Auto insurance is one of the highest marketed products and there had been many advertisements encouraging the people to buy one.
Consumers often have doubts in identifying a company whether it is a brokerage or a direct carrier and also in realizing the merits and demerits of buying direct vs.
through a broker.
In order to avoid such doubts, many states necessitate the companies, selling auto insurance policies, to be defined properly as a direct carrier or a broker.
A good example can be seen in California where the brokerages are restricted to use the words "insurance company" in their title in order that the consumers will not be misled.
Brokerages are allowed to have suffices like "insurance agency" or "insurance services" or "insurance brokerage".
In order to select the better of the two options, you need to consider many factors.
The direct carrier offers the following advantages.

• Direct claims support from the carrier
• Direct customer service together with instant changes whenever needed
• No start up or endorsement or renewal fees
• No opportunity of the company going out of business
• No mediators
• A brokerage provides the following merits:
• Larger variety of carriers - Probably for lower rates
• More personalized services offered to customers to decide based on the customer's requirements
• The facility to switch carriers in the same brokerage when not satisfied by the current carrier
• Lower hold times on call
• Proficient enough to pay in office location
• Receive documents immediately without any fax or email requirements
• Possibly open weekends
• Certain companies only accessible through brokerages

The truth is that both the options have their own merits and demerits.
Hence there is no better way out and depends mainly on your requirements and the current situation.
Suppose you have already thought up of a specific brand and only willing to pay a higher premium for the brand of your choice, it is in fact a good idea to go to a direct carrier instead of to a broker.
While multiple insurance rates are compared, you may even be surprised to know that the company which offers the lowest rates might be one of the recognizable brands.
Another way to buy auto insurance is through online.
Online auto insurance sites offer their products in an easier and a quicker manner.
Hence this serves to be a great option to buy the policy.
Besides, you can have full control and access to the policy from your home.
Some of the online carriers offer services 24x7 services which help in filing the claims at any time and any day.
The online carriers just need you to fill a simple application on their website.
They also offer services like comparing the rates provided by various companies like AIG, Infinity, Progressive, GMAC and many more.
In addition to this, some states offer services to compare rates from companies like SafeCo, Mutual, Esurance, Liberty, MetLife Auto, The Hartford and many more.
Besides, the purchase of auto insurance online has been facilitated by some states.