Shopping for car insurance is just like any other shopping that you do. You want to get the best deal you can have for the money you spend.
Whether you want to renew your auto insurance or buy one for the first time, finding the best deal is a no-brainer. Here are some ways to do this.
Shop Around and Compare Rates
When looking for a caterer for an event or finding a supplier for your office, you usually talk to a bunch of companies and get their rates first.
You then compare those offerings to see which one gives the best value for your money.
Use the same process when buying car insurance. Get at least three quotes from competing companies.
When shopping around, consider both national and local auto insurers. Some customers have had better experience dealing with local and regional companies than insurance giants.
Comparing rates doesn’t always mean going for the cheapest car insurance. Some policies may be slightly higher in cost but offer way better features than the more affordable alternative.
Prepare a budget range and a list of features you want to include in your car insurance. From there, weigh the options that you’ve collected.
To help ease the process, you may use insurance comparison tools available online, such as Insurify, The Zebra, and Policygenius.
Note that you will need to provide information about your car, like its year of manufacture, make, and model, to use these tools.
Know Your State’s Required Minimum Coverage
If cost is your main concern, check out the minimum coverage requirement of your state and work your budget around it.
US law requires liability insurance for car owners. However, coverage requirements and minimum amounts differ by state.
Most states mandate liability coverage for bodily injury and property damage.
To protect yourself, you may also want to add coverage for uninsured and underinsured motorists. This will come in handy if an at-fault driver with no insurance or not enough coverage hits you.
You will also need to look at comprehensive and collision coverage if your car is financed or leased because lenders require them.
Inquire About Discounts
Another way to lower the auto insurance cost is to ask about discounts from providers. Most companies will have a list of available discounts on their official websites, but others may not.
The most common discounts offered by auto insurance companies are multi-car discounts, one-time payment discounts, and anti-theft system installation incentives.
Getting individual insurance for each of your cars will cost you more than buying in bulk from the same insurance provider.
If you have the budget to make a one-time payment for your annual premium, you would typically get a lower rate than paying monthly premiums.
Theft is a significant risk in auto insurance, so it’s not surprising that companies would offer a substantial discount for car owners who install anti-theft devices.
Just verify which types of devices are included in their discount program with your provider.
You can also get a discount if you already own a different type of insurance from the same company, such as home insurance.
Some insurers reward good drivers with discounts when they renew. Among these discount programs are Progressive’s Snapshot and Allstate’s Drivewise.
Re-evaluate Your Deductibles
A surefire way to lower your insurance cost is to increase your deductibles. These refer to the amount of money you will have to shoulder in case of an accident before the insurance coverage kicks in.
This only makes sense if you rarely drive your car or are comfortable taking on the financial risk.
Read Market Surveys and Analyses
If you are too busy to do your own research and comparison, the next best thing to do is look at the latest market surveys online.
These studies are conducted by insurance experts and are based on actual market data.
ValuePenguin’s February 2022 market analysis found that State Farm offers the lowest pricing overall. Meanwhile, Metromile is the best company for low-mileage drivers.
According to the ValuePenguin study, drivers with a DUI record would best get their car insurance from Erie. People with poor credit history would get the cheapest offer from Farm Bureau.
This month, Nerdwallet also released its findings from its market analysis. It found that Geico offers the lowest-priced car insurance after an accident.
The Bottom Line
After using all these methods, you should be proud that you’ve done all you can to find the best car insurance deals available in the market.
It doesn’t matter how much you saved in the end as long as you’ve done your research thoroughly and considered everything essential in your evaluation.