How do I compare auto insurance quotes? (2024)

It can seem stressful when you need to find a new auto insurance policy. With so many choices, how do you know where to start?

The process doesn’t have to be painful. You have several easy options that can help you find the coverage you need at the price you want. From online car insurance comparison tools to a simple phone call, you don’t have to find quotes alone.

Before you make an insurance quotes comparison, there are a few pieces of information you should have ready. Read on to learn what you need then compare quotes with as many companies as possible to find the best rates.

Be sure to enter your ZIP code above for a FREE auto insurance quote!

What factors affect car insurance prices?

Before you begin comparing car insurance quotes, you should understand how companies determine your rates.

Car insurance companies use a complex formula made up of many factors. To make things more complicated, companies place an emphasis on some elements while practically disregarding others.

The difference in how a company weighs each factor is a crucial reason why you should compare quotes. Every company uses a different list of factors as well, but you can see some of the most commonly used ones below:

• Gender and age. Companies keep track of claims, and the numbers show that men, young drivers, and seniors are involved in more traffic incidents than other groups.
• Location. Companies also keep track of claims by ZIP code. You might see a higher rate by moving even one ZIP code over.
• Driving history. Drivers with clean records pay lower rates than those with at-fault accidents or traffic violations. You may also qualify for discounts if you have a clean record.
• Vehicle. Some cars are more likely to be involved in a claim than others. Additionally, sports cars, luxury vehicles, and other cars that are expensive to repair typically cost more for insurance.
• Credit score. Companies use your credit score to assess your riskiness in states where it’s legal to factor it in. Typically, the higher your credit score is, the lower your rates will be.
• Marital status. For reasons that aren’t entirely understood, married people are less likely to be involved in accidents.
• Homeownership. Homeowners will usually pay less for car insurance than renters and are eligible for a discount with some companies.

As you can see, many aspects go into the price of your insurance. However, one of the biggest influences on your rates is the level of coverage you need and the deductible you choose.

You can buy several types of car insurance, some of which you need to drive legally and others which are completely optional but add value to your policy.

Types of Car Insurance

The second thing you should understand before you start shopping for rates is that there are different insurance types. After all, you need to know what types of insurance will meet your needs before deciding what’s right for you.

To start, consider the primary insurance types:

• Liability. Liability coverage helps you if you’re responsible for property damage and injuries in an at-fault accident, and it is required by most states.
• Collision. While it’s not required by state law, collision helps pay for repairs to your car after an accident, no matter who is at fault.
• Comprehensive. For damage not caused by an accident, there’s comprehensive. Covered damage includes animal contact, weather, theft, fire, and vandalism.
• Uninsured/underinsured motorist. Although insurance is required in most states, not all drivers carry enough coverage. Underinsured/uninsured motorist protects you from drivers with inadequate insurance.
• Personal injury protection. Medical bills quickly get expensive after an accident, but personal injury protection will pay for the medical expenses of you and your passengers.

Aside from these types of insurance, you can also buy various kinds of add-ons, including roadside assistance, rental reimbursement, and custom parts coverage.

Although purchasing additional types of insurance will offer your vehicle better protection, it will also cost you more money. For that reason, you should choose your policies carefully.

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How do you compare car insurance companies?

When you need a new insurance policy, there are several things you should look for in a car insurance company. Of course, the price of the insurance will be a significant factor, but the cheapest coverage isn’t necessarily the best.

Consider professional ratings and available discounts before choosing an insurance company.

Professional Ratings for Car Insurance Companies

There are several professional companies that rate insurance companies, all of which offer helpful information.

A.M. Best rates companies on their financial strength. The higher the score A.M. Best assigns, the more financially secure a company is. When a company has solid financial strength, it should be able to pay any claims you make.

The Better Business Bureau (BBB) rates a company’s overall trustworthiness. They also provide a platform for customers to voice complaints and issues.

Finally, the National Association of Insurance Commissioners (NAIC) gives companies a score based on the ratio of their complaints against the company’s size. The national average is 1.0 — a higher score means more complaints.

You can check how some of the most major companies fare below.

Company	A.M. Best rating	BBB rating	NAIC rating
USAA	A++	A+	2.35
Geico	A++	A+	1.33
State Farm	A++	A+	1.44
Travelers	A++	A+	0.43
Farmers	A	A-	1.91
Allstate	A+	A+	2.73
Progressive	A+	A+	1.70
Nationwide	A+	A+	1.07

You might notice that many of the biggest companies have high ratings. You might pay more for their products, but you’ll receive excellent service in most cases.

Car Insurance Rates

Although it’s arguably the most important aspect in deciding which company to go with, you won’t know your rate until you get a quote. However, you can get an idea of where to start by looking at the average annual prices for each company.

Company	Minimum coverage	Full coverage
USAA	$396	$1,238
Geico	$370	$1,233
State Farm	$473	$1,381
Travelers	$455	$1,426
Farmers	$639	$1,745
Allstate	$648	$1,994
Progressive	$625	$1,739
Nationwide	$545	$1,332

Some companies are more affordable than others, while others have higher price tags. It’s important to look at cheaper companies when you’re on a tight budget, but make sure you buy enough coverage for your needs.

Car Insurance Discounts

One final consideration that you should look at before you decide on an auto insurance company is to look at the discounts they offer. After all, discounts can help you save money.

Some of the most common discounts are listed below:

• Good driver
• Bundling
• Good student
• Driver education
• Multi-vehicle
• Student away-from-home
• Auto-pay
• Homeowner
• Paperless billing
• Military member
• New car
• Anti-theft and safety features
• Low annual mileage

When you decide on a policy, an agent should comb your details to make sure you get every discount possible.

How do you compare car insurance quotes?

It might seem like comparing car insurance quotes is almost impossible to do successfully with all this information. However, there are tools at your disposal that can make the process easy.

Consider the following methods to compare car insurance quotes:

• Online forms. Many insurance companies offer a simple form you can fill out with your basic information to get a quote.
• Independent agent. If you don’t want to do the work yourself, you can enlist the help of an agent. The agent will use your information to get personalized quotes for you.
• Comparison tools. Several online comparison tools (like ours) allow you to enter your information into a simple form and get quotes from several companies at once.
• Phone. Insurance companies are always happy to provide you with a quote over the phone. A disadvantage to calling for a quote is that it can be time-consuming.

Whichever way you feel is the best for you, make sure you have your driver’s license number and your car’s information on hand, including mileage, ownership details, and current insurance.

Find the Best Rates Today

There are a lot of choices when it comes to car insurance, but it doesn’t have to be difficult. Getting insurance quotes doesn’t have to take more than a few minutes when you use the right tools.

If you’re ready to obtain an insurance quotes comparison, make sure you know what coverage you need and your budget. Then, compare rates with as many companies as possible to get the best rate for you.

Comparison tools like the FREE one above are perfect for finding and comparing multiple auto insurance quotes. Simply enter your ZIP code to get started today!

Free Auto Insurance Comparison

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

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References 

Free Auto Insurance Comparison

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

 Secured with SHA-256 Encryption