
- You may save more dollars. White, who sells all lines of insurance – including auto and life – said that most of the time, consumers can save money by talking to an insurance agent. He explained that commissions, paid by the carrier, are based on a policy’s total premium. “Some agents may add on extra coverages to increase the premiums, but buying online does not cut out the agent commission,” he added. “It does not play a factor in the pricing decisions.”
- You may get more quotes and carriers to choose from. “An independent insurance agent works with multiple carriers, so they can compare pricing and find the best cost and coverage options for your needs,” says Myles Trempe, producer and independent agent with Wallace & Turner Insurance in Springfield, Ohio.
How does purchasing insurance through a local agent work instead of a website?
“Buying direct means you go directly to the company site or representative and purchase your insurance,” White said. “Buying from an agent means there is an agent that represents that one specific company you are looking at, and buying from a broker is buying from a licensed professional who is not tied down to any one company or carrier.”
Check out our detailed guide on what a car insurance broker is
Captive agents vs. brokers – what’s the difference?
Brokers and agents – it gets a bit confusing. Here’s a quick breakdown of the different kinds of folks you can buy insurance from:
- Captive agents: Captive agents work for one company.
- Independent agents: Independent agents work for several companies.
- Brokers: Insurance brokers work for clients rather than insurance companies.
“A captive agent is an agent who can only sell one company,” White says. “This means they will not shop for the best price for you because they only have one product to offer.”
When an insurance agent or agency is licensed to sell in different states and has relationships with many companies, they can comparison shop for you. This is true at A Plus Insurance, where the agents are licensed brokers, enabling them to sell insurance in 38 states and with more than 20 insurance companies.
“Sometimes it is easier to go through an insurance brokerage – because we can shop for the customer and find affordable prices by searching several insurance companies for the coverage desired,” McKenzie says. “If you use an online quoting service to receive multiple insurance quotes, you will likely be spammed with phone calls and emails from several insurance companies trying to offer a quote.”
Cons of buying car insurance from an agent
Of course, there can be drawbacks to getting car insurance from an agent. Consider these downsides:
- Your perspective, goals and prior experiences may affect your opinion about buying auto insurance from an agent vs. online. For instance, agents who do not have a personal relationship with you may be more inclined to sell you coverage you do not need to get a commission, while agents who focus on honesty and client needs tend not to oversell.
- The process could take longer than buying online. Depending on your online insurance company, you can get a quote and purchase a policy within a day or days. That circumvents the need to wait for a return call or email from an agent who is already working with many other customers. You manage the purchase process by buying directly from the company rather than through a middleman.
- The agent may be motivated to oversell you a policy to earn a commission. According to the U.S. Bureau of Labor Statistics, commissions are a “common form” of compensation for agents, especially agents with substantial industry experience. Generally speaking, the commission an agent receives depends on the amount of insurance sold and whether the policy is new or a renewal. An agent could also be motivated to upsell if a bonus is available upon meeting sales or profit goals. It can be a this-or-that situation. Car insurance purchased through a Progressive agent includes the commission the agent receives. On the flip side, auto insurance purchased directly from Progressive includes a larger share of marketing costs, in addition to staffing and sales center costs, according to Progressive’s website. “Agents are paid a commission by the insurer when they write policies, but they do not charge consumers a fee to purchase a policy,” says Friedlander.
Check out our detailed guide on how to get a car insurance quote
Final thoughts: Buying car insurance online vs. an agent
When buying car insurance online vs. through an agent, this choice depends on what makes you comfortable and the complexity of your insurance needs. Sure, many factors affect this choice, including the ease of purchasing a policy, the ability to answer your questions, how simple it is to compare quotes, and your self-confidence in getting the right coverage and discounts.
Sometimes, even when shopping for car insurance online, you must speak with an agent or customer service representative to finalize your policy purchase.
“While some companies allow you to bind a quote online without ever needing to speak with an agent, clients are often asked to provide information to confirm that the details on the policy are accurate,” McKenzie says. “At this point, they may be given a number to speak with an agent, or an agent may reach out to them to follow up on details and give a final quote.”
Check out our experts’ recommendations on How often should you shop for car insurance?
Frequently asked questions
How to get an insurance quote before buying a car
The Insurance Information Institute recommends getting at least three quotes from a mix of national and regional insurers before committing to an auto insurance policy. You can obtain quotes through online comparison sites, directly from insurers or through agents.
Per Mark Friedlander with the Insurance Information Institute, an independent agent can provide you with multiple quotes, while an exclusive agent can offer quotes for the company they represent. Online quotes should be considered estimates and are typically less accurate than quotes obtained directly from the insurer or its agent.
Is it cheaper to purchase insurance directly from an insurance company?
It doesn’t necessarily cost more or less to get car insurance through an agent, online, or directly from an insurance company, according to Myles Trempe with Wallace & Turner Insurance. The cost will vary from person to person based on a range of factors like age, type of car, credit-based insurance score and past claims.
Does it cost more to get car insurance through an agent?
The base cost of your policy is typically the same, no matter what method you use to purchase coverage – whether through an agent, online, or directly from an insurance company, per Mark Friedlander with the Insurance Information Institute. Note that the insurer pays agents a commission when they write policies, although they do not charge you a fee to purchase a policy.
Sources
LexisNexis. “U.S. Auto Insurance Policy Shopping” Accessed June 2026.
Statista. “Motor Insurance in the U.S.” Accessed June 2026.
Statista. “Number of agents, brokers in U.S. from 1960 to 2024.” Accessed June 2026.
U.S. Bureau of Labor Statistics. “Insurance Sales Agents.” Accessed June 2026.
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