Smart Auto Insurance Shopping With Nerdwallet

Shopping for auto insurance can be a daunting task, but it doesn't have to be. There are a few simple steps you can follow to find the best policy for your needs. First, gather the necessary information, such as your personal details, vehicle information, and driving history. Next, decide on the level of coverage you need, including liability, comprehensive, and collision insurance. Then, choose how you want to shop for insurance, whether through an agent, broker, or directly from an insurer's website. Compare quotes and discounts from different companies, considering factors like premium prices, deductibles, and available discounts. Finally, purchase your chosen policy, making sure to avoid any lapses in coverage if you're switching from an existing policy. By following these steps, you can find auto insurance that offers the best value and protection for your vehicle.

Compare car insurance rates by age

Car insurance companies use several factors to determine your premium, and age is one of the most significant. Your car insurance rates will vary depending on your age, with rates generally being higher for younger and older drivers.

Teens and young adults

Teens and young adults tend to have the highest car insurance rates due to their lack of driving experience, which leads to a higher risk of accidents. The average annual rate for a 20-year-old driver with full coverage is $3,647, while the rate for minimum coverage is $1,035. Rates begin to decrease as drivers reach their early 20s and continue to drop throughout adulthood, provided they maintain a clean driving record.

Adults

By the time a driver reaches their 30s, car insurance rates have levelled out, with the average annual cost of full coverage being $1,822. The cheapest company for 30-year-olds is American Family. At this age, drivers with a clean driving record and no insurance claims will typically see their premiums decrease.

Seniors

As drivers reach their 70s, car insurance rates start to increase again due to factors such as vision or hearing loss and slowed response time. While rates may rise, they are unlikely to return to the high rates of teen drivers, assuming the senior driver has a clean driving record.

Gender

In most states, gender is also a factor in determining car insurance premiums. Men tend to have higher rates than women due to a greater propensity for risky driving. However, the difference in premiums between genders narrows as drivers age. For example, at age 50, males only pay $8 more per year for full coverage than females.

Location

Your location can also impact your car insurance rates. If you live in an area with extreme weather, high crime rates, or busy roadways, you may pay more for car insurance. Additionally, car insurance rates can vary significantly from state to state. For example, a 20-year-old driver in Hawaii or North Carolina may pay $2,015 or less per year for full coverage, while a driver in Louisiana or Rhode Island could pay $6,408 or more.

Ways to save

To find the best car insurance rates, it is recommended to compare quotes from multiple insurers. You can also look for discounts, such as good student discounts for young drivers or company loyalty discounts for seniors. Maintaining a clean driving record and practising safe driving habits can also help keep your car insurance rates low.

Compare insurance rates by driver history

When comparing car insurance rates, it is important to know how insurance companies arrive at the quotes they give. The type and amount of coverage you choose, your driving record, age, credit history, vehicle, and the risk level of your area are all factors that determine your premium.

Insurance companies weigh these attributes differently, so it's important to compare quotes from multiple companies to find the best rate. For example, a driver with poor credit could pay more than double for car insurance compared to a driver with good credit. Similarly, drivers with a history of accidents or violations will typically have higher rates.

To compare insurance rates by driver history, use a trusted insurance comparison site like The Zebra, which provides personalized quotes from over 100 top insurance companies. Compare at least three companies and be sure to provide accurate information about your driving history, including any claims, violations, or accidents from the past three to five years.

When comparing rates, consider the following:

• The cost of full coverage vs. minimum coverage
• The impact of age on insurance rates
• The effect of driving record on insurance rates, including accidents, DUIs, and speeding tickets
• The influence of credit score on insurance rates
• The vehicle being insured and its impact on insurance rates

How to compare car insurance rates

Comparing car insurance rates can help you find the best price. Each company has its own method for setting rates, and these recipes change over time. So, comparing rates from two car insurance companies may reveal very different results for the same driver.

• Gather your information: To quickly and easily compare insurance online, you should have the following information on hand: personal information, vehicle information, driving history, and current or previous insurer's name.
• Choose the right liability car insurance coverage levels: Liability auto insurance protects you from financial ruin in the event of a serious accident. When choosing liability coverage, make sure the middle number in the coverage limits is equal to or greater than your net worth.
• Understand car insurance requirements in your state: Any car insurance comparison tool you use should have your state's minimum car insurance requirements. In certain states, you may be required to have personal injury protection, medical payments coverage, or uninsured/underinsured motorist coverage.
• Decide if you need full coverage car insurance: Full coverage insurance includes liability coverage, as well as comprehensive and collision coverage. Comprehensive insurance covers damage to your car from non-traffic incidents, such as weather, animal collisions, or riots. Collision insurance covers damage to your car in an accident, regardless of fault.
• Collect and compare car insurance quotes: Get car insurance quotes from at least two or three companies, including regional companies and large companies. Ensure that each quote includes the same levels of liability and uninsured/underinsured motorist protection, the same deductibles, the same drivers and cars, and all discounts you're eligible for.
• Consider the insurance company: In addition to price, consider other factors such as customer service, ease of updating your policy or filing a claim, and financial strength.

How to choose an insurance company

While shopping for car insurance, you have several options. You can get quotes online from insurer websites, call insurers over the phone, or work with an independent agent or broker.

Before you buy a policy, there are a few factors to consider besides price. The best car insurance companies offer more than just affordable rates. They also provide reliable and helpful customer service as well as a simple way to update your policy or file a claim.

Look for extra offerings

Confirm your insurer has any extras you're looking for, like a mobile app or accident forgiveness.

Check financial strength

You want a company that is financially prepared to pay out a claim. Find an insurer's financial strength through rating firms like AM Best.

Investigate complaints

Look at customer complaint records on the National Association of Insurance Commissioners' site.

Compare car insurance companies

You can use NerdWallet's reviews to compare car insurance companies and find the best fit for you. NerdWallet has researched policy options, consumer complaint data, customer satisfaction ratings, financial stability, and other key factors for all of the country's top auto insurance companies. They also researched many smaller, regional insurers.

Compare car insurance companies

Comparing car insurance companies can be a great way to save money and find the best deal for your needs. Here are some tips on how to compare car insurance companies and get the best value for your money:

• Shop around and get quotes from multiple insurers: Each company has its own way of setting rates, so comparing quotes from different insurers can help you find the most affordable option.
• Consider your state's minimum coverage requirements: Make sure you know the minimum amount of insurance required in your state and compare rates based on that.
• Research various insurers: Look into their customer service, claims handling, and overall reputation. Also, check which companies offer discounts that you may be eligible for.
• Decide on the coverage you need: Consider factors such as the age of your vehicle, lease requirements, and your driving history to determine the type and amount of coverage that best suits your needs.
• Compare rates by age, driving history, and other factors: Rates can vary significantly based on age, driving record, credit history, and other factors. Compare rates for drivers in similar situations to get a more accurate idea of the cost.
• Understand the different types of car insurance: Familiarize yourself with the different types of coverage, such as liability, collision, and comprehensive insurance, to know what is included in the quotes you receive.
• Check for complaints and financial strength: Look at customer complaint records and the financial strength of the insurance company to ensure they are reliable and able to pay out claims.
• Compare the same types and amounts of coverage: When comparing quotes, make sure you are comparing the same levels of liability, deductibles, and other coverage options to get an accurate comparison.

Frequently asked questions