A new study says it’s easier than ever to buy car insurance online, even if you don’t have a credit card or have no car to drive.
The Insurance Information Institute (II) published the study, which surveyed about 1,000 Americans and found that consumers who did have credit cards were just as likely as those without to buy insurance with the help of a mobile app.
In fact, II found that nearly a third of those who bought their insurance on the phone were using an app.
“There are some things that consumers are not comfortable with, so they are not going to buy directly from a bank, so when they buy directly they’re not going through a bank,” said II senior analyst Jennifer Mascarenhas.
“So that’s why there’s a big shift towards mobile insurance apps.”
This shift is especially true of consumers with credit cards.
“Credit card holders are far more likely to have an automobile than the general public,” Mascares said.
“They’re going to use the app more, so the consumer can get their information and get the best rate.”
The study also found that mobile insurance applications were more likely than the banks to have a lower premium than other types of insurance.
This could mean that those who do have credit card options are more likely also to be using the app, which can save them money.
“Mobile insurance apps are also much more likely, on average, to have the lowest auto insurance premium, which is a big reason why it’s become easier for consumers to use them,” Masparenhas said.
“The cost of a car is one of the most expensive things that you can buy,” said Mascare, who also worked on the study for the National Association of Insurance Commissioners (NAIC).
“It’s not that you don.t need to have it, you just don’t want to pay as much as you need to.”
“The consumer has become a bit more savvy in how they pay for their car insurance,” Margo Kline, II’s president and CEO, said in a statement.
“We’re seeing that the premium for insurance is much more transparent than ever before, and consumers are more willing to use mobile insurance for the best rates.”
If you’re one of those people, here’s how to pay your insurance premium online:The II study found that people who had no credit cards and no car were the most likely to be buying insurance with an app on the iPhone.
“We’ve got a lot of new apps on the market now that we’re going into,” Maffa said.
Those include insurance companies’ own apps, but there’s also a number of apps from companies like Uber and Lyft, as well as those that offer more flexible payment options.
The II study also finds that most consumers who do buy car coverage on a smartphone are using a prepaid card.
That means they are paying a monthly fee, typically between $25 and $100.
“Most consumers aren’t paying a $100 monthly fee for insurance,” Kline said.
The study found no significant differences in the cost of car insurance across smartphone apps.
“When it comes to the premium, we see that mobile is actually saving consumers money,” Klin said.
That’s because most of the money that consumers pay is going into the insurance companies pocket, not into their bank account.
In addition to being cheaper, mobile insurance is also easier to use.
The average monthly fee of a smartphone-only insurance policy is $99.
“If you have a car that you want to drive, that’s $100 less than paying the $99 monthly fee,” Klines said.
The study also points to the fact that many consumers do not have a bank account, and the mobile app is a way for them to pay their premiums without having to go through a traditional bank.
“I think that’s where we see the biggest opportunity for consumers,” Kino said.
You could get a great deal for $100 per month, and you can pay it off in about two years.