While it may seem tedious to compare multiple car insurance quotes while shopping for car insurance, the cost difference between companies can be hundreds of dollars. At the same time, you want to make sure you have the right amount of coverage to give you peace of mind.
Our review of the best car insurance companies should give you an idea of what makes for a good provider and a good policy. Below, we’ll get into the best ways to shop for insurance and how you can get great deals.
When you’re ready, use the tool above to start comparing multiple car insurance quotes in your area.
Why Should You Compare Multiple Car Insurance Quotes?
Why do you buy car insurance in the first place? One reason is that every state has minimum insurance requirements that you must meet in order to drive legally. If you’re only looking for car insurance to meet state mandates, then you’ll likely only be interested in basic car insurance, or minimum coverage.
If this is the case, to find the best price, you need to compare quotes. While most car insurance companies use the same or similar criteria to set rates, how each company weighs certain factors may be different.
Another reason to buy car insurance is to protect a valuable and vital asset: your vehicle. In this case, the pricing of the insurance is not your only concern. Coverage options and policy details are equally, if not more, important.
If you are worried about the financial implication of a car accident, it may be worth looking into full coverage auto insurance. Full coverage generally means purchasing liability, collision, and comprehensive insurance. Unless you can afford expensive vehicle repairs out of pocket, it’s a good idea to have such coverage.
A cheap car insurance policy isn’t worth low premiums if your vehicle isn’t properly protected. Comparing multiple car insurance quotes is the only way to ensure that you find the right balance for your needs.
How To Compare Multiple Car Insurance Quotes
Comparing multiple premiums among insurance options is easy. One will be lower and the other higher. But how much is a higher deductible worth? Which type of coverage is the least expensive in the long term? While it is easy to see which rates are lower, it’s not always clear which auto insurance policies will save you the most money over time.
For example, if you buy only a state minimum liability auto insurance policy, you will pay very little in premiums. However, without collision coverage, you will be required to pay out of pocket for your own vehicle repairs if you are at fault for an accident. In this way, a low-cost, low-coverage option can end up being more expensive.
Comparing auto insurance costs is easier when you understand what the different types of coverage are and the significance of your deductible.
Types Of Car Insurance Coverage
There are six standard types of auto insurance coverage that are offered by most major insurance companies. You’ll also want to decide what coverage level or limit to purchase of each type.
|Car Insurance Type||Details|
|Liability insurance||Most states require this type of coverage. If you get into an accident and are at fault, liability coverage will pay for property damage (PD) and bodily injuries (BD) caused to the other driver. Liability does not pay for your own medical expenses or vehicle repair costs.Most liability coverage has a maximum payout limit per person and per accident. If your liability coverage does not fully compensate the other driver for expenses incurred as a result of the crash, you could be sued for additional damages.|
|Collision coverage||Collision coverage will pay for repairs to your vehicle regardless of who is at fault for an accident. If the other driver is at fault, you will likely file a claim through their liability insurance provider. When you file a claim with your own collision coverage, your premiums may increase.|
|Comprehensive insurance||Comprehensive coverage will pay to repair your car when it is damaged by vandalism or natural events like flooding.|
|Medical payments||Medical payments (MedPay) reimburses you for medical costs associated with an accident for you and your passengers.|
|Personal injury protection||Personal injury protection (PIP) pays for medical bills for you and your passengers after an accident, regardless of fault. Additionally, PIP can include death benefits and compensation for lost wages.|
|Uninsured motorist/underinsured motorist coverage||Under uninsured/underinsured motorist coverage (UM/UIM), you are covered in the event that you are in an accident with an at-fault driver that does not have sufficient insurance.|
Car Insurance Deductibles
Any time you purchase car insurance, you will have liability limits and deductibles described in your insurance documents. These are important things to pay attention to when comparing multiple car insurance quotes.
Policies with low coverage limits and high car insurance deductibles are usually very affordable upfront, but such policies also have high out-of-pocket costs should your vehicle be damaged in an accident. On the other hand, if you have a low deductible, you may have a high monthly payment but not have to pay as much in the event of an accident.
When comparing multiple car insurance quotes, make sure that your limits and deductibles are in line with your lifestyle so you can get the protection you need.
What Factors Impact Your Insurance Quotes?
