Buying Car Insurance

Microsoft's CarPoint (http://carpoint.msn.com) is a relative newcomer in the full-featured group of auto services, having been launched in July 1996. Like all the other Microsoft electronic commerce sites, it serves a consumer advisor function, providing the full range of information people need to make decisions about car purchases--news, features, crash test results, performance statistics, reviews, costs, insurance, etc.--from a wide range of sources.


It has a relationship with Reynolds & Reynolds Co., a leading provider of integrated information management to 90 percent of the dealers in the U.S., to make information on the used car inventories of participating dealers available to CarPoint. There is also a new car buying service, The Cobalt Group, which provides Web sites to auto dealers. It is handling the marketing of CarPoint's Dealer Showcase and classifieds to dealers.


A comprehensive source of auto information on the Internet is The Auto Channel (http://www.theautochannel.com), which recently announced an affiliation with Auto Trader Online. The Auto Channel features libraries of information and video coverage of such topics as major auto sports, auto parts and repairs, events, and new car reviews.


The use of Internet services for the purchase of cars has become so established and is assumed to account for so much of consumer buying behavior in the future that credit card issuers have begun to allow consumers to earn points, similar to travel company loyalty programs that can be applied toward the online purchase or lease of a car. Auto-By-Tel has announced such an arrangement with First USA Corp.


Online auto buying services are becoming increasingly sophisticated. General Motors is testing a new concept called GM Buy Power (http://www.gmbuypower.com), currently available only in California, Oregon, Washington, and Idaho. This site allows users to design a car incorporating any desired features, check availability in a dealer's inventory, obtain a quote from a dealer, schedule a visit, get credit approval, and even check competitor prices--all without ever visiting a dealership or leaving home or office.