Call (855) 977-0861

for FREE insurance quotes by phone

Free Car Insurance Comparison

Compare Quotes from Top Companies and Save

or call (855) 977-0861 for free quotes


Penalties by State for Driving Without Insurance

Click here to view our interactive map with penalties for each stateIn the United States, every state requires proof of … [continue...]


Which auto makes get in the most fatal accidents?

Click here to view the interactive map and here to view the data table.When you pass an accident on the highway, you may have … [continue...]

Free Car Insurance Comparison

Compare Quotes from Top Companies and Save

or call (855) 977-0861 for free quotes
Things to remember...
  • A number of auto insurance companies provide online payment options for their customers
  • Many of these companies offer innovative choices like mobile apps or PayPal acceptance with their online systems
  • Some companies make you set up an account to pay, while with others you can simply pay instantly with a quick payment option
  • Online payment is so widely available that it can be one factor among many included in comparison shopping for car insurance
When you’re considering the auto insurance options available in your state, one important factor to keep in mind is ease and convenience of payment.

You can make use of a variety of mechanisms to pay your car insurance bill:

  • traditional mail-in payments
  • automatic payment
  • online banking managed through your bank’s website

Some of the major car insurers, however, also offer online payment through their own website, an extra bit of convenience that can help you pay your car insurance bill quickly and easily with a credit card or bank transfer.

More and more, when it comes to asking if online payment is an option, for car insurers, the answer is an enthusiastic, “Yes!”

There are a number of payment options offered by major insurance providers. While the large national insurers offer a variety of online payment options, there could also be small or localized offices that do not offer these payment options.

It’s best to check directly when setting up your insurance policy to ensure your access to online payments.

Compare car insurance quotes today to find the best rate for the coverage you need. Enter your zip code above to get started.

Mobile Apps, PayPal, and other Innovations


For example, GEICO offers various installment plans, which can be paid the following ways:

  • by one-time or automatic online payments
  • by mobile app
  • by phone
  • by mail

State Farm offers similar options, including instant online payments, phone and mail payments and walk-in payments at a State Farm agent office.

Allstate also offers its own mobile app as well as one-time and recurring online payments, automated phone payments, mail payments and in-person options at an Allstate agency.

While most companies take online payments from credit cards, online checks or other forms of bank transfer such as EFT, Progressive also accepts PayPal as a form of online payment alongside traditional online options, mail-in, and phone payments.

Free Car Insurance Comparison

Compare Quotes From Top Companies and Save

or call (855) 977-0861 for free quotes

Online Payment Options: Accounts and Quick Pay Systems

Farmers’ Insurance also allows online payments in addition to phone, mail and in-person payments. In order to make an online payment, you will need to set up an account on the company’s website.

USAA shares this common setup, allowing you to pay online, over the phone or by check with a bank account or credit card.

Liberty Mutual allows you to set up an online account to handle your bill payments but also offers a Quick Pay option for immediate online payment.

Meanwhile, Nationwide also encourages account creation where you can either pay directly or set up recurring payments to your credit or debit card.

The Hartford offers quick direct pay options as well as automatic payments, mail payments and access through a special mobile app.

Travelers and American Family both offer an array of traditional and online payment options, with one-time payments, automated options, mail, and telephone payments.

Quick, Flexible Online Insurance Payment Options

AdobeStock_85619102-1600x1600 (1)

Insurers like AAA Life and Mercury Insurance offer online options for payment in addition to the standard mail-in or preset debit options.

Meanwhile, MetLife offers online and telephone payments. For an additional quick payment option, they also offer a specific overnight mail address for speedy offline payments.

Erie Insurance takes online payments as well as telephone, mail or in-person options, while AAA Auto Insurance offers a MyPolicy account space to manage and handle online payments for its customers.

When choosing an auto insurance company, online payment availability can help to reassure you that you can pay at any time.

Flexible forms of payment, including credit cards, debit cards, and bank accounts are accepted by many insurers, while some even accept PayPal or other forms of online currency.

The wide array of insurance companies offering the service means that it’s easy to check that online payment is available when comparing options between car insurers.

Given the importance of on-time payment when dealing with car insurance, online payment offers a secure option to pay your bill immediately.

Even if you have a problem with your normal account for payment, flexible online choices protect you from concerns about late payments or being unable to switch your method of payment.

A large number of insurers have recognized the convenience and accessibility of online payment, allowing you to include this option among many others when choosing the car insurance that is right for you and your lifestyle.

Don’t pay too much for the car insurance you need. Comparison shop to find the best rate for your situation. Enter your zip code into our free quote tool below.

Things to remember...
  • Only three major insurance providers accept cash payments
  • Traditional, easier-to-track methods of payment are the ones most commonly accepted
  • Cash can be used to acquire other payment options necessary to cover an insurance bill
  • Regardless of payment preferences, customers should still try to find the best possible coverage
Some people like paying with cash. Paying in cash is often easier than writing a check or swiping a credit card. To simply hand over funds makes things less complicated.

