How to Find Cheap Auto Insurance Rates Online (2022)
Finding cheap auto insurance rates online doesn't have to be hard. Average car insurance rates are $80 per month, but you can reduce your auto insurance rates by up to 20 percent when comparing cheap car insurance quotes from multiple companies. Affordable auto insurance quotes depend on several factors. Compare the best prices when you shop around online and secure reasonable auto insurance rates.
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UPDATED: Jun 29, 2022
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- There are a number of personal factors like age, gender, credit score, and where you live that can affect your auto insurance rates.
- Most auto insurance companies offer discounts that can get you anywhere from 5 percent to 50 percent off your rates.
- A higher deductible can reduce your rates by anywhere between 15 and 30 percent.
Is it important to compare car insurance rates?
Despite the necessity of insurance coverage, many people are frustrated by how expensive good auto insurance can be. However, there are more benefits to having car insurance than there are reasons not to be protected.
Fortunately, the best value for your money doesn’t have to be a headache. Shopping around and comparing insurance rates is just one auto insurance trick that is sure to help you find a good deal.
Consider both your needs and budget when comparing rates to ensure you aren’t sacrificing coverage over cost. In addition, because rates and discounts will vary between companies, it’s important to do your homework and compare as many companies as you can.
Finding cheap auto insurance rates online that provide great coverage can be challenging if you don’t know some of the cheap car insurance tricks of the trade.
To get the best value, search for an auto insurance plan that suits both your needs and your budget.
Rates vary from one insurance provider to another, so comparing quotes is important. Finding the best prices for car insurance online is a snap with our free car insurance rate finder.
Where can I buy cheap auto insurance?
Are you looking to buy cheap auto insurance? The General, 21st Century, and Esurance may have cheaper auto insurance rates to suit your needs. Save now and compare the rates below.
- According to the Insurance Information Institute (III), around 96 percent of Americans are paying too much for their insurance.
- III recommends drivers get quotes from at least three different companies, though as we noted earlier, we recommenced at least five quotes.
- Many auto insurance companies have streamlined their online services to make shopping for insurance extremely easy and affordable.
- One of the main advantages of seeing an agent in person is that it gives drivers the chance to ask questions.
- The most common way insurance agents are paid is on commission. While most agents want to help their clients, many also want their customers to purchase the most expensive policy possible.
Still, the majority of consumers could be paying less for coverage. Doing your research in advance is the key to ensuring you are getting the best rate for your insurance.
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What’s the best way to find cheap auto insurance rates online?
You may get overwhelmed with all of the information you find on insurance policies and different types of auto coverage. It all depends on what vehicles need protecting, and who will need to be covered with your car insurance policy.
Not knowing what you need to look at and what to prioritize can leave you researching the internet for hours without coming up with a good deal on car insurance.
Rather than spending your hours browsing individual company websites, you can use an online comparison site to make the task a little bit easier. If you want a really good deal, you may want to start by looking at the insurance companies known for offering the cheapest auto insurance rates.
However, keep in mind that there are various factors that will affect your car insurance rates.
Shopping for Cheap Auto Insurance Online
Shopping online for your car insurance is a way to take advantage of multi-company comparisons. This easy auto insurance trick gives a quick overview of the coverage available for the best rates.
The first step has already been done. Comparison sites like ours give you a road map to how much you can pay for car insurance per month. Also, you’ll learn how coverage levels can affect your auto insurance policy.
Be sure to include a search for discount eligibility to lower your rates even further. With a little research, you can get quality coverage while staying within your budget.
As you read through the extensive sections in our guide, you’ll learn several ways to secure affordable auto insurance online.
Information You Need When Comparing Rates Online
When you’re ready to compare auto insurance rates, you will need some information on hand. The more accurate you can be using an online rate comparison tool, the more reliable the information provided. Be sure to have the following:
- The address where the vehicle is registered
- The date of birth for any drivers on the policy
- A driver’s license for any drivers on the policy
- Insurance history for drivers on the policy
You will often find that online comparison tools will preload the coverage requirements for your state, but if you are seeking additional protection, you will need to specify what else you are looking for. This could mean adding personal injury protection, collision coverage, medical payments, or roadside assistance.
Companies Known for Cheap Rates
Auto insurance rates are priced according to your individual factors and the insurance company’s pricing structure. What you may think is cheap may not be ideal for someone else, so don’t compare your rates to someone else’s.
Compare rates against other companies and similar policies. Your location has a lot to do with costs as well, so a policy quoted in one state won’t have the same price as in another state.
We’ve selected a list of some of the cheapest auto insurance companies around, gathered rates, and listed discounts for you.
Although neither is seen as an ultra-cheap company, State Farm car insurance and Erie car insurance can often offer great rates, as can many others so shop around.
If you’d like to see what the average rate is for the top 10 providers in the nation, take a look at the table we have for you down below:
|Auto Insurance Company||Average Annual Auto Insurance Rates||Average Six-Month Auto Insurance Rates||Average Monthly Auto Insurance Rates|
What is the cheapest online car insurance? We’ve got answers. Many Americans live on a financial budget, and with that comes figuring out how to choose an auto insurance policy they can afford.
So what are some cheap auto insurance companies that also offer good coverage? To lower their auto insurance rates, Americans have chosen one of several auto insurance discount rate insurance companies.
Cheap or inexpensive auto insurance companies offer rock-bottom prices on the minimum coverage, but you can also get full coverage. SafeAuto, Esurance, and The General are top picks for cheap car insurance.
These unique car insurance companies offer bare minimum coverage to policyholders in exchange for rock-bottom car insurance pricing. It might be risky, but it’s undoubtedly the most affordable method to stay legal in a tough economy.
Does SafeAuto offer cheap auto insurance rates?
Is SafeAuto the cheapest? Our SafeAuto insurance review finds an auto insurance company that offers affordable coverage.
Established in 1993, this company is a direct-to-consumer auto insurance company that offers cheaper rates by cutting out the “middleman.” This company’s executive offices are located in Columbus, Ohio.
SafeAuto representatives are trained to answer any questions you might have about setting up a policy.
Instead of purchasing your policy through an insurance agent who represents the company, this company sells directly to the policyholder, which saves the subscriber and the company money.
Perhaps the best-known company for cheap auto insurance, SafeAuto offers its discounted policies in 16 states, primarily on the East Coast and in the midwestern section of the country.
Customers in other states would be well advised to remain vigilant and monitor the company’s website for new markets it may serve in the future.
SafeAuto has been expanding its coverage to new states at a fast rate in recent years.
SafeAuto adheres strictly to offering consumers the lowest rate on their insurance by offering the bare minimum coverage.
The company’s website contains a section that details those minimum auto insurance coverages on a state-by-state basis and summarizes the insurance laws of each state covered by SafeAuto’s policies.
This summary includes not only the bare minimum coverage amounts for consumers but also the punishments they can face under state law for being either uninsured or underinsured for any period of time.
If you’re wondering what discounts SafeAuto offers, they include:
- Safety Features Discount
- Good Driver Discounts
- Lump-Sum Payment Discount
- Multi-Car Discounts
- Good Student Discount
- Homeowner Discount
These discounts can make a lower rate offered by a discount insurance company even lower.
Does Esurance online insurance agency offer cheap auto insurance rates?
SafeAuto’s deeply discounted rates are great for the residents of the 16 states it currently serves, but that leaves the majority of America still searching for ways to save on their monthly auto insurance rates.
So what auto insurance company can drivers living in states that don’t offer SafeAuto get? Where can you get cheap car insurance online? What is the cheapest online car insurance that’s available nationwide? And who has the cheapest full coverage insurance? So many questions, one solid answer.
Esurance is a truly unique auto insurance company. Esurance does not have offices or walk-in locations, just regional offices, and its headquarters is located at P.O. Box 5250 Sioux Falls, SD, 57117.
Esurance operates solely online, thus cutting many of the costs associated with maintaining a network of offline agents, agencies, and vehicle fleets.
When Esurance began in 1999, it was only in four states; just 12 years later, Esurance was available throughout the United States. When it comes to the online auto insurance community, Esurance represents almost 90 percent of policyholders.
Until recently, it operated as an independent company; in mid-2011, Esurance was bought by Allstate and expanded its coverage to many of the states already served by its new parent company.
Esurance offers low rates based on its online operations and also offers customers the option of selecting their state’s bare minimum coverage levels.
Customers can also get great rates on full coverage insurance. This results in net savings that may be even lower than what companies like SafeAuto can offer, as even SafeAuto maintains a network of agents and a strong real-world presence.
In addition to its low rates, what discounts does Esurance provide? We’ve put together a list of Esurance discounts comparable to any more traditional, major national insurance company.
Vehicle discounts include:
- Anti-Lock Brakes
- Anti-Theft (passive or active alarms)
- Daytime Running Lights
- Green Vehicle (for electric cars and hybrids)
- Newer Vehicle
- Passive Restraint
- Vehicle Recovery (for LoJack and OnStar)
- VIN Etching (only in LA, NY, and NJ)
Don’t forget, drivers can also get quite a few discounts. If you’re a good or trained driver, you’ll be eligible for savings. Here are some of Esurance’s driver-related discounts:
- Defensive Driver (for drivers 50+ who complete an approved driver education course)
- Driver’s Ed (for drivers under 21 who complete a teen smart driving course)
- Further Education (drivers with a four-year degree or higher)
- Good Student (GPA of 3.0 or higher)
- Homeowner (for drivers who own property)
- Group of Affinity Memberships
- Military (LA only)
- Occupation (discounts for occupations where drivers are statistically in fewer accidents)
- Senior Driver
- Safe Driver (only in CA, FL, and WA)
Other discounts include:
- Multi-Policy (for having multiple lines of insurance)
- Multi-Vehicle (for insuring two or more cars with Esurance)
- Online Shopper
- Full Pay
- Driving Device Discounts (only in CO, MO, OH, and UT)
- Low Mileage (only available in CA)
- Continuous Coverage (when you have no lapses)
- Claim Free (in the last three years)
- Future Signing (if you choose an effective date more than 24 hours in the future)
There is no shortage when it comes to offering discounts at Esurance.
Does The General auto insurance company offer cheap auto insurance rates?
How can I get super cheap car insurance? You probably want to look at The General car insurance.
Based in Tennessee and operating primarily in southern states, The General auto insurance is very much like SafeAuto in that it offers bare minimum coverage to policyholders based on state laws regarding auto insurance requirements.
Despite the recent trend in discount rate auto insurance, The General has been issuing bare minimum insurance policies to its customers since its founding in 1963, making it one of the oldest and most experienced low-rate auto insurance companies in America.
