Shopping for auto insurance can be a confusing process, and you may get lots of opinions on what company to use and what coverage to get. The key to finding a good deal is to compare car insurance quotes. Comparing quotes from several different insurers is one of the best ways to save money. And it’s not a process that takes hours. With a minimal time investment, you can find the best car insurance rates and a policy that’s right for you.
What Are Quotes for Car Insurance?
A car insurance quote is a free estimate of how much you’ll pay for an auto insurance policy. It’s based on several factors, including your age, driving history, the type of car you drive, where you live and your past car insurance claims. Each insurance company has its own formula for calculating car insurance rates, which is why it’s important to compare car insurance quotes from multiple insurance companies. You could pay less (or more) for the same coverage at a different company.
How Do I Get Free Car Insurance Quotes?
Here are a two ways to get car insurance quotes, which are always free:
Online
- Many auto insurance companies offer free car insurance quotes online.
- You can visit several insurance company websites and compare quotes.
- To save time, use a website that provides quotes from multiple companies.
By phone or in-person
Speak with or visit a local insurance agent who can help you find affordable car insurance options and get you a car insurance quote.
Captive Insurance Agents vs. Independent Agents
There are generally two types of insurance agents:
- A “captive” agent works for one insurance company and can give you a quote only from that insurer.
- An “independent” insurance agent can sell policies from multiple insurance companies and can get you quotes from different insurers.
There are benefits to both approaches, and there’s no law against contacting multiple insurance agents. It doesn’t hurt to get online quotes and also speak with an agent who can help you identify your coverage needs and tailor a policy that’s the best fit for you.
Comparing auto insurance quotes is all about gathering options so you can find the best car insurance companies.
What Information Do I Need to Get Auto Insurance Quotes?
To make the process go as smoothly as possible, it helps to have the following information on hand:
Driver’s license.
If there are any other drivers in your household, you’ll need their driver’s license information as well.
Vehicle identification number (VIN).
You can typically find your VIN on the vehicle’s driver’s side dashboard or printed on a sticker in the driver’s side door or door jamb.
If you haven’t purchased the vehicle yet but know what you’re going to buy, ask the seller for the VIN.
If you haven’t picked out your car yet, you can usually get a quote with a vehicle make and model.
Mileage.
If you own the car, have the odometer reading handy.
How much coverage you want.
You’ll want to know what coverage types you want to buy and how much coverage you need. If you’re not sure, it’s a good idea to speak with an insurance agent who can help answer your questions. The auto insurance company will gather additional information about you, such as your driving history, past auto insurance claims and (in most states) your credit.
How Do I Choose the Right Coverage Types?
The coverage types and the amount of coverage you choose will have a big impact on your auto insurance quote. But don’t get overly focused on price and skimp on necessary coverage. If you don’t buy enough insurance, you’ll have a coverage gap that could cause major financial pain if you get into a car accident. Your goal is to find the best coverage for your specific situation and at the best price.
Here are some common coverage types to consider. Car Liability Insurance Car liability insurance is an essential coverage that pays others’ medical bills and property damage when you cause a car accident. It also pays for a legal defense in case you’re sued over a car accident.
Every state except for New Hampshire and Virginia require a minimum amount of car liability insurance, but it’s a good idea to buy more than what’s required. That’s because the minimum amounts are often woefully inadequate to cover medical bills and property damage if you cause a major accident. If your policy limits are too low, you could be stuck paying out of pocket for the rest. A good rule of thumb is to buy enough liability insurance to cover your net worth, or the amount that you could lose in a lawsuit.
A good way to add extra liability coverage to an auto policy is to buy umbrella insurance. You may have heard the term “full coverage car insurance.” This typically refers to an insurance policy that includes liability,
Collision and Comprehensive Insurance
Collision and comprehensive insurance pay for repairs to your car for a variety of problems such as car accidents, car theft, vandalism, fires, floods, falling objects (like tree branches) and collisions with animals. While collision and comprehensive coverage are often sold together, you can purchase them individually. For example, if you only want coverage for problems like theft and floods, you can get a car insurance quote for comprehensive insurance without collision. Just keep in mind that buying one without the other can leave you with a significant coverage gap.
For example, if you back into a pole, you need collision coverage to pay for repairs. If you have a car loan or lease, you’re likely required to carry both anyway. Uninsured and Underinsured Motorist Coverage Uninsured and underinsured motorist coverage pays for medical bills and other expenses like lost wages when you are in a car accident caused by someone who doesn’t carry liability insurance, or who does not carry enough liability insurance to cover all your medical bills.
Some states require that car owners have uninsured motorist insurance. Medical Expenses Coverage This type of coverage varies by state, but generally it covers medical bills and other types of expenses (such as lost wages) if you or your passengers are injured in a car accident, no matter who caused it Some states require personal injury protection insurance (PIP) as part of their “no-fault” auto insurance systems.