Not everyone has a checking account or a credit card and even those who do may not possess sufficient funds or credit to make payments with these methods all the time.

Paying car insurance premiums with cash may seem a little out of the ordinary. Most assume such payments are made exclusively with credit cards, checks, or bank transfers. And most of the well-known insurance companies do seem to agree.

Compare car insurance quotes today to find the best rate on coverage. Enter your zip code above to get started.

Three Companies Taking Cash Payments


Out of all the major auto insurance companies, there are only three that currently accept cash payments:

Those preferring to pay in cash should request quotes from these three companies in order to review the coverage options they provide. Paying cash is a nice benefit, but the prime area of consideration should always be the quality of the coverage.

Flexibility seems to be expanding in the auto insurance world.

Interestingly, MetLife and Mercury are two of three insurance providers that accept PayPal payments as well. The third PayPal-friendly insurance company is Progressive Insurance.

Does this mean that only the three companies listed above are capable of accepting cash payments? Rules do change from time to time and other insurance companies, big and small, may change their policies in the future. It never hurts to ask.

Free Car Insurance Comparison

Compare Quotes From Top Companies and Save

or call (855) 977-0861 for free quotes

The Process of Paying in Cash

The standard way to pay an insurance policy in cash is to visit an established and approved physical location and deliver the funds. Do not under any circumstances mail cash.

This ancient bit of advice bears repeating because so many assume they can send cash without any worries. But what happens if the mail is lost or stolen in transit? The insurance company is not going to credit the payment due to your poor judgment.

When paying in cash, be sure to acquire a receipt. Make the payment before the due date and then call the insurance company’s primary customer service number to make sure payment was processed.

Traditional Methods of Payment

Insurance providers seem to be comfortable with accepting certain tried and true methods of payment. Almost universally, insurance companies accept:

Alternative Options for Cash Payers

Traditional methods of payment may not mean much to someone who doesn’t have access to these options. Assuming no means of accessing alternatives to paying in cash exist would be a mistake.

Cash may not be accepted as a direct payment to the insurance company, but there are third-party services that can, for a nominal fee, help with the payments.

– Money Orders

Someone without a checking account could simply purchase a money order. The post office and a variety of private companies can “sell” a money order to a client for less than one dollar.

The money order can then be mailed in a manner no different than would be the case with a check.

– Prepaid Credit Cards

Purchasing a prepaid credit card is an option and one worth exploring. Like a money order, a customer can load funds into a prepaid card for a small fee. The card can then be utilized in a manner no different than any other VISA credit card.

– Checking Account

The cash intended to pay the insurance company can be simply put into a checking account. Free checking accounts are commonly available. Credit unions might offer a good deal on a new checking account. Opening an account with the credit union might be well worth doing.

Insurance companies do want a customer’s business and positively want to receive payment.

The company requires the funds to invest and put in savings in order to pay out on filed claims.

Insurance companies do want to be flexible in terms of accepting payment options, but the companies are not going to go beyond what they are comfortable with.

The Best Coverage


In the end, the key goal is to acquire the best auto insurance coverage.

Procuring insurance from a company that accepts the preferred method of payment is definitely a nice benefit, but the main benefits to seek are the necessary financial protections insurance is supposed to provide.

Whatever method of payment you decide to go with, you should be sure to compare quotes from several companies to make sure you don’t overpay. Enter your zip code into our free rate comparison tool below to see the rates of several insurers side-by-side.

Things to remember...
  • Many car insurance companies advertise on comparison websites
  • This makes it easy to compare their features side-by-side and make an informed decision
  • You should also do your own research for those not listed on comparison sites
  • The keys is to get the best picture of what you need and find a company that matches those needs

Are you looking for car insurance? Sometimes it is difficult to compare insurance companies if you are unable to locate them on a comparison website.

When you are on a comparison site, it is convenient to be able to look at all of the characteristics of the various policies and then decide which is best. But when you don’t see a company listed, what can you do?

Compare car insurance options today using our free rate tool.

Seek Information Yourself


First of all, you can do some of your side research. Although we try to offer a wide variety of vendors and connections on our site, we still encourage the consumer and the individual who is looking for insurance to do some research on their own, as well.

You never should depend 100 percent on the recommendations of one site, even our site.

Instead, use the helpful information we give you to compare some of the most popular companies and go through the process of getting quotes from some of the leading insurance vendors.

Then do your research as you go or after receiving a quote to see how it compares with some that are not listed.

Why are certain companies on comparison sites?

That being said, the largest and most secure insurance companies are usually found on comparison sites for multiple reasons:

  • Competitiveness – Larger, more secure companies are not afraid of the competition. They are willing to openly show you the attributes of insurance and features that they are proud of so that you can make a more informed decision.
  • Visibility – The best companies usually want to be in a prominent place to attract new leads. When insurance companies decide to list themselves on an insurance comparison site, they are doing so willingly so that they can be more visible to their target audience.
  • Financial stability – When an insurance company places itself on a comparison website, it may indicate that they have the financial strength to afford to do so.
  • Customer support – The focus of a comparison site is to offer any opportunity to get free quotes, to display the important features of their policies, and to open the door of communication with potential clients and customers. So insurance companies that are featured on such a site might me more likely to have high customer satisfaction ratings.