The General is also known for offering very cheap car insurance with no deposit required.
Some things to remember when looking at auto insurance from The General Auto Insurance Company:
- The General is an auto insurer that caters to drivers with blemished driving records and poor credit scores.
- Consumers can shop for auto insurance through local brokerages or online by requesting a virtual quote.
- Preferred drivers with excellent records may not get the best deal with the company, but high-risk drivers can save.
- Some of the discounts offered include Claim Free, Defensive Driver, Driver’s Ed, Loyalty, and Good Student.
In addition to its low rates, policyholders who choose The General can receive additional discounts for a safe driving record that dates back at least five years from the time their policy was initiated or renewed.
The company only offers auto insurance, so bundling auto insurance for discounts is simply not available.
There are moderate discounts available for students, multiple cars, and multiple drivers, but these discounts are less than national insurers as the company is already offering a steep discount on traditional auto insurance.
Its solid reputation, well-rated customer service, and its history of more than 45 years in the discount insurance business mean that The General is likely the best choice for cash-strapped consumers.
How can you take advantage of available auto insurance discounts to save?
Increasingly more insurance companies are offering discounts and incentives. They provide club membership discounts, defensive driver discounts, good student discounts, and low mileage discounts.
According to a study by the Pennsylvania Department of Insurance, American drivers could save an annual $300 million if they would take advantage of all applicable discounts.
Since 70 percent of insurance agents regularly fail to mention car insurance discounts, drivers need to take the time to determine what they could qualify for.
Drivers are encouraged to apply for multiple discounts at once. Make sure you ask insurance providers about the discounts offered.
- Bundling Discounts –If you get your car insurance, home insurance, life insurance, and health insurance from the same provider, you will receive substantial discounts.
- Low Mileage Discounts – Some insurance companies offer reductions to those who drive a lower-than-average number of miles a year.
- Defensive Driver Discounts – No matter how old you are, taking defensive driving classes can help improve your driving skills and get cheap car insurance. This discount can represent as much as 10 percent off your rates.
- Good Driver Discounts – Safe drivers with no traffic offenses within a specified time period get lower rates.
- Safety/Anti-Theft Equipment Discounts –One of the best ways to get cheap car insurance is to install approved alarms and anti-theft devices in your vehicle. You can save even more money on your policy by adding airbags and automatic seat belts.
- Multiple Car Discounts – If you have two or more vehicles, it would be better to insure them with the same company.
- Military Discounts – Most companies offer lower rates to current members of the military.
- Good Student Discounts – Having good grades at school can help you get auto insurance for less. This discount is available to students and graduates under the age of 25.
- Club Membership Discounts – Being a member of certain organizations and clubs can result in lower car insurance rates.
- Retirement Age Discounts – Senior citizens are less likely to get involved in a car accident. If you are over 50, you might qualify for a Retirement Age Discount. Make sure you compare several insurance providers to find out which of them offers the best deal.
If you haven’t been involved in car accidents in the last three years, you may qualify for auto insurance discounts. Limiting your annual mileage can help you cut costs and get lower car insurance rates.
Car owners who add an alarm or immobilizer to their vehicles pay less on coverage. For extra savings, take an advanced driving course. A driving course will improve your driving skills and reduce your car insurance rates.
Before you make a decision, ask about the discounts offered and compare as many car insurance quotes as possible.
Each insurance provider uses different formulas to determine how the driver’s age, driving record, and claims history affect their rates.
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The Most Affordable Auto Insurance Companies With Discounts
Not every insurance company will offer discounts. SafeAuto and Esurance are two companies known for providing several discounts, but these companies also market their policies directly to the consumer, helping reduce middleman expenses and lowering overall costs. These are a few of the discount options available from these two companies:
|Safety features discount||Defensive driver discount|
|Good driver discount||Good student discount|
|Lump-sum payment discount||Further education discount|
|Multi-car discount||Homeowner discount|
|Good student discount||Safe driver discount|
|Homeowner discount||Multiple vehicle discount|
These are just two of the many companies offering discounts. You can find other discounts from The General, GEICO, and State Farm.
Look carefully to see what other discounts are available, and take advantage of what is offered to get the best rates possible on your auto insurance. There is quite an extensive list of discounts available for car insurance, but they will vary from company to company, so it’s always best to check and see what’s being offered. The most common discounts across the industry include low mileage, bundling or multi-policy, safe driver, military, and anti-theft/safety vehicle discounts.
Will I qualify for auto insurance discounts?
You’ll want to see what kinds of insurance discounts you qualify for. Even if it’s just one or two, it will help you cut down on the amount of money you’ll be paying.
- State Farm offers up to 10 percent off when you maintain a safe driving record for three consecutive years.
- Farmers Insurance Group gives teachers, police officers, dentists, and other professionals special discounts.
- GEICO says thanks to military members for providing them with savings of up to 15 percent.
You can also save money with most companies if you maintain a high credit score.
Most companies that offer different insurance policies also reward you for having multiple policies with them, so when you find the right company for your car, see if you can save by switching your homeowners insurance or buying life insurance with them.
If you have multiple cars, there may also be a multi-vehicle discount that will help you save money.
Finally, when you compare quotes from different companies, take a moment to ensure you’re looking at the final price after all discounts have been awarded.
There may even be discounts you didn’t know existed that you qualify for, so when you’re shopping for your insurance quotes, check to see which discounts you think you would qualify for, and be able to provide documentation to prove it.
In the table below, we’ll display the car insurance discounts from the highest average savings to the lowest. This way, you can better familiarize yourself with what discounts you have available to you.
|Auto Insurance Discount||Average Savings||Category|
|Affiliation or "affinity"||25%||Affiliations|
|Anti-theft||5 - 20%||Equipment-related|
|Auto-pay||$45 - $50 / year||Payment|
|Bundled||5 - 10%||Customer Loyalty|
|Customer Loyalty||15 - 25%||Customer Loyalty|
|Defensive driving course||10%||Driver Training|
|Driver Training||8 - 10%||Driver Training|
|Early signing/renewal||10%||Customer Loyalty
|Emergency road assistance||5%||Affiliations|
|Good or safe driver||20%||Driving History|
|Good student||15 - 25%||Demographic|
|Homeowner||5 - 15%||Demographic|
|Low income or occupation||Varies||Demographic|
|Military||15% on base, 90% for deployed||Affiliations|
|Multi-car||10 - 25%||Customer Loyalty|
|Paid-in-full||5 - 10%||Payment|
|Safety; passive restraint and airbag||5%||Equipment-related|
|Senior||15 - 35%||Demographic|
|Usage or low-mileage||2%||Driving History|
A lot of employers, for example, offer various discounts for their employees. If you work for an employer that provides a discount like this, take advantage.
What discounts are available to make auto insurance cheaper?
One of the best things you can do to lower your car insurance rates is to know what discounts your provider offers and which ones you and your family might be eligible for.
It is important to note that not all discounts can be “stacked.” That is, some discounts cannot be combined with others, and it’s important to speak with your car insurance agent to get a full grasp of your insurer’s stacking policy for discounts.
The table below provides a comprehensive list of 68 discounts we’ve identified for the United State’s biggest car insurance providers.
|Auto Insurance Discounts||21st Century||AAA||Allstate||American Family||Ameriprise||Amica||Country Financial||Esurance||Farmers||GEICO||Liberty Mutual||MetLife||Nationwide||Progressive||Safe Auto||Safeco||State Farm||The General||The Hanover||The Hartford||Travelers||USAA|
|Adaptive Cruise Control||x||x||x||x|
|Daytime Running Lights||x||x||x||x||x||x||x||x||x||x||x||x||x||x||x||x||x||x|
|Electronic Stability Control||x||x||x||x||x||x||x||x||x|
|Forward Collision Warning||x||x||x||x||x||x||x|
|Lane Departure Warning||x||x||x||x|
|New Customer/New Plan||x||x||x|
|Seat Belt Use||x|
|Students and Alumni||x||x||x||x||x||x|
|Discounts Provided #||21||21||29||27||18||27||26||34||34||32||38||38||35||36||22||30||20||20||22||38||28||28|
Our research shows Liberty Mutual and MetLife offer the most discounts at 38 apiece.
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Should I look for multi-car discounts?
What’s the best car insurance trick to save money? Well, the one that works for your personal situation. If you have multiple vehicles, one of the best tricks to lower auto insurance is with a multi-car discount.
In many cases, simply adding the second car in your household can save you as much as half on the second policy.
If you have a second vehicle in your family, check into having them both insured at the same place.
As a bonus, if your car is over three years old, a car insurance trick you may be aware of already is that you will likely pay lower car insurance rates just based on the type of vehicle you have, its age, and other factors.
Should I bundle my insurance policies?
What is the auto insurance trick most people miss out on? In many cases, choosing the same company for your homeowners insurance as you do for your auto insurance, for example, can save you significantly on both policies.
In fact, you don’t even have to stop at just purchasing homeowners insurance and auto insurance from the same company.
Consider getting things like life insurance, renters insurance, medical insurance, and even travel insurance from the same company that you get your auto insurance from to save some cash.
A bonus auto insurance trick is that some insurance companies offer loyalty discounts.
It’s smart to see if your current provider offers something like this because you don’t want to switch away from them if your new loyalty discount ends up giving you cheaper rates than you could find elsewhere.
If you are in a relationship, you may want to sit down with your partner and work out what policy is the best for you and your family.
Combining policies does not stop at just auto insurance. Adding your auto policy to your homeowners, renters, boat, motorcycle, or life insurance policy will often help reduce costs all around.
Many auto insurance companies specialize in insurance of all types. Swing into your agency and find out what other services they may offer.
Should I include anti-theft devices?
Some auto insurance companies will offer you a discount for having specific kinds of theft-deterrent devices like “The Club” installed in your car.
Depending on the companies in your area and the laws in your state, this can often wind up saving you hundreds of dollars a year, making the theft device pay for itself.
Ask your agent/broker/company how much you might save with an anti-theft device that you are debating purchasing.
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What are some other ways to lower my auto insurance rates?
Regardless of what type of car insurance you choose, there are many ways to cut costs and save money on your policy. Drivers can save hundreds of dollars on auto coverage simply by comparing three to five quotes from different companies.
Most insurance companies are willing to offer massive discounts for buying a policy through their websites, adding safety features to your vehicle, or raising your deductibles.
Whether you choose to raise your deductible, drop off additional benefits, or apply for car insurance discounts, there are many ways to save money on coverage and get a great deal.
