Shopping For Car Insurance: How To Get The Best Deals (2024) (2024)

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The first step is to gather the information you’ll need to get a quote. Most insurance companies ask for the same things, which include your:

• Personal information: Your name, birth date, address and years at that address
• Vehicle details: Your car’s vehicle identification number (VIN), make, model, year, mileage and safety features
• Driving history: Your driving record from the past three to five years, including any tickets and at-fault accidents
• Current insurance information: The company you’re insured with at the moment and any coverage levels and birth dates of people listed on the policy
• Additional information: Your driver’s license numbers and the names of any other household members excluded from your policy

You may need to gather some of this information from other people or physically locate your car’s VIN. Doing this ahead of time can make it much easier to shop for car insurance.

Source: Automoblog

Next, figure out what type and amount of coverage you need. Most states require a basic level of bodily injury and property damage liability coverage that compensates other drivers when you cause an accident.

In most states, you won’t be able to get less coverage than that, but you could increase your liability coverage amounts (which we recommend). Here’s a basic list of different coverage types that may be available to you:

• Liability insurance: Covers medical bills and repair costs for other drivers when you cause an accident.
• Collision insurance: Covers damage to your car in an accident, no matter who was at fault.
• Comprehensive insurance: Covers environmental damage, vandalism and theft.
• Underinsured/uninsured motorist coverage: Covers your injuries and property damages when another driver without enough insurance causes an accident.
• Medical payments coverage (MedPay): Covers your medical bills after an accident.
• Personal injury protection (PIP insurance): Covers your medical bills, lost wages and death benefits. This coverage is often required in no-fault states.

Consider Lender Requirements When Shopping for Car Insurance

If you have an auto loan, your lender will require you to carry full-coverage insurance on the vehicle. In fact, your car insurance policy will list the lender as a lienholder so the lender is compensated in the case of a total loss.

Full-coverage insurance includes liability coverage plus comprehensive and collision coverage. Consult your loan documentation or reach out to your lender to see what insurance is required if you want to make a change in coverage. Otherwise, keep everything the same as your current policy and give the lender’s name and address to your new insurer.

Gap Insurance

You may also want to have gap insurance if you owe more than your car is worth. Gap insurance pays the difference between the value of your car and what you owe on the loan in the event that your car is totaled.

Roadside Assistance

Most car insurance companies also offer roadside assistance as an add-on. Depending on the company, this can cover:

• Towing services
• Winchings
• Fuel deliveries
• Spare tire changes
• Battery jump-starts
• Lockout services

If your car is under factory warranty, you may have roadside assistance from the manufacturer. Extended warranty plans often come with roadside assistance as well.

Once you’ve decided how you want to get a quote, the next step is to compare your car insurance quotes. Whether you use a broker, a comparison tool or a handful of individual company websites, you’ll find the best rates this way. You can also see which companies offer the best discounts for your situation.

Find the Right Car Insurance Discounts

Most car insurance companies offer a variety of discounts that can help you save money. Comparison shopping is important because different companies offer different discounts. For example, State Farm offers a discount of up to 25% for good students, while Geico’s good student discount is up to 15%. Some companies don’t offer good student discounts at all.

Below are some common car insurance discounts you’ll find when shopping around.

• Multi-car
• Multi-policy or bundling
• Teen driver
• Driver education
• Defensive driving course
• Good student
• Student-away-at-school
• Military
• Safety features

Consider Which Companies Offer Usage-Based Insurance

Some companies also offer telematics insurance programs that reward good drivers with discounts. These programs use an app, plug-in device or both to track things like your average speed, mileage, acceleration, cornering, braking and late-night driving.

Examples include:

• Geico DriveEasy
• USAA SafePilot®
• Progressive Snapshot®
• Allstate Drivewise®
• Nationwide SmartRide®
• Root Insurance

If you don’t drive much, you can also find pay-per-mile insurance from a few companies. With a pay-per-mile program, your bill will usually have a base monthly or daily rate plus a rate for every mile you drive. You could save a significant amount if you work from home or only drive occasionally. Examples of pay-per-mile programs include:

• Allstate Milewise^®
• Nationwide SmartMiles^®
• Metromile

The last step in shopping for car insurance is to purchase your policy. Many car insurance companies offer same-day coverage as long as you sign up and make the first payment. You can also choose to pay for the policy in full up front.

Avoid a Lapse in Coverage

When switching car insurance companies, overlap your old and new policies by at least a full day. In other words, don’t cancel your current coverage until the new coverage kicks in. You can do this by scheduling the cancellation in advance. A lapse in coverage of even a single day can make you riskier to car insurance companies and increase your insurance premiums.

Average Minimum-Coverage Car Insurance Cost

Minimum coverage is the cheapest option for car insurance. According to our averages, good drivers pay about $869 per year or $72 per month on average for minimum-liability coverage. As with full coverage, minimum-coverage rates vary by provider significantly.

Car insurance rates are based on a variety of factors, but there are a few things you can do to find cheaper quotes. As you shop for car insurance, consider the following:

• Avoid hard credit checks: Most states allow car insurers to use credit scores in determining rates. If possible, try to avoid anything that would bring your score down.
• Set a higher deductible: You can lower car insurance costs by raising your deductible. Be sure you can afford to pay if you were to get into an accident, though.
• Lower your coverage limits: If you can get by with less coverage, you can save some money on car insurance. You could also get minimum coverage if you own your car outright.
• Bundle policies: Most companies offer discounts for bundling more than one vehicle or type of policy together, such as auto with homeowners or renters insurance.
• Compare multiple providers: You may find one company charges hundreds less than another. You won’t know you have the cheapest car insurance until you compare more than one provider.
• Shop often: To be sure you have the best option, shop for car insurance each time your policy is up for renewal.

There are multiple ways to shop for car insurance, but the best thing to do is to compare multiple companies at once. Gather your information, choose what types of coverage you need, decide how you want to get a quote and then compare car insurance quotes to find the best option for you.

Top Auto Insurance Recommendations

You may have dozens of car insurance companies available to you, but not all offer the best coverage, service or rates. Travelers and Geico are among our top picks for excellent cheap car insurance.

Travelers: Best for Most Drivers

Travelers is a widely known insurer in the U.S. and is known for its affordable prices and flexible add-on coverage. The company provides drivers with the standard types of coverage in addition to roadside assistance, rental car coverage, loan/lease payoff and rideshare coverage.

Keep reading: Travelers Insurance Review

Geico: Best for Budget-Conscious Drivers

Our team found Geico to be affordable for good drivers for both minimum and full coverage. Its full-coverage rates are about 26% cheaper than the national average, plus it offers 16 different discounts to help drivers save more. Geico has a strong industry reputation with an A+ rating on the Better Business Bureau and an A++ financial strength rating from AM Best.

Keep reading: Geico Insurance Review

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Cost and Discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities are both taken into consideration.
• Industry Standing (20% of total score): Our research team considers market share, ratings from industry experts and years in business when giving this score.
• Customer Experience (15% of total score): This score is based on volume of complaints reported by the National Association of Insurance Commissioners (NAIC) and customer satisfaction ratings reported by J.D. Power. We also consider the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
• Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements score highest in this category.

Our credentials:

• 800 hours researched
• 130+ companies reviewed
• 8,500+ consumers surveyed

*Data accurate at time of publication.