Having car insurance is a good idea. Besides satisfying a legal requirement in many states to register a vehicle, car insurance also protects you from accident-related expenses. Car insurance can help you save thousands of dollars if you ever need to use it. But that doesn’t mean you need to spend all the money in your wallet each month to pay for this coverage. Let’s look at how you can get the best deals on car insurance.
To Find the Best Deals On Car Insurance Shop Around
If you think each car insurance provider will charge you the same price, you should shop around. Insurance quotes will be very similar among several providers. But certain companies will charge higher rates if you recently received a ticket or bear responsibility for an at-fault accident.
Some insurance providers will also charge lower rates if you drive an alternative fuel vehicle like a gas hybrid or an electric vehicle. Parents can also benefit from additional price discounts when their high-school or college-aged children meet certain criteria like going through a driver education course or getting good grades.
Cheaper car insurance rates might also be available by opening a policy with the current insurance provider that you use for homeowner’s insurance or life insurance. This isn’t always the case though. Even if a price quote from your current insurance provider is well within your monthly budget, getting a second quote simply to compare rates is a good idea and only requires a few minutes of your time.
Certain insurance providers might offer low rates with some insurance products, yet, cannot compete with other products because they might contract with a third-party to provide coverage. If your current insurance provider charges a higher quote than a competitor, you might be able to get a price match by calling the provider.
Where To Shop For the Best Deals On Car Insurance
One of the easiest ways to shop for the lowest rates is to go on a website like Esurance. Here you can compare quotes from several leading car insurance providers including Esurance. Even if you find a rate from one of Esurance’s competitors, you still have saved a lot of time “insurance shopping.”
If you want to do your own independent research, you can also visit or call the various insurance websites and get a 6-month price quote that can also be broken down into a monthly price as well. As there are many insurance providers to choose from, here are a few of the best car insurance companies that might offer you the lowest rates.
Allstate claims that the average person who switches from their existing car insurance policy to Allstate save $446 per year. That’s a monthly saving of $37, which might be the monthly amount that you are paying for a secondary vehicle with liability coverage. By going with Allstate, you can become part of the “Good Hands Team” and also receive discounts if your vehicle has anti-lock brakes (ABS). Although rates might differ, Allstate is the parent company of Esurance (that company that compares auto insurance quotes and happens to provide car insurance themselves).
Although Geico has been around for several decades, it has been known as one of the go-to insurance providers for drivers who want low rates. It has become the second largest auto insurer with good customer reviews. As the full name of Geico is Government Employees Insurance Company, federal employees and military members can receive additional discounts. To one-up Allstate, Geico also claims that the average driver has an annual savings of $500 when switching from another insurance provider.
Teachers might like Liberty Mutual as they qualify for an additional discount. Liberty also offers two semi-unique optional coverage options like “New Car Replacement” and “Better Car Replacement” that will provide enough cash funds to replace your damaged vehicle with one that has 15,000 fewer miles on it and will either be the same model year or one year newer.
Progressive is another company that offers great rates. They offer two additional ways to save money on your quote. Before purchasing car insurance with Progressive (and for existing customers too), they have a “Name Your Price Tool” where customers can list the price they are willing to pay. Progressive will do their best to match the price.
Another way to save money is to use their Plug-In Snapshot device. This device plugs into your car and gives you a rate based on your mileage and driving habits. Those that like to speed, drive at night, or drive in stop-and-go traffic often will be charged higher rates than traditional price quote criteria.
USAA is an “insurance cult” of sorts among military families. In recent years, USAA has extended membership from military officers to anybody who received an honorable discharge. USAA is a semi-exclusive insurance company. But they have received good ratings for customer service and price quotes on their various insurance products. They continually receive prestigious awards for being one of the best insurance providers.
Comparing Insurance Products To Find the Best Deals On Car Insurance
Another thing to consider with quote prices from the various companies is the coverage amounts. Two companies might provide you a quote for $50 a month. One might require a higher deductible ($1,000 compared to $500 before they pay for damages and repairs). Alternatively, they may offer fewer coverage options like roadside assistance, rental car reimbursement, vehicle replacement, etc.
The best way to get an apples-to-apples comparison is to receive quotes for basic coverage with the same deductibles for liability, collision, and comprehensive. If you own an older car, it might make more financial sense to get liability coverage. This is if the car isn’t worth the additional premium for comprehensive and collision policies.
If two insurance quotes are very similar, you might have a tough time deciding which company to go with. One way of reaching a decision is to see if you can switch any additional insurance policies over like homeowner’s or renter’s insurance to receive a multi-policy discount. Another tip might be asking your friends or family if they have a preference for either insurance company.
Word of mouth is consistently one of the best forms of marketing. If you do not know anybody personally that has coverage with either company, you can also look at online reviews. Note that these can be a little tough to cipher as most people either love or hate their insurance company.
Your current provider might still be your cheapest option. If so, there are several ways to reduce your car insurance premiums.
Shopping For the Best Deals On Car Insurance
Out of all the insurance companies, there is not a single company that is always the cheapest. Every person has a different driving record and vehicle(s). Plus, each company treats this information in their own manner. Switching to a particular insurance company might save somebody hundreds of dollars and cost the next person a few extra dollars a month. For this reason alone, it pays to shop around to find the best deals on car insurance.
Just because one person didn’t get a good deal doesn’t mean you won’t either. The important thing about insurance is that you do not want to cut too many financial corners. The best deals on car insurance are the ones you never have to use. They also don’t cost a lot of money. You want to make sure there is good coverage and customer service in the event you do need it.