The auto insurance market has many players who offer different plans for personal, commercial and recreational vehicle insurance. Online auto insurance companies are very user friendly as all the information is available up front and you do not have to deal with salespeople.

Risk factors that are considered when determining a premium include: age and condition of the vehicles, age and sex of the driver, annual mileage, driving history and a few others. Online auto insurance plans are available for: personal use cars, recreation vehicles, rented and leased vehicles and commercial vehicles.

New developments like GAP insurance provides protection against market demands and price fluctuations like how the value of a brand new car immediately depreciates the moment it leaves the show room.

The basic types include: a flat per car and per year rate and does not consider the miles driven; 'reasonable estimation' where the coverage is given based on the estimated future miles that the car will probably be driven; the cents per mile plan where the odometer reading is used to determine the coverage and the cover is active until a specific number of miles is reached; and the GPS based system (still under trial) where a car is tracked for miles driven using GPS monitoring.

Types of online auto insurance plans are:

• Liability Insurance: Ensures that when others are injured in an accident, the insurance company pays any claims. Your medical bills are not paid for.
• Collision and Comprehensive: Collision insurance pays for the car to be repaired if it is damaged in an accident or skids and rolls. Payment is done irrespective of whether you or the other driver is at fault. Comprehensive online auto insurance ensures that if your vehicle is damaged in a fire, earthquake, stolen or vandalized, the costs are paid.
• PIP: Personal protection injury ensures medical costs for you and your passengers are paid for in the event of an accident.
• Underinsured and Uninsured Coverage: Provides payment in case either the other party is at fault but doesn't have insurance or has too little.
• Add on: These cover incidents like towing charges, rented vehicles, etc.

Online auto insurance companies make shopping for insurance very easy. Important features of online insurance include being able to:

• Check out how much insurance is really required and check the amount required by state regulations.
• Consider if the vehicle is new and if you should purchase comprehensive collision coverage.
• Visit plenty of websites to determine the policy that fits you the best
• Look for cheap, but reputable insurance.

See how fitting your vehicle with anti collision devices, air bags, anti skid brakes, anti theft locks, etc. will reduce your premiums.