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Would You Buy Your Car Insurance from Wal-Mart?

Grocery super-store Wal-Mart announced recently that it is entering the market of car insurance. The mega-mart is partnering with AutoInsurance.com to allow on-line customers to compare rates with their current insurance provider and order insurance through a variety of carriers.

Wal-Mart says that this partnership offers customers a way to save money on their car insurance. In a pilot study, Pennsylvania drivers were able to save $1,168 a year by using AutoInsurance.com. The site is also user-friendly, pulling much of the client’s information from his or her current policy to speed the application process.

The problem is that the car insurance industry is not the same one state to the next. Some states offer traditional insurance that functions the same as homeowner’s or health insurance. Others, like Michigan, require drivers to buy No-Fault insurance. In a few states, drivers have a choice between the two kinds of policies. These differences in law will result in drastically different insurance costs from one state to the next.

That’s why, for now, Wal-Mart is only offering the service in 8 states: Arkansas, Louisiana, Mississippi, Missouri, Oklahoma, Pennsylvania, Tennessee and Texas. But the company hopes to roll out nationwide availability in the coming months.

Business analysts believe this is part of Wal-Mart’s strategy to provide financial services to customers who may not have access to traditional bank and credit accounts. It could also be a way of driving more customers to their website. In either case, it appears that shoppers will soon be able to pick up car insurance at the same place the buy their milk and eggs.

No-Fault insurance can be a confusing thing. Knowing what you need to have covered isn’t always something you can learn on an insurance quote site like AutoInsurance.com. If you have questions about whether you are covered for injuries from an automobile accident, contact the experts at Christensen Law for a consultation.