Free Car Insurance Comparison

Compare Quotes From Top Companies and Save

or call (855) 977-0861 for free quotes

Should you choose a company on a comparison site?

Whether or not you choose an insurance company on a comparison site or not depends on whether you think the company is right for you.

The key in any purchase is to find what you need, and that will match up with your specific needs and wants.

If you can find a company on a comparison site that meets your needs perfectly, there is no need to look elsewhere.

On the other hand, if you have compared several companies side-by-side and looked at their different options and find it lacking, you should do your research until you find another company that meets your needs.

Our entire site is dedicated to helping you, the consumer to find and match up with the best insurance companies so that you can make a fully informed and educated decision on which one is best for you and your family.

The Real Purpose of Car Insurance


Your financial protection is what car insurance is all about. You need to know that you are carrying the mandatory state requirements of car insurance to protect yourself from the fees that you would incur from not having coverage.

In addition, you need to know that you have the best optional coverages to add to your protection such as comprehensive insurance, medical coverage, or other additional coverages such as uninsured coverage so that you will be taken care of if others are not properly insured.

How to Find the Best Company and Policy

It might be a good idea to list your priorities. By making a list of your priorities, including the following, you will be more likely to match up with the best insurance company for your specific needs:

  • how far you drive
  • your age
  • the make of car
  • other factors

The important thing is that you find the best policy at the best price that you can afford that will help you to know that, no matter what lies ahead, you’re covered. Enter your zip code right here to begin comparing car insurance quotes today.

Here's what you need to know...
  • When you go to apply for an auto insurance policy or request a quote for a premium, auto insurance companies do not consult with each other or share information about your driving or claims history
  • Instead, many auto insurance companies subscribe to services that provide them information to help assess the risk that you pose as a driver in terms of your likelihood of filing a claim
  • Because not every auto insurance evaluates all of the factors about your risk level in the exact same way as others, you can be offered different auto insurance quotes from different companies
  • The National Association of Insurance Commissioners (NAIC) has encouraged states to adopt legislation that will help auto insurance companies share information among each other to fight auto insurance fraud

When you go to apply for an auto insurance policy, you might think that information is passed back and forth between different auto insurance companies about your driving record or claims history. However, this is simply not the case.

The information that auto insurance companies use to determine the price of your premium generally comes from specialty consumer reporting agencies that sell information about your driving record and other factors to any auto insurance company that requests it.

Enter your zip code above for the best car insurance rates in your area today!

Providing Your Personal Information


In evaluating a new driver for an auto insurance policy, auto insurance companies take a variety of factors into account. The most important ones are your driving record, history of filing claims, credit report and your number of years of driving experience.

Auto insurance companies are also likely to consider the zip code that you live in, the value of your vehicle and the same factors for every other driver that lives in your household unless you specifically exclude that driver from your auto insurance policy.

When filling out information to receive a quote from an auto insurance company, you must be honest and accurate in your application.

The information you provide may be verified by the auto insurance company, and your failure to submit accurate information could be grounds for the auto insurance company not to extend you a policy or cancel your policy later on.

In general, the auto insurance company or agent will ask you questions about the make and model of the vehicles under your policy and the types and amounts of auto insurance coverages that you are interested in.

You will also be asked to provide information on the other drivers that live in your home. For your each of your vehicles, you should have the Vehicle Identification Numbers (VIN) ready.

You may also want to consider what your existing insurance policies are for your home and life insurance in the event that the auto insurance company offers you a discount for bundling multiple insurance policies.

Free Car Insurance Comparison

Compare Quotes From Top Companies and Save

or call (855) 977-0861 for free quotes

Information from Specialty Consumer Reporting Agencies

When you apply for an auto insurance quote from a new company, the company that you request a new quote from does not call up your current insurer to find out about your driving record and claims history.

Rather, the new auto insurance company likely uses information provided by several specialty consumer reporting agencies to evaluate your risk level as an insured driver.

Some of the information collected by the major specialty consumer reporting agencies includes car insurance claims, homeowners and renters insurance claims, employment history, opening new bank accounts and other financial information.

Getting a Copy of the Individual Reports on You from Credit Reporting Agencies

AdobeStock_79347833-1600x1600 (1)

If you are interested in finding out what information about you is included in these reports from the major specialty consumer reporting agencies, you can request a copy of the report that they have on you in their files.

There is no universal report, so you would need to request a report from each one of the major specialty consumer reporting agencies. The Consumer Financial Protection Bureau offers a list of the major specialty consumer reporting agencies in the event that you would like to request a report.

If you notice any incorrect information in the consumer report about you, you should contact that reporting agency directly about your discrepancy with the report.

Be prepared to supply documentation to support your claim. You may want to take this step before applying for auto insurance just to make sure that the information in consumer reports about you is accurate.

Keep in mind that you will often not get a notice about a decision not to extend you an offer for auto insurance based on negative information in a consumer report about you until after the actual denial.

