How to Compare Auto Insurance Quotes in 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.

One thing that has actually helped consumers save money and learn more about their auto policies is the prevalence of online auto insurance comparison systems.

These quote systems make the entire business of selling car policies a lot more transparent and competitive, and this is good for vehicle owners.

It’s your car, and you are the one paying for insurance. You deserve to know exactly how your vehicle is covered and how much that costs.

Before you make comparisons of auto insurance quotes, 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 for a free auto insurance quote.

Needing Instant Auto Insurance Quotes

Ideally, it is better to take your time when you’re shopping for auto coverage. Because price should not be the only factor that you base your decision upon, below are a few things to consider:

• Customer service
• Claims handling
• Billing process
• Coverage
• Price

But there are times when it is necessary to purchase coverage quickly. This might be true if you’re sitting in the showroom ready to sign the papers on a new car or add a new driver on your family policy.

If you can access instant quotes, you can get the information you need to make a decision quickly.

Free Auto Insurance Comparison

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Can you really get instant price quotes for your car insurance?

You might get your instant auto insurance quotes from an insurer’s website. In other cases, independent sites might be able to provide you with competitive quotes from multiple insurers. Both options provide a good way to shop around for the best prices very quickly.

Insurer’s websites probably give you more details about their products. Independent websites give you a fast way to see prices from multiple companies.

Either way, you will need to supply some basic details before you can see a range of price quotes.

The quote system will need to know what kind of car you drive, your age, and a few other things before it can work. These details should only take a few minutes to fill out.

In return, you should be able to get fairly accurate price estimates. In some cases, you can change different policy options to see how that changes the price.

If you decide to accept a policy, you may even be able to complete the process of buying coverage on the web. That means you can finish applying, make your first payment, and even print off your insurance card in one quick session.

Factors That Affect Auto Insurance Rates

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 Auto 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.

Determine the Auto Insurance Coverage You Need

Before you start shopping, you may first want to decide what the best coverage options for you and your family will be.

This depends greatly on the number of drivers in your household, the number of vehicles, and the age of the drivers.

Liability only is required as a minimum in 49 of the state auto insurance laws, with New Hampshire as the exception.

Some state laws require more and if you have a lien chances are collision and comprehensive are must-haves.

An independent insurance agent is usually a good place to start in this situation. They are experienced in working with consumers to find the best coverage for each individual situation.

Independent insurance agents also work with several insurance carriers. Their goal is to find you the best rate, rather than selling a designated product for a designated price.

The insurance agent will determine where you can save money and what coverage options you need.

Free Auto Insurance Comparison

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How to Compare Auto 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 Auto Insurance Companies

Several professional companies 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.

How to Compare Customer Service

You can do an online search for an insurance company or agency to find auto insurance company reviews. You will want to see if there are any negative reviews and what they say.

If there are several reviews stating that the company is not covering what it should be, that is an indication that this is not the best company to go forward with.

The Better Business Bureau is another place to check to see if the agency has had frequent unresolved complaints.

You should check out the following items:

• Payment options – This depends on your preferences and what is important to you. Some companies offer various payment arrangements including lump sum, quarterly, or monthly
• Electronic and online options – You may even save money by having them deduct the money automatically from your bank account. Others will have the option to go directly to the website and pay with an electronic check or a credit card. If you intend to make your bill payments online, check to see if there is a fee involved
• Easy access – Another important aspect of customer service is having access to a representative when you need one. Some carriers offer around-the-clock service online or over the telephone. This gives you the convenient option to file your auto insurance claim online or call a toll-free number for assistance at any time of the day

Auto 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.

How to Compare Auto Insurance Rates

When comparing rates, you will want to make sure that the comparisons are equal.

The standard insurance package quotes that one agent gives may vary. You will want to ensure that the coverage is similar between quotes.

Don’t be afraid to ask an agent for advice on what coverage you need. Remember, you should be checking with several agents to find the best quote.

If you are considered a high-risk driver, you may want to look at an insurance company that specializes in non-standard auto insurance.

High risk is primarily determined by your age and driving history.

When drivers are under the age of 25, this is deemed high risk by the insurance companies. If you have drivers in your household who are under 25, you may want to look for alternative options if the quotes you are receiving seem too high.

Driving history will generally go back three years. If you have had no violations in the last three years, you should be deemed as a safe driver by the insurance companies.

If you have several violations, you may benefit from looking at non-standard auto insurance.

These companies specialize in offering more affordable insurance to drivers who are considered high-risk.

Free Auto Insurance Comparison

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

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Setting Your Own Auto Insurance Price

Can you really set your own auto insurance price? Some large insurers advertise that you can use their quote systems to set your own price. Most consumers are aware that this is only true within certain limits.

It also puts a lot of emphasis on price, and that is not the only thing that most vehicle owners should consider.

Why can’t you totally set your own price? You will have to purchase some minimum level of coverage to satisfy:

• State minimum required coverage
• Your auto loan agreement

Every U.S. state has minimum legal requirements for coverage. You can only change the price of that by shopping around for an insurer who will offer you a better deal.

You cannot, however, drop the price of your required coverage to $0 and still be a legal driver. The quote system will factor in your state requirements.

Do you still owe money to your lender? If so, you probably also agreed to keep full coverage on your vehicle until it gets paid off. Lenders have these requirements to protect themselves, and they can call in your note if you violate their terms.

Lowering Your Auto Insurance Rate

You do have choices that you can make that will increase or decrease your premiums.

• Policy options
• Deductibles
• Coverage limits
• Insurers with lower prices

For example, you could drop full coverage after you pay off your vehicle or decide against accepting the roadside assistance or rental car coverage policy options.

You might also decide to raise your per-accident deductible. The price difference between a $250 and a $1,000 deductible is often substantial.

Auto 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 to Compare Auto 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.

Free Auto Insurance Comparison

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

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Do you have to take any of the policies offered?

You are not forced to accept any of these policies. Typically, these quote systems are totally free to use. You might decide you would rather call or email an agent for more information about any of the selections.

Insurance is a complicated topic, and it might pay to get some expert advice before you choose which policy to buy. The insurance quote system can simply be used to filter your choices quickly.

An agent can explain different policy options, suggest coverage amounts, and tell you a little bit about the company or the companies that he represents.

It is also a good idea to find out if you like a local agent because you might depend upon him if you ever do have an auto accident and need help.

Of course, these days you can deal directly with many insurers without using a local agent. You might get a toll-free number to call, and you can use this to speak directly with insurer representatives.

In some cases, it might be better to have a relationship with a local agent who can keep up with changes in your life.

When you buy your policy from many large companies, you actually can do both. You can speak with an agent during business hours and you can call customer service on Sunday afternoon or in the wee hours of the morning.

Instant Internet price quotes do help consumers save money and buy the right coverage. They give vehicle owners a lot more power to shop around for the right rates and plans, but vehicle owners still have the ability to get personal help from an agent or company representative.

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 quote 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 our free one are perfect for finding and comparing multiple auto insurance quotes. Simply enter your ZIP code to get started.

Free Auto Insurance Comparison

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

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