Car owners can save up to 30 percent on their policies simply by comparing auto insurance quotes online.
If you are on a tight budget, raise your deductible to $1,000. This can help you lower your rates by 25 percent.
If you are looking for tricks for lower car insurance rates, there are simple tips like setting up automatic payments, combining multiple vehicles on a policy, and adding anti-theft devices.
- In many cases, simply adding that second car to your household can save you as much as half on the second policy.
- Your credit score can negatively affect your monthly rates.
- Inquire about bundle packages for all of your insurance needs.
If you want to save a few bucks on your auto insurance, there are some specific auto insurance tricks you can do.
Many folks pay too much for auto insurance, not realizing there are usually a host of discounts they could take advantage of.
We all want cheap auto insurance rates, and all it takes sometimes is using a few cheap car insurance tips and tricks.
We’ve covered a large number of discounts across a wide variety of car insurance providers. Beyond these things, what else can you do to lower your car insurance rates?
It’s a good question, one a lot of folks are asking as the car insurance market becomes more and more diverse.
Without further ado, here are some of the top tricks and tips for cheap car insurance when it comes time to renew your policy:
Should I shop around to find cheap auto insurance rates?
How do you get cheap car insurance? The best way is to compare multiple quotes from reputable providers.
Whether you prefer to use quote comparison websites or you want to talk with an insurance broker, shopping around is a great choice.
Before you contact an insurance agent, go online and search for information about this type of insurance. Reading customer reviews and tips on buying cheap car insurance will help you make an informed decision.
Should I research my options?
Based on the answers provided, you will receive a number of quotes. Compare them side by side, choose at least five offers, and make a list of insurance providers.
Contact your state insurance department to research the company you are interested in. Some websites feature insurance company comparison charts that can help you compare multiple providers and give you an idea of what the normal price should be.
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Does my deductible affect my auto insurance rates?
Once you find a cheap car insurance policy that works for you, start looking for ways to cut costs. It is recommended you raise your deductibles to get lower rates.
The deductible represents the amount of money you have to pay before the insurance provider covers the damages resulting from a car accident. Increasing your voluntary excess can help you save up to 50 percent on auto insurance every month.
So how can this cost affect your insurance costs?
The more you pay for your monthly rate, the lower your deductible is going to be. If you’re looking to cut down on your monthly rate, you could request a higher deductible.
Asking for this higher deductible is a good thing for providers, as this means that you’ll be the one covering a higher percentage of the bill if your car is damaged.
This does still mean that while you won’t be paying as much for your monthly rate, you’ll be paying more if your car is damaged, which can be pretty hefty depending on the amount of damage.
How do I find extra cheap auto insurance?
The competition is tight between different insurance companies. Most companies will provide you with offers that seem too good to be true.
So what is a cheap and good car insurance policy? It depends on your needs and what you’re looking for. If you do your homework and learn about how car insurance works, you will find an affordable policy offering extensive coverage.
Opt for a company you can trust, check its ratings, and get as much information as you can find. Ask what types of coverage are offered, what is the company’s cancellation policy, and how does the company handle claims.
Can I contest the rates my auto insurance company charges me?
If you think your insurance company is charging you more than they should, your first step should be a phone call to the company to determine why your rates are so high.
There are some instances where the insurance company might make a mistake and charge you more because of a duplicate entry in their records.
For example, if you had a car accident on October 1, 2019, but were ticketed on October 11, 2019, the insurance company may have that as two separate events in their system and not one related event.
The insurance company isn’t required to do any legwork to determine the information they receive from the DMV is correct, so it is up to you to ensure they are only assessing existing accidents and tickets when determining your rates.
You can also talk to your state’s insurance commission, but, if the insurance company is within the cap for its rates, don’t expect to get any results this way. Your best course of action will be to shop around and find better rates elsewhere.
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Can I renegotiate my current policy?
Ramit Sethi, the author of I Will Teach You to be Rich, offers a great script for negotiating lower car insurance rates with your current provider. He explains:
“Now it’s finally time to call up insurance reps including the one you currently have and negotiate an awesome deal with scripts.” This is the meat of how to lower car insurance payments.
Before you do that, though, there are two things to keep in mind when speaking to a representative.
- Stay polite but firm. Don’t just call up the rep and scream, “Give me lower car insurance!” (We’ve tried, it doesn’t end well). You need to handle the negotiation with finesse and civility — even if the representative is short with you. Nothing throws a wrench into negotiations quite like pissing off the one person who can help you.
- This is not a win/lose situation. You can’t just make a demand and expect the person to give it to you. However, insurance companies are willing to offer discounts to make or keep high-value customers. Prepare to make your case as to why you’re such a good customer, and you’ll see results.
Keep those two things in mind when you call up the representative, and we promise you’ll find a great deal. To help you out, we have an example script you can choose to follow when you call your insurance company. Take a look.
ACME INSURANCE: Hello, Acme Insurance. How may I help you today?
YOU: I’d like to negotiate a policy. [Another insurance company] is offering to insure me for $XXX less for [coverage]. I’d like to know if there’s a better deal from you, please.
Wait for their response. Negotiating with this technique is much harder to do with car insurance companies than with banks — but it is possible. If they’re stubborn and try to shoot you down, keep pressing at it. Don’t make it easy for them to say no.
ACME INSURANCE: Sorry, but our rates are fixed at this time, and we can’t change it due to [some excuse about why they can’t give you a lower rate].
YOU: Well, I’ve been a good driver for X years now and would love a lower rate. What else can you do to help me?
ACME INSURANCE: Hmm, one second, sir. I see that you’re a really good customer. I’m going to check with my supervisor. Can you hold for a second?
I was able to check with my supervisor and can lower that policy by X percent. Does that work?
Getting a response like that is the best-case scenario. However, there might be a chance they deny you a discount based on this tactic alone. If this happens, I suggest you do the following:
- Don’t stop until you get a yes. Persistence is integral in negotiations. If you keep at it and make a strong case, they’ll be backed into a position where they’ll want to give you what you want.
- Try again later. Like the Magic 8-Ball says, sometimes you just have to try again later. If the first car insurance rep keeps shutting you down, thank them for their time, hang up, and dial again for a new rep. This one might be a little more amenable to your suggestions.
- Refocus your negotiations. If they don’t give you a discount because their competitors are offering better rates, don’t worry. There are still other ways to get fantastic deals — which we’ll go into in another section.
This isn’t the only way to get lower car insurance rates, though. By asking certain questions, you’ll be able to unlock deals you didn’t even know existed. That’s some helpful advice and certainly helps you know how to speak with a car insurance representative.
What is the best cheap auto insurance?
In addition to the price, look at auto insurance in terms of coverage offered and customer satisfaction with the company. Compare multiple quotes to lower your bill by up to 20 percent.
- If you’re finding it difficult to stay dedicated, it’s important to realize you could be saving hundreds or even thousands of dollars each year just by comparing and doing a little research.
- Each state has a minimum amount of coverage allowed under its auto insurance laws.
- If you have a history of getting into accidents or getting tickets, it may also be in your best interests to buy comprehensive coverage.
- When comparing policies, make sure you compare the best companies with similar coverage.
While most people enjoy shopping, they often hate shopping for auto insurance. The task seems so daunting that many give in and buy auto insurance from a commercial.
Unfortunately, this leaves some people unprotected when they get in a car accident and leaves others paying far more than they need for their coverage.
Should I request longer payment terms?
Some insurance companies will charge you extra if your contract is paid monthly or quarterly. Look into a yearly term as one way to save some money on your rates.
The best cheap insurance may offer some significant discounts this way.
Even a few percentage points of saving here and there can add up.
Should I set up electronic or automatic payments?
Many auto insurance companies will give you a discount on your rates just for signing up to have your payments automatically removed from your checking account or billed to your credit card on your renewal date.
This makes your bill-paying day easier and saves you money at the same time.
Basically, your auto insurance company wants to make sure you will pay on time, so scheduling your rate payments to be drafted automatically is one way they can make sure you do so.
Each state has various laws on the books that tell an insurance company how long of a grace period they must allow you before they can choose to cancel your auto insurance policy.
These types of insurance laws only add to the insurance company’s desire to get you set up on the automatic rate payments option.
Should I check my coverage levels?
Do you know how much car insurance is required in your state? Especially if you’re a historically safe driver, you might be paying too much for car insurance rates simply by carrying around too much car insurance coverage.
Knowing how much car insurance is required where you live will help you know how much to buy. The table below offers the car insurance minimums for each of the 50 states.
|State||Bodily Injury Minimum (Per Person)||Bodily Injury Minimum (Total)||Property Damage Minimum (Total)|
|Florida||Not required||Not required||$10,000|
|District Of Columbia||$25,000||$50,000||$10,000|
When you’re looking at this table, there are a couple of things to keep in mind.
In New Hampshire, coverage is optional, but these are the minimum coverage levels if you choose to purchase car insurance.
In Virginia, insurance is also optional, and you must meet these coverage levels if you choose to purchase car insurance. If you choose not to purchase car insurance at all, the Commonwealth of Virginia will require you to pay a $500 annual uninsured motorist fee.
This isn’t always the best way to lower your auto insurance rates, but it’s an option. You can lower things like liability, collision, or medical coverage.
Another car insurance trick, of course, is to raise your deductible.
The key here is to make sure you meet the requirements set forth by your bank if you have an auto loan on the vehicle.
Should I shop for auto insurance online?
Evaluate your budget and try to find out exactly how much coverage you need. When it comes to buying auto insurance, the prize often goes to those who take the time to compare car insurance quotes online with our ZIP code search.
Once you receive auto insurance quotes from national and local companies, select three to five offers that best suit your needs.
Should I drive defensively?
This tip should come without any surprise. Aggressive driving has a huge correlation to higher auto insurance rates. You know the aggressive driver as the person who is cutting everyone off, tailgating, going 90 in a 25, and various other maneuvers that cause everyone around them a headache.
And it’s important to remember: Aggressive driving is not only a large reason for accidents on the road but also a reason everyone has such high rates.
Instead of causing yourself unnecessary stress, drive a bit less aggressively, arrive alive, and help everyone keep their auto insurance rates lower.
Who are the biggest auto insurance companies, and what are their average annual rates?
The 10 biggest car insurance companies in the United States and their nationwide annual rates are:
- Allstate – $3,545
- American Family – $2,041
- Farmers – $4,280
- GEICO – $2,158
- Liberty Mutual – $3,228
- Nationwide – $2,293
- Progressive – $2,393
- State Farm – $1,737
- Travelers – $3,017
- USAA – $1,307
USAA is certainly an attractive car insurance provider based solely on its low average rate. But it’s also important to know it is only available to military members, current or former, and their immediate families.
