A phone call to an agent can take a long time, or you can obtain vehicle insurance quickly by clicking a few links on your phone. Regardless of the approach you take, the steps involved in searching for auto insurance may be distilled down to: We’ll walk you through each stage of how to shop for car insurance below.
How to Shop for Car Insurance
Step 1: Gather Your Information
Getting the data you need to get a quote is the first step. The same things are typically requested by insurance firms, including:
- Personal information: This includes your name, birthdate, address, and length of stay at that address.
- Vehicle information: The make, model, year, mileage, and safety features of your car, as well as its vehicle identification number (VIN).
- Driving history: Your three- to five-year driving history, including any tickets and collisions for which you were at fault.
- Information about your current insurance, including the provider, any coverage levels, and the birthdates of any policyholders
- Other information: the numbers on your driver’s license and the names of any other household members who aren’t covered by your insurance.
Step 2: Pick the Coverage You Need
Determine the kind and quantity of coverage you require. Each state mandates a minimal level of property damage and bodily injury liability insurance that pays out to other drivers when you cause an accident.
You won’t be able to purchase less coverage than that in the majority of states, but you can (and we advise you to) increase the liability coverage limits. The following is a brief list of the various coverage options you might have available to you:
- Liability insurance: This covers medical bills and repair costs for other drivers when you cause an accident.
- Collision insurance: This covers damage to your car in an accident, no matter whose fault it is.
- Comprehensive insurance: This covers events like environmental damage, vandalism, and theft.
- Underinsured/uninsured motorist coverage: This covers your injuries and property damages when another uninsured or underinsured driver causes an accident.
- Medical payments coverage (MedPay): This covers your medical bills after an accident.
- Personal injury protection (PIP) insurance: This covers your medical bills, lost wages, and death benefits. This coverage is often required in no-fault states.
Step 3: Pick a Method for Getting a Quote
There are several ways to obtain vehicle insurance quotes, each with advantages and disadvantages.
#1. Speak to an agent of an insurance company.
Getting a quote from an insurance agent at a firm is one of the easiest ways to shop for auto insurance. These reps, often known as captive agents, only work for a single business, such as Geico or Allstate. Although they won’t do it for you, they will be knowledgeable about the coverage possibilities offered by their employer.
#2. Make use of an independent insurance agent or broker.
Both independent agents and brokers have relationships with numerous insurance providers, which enables them to assist you with comparison shopping. A local insurance company might provide coverage from State Farm, Geico, and Progressive, in addition to a few local options. However, brokers and independent agents have an incentive to sell you more since they earn more money if you purchase more coverage.
#3. Request a Quote /from a Company’s Website
If a company doesn’t solely employ agents, you can visit their website and get auto insurance estimates online.
#4. Utilize a tool for online comparison.
Obtaining prices from multiple businesses at once is simple and quick when using an online quote comparison tool. Similar to using a company’s website, an agent may be needed in unique circumstances, like rideshare insurance.
Step 4: Compare different car insurance Quotes
The next step is to compare your vehicle insurance quotes once you’ve chosen how you want to obtain one. You’ll find the best rates this way, whether you use a broker, a comparison tool, or a few different company websites. Additionally, you can check which businesses give the biggest discounts based on your circumstances.
#1. Discover the Best Discounts for Auto Insurance
Here are a few frequent reductions for auto insurance that you can find when looking around.
- Multi-policy or bundling
- Teen driver
- Driver education
- Defensive driving course
- Good student
- Safety features
#2. Examine the Companies That Provide Usage-Based Insurance
- State Farm Drive Safe & Save
- Geico DriveEasy
- USAA SafePilot®
- Progressive Snapshot®
- Allstate Drivewise®
- Nationwide SmartRide®
- Root Insurance
If you commute by car less frequently or work from home, you could save a lot of money with the pay-per-mile programs, which include, for instance:
- Allstate Milewise®
- Nationwide SmartMiles®
Step 5: Purchase a Policy
The purchase of your coverage is the last action in the car insurance shopping process. As long as you sign up and pay the enrollment fee, many auto insurance providers offer same-day coverage. Alternatively, you might decide to pay for the insurance in full upfront.
Note that you should avoid a gap in coverage, as even a brief delay in coverage can make you appear riskier to auto insurance providers and raise your premiums.
How to Shop for Car Insurance Online
Directly using the insurance company’s website is one of the most popular ways to compare auto insurance quotes. The drawback of this choice is that you can only see the rates for one company.
Furthermore, you should compare auto insurance quotes more regularly on specialized websites. Lead-generating websites frequently sell the information they collect about you, and agencies might not cover the full cost. You can only find a free, no-obligation way to save money depending on your driving history and budgetary requirements on comparison websites.
Comparison tools such as The Zebra and Insurify present auto insurance rates from several providers to assist you in finding the best deal. You can compare costs from many businesses in this way to choose the one that best suits your requirements and price range.
Note that these tools should also be pre-loaded with the state’s minimum standards for auto insurance.
How to Shop for Car Insurance Quotes
1. Find out your state’s minimum coverage requirements
The law requires that you have liability insurance. Liability insurance will pay for any harm you cause to the other car, driver, and passengers if you are in an accident.
|Types of liability coverage
|Bodily injury (BI)
|When you hurt someone else, you’re also responsible for their medical bills, missed wages, and funeral costs.
|Property damage (PD)
|This is damage that you cause to other people’s vehicles or possessions
|Uninsured motorist (UM)
|This protects you in the event that the at-fault driver doesn’t have insurance
|Underinsured motorist (UIM)
|This protects you from harm when a negligent driver strikes you with insufficient insurance
#2. Make at least three policy comparisons.