One reason it is so important to compare multiple car insurance rates is that prices are different for every customer. The following are factors that insurers generally take into account when determining your auto insurance premiums.
|Gender||Not all providers use gender to determine premiums. In some states, it is illegal to do so.Even in states where there is a difference in premiums between men and women, the difference is slight. Nationally, premiums for men are higher, but this is not the case in every state.|
|Age||Age is one of the major factors car insurance companies use to determine risk. Younger drivers tend to get into more accidents and file more claims than older, more experienced drivers.Average rates are highest for teen drivers and young drivers and drop as drivers age. Rates level off around age 30 and start to rise again at 60.|
|Driving Record||Your driving history is an indication of how well you drive. If you have many citations, like speeding tickets, your auto insurance rates will soar. Having a DUI on your record is especially bad for your rates. However, the opposite is true if you have a clean driving record.|
|Credit Score||The better your credit score, the lower your premiums. This is because studies have found that people with a poor credit history tend to file more claims.|
|Location||If you live in a neighborhood with a high crime rate or a city with a lot of auto accidents, your insurance rates will be higher.|
|Marital Status||Married couples tend to file fewer claims than single people. If you are married, you can also usually get auto insurance rate reductions by bundling insurance policies with your spouse.|
|Vehicle||Vehicles with more safety features are less expensive to insure. Vehicles that cost less are also less expensive to insure, because that usually means they will cost less to repair. High-performance vehicles with expensive parts are expensive to insure.|
Some car insurance agencies weigh certain factors more than others when determining premiums. There are providers that specialize in insurance options for people who usually receive high quotes from other companies. These include drivers who are young, have bad credit, or have a DUI.
By comparing multiple car insurance quotes, you can discover which providers work best for your driver profile.
We reached out for an auto insurance quote for a married couple, ages 30 and 31, with no at-fault accidents in the last three years. Our test drivers owned a 2016 Chevrolet Colorado with 70,000 miles and a 2012 Toyota RAV4 with 110,000 miles. The quotes we received were for full coverage policies, and roadside assistance and rental car reimbursement were included.
|Insurance Provider||Monthly Payment||6-Month Premium||Coverage Details|
|Geico||$126.13||$738.71||100/300/50 BI/PD and UM/UIM, $500 collision deductible, $500 comprehensive deductible, $2,000 MedPay, roadside assistance, and rental car reimbursement|
|Progressive||$96.36 for the first month, $97.33 for the next five months||$486.65||100/300/50 BI/PD and UM/UIM, $500 collision deductible, $500 comprehensive deductible, $2,000 MedPay, roadside assistance, and rental car reimbursement|
|State Farm||$159.88||$959.30||100/300/50 BI/PD and UM/UIM, $500 collision deductible, $500 comprehensive deductible, $2,000 MedPay, roadside assistance, and rental car reimbursement|
How To Reduce Your Auto Insurance Premiums
No matter which insurance provider you decide to go with, you’ll want to reduce your monthly rate you pay as much as possible. Here are some tips that can help you start saving money.
Look For Discounts
Most providers offer specialized discounts. Common types of discounts include:
- Bundling auto with homeowner/renters insurance
- Multi-vehicle discounts
- Low-mileage discounts
- Good student discounts
- Usage-based discounts
When you’re shopping for car insurance, see if you can take advantage of any of these discounts.
Choose A Higher Deductible
Policies with higher deductibles generally have lower monthly payments. Just be sure that you don’t make your deductible so high that you can’t afford to pay it.
If you know you are unlikely to get into an accident, a high-deductible policy could be a good idea. If you drive in a crowded city with a lot of accidents, a high-deductible policy probably isn’t for you.
Take A Defensive Driving Class
Completing a defensive driving class can lower your car insurance rates by as much as 15 percent. If you’re already insured, ask an insurance agent before signing up for a class to make sure you are eligible for such a reduction and the class you plan to take is approved.
In some states, insurers are required to provide defensive driving discounts. These states include:
Compare Multiple Car Insurance Quotes
Shopping around is the best tip for reducing auto insurance rates. There is a huge number of insurance providers, most specializing in different areas or customer bases. You need to look to find the perfect option for your needs and demographic.
Remember: Don’t simply pick the cheapest option. You want to be sure your insurance agency has quality claims servicing and strong customer support. Getting into an accident is a stressful event. You don’t want to make it worse by dealing with a long claims process.
Our Recommendations For Car Insurance Quotes
When we reviewed the best auto insurance companies in the nation, Geico and USAA were two that came out on top for excellent coverage, prices, and customer experiences. Learn more about our top picks below.
To start comparing quotes, enter your zip code in the easy auto insurance quote comparison tool to start comparing multiple car insurance quotes.