Personal Factors That Impact Auto Insurance Rates
The cost of auto insurance depends on many things. Some of these factors you can control, while others are under the control of the industry and individual companies.
Certain personal factors can qualify you for discounts and cheaper rates, though options vary between companies and do not all add up to the same savings. For example, many companies will offer discounts for certain individuals, such as multi-policy discounts, good student discounts, and safe driver discounts.
According to the Insurance Information Institute, “The amount you’ll pay for car insurance is impacted by a number of very different factors from the type of coverage you have to your driving record to where you park your car.”
There are several different factors that go into coming up with your auto insurance rates. The following nine areas determine your rate with most auto insurance companies.
- Where you live – States (and sometimes cities) have specific laws about auto insurance. This is the number-one factor in determining your rate.
- Age – Insurance companies assume that, with more driving experience and maturity, we become safer drivers.
- Gender – In some cases, rates for males are higher than for females because of the assumption that men are more adventurous and risky.
- Marital Status / Homeownership – Insurance companies consider being married and owning a home as signs of stability and responsibility, so they assume married homeowners carry less risk.
- Level of Education – Similar to marital status and homeownership, the assumption is that people with higher levels of education will be more responsible and safer.
- Vehicle Year, Make, and Model – What you choose to drive makes a huge difference in your rate based on safety ratings, cost of repairs, and, sometimes, the amount of damage your vehicle can do to another car if in an accident.
- Credit Score – Along with education, marital status, and homeownership, your credit score can reflect how responsible you are.
- Driving Record – If you have a history of speeding tickets, accidents, or DUIs, you are considered a more risky driver and will pay higher rates in most cases.
- Commute Distance – If you drive more, you statistically increase your chances of getting in an accident.
Some states are taking legal action and changing laws on how insurance companies can come up with your rate.
- Determining rates based on gender has been outlawed in California, Hawaii, Massachusetts, Montana, Pennsylvania, North Carolina, and parts of Michigan.
- Montana was one of the first states (1985) to outlaw determining rates based on gender and marital status.
- California, Massachusetts, and Hawaii have outlawed using consumer credit information to determine rates.
- And, just recently, after decades of failed attempts at auto insurance reform, a new law went into effect in July 2020 prohibiting insurance companies in Michigan from determining rates based on anything but driving record, age, the vehicle you choose to drive, and possibly location.
In 2019, Congress introduced a bill to prohibit the use of many of these factors, but it has not passed.
If you have concerns about how an auto insurance company is determining your rate, your best bet is to find your state insurance commissioner on the National Association of Insurance Commissioners (NAIC) list and contact them directly.
Some of these factors are pretty obvious. If you are a 17-year-old driver, inexperience will rate you much higher than a 30-year-old driver with a good record.
Your personal history will have an impact on your insurance rates, whether you realize it or not. If you are on top of these kinds of things, it’ll definitely help cut down on the amount of money you’ll be spending on your insurance coverage.
Let’s dive deeper into these factors.
How Your State and ZIP Code Affect Auto Insurance Rates
The cheapest car insurance rates by state will vary not only state by state but also by where you live within that state.
For instance, across-the-board car insurance rates are more expensive in Michigan and Louisiana than almost anywhere else, urban or rural.
Again, the Insurance Information Institute explains that “due to higher rates of vandalism, theft, and accidents, urban drivers pay a higher auto insurance price than those in small towns or rural areas.
Where you park your car (on the street or in a secure garage) and anti-theft features may impact the bottom line as well.” Where you live makes a huge difference in your rate from auto insurance companies.
Liability Auto Insurance Rates
|Average Annual Full Coverage Auto Insurance Rates|
|District of Columbia||$628.82||$1,330.73|
Plus, each state has its own minimum required liability limits. Some states have higher minimum required limits; therefore, higher limits can mean higher rates.
How Age, Gender, and Marital Status Affect Auto Insurance Rates
In most places, gender discrimination is still legal in determining car insurance rates. However, we’re happy to report this is changing. Six states currently have laws banning gender discrimination in car insurance rate calculations.
These states include California, Hawaii, Massachusetts, Montana, Pennsylvania, and North Carolina. Our hope is that more states follow suit with legislation.
One factor that can not be ignored is age. You’re probably not surprised to learn teen drivers pay more than any other age group in car insurance rates.
As we age, our car insurance rates generally decrease. That’s good news: When all else fails, getting more time behind the wheel is the easiest way to drop insurance rates.
Young drivers are put into higher-risk categories, whereas older people are considered safer drivers due to more time behind the wheel.
Take a look at rates for age below. We included average rates for gender and marital status if you live in a state that rates on those factors as well.
|Insurance Company||Average Annual Auto Insurance Rates for a Single 25-Year-Old Female||Average Annual Auto Insurance Rates for a Single 25-Year-Old Male||Average Annual Auto Insurance Rates for a Married 35-Year-Old Female||Average Annual Auto Insurance Rates for a Married 35-Year-Old Male||Average Annual Auto Insurance Rates for a Married 60-Year-Old Female||Average Annual Auto Insurance Rates for a Married 60-Year-Old Male||Average Annual Auto Insurance Rates for a Female||Average Annual Auto Insurance Rates for a Male|
You can see, as you get more driving experience, your rates will go down.
This one may surprise you: Single people generally pay more in car insurance rates than married people.
CNBC reports “that being married could help you save money on car insurance in most states. As it happens, the difference between married and single rates is fairly large,” so finding cheap car insurance for couples may be as easy as getting a quote.
Do auto insurance companies consider my vehicle’s make and model?
Car insurance rates vary not only by who you are and what kind of driver you’ve proven to be but also by what kind of vehicle you drive.
The Insurance Information Institute explains that “the cost of your car is a major factor in the cost to insure it. Other variables include the likelihood of theft, the cost of repairs, engine size, and the overall safety record of the car. Automobiles with high-quality safety equipment might qualify for rate discounts.”
Driving a 2003 Honda Civic will probably cost you less than driving a 2019 Audi A3. Below, we have rates from GEICO for three different types of vehicles.
|Vehicle Make and Model||Geico Average Annual Auto Insurance Rates|
|2015 Toyota RAV4: XLE||$3,090.89|
|2015 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6||$3,092.11|
|2015 Honda Civic Sedan: LX with 2.0L 4cyl and CVT||$3,092.58|
|2018 Toyota RAV4: XLE||$3,337.18|
|2018 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6||$3,338.40|
|2018 Honda Civic Sedan: LX with 2.0L 4cyl and CVT||$3,338.87|
As your car ages, your rates will go down. Why? Your car’s worth will go down, making it less to repair or replace in the event of a claim.
What Are The Auto Insurance Rates of the Most Popular Vehicles?
A vehicle’s make and model year can determine your auto insurance rates. Older vehicles have the best chances for cheaper car insurance rates. However, the newest vehicles have higher rates. Under the right conditions, you can get auto insurance for under $120 per month.
Check out the average monthly rates of the top 10 most popular cars in the United States.
|Vehicle Make and Model||Average Monthly Liability Auto Insurance Rates||Average Monthly Collision Auto Insurance Rates||Average Monthly Comprehensive Auto Insurance Rates||Average Monthly Full Coverage Auto Insurance Rates|
|2020 Subaru Outback||$31||$42||$29||$115|
|2020 Jeep Wrangler||$35||$31||$23||$105|
|2020 Honda CR-V||$26||$34||$23||$95|
|2020 Subaru Forester||$26||$44||$30||$112|
|2020 Ford Escape||$26||$37||$23||$96|
|2020 Ford F-150||$31||$39||$27||$110|
|2020 Chevrolet Equinox||$31||$44||$26||$114|
|2020 Jeep Cherokee||$31||$47||$27||$118|
|2020 Toyota Tacoma||$31||$42||$26||$112|
|2020 Toyota RAV4||$31||$42||$25||$110|
The Ford Escape and the Honda CR-V are the cheapest vehicles to insure. The most expensive are the 2020 Jeep Grand Cherokee and the 2020 Subaru Outback.
Does MSRP affect auto insurance rates?
The manufacturer’s suggested retail price (MSRP) is the price of a vehicle a manufacturer recommends to a dealer or private seller if the vehicle is new. But does it ultimately affect car insurance rates?
Once the vehicle leaves the dealer’s lot, it loses value and is subject to the fair market value.
MSRP doesn’t affect your car insurance rates directly. However, the MSRP and fair market value can give auto insurance companies an idea about how much the vehicle is worth if you’re ever in a total loss accident.
We collected some data that shows full coverage auto insurance as a percent of MSRP. Let’s examine those percentages.
|Rank||Vehicle Make and Model||Average Annual Auto Insurance Rates||MSRP||Insurance as a % of MSRP|
|1||2020 Subaru Outback||$1,380||$26,645||5.18%|
|2||2020 Jeep Wrangler||$1,260||$28,295||4.45%|
|3||2020 Honda CR-V||$1,140||$25,050||4.55%|
|4||2020 Subaru Forester||$1,344||$24,495||5.49%|
|5||2020 Ford Escape||$1,152||$24,885||4.63%|
|6||2020 Ford F-150||$1,320||$28,745||4.59%|
|7||2020 Chevrolet Equinox||$1,368||$23,800||5.75%|
|8||2020 Jeep Cherokee||$1,416||$26,085||5.43%|
|9||2020 Toyota Tacoma||$1,344||$25,050||5.37%|
|10||2020 Toyota RAV4||$1,320||$25,950||5.09%|
What does this mean? The data compares full coverage car insurance to the value of popular vehicles.
Also, it gives you a better understanding of how much you spend on car insurance per year. The worth of some of these vehicles rivals the yearly incomes of some motorists, so you can really see how auto insurance affects your budget.
Do auto insurance companies consider my credit score?
Well, auto insurance companies use a credit score, which works kind of like a financial track record for the provider. The better your credit history, the more reliable you are seen as a customer.
Therefore, they don’t have to worry about you paying for your coverage.
Now, if you were to have a poor credit history, the reverse would apply. You would be seen as more of a risky client to take on, and therefore your insurance rates will be higher to compensate.
If you were to improve your credit history, your insurance rates would likely start to lower with it.
Your credit score follows you everywhere, from bigger purchases, like a home or car, to securing interest rates and even purchasing auto insurance. According to Experian, the average credit score in the U.S. is 703.
|Insurance Company||Average Annual Rates for a Good Credit Score||Average Annual Rates for a Fair Credit Score||Average Annual Rates for a Poor Credit Score|
Progressive and Nationwide will charge over $1,000 more for poor credit. Liberty Mutual has an even larger gap, charging over $4,000 more for poor credit.