This is why it is a good practice to periodically review the information about you in a report and make sure that it is accurate. It is much harder to get an auto insurance company to reconsider updated information on you after you have already been denied for a policy.

When you request a copy of your individual report from a specialty credit reporting agency, you may be required to pay a small fee. The maximum fee is currently $12.

However, if an adverse action has been taken against you, such as a denial of your auto insurance application, then you may be entitled to get a copy of your report for free. Most credit reporting agencies will provide you will a free copy regardless every 12 months.

If you run into any problems in getting a specialty consumer reporting agency to honor your request for a copy of your individual report, you can contact the Consumer Financial Protection Bureau to lodge a complaint against the specific agency.

They can also answer your questions about updating or changing inaccurate information that is listed for you in your consumer report.

Recap on Information Sharing Among Auto Insurance Companies

There is certain information about your driving record and history of making insurance claims that auto insurance companies can request from specialty consumer reporting agencies in order to quote you a rate for an auto insurance policy.

This information is not shared directly between auto insurance companies.

But the same basic information is used by virtually all auto insurance companies in quoting your rate.
You should get a copy of the reports on you every so often just to verify that all of the information about you is accurate.

Enter your zip code below to compare car insurance rates from multiple companies at once!

Here's what you need to know...
  • If you solicit a quote for auto insurance, you must provide personal information to ensure that the rates you’re quoted are accurate
  • Your auto insurance quotes are only as accurate as the information that you provide. If you put false information or you don’t disclose a ticket, it’s easy to get a misquote. Misquotes are when the rate changes after the application has been reviewed by an underwriter
  • The auto insurance quotes that you’re given can change. In fact, personal auto quotes aren’t binding and they can easily change just days after the quote was retrieved
  • One of the main reasons a quote will change is when the company files for a rate increase and the increase is approved by the state insurance commissioner. If the increase is approved, everyone will see an increase in their rates upon their next renewal
  • If you wait several months to proceed with a quote as a young driver, your rates could go down because you gain driving experience

The only way to find the lowest possible rates for auto insurance is to compare quotes. When you’re shopping around, it’s best to get give rate quotes to each prospective applicant so they know how much they’d pay through the carrier.

Unfortunately, many people assume quotes are the price that you’ll pay. While systems make quotes more accurate, the rate you’re quoted isn’t guaranteed.

Enter your zip code above for accurate car insurance quotes today!

When a company says that underwrite or verify the information that you provide until after the application is submitted and the disclosures are signed.

When is your rate binding?


A quote isn’t binding because it’s an estimate. A binding rate is a rate that’s guaranteed for the entire term.

Since you only get a contingent rate quote when you’re submitting your application, the rate isn’t bound until after the policy is issued. When the policy is issued, you’ll get the final rate that’s binding for the remainder of the term.

Free Car Insurance Comparison

Compare Quotes From Top Companies and Save

or call (855) 977-0861 for free quotes

Car Insurance Quotes Are Good For a Limited Period of Time

It’s best to print your quotes out whenever you’re comparing rates. When you’re quoted a rate, the company will have a note on the quote that shows how long the quote is good for.

Some carriers will honor their quotes given in person and online for a day or a week and others don’t honor quotes if rates change before you apply for coverage.

How can an insurance quote change days after it’s been mailed to you?


If you know that you’ll be buying a policy from one of the insurers you’ve been working with within the next few days, be aware that your rates can change.

It’s possible for a company to change their rates within just a few days. As long as that carrier doesn’t honor quotes the company can legally change your estimate.

Rates change because companies file a company-wide rate increase. The rate increase must be filed with the Department of Insurance, which must be justified and the approved by the commissioner.

If all of this happens between the time that you’ve requested a quote and the time that you fill out your application, you’ll pay the higher base rate.

Other Reasons Your Insurance Quotes Can Change


Company-wide increases aren’t the only culprits when your estimates change. There are a few other reasons that you should be aware of if you’ve noticed a dramatic change in your estimates. Here are some of the common reasons rates go up or even down:

Here are some of the common reasons rates go up or even down:

If you own a car and you want to pay low premiums on your insurance, it’s time to solicit quotes. Generate instant quotes online by using an insurance quote comparison tool. After you solicit these quotes, you can decide which option to apply for so that you can secure a base rate.

Generate instant quotes online by using an insurance quote comparison tool. After you solicit these quotes, you can decide which option to apply for so that you can secure a base rate.

Enter your zip code into the FREE tool below to access car insurance quotes that fit your budget today!

Here's what you need to know...
  • Some insurance companies with bad reputations provide poor service and delay the claims process
  • Check the company’s licensing status through the state’s Department of Insurance
  • If you want to be sure that the company has the finances to cover claims, check the company’s financial strength rating through consumer agencies like A.M. Best and Moody’s
  • If you want to buy multiple lines of insurance through your car insurance carrier, check their product offerings
  • Price should be the last thing to consider as you are searching for quality insurance
Most consumers are on a mission to find cheap car insurance. However, you should learn how to qualify insurers before you learn how to comparison shop.

