Auto Insurance Shopping: Tricks To Find The Best Deals

Shopping for auto insurance can be a taxing process, but there are some tricks to ensure you get the best deal. Firstly, it's important to gather the necessary documents, such as your driver's license, vehicle information, and previous policy information. You'll also need to decide on the level of coverage you require, including whether you need comprehensive, collision, or liability insurance.

When it comes to choosing a shopping method, you can opt for an insurer's agent, an independent agent, an insurer's website, or an online comparison platform. Each method has its pros and cons, so it's worth considering which is most important to you – for example, do you want to avoid pressure from agents or have the flexibility to compare multiple companies?

Once you've gathered quotes from at least three carriers, you can compare insurance providers and inquire about qualifying discounts. To get the best deal, consider raising your deductible, installing an anti-theft device, and keeping your credit score high. You should also think about bundling your insurance policies, taking a defensive driving course, and driving less.

Finally, when you've chosen a new insurance provider, remember to cancel your old policy and set the cancellation date for after the start date of your new policy to avoid a lapse in coverage.

Compare quotes from multiple providers

Comparing quotes from multiple providers is the best way to find an affordable rate for your auto insurance coverage. Here are some tips to help you with the process:

Get Quotes from Multiple Insurers

It is recommended to get at at least three or four quotes from different insurers to start your comparison. Online quote comparison tools can be helpful in getting multiple quotes at once, but make sure your personal information is secure and won't be sold as leads to insurance companies.

Look for Discounts

When comparing quotes, consider insurers that offer discounts. For example, you may be able to get a discount for bundling home and auto insurance, paying your premium in full, or having a clean driving record. Keep in mind that a long list of possible discounts doesn't always mean the best deal, as the rates offered by that insurer may still be higher than those without as many discounts.

Compare Coverage Limits, Deductibles, and Cost

When comparing quotes, look beyond the premium amount. Consider the different types of coverage offered and the limits of each. Make sure the deductible is an amount you can comfortably afford if you need to file a claim. Choose a policy that offers the most coverage while still fitting within your budget.

Consider Usage-Based or Pay-Per-Mile Insurance

If you're a safe driver who doesn't drive many miles, consider usage-based insurance programs like Allstate's Drivewise or Progressive's Snapshot. These programs track your driving habits and can offer discounts accordingly. If you rarely drive, switching to a pay-per-mile insurance program may be more cost-effective.

Check Insurance Costs for Different Vehicles

Insurance rates can vary significantly depending on the vehicle you own. When shopping for a new car, consider insurance premiums alongside factors like fuel efficiency and repair costs. Some vehicles may be cheaper to insure due to their safety features or lower risk of theft.

Compare Quotes Regularly

Don't just compare quotes when you're initially shopping for insurance. It's a good idea to compare quotes from multiple providers each year or whenever your policy is up for renewal. This way, you can ensure you're always getting the best rate and coverage for your needs.

Raise your deductible

Raising your deductible is a great way to lower your insurance premium, but it's important to understand what this means and how it works. A deductible is the amount you pay out of pocket before your insurance coverage kicks in. For example, if you have a $500 deductible and your car sustains $1,500 worth of damage, you pay the initial $500 and your insurance company covers the remaining $1,000.

You can usually choose a deductible of $250, $500, or $1,000, but it can go as high as $2,500. The higher the deductible, the lower the premium, as the risk to the insurer is reduced. Increasing your deductible from $500 to $1,000, for instance, could lower your insurance rate by around 10%. This could save you hundreds of dollars a year.

However, it's important to ensure you can afford the higher deductible in the event of a claim. This strategy is best for those who don't drive often and are less likely to get into accidents or sustain vehicle damage. Before raising your deductible, ensure you have enough money in savings to cover the higher costs. It's also worth noting that collision and comprehensive coverage are the types of insurance that carry deductibles, while liability insurance does not.

Shop around annually

It pays to be diligent when it comes to auto insurance. Shopping around annually for insurance deals is a smart strategy to ensure you're getting the best value. Insurance rates fluctuate, and providers often adjust their pricing strategies, so it's wise to review your policy each year to ensure you're not overpaying. Here are some detailed instructions and tips to keep in mind as you shop:

Review Your Current Policy

Before you start shopping around, thoroughly understand your current policy. Review the coverage types, limits, and deductibles you have in place. Identify areas where you may need more or less coverage. For instance, if you've recently paid off your car, you may opt for lower collision coverage. Knowing your current policy inside out will help you make informed decisions when comparing alternatives.