It is important to keep track of your credit score and maintain good credit, as it could save you thousands of dollars.
In most states, it’s legal for your auto insurance company to base your rates, in part, on your credit score.
In most states, it’s legal for your auto insurance company to base your rates, in part, on your credit score.
In some cases, raising your credit score will help to lower your rates.
Your credit score is used by some car insurance companies in an effort to determine how likely you will be to file a claim and how reliably you will be to pay your car insurance rates.
Make sure you pay your bills on time and get rid of debt before purchasing car insurance. Having a bad credit history often results in higher auto insurance rates.
An outstanding credit rating will help you get a good deal and find a policy that fits your budget. Car insurance quotes based on a good credit rating can be up to 30 percent lower than those based on lower credit scores.
Like gender discrimination, however, this might be changing. CBS News reports that California, Hawaii, and Massachusetts have banned insurance companies from using credit histories in determining insurance rates.
In still other states, insurance companies use something called an “insurance score” that, while not technically the same as a credit score, will still have some definite things in common with a credit score.
The more things you can do to improve your credit, the better your chance of finding great car insurance rates.
Will my driving record affect my auto insurance rates?
One of the most obvious rating factors is your driving record. Seeing those blue lights in your mirror can cause panic and major fear of how much your auto insurance rates will be impacted.
Auto insurance companies check your driving record as well. The more violations or accidents you have on your driving record, the more of a risk you are seen to the provider.
Driving records are like credit scores: The worse the driving record, the higher your car insurance rates will be. Maintaining a clean driving record is the best way to bring those auto insurance rates down.
Specifically, what you have on your driving record will also play into those auto insurance rate calculations.
A minor speeding ticket will weigh less than a drunk driving arrest will, for example. It is just a good idea to avoid any issues and drive safely and drive smartly.
But it’s also important to know that having a bad driving record won’t follow you around all your life. Many states will start dropping accidents and speeding tickets off your driving record in a matter of a few years.
Check out this table to see just how much your driving record will affect your car insurance rates.
|Companies||Average Annual Rates With a Clean Driving Record||Average Annual Rates With 1 Accident||Average Annual Rates With 1 DUI||Average Annual Rates With 1 Speeding Violation|
Driving under the influence convictions will raise your auto insurance rates the highest compared to speeding tickets or accident claims. A DUI charge with Nationwide can cost you an extra $1,500 a year.
Insurance providers are like players in a strategy game; they want to put their money on someone they feel is going to yield the best results for them.
The lower your chances of getting into an accident, the less likely you have to pay for that accident. If you have enough driving violations or accidents, you could even be labeled as a high-risk driver. This will further complicate your ability to get insurance coverage voluntarily.
This means that, depending on what state you live in, you may have to apply for your state’s high-risk driver program.
For example, the state of California has a program for high-risk drivers called the California Automobile Assigned Risk Plan (CAARP).
This will assign you to an insurance provider who will be required to provide you with insurance coverage. The catch to this, however, is that you will have to pay whatever rate they deem appropriate.
No matter what rate they assign to you for your insurance coverage, you will be required to pay it to be able to drive legally. If you can avoid having to apply for programs such as this, the better chances you won’t have to pay sky-high insurance rates.
Do auto insurance companies consider my commute?
Do you commute long hours to work? If the answer is yes, you will want to take a look at the next table.
|Insurance Company||Average Annual Rates for a 10-Mile Commute|
(6,000 Annual Mileage)
|Average Annual Rates for a 25-Mile Commute
(12,000 Annual Mileage)
|American Family Insurance||$3,401.30||$3,484.88|
This isn’t a factor a lot of people take into consideration when getting car insurance, but depending on the provider, you might have to pay extra for a longer commute.
For instance, providers in the state of Connecticut have the following rates:
|Insurance Company||Connecticut Average Annual Rates For a 10-Mile Commute|
(6,000 Annual Mileage)
|Connecticut Average Annual Rates For a 25-Mile Commute
(12,000 Annual Mileage)
As you can see, not all providers charge for a longer commute. But some still do. Providers such as USAA, GEICO, and State Farm charge you more for a longer commute.
If you tend to have a longer commute, it would be wise to double-check which providers in your state will charge you more.
What does not go into calculating auto insurance rates?
Conversely, it’s also important to know what factors will not go into calculating your car insurance rates. Many of these factors are guaranteed by federal or state consumer laws.
For instance, car insurance providers are not allowed to discriminate in determining your car insurance rates based on:
As we’ve already discussed, California, Hawaii, Massachusetts, Montana, North Carolina, Pennsylvania, and some parts of Michigan ban gender discrimination in determining car insurance rates.
California, Hawaii, and Massachusetts have banned insurance companies from using credit histories in determining what you will pay for car insurance.
Montana has banned the use of marital status in calculating car insurance rates.
Why Auto Insurance Rates Aren’t Everything
Finding cheap automobile insurance isn’t just about finding the lowest rates. It’s also about making sure you have the right protection if you get in an auto accident since this can be a huge financial blow.
Before you compare prices, you need to determine how much coverage is needed. Each state has a minimum amount of coverage allowed under its auto insurance laws.
You’ll need to start by determining what your state’s minimum requirements are and ensuring you at least meet that limit.
The next step is to determine how much additional coverage you want if you need it. If you own valuable assets that could be confiscated by a court of law if you were to be held responsible for an accident, you may want to purchase additional liability auto insurance coverage.
Many experts recommend limiting yourself to $100,000 of liability coverage for bodily injury and $50,000 per person. They also recommend limiting yourself to $20,000 of property liability coverage.
At the same time, if you have a lot of assets to protect, you may want to purchase more.
Is the cheapest auto insurance coverage the best?
Cheaper is not always better. When you want quality coverage, you may have to pay a little more to ensure you’re protected.
In addition to providing you with fast and easy access to quotes, the online search tool also provides you with information that goes beyond the numbers.
Look for information on how easy it is to file an auto insurance claim with a company if they have flexible payment options and what their customer service ratings are.
If you like the quote from a company you’re not familiar with, you might want to check the financial stability of that company with an agency like A.M. Best or J.D. Power.
As you narrow down the field, talk with friends and family members to see what companies they use. A personal recommendation from a trusted friend may help you choose the right company.
Remember the price you pay every month isn’t really the bottom line. Your goal is to find a company you can trust at a price you can afford.
Should I get collision and theft coverage?
If you have a history of getting into accidents or getting tickets, it may also be in your best interest to buy comprehensive coverage.
Since you are more likely to get into an accident, you are more likely to face the financial consequences of repairing your car or buying a new one.
It’s also important to realize you can’t purchase more comprehensive coverage than liability coverage.
At the same time, buying comprehensive coverage is just an option, not a necessity. If your car isn’t worth much money, or if losing it wouldn’t significantly impact your life, you might consider only purchasing liability insurance.
Another possibility to consider is only buying coverage for vandalism or theft if you don’t think an accident is that likely.
Should I check the auto insurance policy closely?
In addition to shopping around for coverage limits and rates, you should also pay close attention to the terms of the policy.
Insurance companies will closely review claims you make before sending you a check, and the compensation might not always be as high as you thought it would be based on your coverage. Be sure to review these terms closely and ask questions if you don’t understand.
How Can I Find Cheap Auto Insurance by Comparing Quotes Online?
The easiest way to find cheap car insurance is by browsing online. Shopping online is a low-pressure way for consumers to research different companies, compile information, and thoroughly evaluate their options.
III recommends getting at least three quotes when you’re shopping for insurance, and we suggest around five quotes to get you started.
We know this can sound overwhelming, but fortunately, as long as a person has internet access, getting quotes has never been easier. Today, it takes about five to 10 minutes to apply for auto insurance quotes online.
Requesting an online quote is almost always easier than calling agents or visiting them in person. Most consumers simply do not have the time to visit three to five different auto insurance companies to get quotes.
Financially savvy consumers know the most effective way to comparison shop is to take advantage of online comparison tools.
How can I get cheaper car insurance? By shopping around for car insurance quotes.
Customers who are looking for the lowest rate should always use online insurance quote comparison tools that can retrieve insurance quotes from multiple companies using just one quote form.
These tools help customers gather as much information on as many policies as possible. And they don’t require any extra effort or navigating between a dozen different websites.
For the best deal on auto insurance even from cheap auto insurance companies always compare before making a decision.
Getting cheap online car insurance quotes is free and easy. Use third-party tools and review sites to find the best deal. Comparison shopping can reduce your rate by up to 20 percent.
- Using an online comparison site can help you find the right insurance coverage at a good price.
- Every state has different insurance requirements; make sure you know what you are legally required to buy.
- Find out the information you will need for an auto insurance quote before contacting a provider.
Car insurance can put a serious crimp in your budget, but it doesn’t have to. There are several ways to save on this important protection without reducing your coverage or raising your deductible.
Online comparison sites allow you to easily compare information and choose the right insurance company for your needs.
What is an auto insurance rate?
So let’s take a step back and ask: What is an insurance rate?
According to the financial experts at Investopedia, “an insurance rate is the amount of money an individual or business pays for an insurance policy. Insurance rates are paid for policies that cover healthcare, auto, home, life, and others.”
Thus, an auto insurance rate is the amount you pay for your auto insurance coverage. These rates can be paid upfront for the entire length of the policy or divided and paid over a period of months, usually six.
Where should I look for cheap auto insurance?
The best place to look for cheap auto insurance is to start comparing auto insurance online. Our comparison tool makes it easy for you to compare plans.
The process of filling out the form to get started rarely takes longer than fifteen minutes. This is well worth saving hundreds of dollars a year.
When you use our ZIP code search, you might not necessarily get all your results instantly. This is because some insurance providers don’t sell directly to customers they sell through agents.
This means to compare all the available insurers, you will need to wait to receive the most accurate quotes available.
In some states, it might be more difficult to receive quotes from these sites as well. This is because local laws can make it difficult.
While the process can take some time, it is almost always preferable to trying to do the work over the phone. This would require you to contact all the insurers individually, give them your information, and wait for a quote.
Most people attempting this process will eventually give in and sign up for one of the auto insurance policies before they finish shopping around.
How do I compare auto insurance rates?
It’s important to compare apples to apples when shopping around. One company may give you an attractive quote, but it’s not cost-effective if you’re lowering your coverage levels.
Avoid this problem by ensuring that you’re comparing the same products across the board.