While it’s important to stay within your budget when you’re building an auto insurance policy, it’s just as important to find an insurance company that offers quality protection and excellent customer service.

All auto insurance companies in your state offer the same coverage options, but that doesn’t mean that all of the carriers are created equal.

Having a huge advertising budget and a catchy slogan doesn’t mean that the company has an excellent product.

The price of your policy should be the last determinant on your list when you’re making a consumer decision. Here are some tips that can help you find the best company.

Start comparison shopping right now! It’s easy and FREE!

Step 1: Check the Company’s Licensing Status

AdobeStock_83053894-1600x1600You should never do business with an auto insurance carrier that’s not licensed to sell insurance products in your state.

The insurance industry is highly regulated, but the Department of Insurance that oversees carriers in your state can only assess companies that have been granted a license to sell.

While there are ways around getting a license, you should only give your business to companies that have an active license that’s in good standing.

If you don’t, you can’t turn to the Department to file a complaint.

Not only do you have absolutely no consumer protections if the company is unlicensed, the coverage that you pay for will not satisfy your state’s auto insurance law.

Step 2: Review the Company’s Current Financial Strength Rating

Looking at a rate before anything else could be one of the biggest mistakes that you can make when you’re looking to find the best insurance company.

To understand why an exorbitantly low could be a bad sign, you need to understand how the industry works and what financial strength ratings are.

Auto insurance carriers set their own rating systems and file their rates for approval through the state.

The only thing that the state requires is that the rates must be fair and justified for all rating groups. Auto insurance rates are meant to be competitive.

The problem is companies set their rates too low to compete with other larger carriers. If the rates are too low, the company may not collect enough premiums to cover operational costs and claims.

You need to review the business’s financial strength rating before you compare price.

Never take a company’s word for it when you’re looking at financial ratings.

Pull up reports through independent financial rating agencies such as A.M. Best who review financial statements and assign each company in the industry a letter grade.

Free Car Insurance Comparison

Compare Quotes From Top Companies and Save

or call (855) 977-0861 for free quotes

Step 3: Compare the Complaint Indexes of Multiple Insurers

At this stage of finding your insurance company, you should have a much smaller list of options than what you started with.

The next step to narrow your list down more is to assess the complaint index of each carrier left.

Official complaints are public record, and you can access reports that show you how often complaints have been filed and what the outcome was.

Once you have pulled up a carrier’s complaint index through the National Association of Insurance Commissioners, you can see if there are any red flags.

Every company will have at least a few complaints but look for trends in different complaint categories to avoid the sub-par insurers.

Step 4: See What Other Consumers Are SayingDollarphotoclub_102323835-1600x1600

It’s common knowledge that an upset customer speaks louder than a happy one. If you want to avoid carriers that offer poor service, you should see what customers have experienced in the past.

One effective way to do this is to check customer satisfaction ratings through J.D. Power & Associates, a company that surveys customers before ranking companies.

If you follow these four steps, you can find the right car insurance company.

When you have three to five companies on your list, start to take a look at pricing to see how the best companies compare.

If you want to compare pricing quickly, you can enter your information in a rate comparison tool and start comparing instantly.

Once you see how the prices stack up, you will be able to find a low-priced product from a high-class company.

Compare and contrast several companies and policies for the best coverage. Enter your zip code into our FREE tool to get started!

Things to Remember...
  • A driver license is an official document that grants the person the right to operate any private passenger vehicle within the state or the country
  • In order to be issued a driver license, you must pass a written exam, a driving exam, a vision exam and pay a fee that pays for administrative costs
  • Insurance companies require applicants to possess a driver license to be listed as a primary operator on an auto insurance policy
  • Carriers require either a state issued license or an International Driving Permit so that they can assess driving habits and charge for infractions and other serious violations
  • Auto insurance underwriters review motor vehicle records to set personalized rates for the risk a driver presents

You need much more than just a car to buy a standard auto insurance policy, you’ll also need an insurable interest in that vehicle and a driver license.

Since you don’t necessarily need a driver’s license to title a car in your name as the vehicle’s owner, it can be a cause for concern that most carriers actually require their applicants to possess an active license before they’ll extend an offer for coverage.

While there are exceptions to this rule, in most cases, you do need a driver license to buy car insurance. If you’re wondering why this is a common requirement for standard auto coverage, read this guide and learn more about how licensing.

Compare car insurance rates now by using our FREE tool above!

When will an insurance company ask about licensing?


You will typically be asked for your licensing information and details about your driving history when you’re looking for insurance quotes. This information is specifically used to assess risk and to classify the driver.

While what’s specifically used can vary from company to company, here are some of the most common licensing questions an agent or quoting form might ask you for:

  • State where you’re licensed and license number
  • Whether or not your license has been suspended or revoked in the past 3 to 5 years
  • The age you were licensed (in states that allow this to be used by insurers)
  • The total number of years you’ve been licensed in the US or other countries for merit-based rating (may be asked for proof of international licensing)
  • Your license class
  • If you’ve been convicted or moving violations or other serious infractions in the past 5 to 7 years

Free Car Insurance Comparison

Compare Quotes From Top Companies and Save

or call (855) 977-0861 for free quotes

How do auto insurance rates work?

