Compare Auto Insurance Quotes

The biggest reason to compare auto insurance quotes is to save money. In 2019, Americans spent an average of $1,070 annual on auto insurance.¹ If you shop around and find a good deal, you might be able to pay less. Conversely, you might pay more if you live in a state where insurance rates are high or if providers consider you a risky driver, which also makes finding affordable rates important.

When insurance companies determine your premiums, they account for factors like your age, ZIP code, driving history, vehicle, annual mileage, and even your marital status. Each company weighs factors differently, and they’re secretive about their processes. Quotes also vary based on market trends.

The bottom line is that what one company offers you might differ significantly from another. This variability is why you need to shop around to find your best personal rates.

1. Choose Your Liability Coverages.
   Liability coverage pays for the treatment of injuries and property damage that the other party sustains if you cause an accident. Each state has its own requirements, but you’ll probably want to purchase coverage beyond the minimum.After a serious accident, bills for injuries and damages can quickly add up to hundreds of thousands of dollars. If you’re at fault for the accident, even partially, you could be on the hook for that money. Increasing your liability coverage will protect your assets.
    
   Liability coverage is typically denoted as a series of three numbers, like 50/100/50. The numbers represent coverage for bodily injury per person, total bodily injuries, and total property damage. They are represented in $1,000 increments. So 50/100/50 is $50,000, $100,000, and $50,000 of liability coverage in each category, respectively.
    
   Some states require uninsured/underinsured motorist coverage (UIM) and medical payments/personal injury protection, too. Even if your state doesn’t require these coverages, it’s a good idea to purchase them anyway.

 

2. Decide if You Want to Purchase Additional Coverages.
   Full coverage includes liability, collision and comprehensive, uninsured/underinsured motorist (UIM), and medical payments coverages. If you can afford it, it’s wise to purchase all of these coverages. Collision, comprehensive, UIM, and medical payments will pay for your damages, while liability pays for the other party’s.
    
   Collision and comprehensive coverage are an especially good idea if you haven’t paid off your car yet. If something happens to your car, you’re still responsible for making your monthly payments, and these coverages will help you pay off the vehicle after an incident.
    
   Consider whether your circumstances warrant additional coverages, like new car replacement, rental reimbursement, or gap insurance.

 

3. Collect and Compare Quotes.
   When shopping for auto insurance, get quotes from at least three companies. You can usually start a quote online and finalize it with an agent on the phone. To find the best rates, compare regional providers with bigger ones (e.g., GEICO, Allstate, or State Farm).
    
   Make sure you’re comparing apples to apples. The quotes should be for the same coverages, limits, deductibles, drivers, and cars, and should include all eligible discounts.

How Often Do You Shop for Car Insurance?

You can get an auto insurance quote whenever you want to, regardless of where you are in your policy cycle. However, if you want to switch to a new provider before your current policy is up, you will likely incur fees. Fees tend to be higher if you cancel your insurance soon after buying the policy. To find the best deal, shop around every time your policy is up for renewal, which is usually every six to 12 months.

An auto insurance quote is different from a policy rate. A quote is an estimate of an auto insurance policy’s cost, based on the information you provided the insurance company and your chosen coverages, limits, and deductibles. A policy rate is the amount you’ll actually pay for insurance. If you provide incomplete information, even by mistake, or if you change your requested coverage, your policy rate may change.

There are several reasons quotes differ from policy rates:

• You provide a make, model, and year for the vehicle but do not provide a vehicle identification number (VIN), maybe because you haven’t purchased the car yet.
• You don’t provide details about accidents, even minor ones.
• You forget details about driving history, for you or other drivers on the policy.
• The quote didn’t include taxes and fees; some companies charge a policy issue fee.²

When choosing from among the multitude of auto insurance companies, price is a key factor, but not the only one to consider. According to the Insurance Information Institute, these five factors are the most important when picking an insurance provider.

1. Licensing: Not all companies operate in every state, and it’s important to pick one that is licensed in your state. That way, if there’s a problem, your state insurance department can help. If you’re unsure whether a company is licensed in your state, ask an agent or contact your state’s insurance department.
2. Price: Auto insurance is a significant monthly expense, so it makes sense to pick the most affordable option. Not sure if you’re getting a good deal? Your state insurance department may publish a guide on what insurers charge in various parts of your state, so look that up if it’s available.
3. Service: An insurance representative should be able to answer your questions thoroughly and promptly, and you should be able to easily change your policy or file a claim. Consider whether the company offers services like a mobile app or perks such as accident forgiveness. To learn more about a company’s customer service, check out J.D. Power’s recent study of the best auto insurance providers for customer satisfaction — https://www.jdpower.com/business/press-releases/2021-us-auto-insurance-study. You can also find out if a company has a history of consumer complaints at https://content.naic.org/cis_consumer_information.htm.
4. Financial solidity: Look up the company’s ratings from an independent agency like A.M. Best³ and Moody’s⁴ to ensure it is financially sound. If you need to file a claim, you want to know the company is on firm financial footing.
5. Comfort: You should feel confident in your insurance purchase. If something about a provider makes you uneasy, investigate further and consider choosing a different company.⁵

