How to Shop & Compare Auto Insurance
- 1). Consider your personal driving habits and overall vehicle usage. Important factors to keep in mind include daily travel distances and the number of drivers who use the vehicle. Also, keep in mind the ages of the drivers in the household, even if those drivers do not regularly use the vehicle.
- 2). Create a list of possible discounts you should receive based on your driving record, age, gender, marital status, geographical location, type of vehicle you'll be insuring and credit rating. Insurance providers often provide discounts to married couples, women, parents and drivers age 25 and older. Your credit score may also determine the cost of your premiums, as many insurance companies now consider drivers with low-end credit scores as high risk. You may also be eligible for a discount if you plan to insure more than one car on your policy.
- 3). Learn about the required coverage in your area. Car insurance requirements vary in each state, and knowing your state's laws helps you make an educated decision about the type of coverage that is best for your driving needs. Many states may not require drivers to have liability coverage, or their liability coverage requirements are so low it doesn't cover the cost of injuries sustained by someone else injured in an accident of which you are at fault. According to Edmunds.com, the recommended coverage allowance for bodily injury liability is 100/300. For customers who have few assets that could be taken by an injured party during a lawsuit, the state's minimum coverage requirement may be enough.
- 4). Research each different auto insurance company you are considering. Look at both the overall coverage and the prices they offer, and spend time reviewing customer feedback about each company. Customer satisfaction plays a huge role in determining the value of service provided by the company, but don't rely on testimonials posted on the insurance company's website. Research online forums and customer complaint registries for feedback provided by actual people who've used the different companies you are considering.
- 5). Compare rates with an online search tool like NetQuote, CarInsurance.com and BankRate.com. Type in the information about your potential policy, including your age, region and the make and model of your vehicle. You may be required to sign up for an account and log in to use the company's free services. Remember that the information you receive are quotes based on the information you provides and not an accurate rate. You can only receive an accurate rate when you contact the insurance provider and give all of your information.
- 6). Contact several insurance companies that offer the coverage you require at a reasonable price. Let them know that you are shopping around and aren't ready to sign a policy just yet. Sometimes, upon hearing that you are shopping around, companies may offer further discounts to help draw you in.
- 7). Ask each company about its payment policy. Many insurance providers offer customers a discount if they pay their premiums in full, but they are also willing to offer a monthly payment plan for those who can't afford the full amount at the time the policy is drafted.
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