Other Car Insurance Coverage Types You’ll generally find several options beyond the basics when you compare car insurance quotes. These types can help you fill coverage gaps if you want to pay the extra money:
Gap insurance.
If your car is totaled or stolen and the vehicle’s value is less than the amount you own on a car loan or lease, this coverage pays the “gap” between the insurance check and what you owe.
See it: Do I Need Cheap Car Insurance for One Week?
Rental reimbursement auto insurance.
This covers the cost of a rental car while your car is being repaired for an accident insurance claim. But daily limits can be low, so make sure you need it. Roadside assistance insurance. If you’re stranded on the side of the road, roadside assistance insurance will pay for a tow, a jump-start for a dead battery, gas for empty tanks and a locksmith if you manage to lock your keys in the car. You may be able to find a better deal on roadside assistance elsewhere, such as an auto club.
What Factors Influence My Car Insurance Quotes?
There are several factors that play a role in car insurance quotes. Here are some of the most common pricing factors:
- Your driving history Drivers with a clean driving history will pay less than drivers who have traffic violations and at-fault car accidents on their records.
- Car insurance companies tend to look at the last three to five years of your driving history, depending on your state.
- If you cause a car accident, expect a rate increase when you renew the policy. Here’s a look at the average rate increase nationwide after an accident for drivers with coverage of 100/300/100 and collision and comprehensive insurance.
- If you get busted for speeding, expect a rate increase at policy renewal time or when you buy a policy with another insurance company.
- Our analysis found the national average car insurance rate increase for drivers with a speeding ticket is 21%.
- Here’s a look at the average rate increases nationwide after a speeding ticket for drivers with a coverage of 100/300/100 and collision and comprehensive insurance.
- Your vehicle The type of car you drive impacts your quote. Certain safety features (like air bags and rear backup cameras) and anti-theft features could help reduce your auto insurance quotes.
- Your location Where you live plays a significant role in rates. For instance, drivers in urban areas tend to file more car insurance claims, which usually translates into higher rates.
- Your driving experience Younger and inexperienced drivers (like teens) will pay more than drivers with years of experience under their belts.
- Other pricing factors Car insurance companies also often look at factors such as gender, age, occupation, marital status, home ownership and credit. State law sometimes dictates that certain factors can’t be used.
For example, if you add a teen driver to your policy, be prepared for a significant bump in car insurance premiums.
Here’s a look at the national average car insurance rate increases for a married couple that adds a teen driver to a policy with coverage of 100/300/100 and collision and comprehensive insurance.
How Much Does Car Insurance Cost?
When you compare car insurance quotes, having a ballpark estimate of what you might pay will help you stay focused on finding the right policy rather than coping with sticker shock. The average nationwide annual cost for full coverage car insurance is $1,190, according to the most recent data from the National Association of Insurance Commissioners.
Here’s a look at average costs in your state for liability, collision and comprehensive coverage.
What is the Cheapest Car Insurance?
Our analysis of the best cheap car insurance nationwide found that, on average, USAA has the cheapest car insurance. But USAA insurance is only available to active members of the military, veterans and their families. If you don’t qualify for a policy through USAA, we found that American Family, Geico and Nationwide offer competitive rates, based on nationwide averages. It’s still good to get quotes from multiple companies because the cheapest car insurance companies can vary depending on your state, driving record and more.
How can I lower my car insurance rates?
While car insurance quotes will depend on several pricing factors, like your driving history, your car, where you live and other factors, one of the best ways to save on car insurance is by getting car insurance discounts.
For example, insuring your vehicle and home with the same company will generally bring a good bundling discount. Bundling your auto and home insurance can typically land you a 5% to 25% discount. You can also bundle other policies, like renters, condo and life insurance.
How do I get free car insurance quotes?
Car insurance quotes are always free and usually available on insurance company websites. An independent insurance agent can also give you free auto insurance quotes from multiple companies.
Can I get an auto insurance quote before I buy a car? It’s smart to get a car insurance quote before you buy a car, in case the insurance bill doesn’t fit your budget.
For example, if you’re comparing car insurance quotes between a regular sedan and a sports car, you’ll usually find insurance rates for the sports car to be much higher.
Why are my car insurance quotes so high?
Your driving history is a major influence on car insurance quotes and could be what is pushing your rates up. Poor credit can also play a significant role—even more than an accident record. Other pricing factors include:
- The type of car you drive, where you live and the other drivers in your household.
- That’s why it’s important to compare car insurance quotes among several different companies.
What is comprehensive car insurance?
Comprehensive car insurance pays for your vehicle’s damage that’s not from a car accident. This includes damage from fires, floods, vandalism, hail, natural disasters (such as tornadoes), riots and falling objects. It also covers car theft and collisions with animals.
If you want coverage for car accidents, you’ll need to add collision insurance. Collision and comprehensive insurance are often sold together and are often required if you have a car loan or lease. If someone else is responsible for an accident, you can make a damage claim against their liability insurance.
That's it for this post with the title Compare Car Insurance Quotes, Hopefully useful.