Before you go online to review information, check your current statement to see what type of coverage you have, what the protection levels are, and if you have any additional perks.
Make a list of information, including the following:
- Liability is required by law in most states and pays for damage to other people’s property in the event that you cause an accident, and it helps cover you against lawsuits.
- Collision protects your car in the event that it becomes damaged, and it’s usually required on cars that are financed or leased.
- Comprehensive covers almost everything that’s not taken care of by collision, including things like vandalism, theft, and hitting a deer.
- Medical Payment takes care of the medical expenses for any of your passengers who are injured regardless of who causes an accident.
- Deductible amounts that are higher result in lower monthly rates, so you must use the same protection amount when comparing plans.
With accurate information about your current choices, it will be easier to tell if another company is offering you a better rate. Remember that the protection levels are not the same when you start lowering coverage amounts or raising the deductible.
When comparing policies, make sure you compare those with similar coverages. It’s important to keep track of the payment policy so you know what happens if you miss a payment and when the payments are due.
Trustworthiness is also very important when shopping for cheap auto insurance. Look up the complaint ratio by contacting the department of insurance in your state.
You should also look up the ratings with Standard & Poor’s and A.M. Best. Insurance companies that have a number of high complaints can end up being very expensive due to unexpected or surprise costs and fees.
With a few mouse clicks, anyone can compare dozens of car insurance quotes from leading companies. The best part is that you can get as many quotes as you want without paying a dime.
Evaluate your budget, compare shop rates from at least five different car insurance companies, and then complete a short application form. Be sure to provide honest answers to get cheap car insurance quotes online for free that fit your budget.
Where can I get cheap auto insurance quotes online?
Reduce your auto insurance bill by: (1) knowing what coverage you need, (2) applying for hidden discounts, and (3) comparing quotes from multiple companies.
- Several factors can negatively affect your car insurance rates.
- Sufficient coverage is a higher priority than the price.
- There are many important supplemental coverage options you may want to consider.
- Ultimately, auto insurance discounts and comparison shopping can result in cheaper auto insurance.
Buying auto insurance is easy, but finding the cheapest auto insurance rates can be more of a challenge. Auto insurance rates are based on:
- Value of the vehicle
- Cost to repair
- Frequency of claims
- Risk of theft
As we already noted, there are a number of personal factors that can affect your rates. Additionally, rates may also differ from one insurer to another. Finding affordable coverage does not need to be stressful.
What are the cheapest auto insurance companies?
If we’re honest, car insurance is probably not something we like to think about, let alone pay a lot for. That’s why we created this guide to help you be armed with research so you can find the cheapest car insurance policy for you and your family.
As you’re shopping for insurance, there are a few basics to keep in mind:
- Your rates are what you pay to purchase your car insurance policy.
- The type of policy you purchase affects your rates.
- Insurance providers charge different rates because they use different formulas for calculating risk.
- An insurance comparison tool can help you find a policy you can afford.
If you want to find affordable car insurance and to find out more about what you’re actually buying, read on.
Which states have the cheapest average auto insurance rates?
Where you live certainly has an impact on how much you’ll pay for car insurance sometimes more than anything else. According to U.S. News & World Report, the 10 states with the cheapest car insurance rates and their average annual rates are:
- Maine – $861.37
- New Hampshire – $896.57
- Ohio – $941.36
- Virginia – $945.68
- Idaho – $952.10
- North Carolina – $997.72
- Indiana – $1,000.57
- Iowa – $1,027.23
- Washington – $1,052.45
- Alaska – $1,077.50
As you can see, there’s a lot of variety on this list. Cheap rates can be found in both heavily populated states, like Ohio and Virginia, and thinly populated states, like Alaska and Maine.
But what about the opposite of states with cheap car insurance rates?
Which states have the most expensive average auto insurance rates?
According to Forbes, the 10 states with the most expensive car insurance rates and their average annual rates are:
- Louisiana – $2,536
- Oklahoma – $2,047
- Michigan – $2,013
- West Virginia – $2,002
- Washington, D.C. – $1,866
- Montana – $1,856
- Rhode Island – $1,830
- Wyoming – $1,732
- California – $1,709
- Georgia – $1,694
We don’t think folks should make a decision on where to live based solely on car insurance rates, but knowing what the average rates are where you live can certainly help you maintain a healthier financial lifestyle.
Auto Insurance Quotes Explained
Need cheap auto insurance quotes? The national average cost of auto insurance is around $79.58/month. Your state laws, driving history, and age affect your rates the most.
- Make sure you compare the exact same coverage when getting quotes from different providers.
- Each insurance company offers extras you can purchase in addition to your regular policy.
- Find out discounts and the reputation of each insurance provider to make sure they will be reliable.
When you’re struggling with finances, it’s wise to look at your monthly bills and see where you can save.
One easy way to lower your monthly expenses is by finding more affordable insurance. If you’re dreading the idea of calling companies and spending countless hours waiting for information, you’ll be relieved to know that an online comparison site will do the work for you.
Always get quotes from multiple insurance companies and compare: (1) annual rates, (2) coverage provided, and (3) discounts available.
- Each state has its own insurance coverage requirements, so make sure you know what your state requires before you start getting insurance quotes.
- Insurance coverage also depends on whether your state is an “at-fault” state or a “no-fault” state.
- Getting an insurance quote and choosing an auto insurance company with today’s technology is much easier than in previous years most of it is automated through the provider’s website.
- Comparing quotes is the key to saving cash when getting the right coverage for yourself; you have to weigh out the coverage you are getting at the price you are getting it for.
So, you’re in the market to get car insurance? What is the first step you’ll need to take? To get started, you’ll need to get a few car insurance quotes.
Getting car insurance quotes from multiple providers allows you to compare coverage between the different providers and helps give you a better idea of which will be more bang for your buck.
But how do you get started? We’ve put together this comprehensive guide on car insurance quotes to help give you all the information you’ll need.
We’ll discuss everything from what a car insurance quote is to the steps to obtain a car insurance quote and more. Keep reading to find out how to get car insurance quotes.
What is an auto insurance quote?
Let’s talk about what a car insurance quote is.
We’ll give you some brief explanations on some of the basics of car insurance, what you need in a car insurance quote, the information you’ll need to get a car insurance quote, and how much car insurance quotes cost.
What basic information is required to get an auto insurance quote?
In addition to knowing what level of coverage you require, you also need to have some basic information on hand to share with the insurance company.
This starts with your personal information, like address, age, and marital status. You’ll also need to have information about your driving record and the cars you own.
All these details are taken into account when you apply for coverage, and the companies will need this information to provide you with an accurate quote.
The insurance company will also want to know about your desired coverage, extra protection you may be interested in, and how the car will be used.
Expect to provide information regarding your commuting distance, miles driven annually, and who is authorized to drive your car.
After offering a quote, most companies will take the time to confirm your information. If you misrepresent your driving record, the initial offer may be rescinded.
Avoid frustration by answering the questionnaire as honestly and completely as possible.
Most of the information you will need to provide centers around your personal information, as well as documentation around your vehicle/driving history.
Basically, the more information provided to them, the more accurate your quote will be based on your needs. It seems like a ton of information, but it’s necessary to help get you exactly what you need and for the price you need.
How do I get an auto insurance quote?
We understand that shopping for car insurance is perhaps an intimidating experience. But now you’re armed with a wealth of information about how to get the best and cheapest insurance for you and your family’s vehicular needs.
So, how do you get an insurance quote? Well, you can begin today simply by entering your ZIP code below.
But you can also obtain comprehensive quotes by visiting a local insurance agent, going to a car insurance providers’ website, or calling a car insurance company directly.
How do I use an online comparison site?
Once the information is assembled, you’re ready to make good use of an online comparison site. You’ll only have to enter the information once, and the system will automatically send your request out to different companies.
You could spend the day making phone calls and talking with different agents, but you’ll save time and frustration with an online tool. All you have to do is enter the information and wait for the quotes to come in.
The systems are easy to use, and you can review the quotes at your leisure.
Can I ask questions about my quote?
The agents will review your information and generate a quote based on your personal needs. They may contact you by phone or email, so you should be prepared to record the information they give you.
This is your chance to ask questions about if they have any additional discounts and confirm your final price. Keep a notebook or start a spreadsheet on your computer to easily track and compare quotes.
Should I include extras and add-ons when requesting my auto insurance quote?
An extra that’s in high demand for one consumer may not matter to another. This is a very personal choice, and it’s wise to give them some thought before you start shopping around.
One example is a vanishing deductible. If you like to carry a low deductible, this offering may not appeal to you. However, this can be a great asset if you maintain higher deductibles.
Another option is a plan that would replace your totaled car with one that’s a model year newer. But if you’ve never totaled a car and have an excellent safety record, this may not appeal to you.
These perks can be used as the final deciding factor between two comparable companies, but you may not want to make the decision based solely on these offerings.
Will my auto insurance quote include discounts?
After you send in the single application, your information will be shipped out to several agents. These agents will assemble a package they hope will appeal to you and fit your budget.
They will then contact you by phone or email to give you the information and see if you’re ready to purchase a plan.
Keep a log so you can track the information and write down other pertinent details.
Once you’ve narrowed the field down to two or three policies, it’s time to look at the available discounts.
Most companies offer price breaks for safe drivers and consumers who have multiple policies with them.
You may also be able to save money if you’re a teacher or police officer, and there are other discounts offered by different companies.
Be sure to review the final prices after all applicable discounts before making your decision.
Should I consider customer service when shopping for auto insurance?
It’s important to work with a company that will provide you with great service. With online comparison sites, you’ll have the opportunity to interact with company agents before making a decision.
This allows you to check out their customer service and ensure they’re going to provide you with the high-quality service you deserve.
You can also look at reviews online to locate a company that has high ratings for customer service and claims assistance.
Is shopping online for auto insurance quotes convenient?
With an online comparison tool, you only have to share your information once. After the information is put into the system, different companies will be able to review it and provide you with their best quotes based on your needs and situation.
They can send you the information electronically or call you personally to discuss their available discounts, special offerings, and best plans. Rather than sitting on hold, you can focus on other things while you’re waiting for the quotes.
If you’re ready to start saving money, your car insurance is a great place to start. Use an online tool to save time as you ask for quotes and review information. Be sure to thoroughly compare quotes before deciding on one company.
Which is better: Purchasing auto insurance online vs. contacting an agent?
While most people appreciate the opportunity to get auto insurance quotes online, some are wary of actually purchasing a policy on the internet. Many worry they will do something wrong or they will not receive as much individualized attention.