Gather Quotes

Start by obtaining quotes from multiple insurance providers. You can do this online, over the phone, or through an agent. Ensure you provide consistent information across the board, including details about your car, driving history, and coverage preferences. This consistency ensures that the quotes you receive are accurate and comparable. Don't forget to inquire about discounts! Many insurers offer reduced rates for safe driving records, low annual mileage, or the installation of anti-theft devices.

Compare Beyond Prices

While the premium price is crucial, it's not the only factor to consider. Examine the coverage limits, deductibles, and additional perks or services offered by each insurer. Some providers may offer more flexible payment plans or enhanced roadside assistance packages. Consider the overall value of the policy and the quality of customer service. Reading reviews and checking an insurer's complaint record can provide insights into their claims handling process and customer satisfaction.

Time It Right

Timing plays a role in getting the best deal. If you're switching insurers, try to do so at the end of your current policy term to avoid cancellation fees. Additionally, insurance rates can vary depending on the time of year. For example, rates may increase during the summer months when more people are driving. Shopping around during off-peak seasons might uncover better deals.

Update Your Information

As you shop, ensure the information you provide to insurers is accurate and up-to-date. Inform them of any changes, such as a new job with a shorter commute or additional safety features installed on your vehicle. These factors can positively impact your rates. Also, be mindful of life events that may qualify you for discounts, such as getting married or adding another vehicle to your policy.

By making it a habit to shop around annually, you can take advantage of potential savings and ensure your auto insurance coverage remains competitive and tailored to your needs. It's a simple yet effective strategy to keep your insurance costs in check while maintaining the protection you require.

Choose your shopping method

There are several ways to shop for auto insurance coverage, each with its own pros and cons. Here are some common methods:

Contact an Insurance Company's Agent

These agents are known as "captive" agents, meaning they work exclusively for a single insurance company, such as Geico or Allstate. While they cannot compare quotes from other providers, they have detailed knowledge of their company's coverage options and can ensure you're getting all applicable discounts. This option may be preferable if you don't know what type of coverage you need and want guidance. However, captive agents work on commission, so they may offer pricier policies.

Use an Insurance Broker or Independent Insurance Agent

Independent agents and brokers work with multiple insurance companies and can help you compare premiums from different insurers. They often have knowledge of state regulations and contract details from various companies. This option allows you to deal with an agent while getting more price and coverage flexibility. However, they also work on commission, so they may try to upsell you policies. Additionally, you may need to pay broker fees.

Get a Quote From a Company's Website

You can also purchase auto insurance directly through an insurance company's website. This option is convenient if you already understand the coverage you need and prefer to handle it yourself without pressure from agents. Many companies offer additional online discounts for shopping online. However, online quote forms may not cover all situations, and you will need to fill out multiple forms to compare multiple companies.

Use an Online Comparison Platform

Online comparison tools, such as The Zebra, allow you to see prices from various insurance companies side by side, helping you find the best value for your coverage needs. This option saves time and offers a pressure-free shopping experience without the need to speak directly to an agent. However, if you're unsure about your coverage needs, this option might be more challenging. Additionally, you might receive marketing emails or calls from companies you don't choose.

Gather the necessary documents

Gathering the necessary documents is an important step in shopping for auto insurance. While you don't need to provide any physical documentation to get a car insurance quote, you'll need to share some information, and you will likely need to provide copies of some documents when you decide to buy a policy.

• Driver's license number
• Driving history, including any recent accidents or violations
• Vehicle Identification Number (VIN)
• Vehicle's make, model, year, and mileage
• Name of the registered owner or owners
• Address where the car is garaged
• Vehicle modifications
• Current or previous insurance information
• Credit card number or banking information for the first payment
• Social Security Number

Additionally, if you are seeking any discounts, you may need to provide documentation for those as well. For example, if you are a student seeking a good student discount, you may need to provide a copy of your most recent report card. If you are a member of a particular professional organization or affiliate group that offers a discount, you may need to provide a copy of your membership card or enrolment paperwork.

It's important to note that the specific requirements may vary depending on your location and the insurance company you choose. It's always a good idea to contact the insurance company or an agent to clarify the exact documents and information you need to provide.

Frequently asked questions