How premiums are set is referred to as the rate-making process in the insurance industry.

When rates are made by the carrier, the carrier takes into account how much they’ll need to charge in pure premium for a unit of coverage and how much they’ll need to collect to cover overhead expenses and to stay profitable.

After rates are determined, the company then takes on the task of assessing the risk that a single household presents by providing quotes and then underwriting applications.

The company uses several different rating factors and risk determinants to predict the likelihood that an applicant will file a claim during a single term. Each determinant affects price in a different way.

Here’s a list of the most common rating factors that’ll be looked at to give you a price estimate:

  • Your individual driving record including moving violations and claims history
  • Age, marital status and years of driving experience
  • Garaging location or territory where the vehicle is stored
  • Vehicle type and safety rating
  • Number of miles driven annually and to and from work
  • Vehicle usage (pleasure, commute or business usage)
  • Voluntary driver education courses or Good Driver Discounts
  • Credit score and insurance score
  • Number of cars owned

What does a driver license do to help insurers underwrite applications?


While you do need a driver license or, at the minimum a provisional license, to operate a vehicle, this isn’t the main reason why carriers require a license number on an insurance application.

The reason a driver license is an underwriting requirement is because of what it tells the insurer about the applicant.

While it would be nice to think that each and every person that applies for insurance is forthcoming and honest about their driving history, if the information wasn’t ever verified then it’d be tempting for people to be dishonest about tickets and accidents.

By requiring their applicants to provide their license, it’s easier for the company to verify that the picture the applicant has painted of their driving habits is honest. Here are some of the ways that a driver license is used for ratings:

  • The underwriter runs an electronic motor vehicle report to find out if there’s any suspension, revocations or infractions on the driving record that can affect rating
  • The underwriter runs a C.L.U.E. report with license number to see if any claims have been filed under the driver’s name
  • The underwriter will use the age licensed or number of years licensed to assess experience credits the driver qualifies for

When do insurance companies offer insurance to unlicensed applicants?

There are exceptions to most rules, and some carriers do offer policies to named insureds who don’t have a driving privilege of their own.

In most cases, you can only qualify for what’s called a standard Personal Auto Policy without a license when you’ve voluntarily given up your license because of age or a disability.

In order to get insurance, you’ll have to prove you own the vehicle and don’t drive it.

You’ll also have to prove that someone who’s responsible and licensed does use the car on a regular basis.

If you can’t do this, you’ll need to apply for a sub-standard short-term auto policy to buy the coverage that’s required on your car with no license. The only other alternative is to transfer ownership of the car to a licensed party.

If you’d like to quote the cost of insurance and you have all your information ready, use an only rate comparison tool and see how much you’ll pay for coverage.

Select the limits you want, list the vehicles, disclose the drivers in your home, and then you can get instant insurance quotes with the press of a button. Enter your zip code in our FREE tool below to start comparing auto insurance rates now!

Here's what you need to know...
  • Insurance agents can make as much as $100,000 per year
  • Up to 20 percent of an insurance agent’s income may be from commissions
  • A comparison tool lets you quickly review several insurance policies and carriers

When you purchase a car insurance policy, you may wonder how much money the insurance agent earns from your policy. Depending on the insurance agent and company, the agent could receive a salary and commission or just a commission. Agents that earn salaries and commission tend to earn more per year than agents that only earn

Agents that earn salaries and commission tend to earn more per year than agents that only earn commission. Unfortunately, in most states, what an insurance agent is paid is a tightly held secret.

However, the Bureau of Labor Statistics states that the median wage for all insurance agents was $47,860 in 2014. Unfortunately, that number is a yearly average that includes salary income and commission income.

If you are worried about being overcharged for your car insurance policy so that your insurance agent can earn more money, you should utilize the services of a comparison tool. Insurance comparison tools will not try to sell you more insurance than you need.

Instead, they take the information you provide and show you insurance policies that meet your criteria. Start comparing auto insurance rates now by using our FREE tool above!

Insurance Agent Average Annual Salaries


What your insurance agent earns per year depends on whether he or she works for one insurance company or as an independent agent. Insurance agents that work for one specific company tend to earn more than insurance agents that operate independently.

According to U.S. News Money, the average yearly salary for insurance agents was $48,210.

The lowest paid agents earned $26,030 per year, and the highest paid agents earned more than $100,0000 per year.

Location also factors into what an insurance agent earns. Insurance agents based in large cities tend to earn more than agents that live in rural areas. This is because the city provides them with a broader customer base.

Insurance agents in Bloomington, IL, Farmington, MA and Santa Ana, CA make the most money on average. If you’re worried about a potential insurance agent inflating your premiums in order to increase his or her paycheck, you can use a comparison tool to check car insurance policies and get several different quotes.