Fortunately, these worries are usually unnecessary. Most auto insurance companies have made their online applications easy for drivers to complete. To request quotes, drivers will need certain information, including their:
- Personal information including name, birthday, and address
- Driver’s license number
- Social Security number
- Driving history information
- Average daily or weekly mileage
- Car information including the year, make, model, and VIN number
- License plate number
As long as a driver has this information available, it is almost impossible to fill out an application incorrectly. If you make a mistake, it is possible to review your online applications and make all necessary adjustments.
While getting an online quote is easy, there are also advantages of speaking with an insurance agent. One of the main advantages is that it gives drivers the chance to ask questions.
For example, if a driver is unsure of how much coverage they need or if they want to know what options to include in their policy, it might be a good idea to consult an agent.
However, the problem with working with an agent is drivers may end up with a much more expensive policy.
According to the Bureau of Labor Statistics, the most common way insurance agents are paid is on commission. While most agents want to help their clients, many also want their customers to purchase the most expensive policy possible.
To purchase the cheapest auto insurance policy, drivers need to prepare themselves by obtaining quotes prior to contacting a company.
Drivers who collect a few quotes before talking to an agent will be in a better position to walk away with an affordable policy. Still, many drivers will find that the lowest quotes they receive are those they get online.
Should I know my state’s auto insurance laws?
You must have coverage to protect other drivers and pay for their property in the event you cause an accident, but insurance requirements vary from one state to the next.
For example, in Florida, you only need to have $10,000 for bodily injury coverage on an individual other than yourself, but Alaska requires $50,000 for this type of protection.
Property damage limits in states like California can be as low as $5,000, but they’re as high as $25,000 in states like Georgia.
The goal here is not to carry the state minimum amount. While this is required to be in compliance with the law, it does nothing to protect your personal property and assets in an accident.
If you don’t have enough coverage to pay for the damage you’ve caused, the other driver can sue you personally for the difference.
You also need uninsured/underinsured driver protection to ensure you’re covered if someone else causes an accident.
Your insurance levels should be high enough to replace your car, and you should have enough coverage to shield your assets in the event you’re sued. Knowing what the state laws are can help you choose the right level of protection.
What coverage do I need in my auto insurance quote?
What you need in a car insurance quote is going to depend heavily on what state you live in. Most states in the nation require car insurance coverage in the form of minimum liability coverage.
Minimum liability auto insurance coverage is the minimum amount of liability coverage (that will cover the costs as the result of an accident for bodily injury and property damage) you can legally have.
Most states require this coverage, but not all have the same requirements for the minimum amount.
For example, the state of Arkansas requires a minimum liability coverage of 50/100/25, while the state of Florida only requires a minimum liability coverage of 10/20/10.
Let’s break that down real quick using Arkansas’s minimum liability coverage as an example:
- 50 = $50,000 of bodily injury coverage per person in an accident
- 100 = $100,000 of total bodily injury coverage per accident
- 25 = $25,000 of property damage coverage per accident
This becomes particularly important as well, depending on whether your state is a “no-fault” state or an “at-fault” state.
A “no-fault” state is where, regardless of who caused the accident, you will need to rely on your own insurance coverage to cover any injuries/damage you incurred from an accident.
An “at-fault” state is where you will rely on the driver who caused the accident’s insurance coverage to cover any injuries or damages you incurred, and vice versa if you are the one who caused the accident.
It is important to know what your state requires so you can get the proper insurance coverage for your insurance quote.
Make sure to check out some of our state article guides to find out what kind of minimum liability coverage will be required for your state.
Do auto insurance quotes cost money?
The short answer to this? No. Car insurance quotes do not cost you anything. It’s after you sign up with a provider that you will be required to pay, but the quote itself is completely free.
Should you ever be asked to provide funds to obtain a car insurance quote, that will be your red flag to avoid that particular provider.
What Are The Steps to Getting an Auto Insurance Quote?
Alright, so you have all your ducks in a row, and you’re ready to start actually getting car insurance quotes.
Step One – Gather All Necessary Information
As we mentioned in a previous section, there’s some important information you’ll need to have on you to get started.
Step Two – Request a Quote
The next step will be to go onto the various car insurance providers’ websites if you want to go one by one and get quotes from each company or you can enter your ZIP code on this page and compare quotes from multiple companies.
Each website will be unique to the particular provider you want to get your insurance quote from, but each will lead you through the process of getting a quote from them.
You likely won’t immediately get a quote from the website but will receive your quote in an email. It will contain a summary of all of the information you submitted, as well as the quote they estimate based on your information.
Step Three – Compare Your Auto Insurance Quotes
After you’ve gathered all the quotes, it’s time to start comparing them. Why compare?
If you don’t compare, you could end up paying more for your car insurance than you would have with another company. Or worse, you could end up paying more for a plan that will provide you with less coverage.
So if you want to skip the hard stuff and use our free online tool to help you compare, we do the hard work for you. If you’d rather do it yourself, you’re going to want to know what to look out for.
So what is it that you should scrutinize and compare? Here are a few of the most important things you’ll want to compare:
- Company Rates
The most obvious thing for you to compare will be the company rates.
Not all providers will have you pay the same rate, so comparing each quote will give you an idea as to which providers will charge you more for your coverage and which will charge you less.
In addition to the overall company rates, you’ll want to compare the levels of coverage the provider is offering you.
Are they offering you the minimum liability coverage required for your state? Are they offering you more? Less? What is the cost of full coverage versus the minimum liability coverage?
If you want to check to see what the average liability and full coverage costs are for your state, check out the table of annual car insurance rates by state below:
Liability Auto Insurance Rates
|Average Annual Full Coverage Auto Insurance Rates|
|District of Columbia||$628.82||$1,330.73|
If you want a more in-depth review of some of the top providers in the nation, check out the table we have here:
|Insurance Company||Total Number of Discounts||Highest Percent Discount||Best for||Our Company Review|
|Allstate||29||45%||Usage-based and |
|American Family||27||40%||Best value in |
|American Family Review|
|Farmers||34||5%||Married and |
|GEICO||31||40%||Teen drivers and |
those with a speeding
ticket or accident
|Liberty Mutual||38||35%||Vehicle recovery |
|Liberty Mutual Review|
|Nationwide||35||40%||Teen drivers and |
best value in
|Progressive||36||31%||Poor credit and DUI||Progressive Review|
|State Farm||19||50%||Poor driving record |
|State Farm Review|
|Travelers||28||30%||Middle-aged drivers |
and poor credit
(especially if single)
Another sneaky thing that could vary from provider to provider is what car insurance discounts you qualify for. You could qualify for a whole list of discounts with one provider, but none with another provider.
So if you see a discount listed on one quote but not on another, you’ll want to make sure to make a note of that.
What auto insurance basics do you need to know?
There are so many different terms around car insurance that it can seem pretty overwhelming.
We did the work for you by creating the table below with all of the basic car insurance terms that you’ll want to familiarize yourself with.
|Common Auto Insurance Term||Definition|
|Bodily Injury Liability||The type of liability that provides coverage for any bodily injuries (or even death) that happens as a result of an accident.|
|Collision Coverage||This is a type of car insurance that helps to pay for any repairs to your car if it is ever physically damaged in an accident. Very useful coverage if you ever are the victim of a hit-and-run accident.|
|Comprehensive Coverage||This type of coverage provides protection for specific kinds of damage to your own vehicle, specifically for non-collision damage. Very useful coverage if you have a new vehicle.|
|Conditions||This is the section of your insurance policy that states any requirements (for both you and your provider) must follow for matters such as loss reporting and settlement, property valuation, other insurance, and cancellation and non-renewal.|
|Declarations Page||Essentially the information page for your insurance policy. It is the front page(s) of your policy that details information about your policy such as the names of those insured under the policy, your address, how long the policy period is for, your policy limits, and other key important information.|
|Exclusions||This is a provision (or addendum) on your insurance policy that basically states things that are not covered by your policy (such as hazards, perils, circumstances, or property). Think of this part as the fine print for your agreement with your insurance provider.|
|Gap Insurance||This type of coverage is designed to help cover the difference between the actual value of your vehicle and the amount you owe on your vehicle. Another valuable coverage type for new vehicles.|
|Insurance Deductible||This is an amount your insurance provider will deduct from the loss before paying up to its policy limits. Basically it's the amount you need to pay for any costs from an accident before provider will pay for their part.|
|Insurance Premium||This is the amount of money an insurer charges you in order to provide the coverage described in the policy.|
|Insuring Agreement||This is the portion of your insurance policy in where your insurance providers makes a promise to make any payment to (or for) you should you need coverage. It's the legally binding part of your policy on your insurer's part.|
|Liability Coverage||The catch-all coverage that helps to give you coverage if you are in an accident. It breaks down into two categories: bodily injury liability and property damage liability.|
|Medical Payments||Also known as MedPay, this is a type of additional liability coverage that covers any of your own medical costs that happens as a result of an car accident.|
|No-Fault Insurance||This type of coverage typically only applies for states that fall under the no-fault system. It is a coverage to help prevent any delays in medical payments for injuries you might have as the result of an accident.|
|Personal Injury Protection||Also known as PIP, this is a type of additional liability coverage that covers the costs of any medical bills/funeral expenses that incur as the result of an automobile accident. Unlike MedPay coverage however, this type of additional liability coverage is mandatory in some states.|
|Property Damage Liability||The type of liability that provides coverage for any property damage that happens as a result of an accident.|
|Roadside Assistance||This type of coverage helps give you some basic assistance out on the road that includes emergency towing if needed, assistance with your battery, changing a flat tire, and lockout assistance.|
|Uninsured/Underinsured Motorist Coverage||This is a type of additional liability coverage that gives you coverage should you be involved in an accident caused by another driver who has either less than the minimum required liability coverage, or who has no coverage at all.|
If you are ever confused by a term, you can always come back to review this chart. You can get an even more in-depth explanation of some of these terms in the video below:
As you can see, you have options when you’re shopping for auto insurance, and it pays to be familiar with the terms and types of coverage available to you.
Before you go shopping for cheap car insurance, you should be aware there are several factors that may affect your rates.
Insurance companies calculate auto insurance rates based on your age, gender, marital status, location, driving experience, and credit score. The number of miles driven each year, as well as the type of car you own, may influence your rates.
- Age – The youngest and oldest drivers are more likely to get involved in car accidents, which is why they usually pay more on auto insurance. After the age of 25, drivers usually see a decrease in their rates.
- Gender – Women are perceived as safer (or less reckless) drivers, so they get lower rates than male drivers.