1. Gather information. You’ll need the following personal information for everyone on the policy:
   • Name
   • ZIP code
   • Date of birth
   • Occupation
   • Driver’s license information
   • Marital status
   • Vehicle information
     • Mileage
     • Make, model, and year
     • VIN (OK not to have this if you haven’t purchased the vehicle yet)
   • Name of your current auto insurance provider and how long you’ve been with them, if applicable
   • What you pay per month for your current insurance
   • Whether you own a home
   • Whether you want to bundle home and auto.
   • DUIs and at-fault accidents in the past five years
   • Tickets, if you’ve had two or more in the past five years
   • Driving courses you’ve taken in the past five years
   • The total number of vehicles you own
   • Your amounts of coverage (find out the coverage required in your state, and any supplemental coverage you would like)
   • Your credit range, whether excellent, good, fair, or poor
2. Collect quotes directly from providers. Most companies let you start online, then finalize your quote on the phone with an agent. The quote you receive from an agent will be more accurate than the one you complete yourself online. An agent can also answer any questions you have about the company or policy. Agents who work exclusively with one insurance carrier (e.g., a GEICO agent) are known as captive agents. You can collect quotes by working directly with multiple captive agents.
3. Work with an independent agent or broker. Alternatively, you can work with an independent agent or broker. Independent agents and brokers work with multiple insurance companies, so they can offer you a range of options. Independent agents work on commission, so they’re incentivized to offer good customer service, but they also might sell you a more expensive policy. Brokers charge a fee and must disclose their commission rates so you’ll know how much they’re making from your business. If you have a DUI, SR-22, speeding tickets, a history of accidents, or fall into another high-risk category, consider working with a specialty agency. These agencies can help you find a nonstandard insurance company that specializes in policies for high-risk drivers.

Because companies use different formulas to write auto insurance policies, the cheapest option for you depends on personal factors such as your age and ZIP code. GEICO, State Farm, and Progressive tend to offer cheap rates overall. GEICO’s average annual cost is around $350, State Farm’s is $452, and Progressive’s is $619. At $356, USAA is also a strong option, though it’s only available to military members, veterans, and their families.

If you have a poor driving record, like a history of speeding tickets or a DUI, State Farm is a particularly good option. If regional and smaller companies are available in your area, they also offer competitive rates. Some of the cheapest are Central Insurance at an average cost of $257 annually, MMG at $287, and Secura at $319.

To learn more, check out our article on how to find cheap car insurance companies.

Coverages, Limits, and Deductibles

A number of factors affect car insurance rates — primarily what coverages, limits, and deductibles you choose for your policy. The more you buy (whether on your own accord or because the state requires it), the more you’ll pay.

Higher limits will save you money in the event of a serious accident, but they will cost you more in premiums, because the insurance company is obligated to pay more in the event of an accident to meet the higher limit. The difference between the maximum and minimum limits can add up to more than $1,000 each year in premiums. Similarly, a higher deductible means lower monthly payments, and vice versa.

Monthly costs also increase if you add these or other supplemental types of coverage:

• Collision coverage for your property damage from an accident
• Comprehensive coverage for non-collision claims like vandalism or theft
• Rental reimbursement or transportation expense coverage
• Gap coverage to pay off any remaining value on a financed car
• New car replacement coverage
• Towing and labor cost coverage
• Ride-sharing coverage (for ride-share drivers)
• Sound system coverage
• Classic car insurance⁶

What You Drive

Insurance providers use data from customer claims and industry safety reports to rate a vehicle’s safety. Safer vehicles are less expensive to insure, and ones that are not as safe cost more to insure.

Companies also consider how susceptible a vehicle is to damage, occupant injury, and theft, as well as how much it costs to repair.

Driving a vehicle that offers greater protection to drivers and passengers and that tends to be less expensive to repair will lower your costs. In general, newer and flashier vehicles cost more to insure. You’ll pay more to insure a new sports car than an old minivan.

How Often or How Far You Drive

If you use your car for business or you commute long distances, you will pay more for auto insurance. You can lower your costs by driving less, taking public transportation, and shortening your commute. For example, instead of driving straight to work, you might drive to the station and take a train.

Low-mileage drivers may even have the option to pay per mile. If you choose this option, your insurance provider will track how many miles you drive and use your mileage to set your premium.

Where You Live and Park Your Car

Urban drivers tend to pay more for auto insurance because cities have higher rates of theft, accidents, and vandalism. For example, if you live in Michigan, you’ll pay more for insurance if you live in Ann Arbor or Detroit than you would living in a more rural area. Insurance companies consider parking on the street riskier than parking in a garage and may increase rates accordingly. Areas prone to extreme weather (e.g., floods, wildfires) like Texas or California also see higher insurance rates.

Driving Record

If you have a history of accidents, speeding tickets, reckless driving, or a DUI, you will pay more for auto insurance. On average, if you’re at fault for an accident that causes property damage, your premiums will increase by about $650 per year for three years — which will cost you almost $2,000 overall.

In general, it’s best to purchase as much coverage as you can afford. You never know how much you need.

All of these coverages come with a deductible, except for bodily injury and property damage liability. Uninsured/underinsured motorist coverage pays for your property damages and medical costs if someone with insufficient or no insurance hits your car. It usually includes hit-and-runs and instances where you’re hit as a pedestrian. Medical payments coverage is for your medical costs after an accident, including treatment of injuries, legal expenses if you’re sued, and funeral costs.

To find the best auto insurance for you, compare quotes from at least three companies. The best quote is affordable, but still provides high-quality coverage.