  • Insurance agents earn anywhere from $48,000 to more than $100,000 per year
  • Large city agents make more than their rural counterparts
  • Independent agents earn less than agents working for one company

Free Car Insurance Comparison

Compare Quotes From Top Companies and Save

or call (855) 977-0861 for free quotes

Average Car Insurance Agent Commission

Auto insurance agents earn between 15 and 20 percent per car insurance policy, according to The Wall Street Journal.

For example, if your annual policy costs you $700 per year, your insurance agent earns between $105 and $140 for your policy.

Insurance agents may get additional income for customer retention and policy renewals, but those income sources are generally reliant on the particular insurance company.

Lowering Your Car Insurance Premium


If you’re concerned about the cost of your auto insurance policy, you can take steps to make it more affordable by raising your deductible and ensuring you have all the appropriate discounts.

If you have a policy that includes comprehensive and collision insurance, you were required to choose a deductible, which is the amount you must pay before your insurance company repairs or replaces your car after an accident. Typical deductible amounts range from $250 to $1,000.

Raising your deductible amount from $250 to $500 or from $500 to $1,000 can save you money on your premium each month.

The next step is to make sure you have all the discounts that apply to you. Insurance companies give discounts for safe drivers, seniors, and low mileage drivers.

You may also be able to get discounts if your car has certain built-in safety features.

If raising your deductible and ensuring you have all the available discounts doesn’t lower your premium enough to fit your budget, you can use a comparison tool to check the premium rates of several different insurance companies and car insurance policies.

Premium rates for auto insurance policies can vary greatly between insurance carriers:

  • Raise your deductible
  • Double-check your discounts
  • Lower your auto insurance coverage
  • Use a comparison tool to find a more affordable policy

Depending on the location of your insurance agent, his or her experience level and the particular insurance companies he or she works for, your insurance agent’s annual salary and commission could vary greatly.

In general, car insurance agents earn between 15 and 20 percent in commission and a salary. If you are concerned that you are paying too much for your car insurance, you can use a comparison tool to quickly receive information and prices for other insurance policies. Start comparing auto insurance rates now by entering your zip code in our FREE tool below!

Things to Remember...
  • Car value is determined after you file a claim with your insurance company
  • Insurance companies typically use their own formulas or Kelley Blue Book to determine your car’s value
  • If you think your insurance company isn’t valuing your car correctly, you can negotiate
  • To find a better insurance policy, use a comparison tool

When you file a claim with your auto insurance company after an accident, your insurance company will determine the approximate value of your car just prior to the accident.

This is because the insurance company needs to determine if your car can be repaired or if it is a total loss.

In general, your car can be repaired if the total repair bill minus your deductible is less than your car was worth just prior to the accident.

Your car is considered a total loss if the repair bill is higher than your car’s value.

If you are worried about the level of coverage on your car or you want to find better insurance for a lower cost, a comparison tool can help make your switch easier.

Compare car insurance rates now by using our FREE tool above!

Why Insurance Companies Need to Determine Your Car’s Value

dollarphotoclub_54192154-1600x1600The only time an insurance company will determine the value of your car is when you get into a car accident and file a claim.

The goal of this process is to determine if your car can be repaired for a reasonable cost or if your car needs to be deemed a total loss.

For example, if you get into a car accident and the total cost to repair your car is $5,000, but your car is only worth $4,000, your insurance company would deem your vehicle to be a total loss.

Conversely, if your car repairs add up to $3,000 and your car is worth $4,000, your insurance company would repair your car.

  • You were in a car accident
  • You filed a claim with your car insurance company for repairs or replacement of your vehicle
  • You were not the at-fault driver

Free Car Insurance Comparison

Compare Quotes From Top Companies and Save

or call (855) 977-0861 for free quotes

How Car Insurance Companies Determine the Value of Your Car

Your car’s value is calculated just prior to the car accident. Your insurance company is generally obligated to repair your car to its pre-crash condition or help you get another comparable car.

Depending on your insurance company, they may average the values or give you the highest value available.

Car insurance companies can use their own formulas for determining your car’s value, or they can use a site like Kelley Blue Book or NADA to determine your car’s value.

According to Kelley Blue Book, if you currently drive a 2010 Acura MDX with 50,000 miles on it, your car is currently worth $24,263 if it is in “very good” condition. NADA values the same car between $20,475 and $26,875.

  • Your car’s value is determined at the price it was worth just prior to the accident
  • Kelley Blue Book or NADA may be used by your insurance company
  • You can negotiate the value of your car if you are unhappy with the amount your insurance company derived

Reasons Your Insurance Company Would Not Pay for Your Car Repairs

AdobeStock_26556691-1600x1600Under certain circumstances, you would be responsible for replacing or repairing your car out of your own budget even if you file a claim.

The number one reason for this is because you have liability insurance, and you were found to be the at-fault driver. Liability insurance only pays for the other driver and their vehicle.

While this protects you against a lawsuit, it does not repair or replace your vehicle or pay your accident-related medical expenses.

If you only have liability insurance and would like a better policy that covers you in the event you are in an accident and the at-fault driver, you can use an insurance comparison tool to quickly find numerous insurance policies.

