Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 11, 2020

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It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Things to remember...

  • When shopping for auto insurance, it’s a good idea to compare at least three different companies
  • Your specific situation makes a difference on your monthly premium
  • Inquire about car insurance discounts such as bundling of policies

When shopping for auto insurance, comparison shopping is a must. Comparing products, available services, and prices will provide a clear picture of which option is best for your current needs.

It’s also important to consider additional fees and added costs that come along with each policy being considered to have a full understanding of the short-term and long-term investment you’ll make on an auto insurance policy.

Conduction a price comparison when shopping for auto insurance is a money saver for several reasons. Utilizing one or more of the following considerations can result in significant savings, and make the time and effort in doing the comparison well worth it.

One simple way to compare rates is by entering your ZIP code into our FREE auto insurance comparison tool!

You Can See All Your Available Auto Insurance Options

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Comparing price quotes from different auto insurance providers presents all the policy options and costs available.

It’s important to consider the following:

  • The kind of policy offered
  • What all is covered
  • Costs for deductibles and supplemental services

Being able to compare different policies and prices allows you to get the most for your money.

Additionally, you can find information on how much you will have to invest immediately and throughout the life of the policy.

Some insurers offer the option to make a larger down payment with smaller and/or fewer monthly payments.

Others offer the benefit of a small initial down payment with higher and more frequent monthly payments. Your current financial situation and any short and long term financial goals will help you determine which of the compared options will best suit your needs.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Competition Between Businesses Equal Auto Insurance Savings for Consumer

There are a myriad of available options for auto insurance. A large percentage of them offer auto insurance policies that are extremely similar (if not identical) in product offerings. The biggest tool an insurer has to secure a customer’s business is price.

Insurance companies will strive to offer highly competitive rates to attract and eventually secure a customer.

Insurers will try to use price as their competitive advantage over other auto insurers.

Promotions are one of the most utilized tools to reduce prices. New customer promotions are quite common; special deals enticing customers to switch without having to wait until the end of their current policy is widely increasing.

Auto insurers competing for your business may also offer discounts for insuring multiple vehicles on one policy, covering students, or discounts for automatic payment withdrawals. In the end, your biggest challenge will be choosing which of the great deals is the best one for you.

Your Current Situation May Determine the Best Auto Insurance Deal

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Depending on your current situation and specific needs, the auto insurance rates you compare may vary drastically.

A few examples of factors that affect insurance rates are:

  • Age of driver(s)
  • Marital Status
  • Number of vehicles needing coverage
  • Age of vehicle needing coverage
  • Past driving history
  • Employment status

One or a combination of the above-listed factors will determine the type of coverage required. Each factor may also qualify you for available promotions and discounts.

To attract families, insurers will offer discounts for students (under 18 and college students); discounts for spouses, and insuring multiple vehicles under the same policy.

Good driving history is the focus of many promotions, including reductions in deductibles and protection from rate hikes if an accident occurs.

Generally, drivers under 25 are charged higher rates. Once a person reaches 25, they often see significant reductions in rates.

Those employed in civil service jobs such as law enforcement and the military may also be eligible for available promotions and discounts.

Price Comparisons May Result In You Staying Put

It’s very important to include your current insurer when comparing auto insurance prices. Many believe that price comparisons are for the sole purpose of switching to a new insurer. This is the case sometimes, but not always.

Sometimes comparing prices will show that your current insurer is still the best one for you.

Your current insurer may have made changes to their available rates during your previous (or current) period.

As a result, you wouldn’t see these changes until the policy period ends. While you might find increases, you may also discover great discount offers.

New promotions ranging from renewal discounts to resident promotions can equal huge savings and surpass the competition as the best choice.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Changes to Your Credit Rating May Impact What You Pay

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Some auto insurance providers (notably national carriers) use a person’s credit rating as a factoring to determine how much will be paid (and the terms of payment, which may include full payment of policy upfront.

Credit rating factors that may affect how much you pay include:

  • Increase/decrease in credit score
  • Improvement in your credit rating
  • Damage to your credit rating

If you improve your credit rating, you may find yourself qualified for better rates. Several insurers may offer initial or renewal discounts; they may also offer more flexible payment options. If your credit needs improvement, it’s especially important to do a price comparison.

Some companies may offer lower rates than others despite your rating. Some insurers don’t factor in your credit rating at all.

Higher Prices Doesn’t Always Mean More

Comparing auto insurance companies should involve comparing price and coverage. Most policies and coverage levels are standard; however, there may be some facets of the policy that may differ and is reflected in the price.

Lower cost auto insurance policies may reflect changes in the policy offered. For example, Insurers 1 and 2 offer a comprehensive collision policy; Insurer 2 offers their policy at a $200 discount.

While the basics are the same for both insurers, Insurer 2 charges a higher deductible in the event of an accident.

Towing is free for up to 20 miles under Insurer 1, whereas Insurer 2 charges $.50 a mile.

A third insurer may offer the same exact coverage as Insurers 1, but is only $100 less than Insurer 1. Scenarios like this will be common and will give a person a lot to consider when researching auto insurance rates.

Because there are so many factors that affect policy rates, it’s important to take time to research and compare companies.

Doing so will result in you finding the best auto insurance policy at the best price. That’s certainly a win/win situation.

Enter your ZIP code below into our FREE auto insurance comparison tool to find the best policy at the best rate!

References:

  1. http://www.21st.com/auto-insurance-information/understanding-car-insurance-deductibles.htm
  2. https://www.allstate.com/tools-and-resources/car-insurance/factors-affect-your-auto-insurance.aspx
  3. https://www.progressive.com/auto/compare-car-insurance-rates/
  4. https://www.geico.com/information/military/
  5. https://www.esurance.com/info/car/how-to-compare-car-insurance-policies
  6. https://www.nationwide.com/car-insurance-credit-score.jsp
  7. http://www.nytimes.com/2010/12/26/automobiles/26RATES.html