Obtaining estimates from at least three different auto insurance providers will allow you to compare policies and ensure that you haven’t missed any important details or warning signs. Make sure to check both local and national businesses. You’d be astonished at how many regional insurers outperform national carriers in terms of client satisfaction.
For a few reasons, comparisons prevent you from presuming that one company in particular is the most affordable. Additionally, when it comes to a certain aspect of their policy, one company may be more transparent than another. This will enable you to create a list of inquiries you ought to make to each prospective insurance company.
Note that you can use an online insurance comparison tool, like PolicyGenius, to help with comparisons.
#3. Ask for discounts
Asking for a discount is one approach to acquiring affordable auto insurance. The majority of businesses publish accessible discounts on their websites, although some might not be there. Typical reductions include:
- Deals for professionals (name your professional organization)
- By merging your auto insurance policy with other policies, like homeowner’s or renter’s insurance, you can receive special bundle discounts.
- Multiple-car discounts
- Special offers for paying your annual or six-month premium in one go
- Mechanisms implemented to prevent theft
- Discounts for good driving records
- Early payment reductions can end up saving you money in the long term.
The Best Way to Shop for Car Insurance
- Step 1: Compile the essential data.
- Step 2: Assess your coverage requirements.
- Step 3: Pick a shopping strategy.
- Step 4: Evaluate insurance companies and inquire about vehicle insurance savings.
- Step 5: Purchase your new insurance policy.
What should you look at when shopping for insurance?
#1. Carry out Comparisons
Comparison shopping for insurance is not as challenging as it once was. Finding the best deal does not require you to speak with numerous agents. You can compare numerous quotes side by side by using comparison websites. You can contrast similar packages in this manner. There are numerous websites for insurance comparison shopping. NetQuote, SelectQuote, and Compare.com are a few instances.
#2. Look for discounts.
Finding all of the discounts that are offered is one way to ensure that you are receiving the best bargain.
It’s possible for there to be unnoticed discounts on a website. Others might be kept secret by agents for clients who only visit the office. You can request to see all discounts and the requirements to qualify for them.
A multi-policy discount is one popular deal. Discounts for defensive driving, house ownership, or safety equipment are also possible.
#3. When buying insurance, contact an agent.
A certain provider is linked to insurance agents. Also known as captive agents, these representatives run their own companies, so it stands to reason that they want to make money while bringing in clients for the supplier. Dealing with agents is more convenient than dealing with the supplier. This is so that someone can respond to your inquiries.
#4. Note that you Can Upgrade Later
Your financial condition could occasionally make it impossible for you to obtain the protection you require. However, insurance minimums are typically extremely inexpensive. Always buy the bare minimum of insurance that your state mandates. You can avoid paying out of pocket even with the bare minimum of insurance coverage.
You can update your policy to include a more complete coverage package once you are able to do so.
#5. Be honest:
Your coverage and premiums are determined by the information you submit when you apply for insurance. But what if you use lies to get a better deal on insurance?
You might also be accused of fraud and reported to various insurance clearinghouses, which would make it more challenging for you to obtain insurance in the future, depending on how serious the misrepresentation was.
#6. Re-Evaluate Your Coverage
You might undergo a significant life transition at some point, such as a relocation, a marriage, or the birth of children. Your requirements for insurance coverage will alter if this occurs. Even if there have been no significant life changes, it is still beneficial to review your policy each year to make any necessary adjustments.
Furthermore, it doesn’t have to be hard to choose the best protection for your family. Therefore, you can use all the tools and resources at your disposal to make the process of selecting the ideal coverage easier.
What are the five tips for buying car insurance?
1. Ascertain the minimum insurance requirements in your state.
2. Take into account your own financial circumstances in light of the necessary insurance and decide whether you need to raise your limits in order to protect your valuables.
3. Check your driving record to see whether there are any unpaid tickets or points on your license.
4. To find out how much you are spending, look up your existing coverage.
5. Request comparative quotations from insurance websites and specific businesses that you are interested in.
Is it OK to shop around for car insurance?
One of the biggest costs of driving is auto insurance, which may be reduced by shopping around at least once a year. After a major life event, such as a move or the addition of a new driver to your policy, comparing quotations can help you get the best bargain.
What are the five things to know before getting insurance?
The first five things you should think about are:
- Analyze your insurance requirements.
- Examine insurance coverage.
- Select a policy that you can afford.
- Examine the potential of your insurance plan.
- Verify the insurance company’s history of claim settlements.
What is the best car insurance coverage to have?
Liability insurance is the best car insurance coverage you should have for your car. Additionally, to secure your car, you might need to carry extra coverages like comprehensive, collision, and gap insurance.
What makes my car insurance so high?
Your age, driving history, credit history, coverage options, the automobile you drive, and where you reside are all common factors that affect insurance costs.
How can I save the most on my car insurance?
If you buy two or more policies from them, such as insurance for more than one vehicle, many insurers will give you a discount. Additionally, some businesses give loyal clients a discount.
What is the best time to shop for car insurance?
The soonest after a life event that leads to a personal rate modification is the optimum time to shop for auto insurance. Consider it a cue to shop around if you have a birthday, see an increase in your credit score, or have a violation cleared from your record.
What is the cheapest month to buy car insurance?
According to research, February and August are often the most affordable months to get auto insurance.