  • You only have liability insurance
  • You were the at-fault driver
  • A comparison tool can help you find better car insurance

Car insurance companies will determine the value of your car after a car accident.

If the value of your car is more than your expected car repairs, your insurance company will repair your car to its pre-accident condition.

If your car repairs are more than the value of your car, your insurance company will give you a check for the value of your car minus any applicable deductibles or fees.

If you are concerned about whether or not your car will be repaired or replaced after an accident, an insurance comparison tool can help you find a policy that better meets your needs.

Start comparing auto insurance rates now by entering your zip code in our FREE tool below!

Things to Remember...
  • You can switch car insurance providers at any time
  • Canceling before the end of your policy may result in fees
  • You should always start your new policy before canceling your old policy
  • Affordable insurance plans can be found by using a comparison tool

When it comes to switching car insurance, you can technically switch at any time. However, switching before the end of your current policy can result in cancellation fees.

Additionally, if you cancel your current insurance policy and wait to purchase a new policy, you could have gaps in your insurance coverage, which would then be reported to the DMV and could result in higher insurance premiums in the future. Start comparing car insurance rates now by using our FREE quote tool above!

Benefits of Switching Car Insurance



Switching car insurance companies has the potential to save you money and provide you with better insurance coverage. However, it is important to do your own research. Car insurance companies are notorious for telling potential customers that they will save anywhere from $400 to almost $600 a year.

It is important to understand that car insurance policies are typically six months in duration. This means that you will only save a maximum of $200 to $300 every six months. That translates to a monthly savings of between $33 and $50 per month.

When many insurance companies report potential savings, they are not including customers that didn’t save any money, they are actually only reporting what new customers self-reported when they filled out the questionnaire.

In order to ensure you save money on your car insurance, you need to fully understand what your current insurance policy covers and the amount you pay each month. When you use a comparison tool to find a different policy, don’t just look at the price. Make sure you also view the coverage limits and potential deductibles along with any exclusions.

  • Save money on your car insurance premium
  • Better insurance coverage
  • Better deductible

How to Switch Car Insurance Companies

When you first started driving, there is a good chance that you asked your parents which car insurance company they used, and you went and got a policy with them because it was simple and familiar, and you’ve probably never bothered to look at the rates or policies of any other insurance companies.

If this scenario sounds familiar to you, you may be paying too much for your car insurance policy, and you want to switch companies.

In order to ensure that you are continuously covered, there are certain steps you must take when switching insurance carriers. First, you need to locate a new policy with a new insurance carrier. This can quickly and easily be accomplished by using a car insurance comparison tool.

Call your current insurance carrier and determine when your policy ends. If it ends soon, you may just want to wait until the end of your current policy to switch carriers. If you are still several months away from the end of your policy, ask if there are any cancellation fees associated with terminating your policy early. If there are, you will have to determine if the fees are worth switching right now.

Make sure your new policy is comparable to your old policy because you do not want to find out after a car accident that your new policy leaves you financially vulnerable or not protected at all.

A good way to research your new insurance carrier is by investigating its BBB rating and reading all the complaints. If everything seems legitimate and you are ready to switch companies, purchase your new policy. It is important to purchase and ensure your new policy is active before canceling your old policy. Having a gap in insurance coverage can negatively affect you.

Call or write your old insurance company and cancel your policy. Let them know that you are going with a different insurance company and have a new policy on your car. You cannot simply stop paying your old premium. If you stop paying your premium without notifying your insurance company, they could report you for non-payment to the credit bureaus.

  • Find a new car insurance policy using a comparison tool
  • Check with your current insurance carrier to see if there are any fees associated with canceling your policy early
  • Purchase your new policy and ensure it is active
  • Cancel your old policy

Prevent Coverage Gaps

AdobeStock_118704820-1600x1600When switching car insurance carriers, it is important to make sure you do not inadvertently create coverage gaps. In order to drive legally, your car must be insured, and gaps in coverage must be reported to the DMV. This can result in the suspension of your car’s registration and even your driver’s license.

Car insurance gaps can happen for a variety of reasons, including you canceled your current policy before activating a new policy or you didn’t pay your premium.

Unfortunately, it doesn’t matter why your insurance lapsed. The consequences are always the same and could include being categorized as a high-risk driver. If you let your insurance policy lapse and are determined to be a high-risk driver, you could face incredibly high premiums in the future.

To avoid coverage gaps when switching car insurance, make sure to search for a new policy using a comparison tool and purchase that policy prior to canceling your current car insurance.

You can switch insurance providers at any time. However, if you switch before the end of your current policy, you may incur cancellation fees. In order to prevent any gaps in your car insurance, you should purchase your new policy and ensure that it is active before canceling your old policy. To find a new policy that provides better coverage at a lower rate, use a comparison tool. Start comparing auto insurance quotes now by entering your zip code in our FREE quote tool below!

Free Car Insurance Comparison

Compare Quotes from Top Companies and Save

or call (855) 977-0861 for free quotes