Comparison shopping always makes sense, and especially for items or services that generally cost a lot of money. Most people compare prices before they buy a computer or a television or similar items. Yet, for a variety of reasons far fewer people do online auto insurance comparison shopping. Some don't know where to look. Others don't know if they can trust the information. And yet others are afraid they may inadvertently commit to something they do not want. Those are all valid concerns, and so I decided to find out for myself.

I quickly found a brokerage that had branched out into offering services online, including the ability to purchase car insurance online and receive instant proof. I did go through the entire application process so I can tell you how it works.

First of all, you do have to be prepared to provide some information. Getting car insurance online is not like buying a consumer product where it doesn't matter to the vendor who you are. Insurances companies base their rates on statistics so that they have an idea whether you are a high or a low risk. Here is the information an online car insurance comparison site is likely to require:

First they'll want to know who you are and where you live. They'll also want to know how long you've been driving and whether you have had accident claims or traffic violations. This tells them what kind of risk you are. Then you'll have to describe the brand, model and year of the car(s) you're driving, how many miles a year you expect to drive, and whether that's just for fun, to get to work, or for some other purpose. They'll ask if the car has certain safety and theft protection features, and maybe also if you've taken some safe driving classes.

Next they'll want to know what sort of coverage you're seeking. Everyone must have basic liability insurance. Then there is uninsured motorist insurance and some extras like towing and rentals. And if you're financing or leasing the vehicle, you'll need comprehensive and collision coverage.

Once you've entered all that, you'll probably have to confirm that all the information you submitted is true. It really makes no sense to bend the truth as this may backfire in case you have an accident claim, and most insurance companies will run checks to confirm your driving record anyway.

Now you're ready to get quotes. The number of competing quotes depends on the site. I got four, all from major national insurance companies, and it took the system less than 30 seconds to generate them. I was surprised at the relatively large difference between the quotes. My current insurance is apparently a pretty good deal as it was lower than three of the four offers. However, one of the quotes was about 10% lower, and that's enough to take a closer look at the offer. Overall, what I found is that online auto insurance comparison can help you get a better rate.