- Marital Status – Insurance companies believe that a married person is more responsible. In addition, married couples usually buy insurance for more than one car, which helps them receive a discount.
- Location – People who live in rural areas spend less money on car insurance than those living in big cities or suburbs, so the cheapest car insurance locations are those typically less populated.
- Type of Car – Sports cars and luxury vehicles cost more to insure than traditional cars. Insurance providers look at the likelihood your vehicle will be involved in an accident or stolen and how much it will cost to replace or repair.
- Mileage – The more you drive, the more likely you are to get involved in a car accident. If you only drive occasionally, you will qualify for a low mileage discount and save money on auto insurance.
The rates you will pay on car insurance also depend on your occupation, years of driving experience, driving record, accident claims, and history of bankruptcy.
Although you have no control over some of these factors, there are a couple of things you can do to get the best rates on your car insurance organization’s policy.
What do I need to know about auto insurance?
There are a few things every car owner should know about auto insurance. Before you go shopping for coverage, make sure you know how car insurance works.
Do your homework and compare the main types of auto insurance. Even if you opt for a more expensive plan, you can still save money by increasing your deductible and applying for car insurance discounts.
Keep in mind you should never focus solely on price; purchase as much coverage as you need.
Most insurance companies provide optional types of coverage, such as:
- Uninsured/underinsured motorist coverage
- GAP coverage
- Rental reimbursement
- Roadside assistance
- Comprehensive coverage
These policies are slightly more expensive but offer lots of benefits in the event of a car accident.
What types of auto insurance coverage should I consider?
When shopping for car insurance with our ZIP code search, you will receive free online quotes for different types of coverage. Depending on the plan you choose, it will cover everything from theft, loss of income, or injury.
Certain types of insurance are required by law, while others are optional. Drivers usually opt for:
- Third-party liability insurance
- Collision insurance
- Comprehensive insurance
- GAP insurance
- Medical payments coverage
- Personal injury protection
- Rental car insurance
Out of all those choices, the following three types of supplemental auto insurance are the most highly recommended.
What Are The Different Auto Insurance Coverage Options?
The more car insurance you need or want, the more you’ll likely end up paying in car insurance rates.
According to the Insurance Information Institute (III), “The limits on your basic auto insurance, the amount of your deductible, and the types and amounts of policy options (such as collision) that are prudent for you to have all affect how much you’ll pay for coverage.”
There are three major types of car insurance coverage:
Let’s take a look at these three types of car insurance a bit more in-depth.
When shopping for cheap car coverage rates, it is important you do a little research to learn about the different types of coverage.
Each state has minimum coverage requirements, but you need to evaluate your options and buy a policy that serves your interests.
Here are the main types of auto insurance:
What is liability insurance or third-party liability?
In most states, the bare minimum of car insurance you are required to consistently carry is called liability insurance.
In the event of a car accident for which you are responsible, this type of insurance covers the other person’s medical bills and the cost of repairing the car or any other property damaged (meanwhile, your costs will be your responsibility).
According to the Insurance Information Institute, nearly every state requires car owners to carry the following auto liability coverage:
- Bodily Injury Liability – This covers costs associated with injuries and death that you or another driver causes while driving your car.
- Property Damage Liability – This coverage will reimburse others for damage that you or another driver operating your car causes to another vehicle or other property, such as a fence, building, or utility pole.
Bodily injury liability pays for damages caused to other people in the event of a car accident, while property damage coverage offers protection for damages caused to their property.
This type of insurance does not protect the policyholder if an accident occurs. The policy may offer limited coverage for passenger indemnity and legal liabilities.
However, the exact amounts of these coverage types vary from state to state.
Liability coverage of some form is required in nearly every state to legally drive, and if you’re looking for extra cheap car insurance, sticking to the state minimum requirement is an option.
However, it’s a good idea to opt for a large amount of coverage. If you select limits that are too low, you will be required to pay out of pocket for the amount above your limits.
It is recommended you purchase higher levels of coverage if you have a lot of assets to protect.
What is collision insurance?
The next step up in car insurance above liability, collision insurance will cover you and your vehicle regardless of if you are the at-fault party or not. Here’s the average monthly collision cost.
|States||Average Monthly Collision Auto Insurance Rates|
|District of Columbia||$39|
This type of auto insurance coverage pays for damage to your car as the result of a collision.
The policy covers repairs, towing, and other expenses less than the deductible you choose. Insurance companies will only pay the value of your car at the time of the loss.
The Insurance Information Institute explains that collision insurance reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object — e.g., a tree or guardrail — when you’re at fault.
While collision coverage will not reimburse you for mechanical failure or normal wear-and-tear on your car, it will cover damage from potholes or from rolling your car.
Most drivers choose to buy collision insurance because this type of coverage pays for the repair or replacement of their vehicles in the event of a car accident, regardless of who was at fault.
Collision insurance covers all damages to your vehicle above a certain amount. This policy is often required when buying a new car using a loan.
What is comprehensive auto insurance?
As its name suggests, comprehensive car insurance offers extensive coverage in the event of an accident. This policy insures you against damage to your car, but it also covers medical bills, accidental damage, theft, and fire.
Let’s see how much comprehensive auto insurance costs per month on average.
|States||Average Monthly Comprehensive Auto Insurance Rates|
|District of Columbia||$19|
Since most insurance providers insure the actual cash value of a car at the time of the accident, make sure you read the small print on your policy to find out what is included.
The name of comprehensive insurance is not misleading this is the most comprehensive insurance policy you can carry. Comprehensive insurance covers you for a variety of things beyond car accidents themselves.
According to the Insurance Information Institute, comprehensive insurance provides coverage against theft and damage caused by an incident other than a collision, such as fire, flood, vandalism, hail, falling rocks or trees, and other hazards even getting hit by an asteroid.
Understanding these three major types of insurance policies can help you determine how much car insurance you need, and thus, provide ways to save you and your family money.
Comprehensive and collision coverage is more expensive than other types of auto insurance. For this reason, they are not recommended to those who drive older vehicles.
What is uninsured/underinsured motorist coverage?
These two types of auto insurance pay for injuries to you and your passengers, as well as medical expenses and other damages caused by a driver who has little or no insurance.
In some states, the number of uninsured drivers can reach 25 percent. Therefore, you should do some research and decide whether you need to buy this type of coverage or if you can go without it.
The amount of coverage you will receive when buying this type of insurance depends on the limits you choose. Keep in mind that the limits required in some states usually provide insufficient coverage.
What is Personal Injury Protection?
If you buy Personal Injury Protection (PIP) coverage, the insurance company will pay for medical bills, funeral expenses, childcare expenses, lost wages, and other damages.
Consider buying both PIP and health insurance in order to be fully protected. PIP coverage is mandatory in some states, including Delaware, Florida, Kansas, and New York.
What is medical payment coverage?
This type of coverage, also referred to as MedPay, pays for medical expenses to you and your passengers resulting from a car accident, regardless of who is at fault.
If you already have health insurance, medical payments coverage may not be necessary. Make sure you know your state’s requirements before buying this policy.
What is Pay-As-You-Drive auto insurance?
Pay-As-You-Drive is one of the newest types of car insurance.
Also known as Usage-Based, Mileage-Based, Pay-As-You-Go, and Distance-Based auto insurance, this type of coverage gives you the possibility to pay your auto insurance rates based on the number of miles you drive during the policy term.
This type of coverage is suitable for lower-income households because it has more affordable rates than other policies.
Pay-As-You-Drive car insurance can help you reduce costs by driving less. In addition to the types of auto coverage presented above, there are many other options to choose from.
Drivers can also opt for Rental Car Reimbursement insurance, Emergency Roadside Service, Accidental Death Indemnity, and Gap insurance.
Cheap Auto Insurance Rates: What Is The Bottom Line?
You made it to the end of our comprehensive guide. We know getting car insurance quotes can be a scary process, so we hope this guide was able to help make the process a little easier.
As we have already discussed, car insurance is probably not something we like to think a lot about, let alone pay a lot for. When you’re looking at how to get cheap auto insurance, we’ve got a few things to keep in mind.
But buying car insurance for you and your family shouldn’t be done blindly, without the requisite knowledge you need to make a smart and safe consumer decision.
Remember, a car insurance rate is an amount you pay for your auto insurance coverage, and car insurance is required in most states.
We created this guide to help you know not only those minimum requirements but also a myriad of ways you can lower your car insurance rates in the first place.
What part of this guide was the most helpful? Is there something we could explain more clearly?
To find the cheapest auto insurance rates, then enter your ZIP to start comparing auto insurance quotes right now.
What If I Have More Questions About Cheap Auto Insurance Rates?
Do you still have questions about finding cheap auto insurance? Read through these frequently asked questions to learn more.
#1 – Who really has the cheapest auto insurance?
Statistically, GEICO and Progressive have the cheapest auto insurance options. However, just because this is a statistical fact doesn’t mean they have the lowest auto insurance for you.
Many people have found cheap auto insurance at places like State Farm, Farmers, or other smaller local car insurers.
Additionally, certain circumstances, such as claims paid by one insurance company, may affect your rates there but nowhere else. For example, if you have Progressive insurance and you had an accident, then your rates with only Progressive may increase.
On top of that, it is possible your rates will never be as low as they were before the accident because Progressive had to pay a large claim on your behalf.
That’s why it’s so hard, if not impossible, to determine the cheapest auto insurance for every type of driver.
Who is the cheapest car insurance company? Well, coverage for a Texas family with three teenage drivers is totally different from coverage for a family in Pennsylvania that doesn’t have any teenage drivers.
However, despite the different varieties in situations, you can find the right quote for your situation by comparing rates between insurers.
#2 – Why is auto insurance cheaper in some states than it is in others?
Many people are shocked when they move from one state to another to find their insurance rates skyrocket. The problem is, not only can insurance rates vary from one state to another, they can vary from one ZIP code to another. So, which states have the cheapest auto insurance?
Who has the cheapest car insurance in Texas may be quite different than who has the cheapest car insurance in California, which is different than who has the cheapest car insurance in Florida.
At the end of the day, asking who has the cheapest auto insurance rates is important not just in general, but specifically, the answer is important to you.
#3 – Why is my neighbor’s auto insurance so much cheaper than my insurance?
Once the insurance company determines the rates for the area you are living in, they start looking at you personally. Your rates depend on a number of personal factors, such as your driving history and credit score.
If you have a long history of traffic tickets and car accidents, for example, your rates will become more expensive than someone in the same neighborhood with an excellent driving record.
In addition, the insurance company looks at things like your credit rating, other authorized drivers, the type of vehicle you are driving, and more to determine how much you will pay.