Getting same-day car insurance is easier than ever before. But while you will have access to the same rates and policies as you would if you bought coverage ahead of time, there are some disadvantages to buying immediate car insurance.
Instant Auto Insurance Quotes Can Leave Out Discounts
If you need to buy car insurance now, you might miss out on a few discount opportunities. For example, Allstate offers an Early Signing Discount® if you buy an auto insurance policy at least one week before you need to use it. A same-day plan from Allstate wouldn’t include this policy discount. The same goes for other providers.
A Fast Car Insurance Quote Might Not Be the Cheapest
While typically same-day car insurance won’t cost you more than a normal insurance policy, you don’t have as much time to compare car insurance options. That means you could miss out on finding the provider that offers the best rates for you. If you just get one quote, it may or may not be the most affordable insurance premium available. Using an online quote tool or looking for sample quotes like the ones found in this article can help you save time on quote comparisons.
Not Everyone Can Buy Auto Insurance Online Instantly
In some cases, you might not be able to get same-day insurance. For example, most car insurance providers will ask for your Social Security number to verify information in your application and calculate a risk score based on your credit history. If you don’t have a Social Security number or can’t provide one at the time, the insurance company will need more time to process your application, or it can deny coverage.
Buying Insurance Online Requires Address Verification
One piece of information that needs to be verified is your home address. Insurers can use your credit record to verify this. If you recently moved, the insurance company might not be able to verify your address as quickly, which could lead to delays in approval. Or, if you’re living in one location but your permanent address is listed as another, that can slow things down too.
Online Car Insurance Companies Require Complete Information
Auto insurers will pull your full driving record based on your driver’s license number. It’s important to be completely honest when reporting car accidents, tickets and other traffic convictions. If you leave anything out, the company will be able to see that discrepancy, and it will need to spend more time reviewing your application.
Be aware that it’s possible for a company to sell you car insurance and then cancel your policy within the first 30 to 90 days for providing incomplete or incorrect information, also called material misrepresentation. Cancellations for material misrepresentation or nonpayment go on your record, and this can make it harder to get same-day coverage (or any auto insurance) in the future.
Unique Vehicles May Not Qualify for Immediate Car Insurance
Finally, if you’re buying an especially expensive car, an underwriting officer may need to review your insurance application, as some quote tools are not able to accurately assess rare or exotic cars and specialty vehicles. You wouldn’t be able to get same-day insurance coverage in this case.
