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How to Compare Car Insurance Quotes

Whether you’re cruising around in a sleek electric car or you’re the proud owner of a minivan, having the right car insurance is key to protecting you, your loved ones and the vehicle itself.

When you compare car insurance quotes, there’s more to consider than just price. Also weigh how well the companies handle claims, along with their coverage options, and how well their customer service matches your preferences and priorities.

What’s needed to obtain insurance quotes

Car insurance quotes are estimates of how much your desired insurance and coverage limits would cost with a specific company. Based on the policy preferences you identify, they give you an idea of how much you’ll pay.

To get a quote from an auto insurance company, you’ll need to provide the following details:

  • Drivers: The insurers will ask for details on every driver who may get behind the wheel. You’ll need to provide the drivers’ birthdates and driver’s license numbers. The company will use this information to pull the driving history for each person.
  • Car information: Next, furnish the details about the cars you want to insure. If you have at hand the vehicle identification numbers (VINs), filing those with the insurer can simplify the process. Without it, you’ll have to provide each car’s year, make and model, along with whether it is owned, leased or financed.
  • Location: Your auto insurance rates are partially based on your vehicle’s location, so the insurance company will ask for your address. 
  • Usage: How often you drive and how many miles you cover impacts your premiums. The company may also prompt you to enter details about your commute, like its length, time of day and how many days a week you drive it.
  • Desired coverage: When you request quotes, you can adjust the coverages. For a new car or more expensive vehicle, you'll likely want a full coverage policy that includes bodily injury liability, property damage liability, collision coverage and collision/comprehensive coverage. (If you financed your car, your lender will likely require you to maintain a full coverage policy, anyway.) With older or high-mileage cars, you can save money by dropping the optional protections and opting only for liability coverage. 
  • Add-ons: If you need any other options, such as guaranteed asset protection (GAP), underinsured/uninsured motorist protection (which may be required, depending on your state) or roadside assistance, you can also add those coverages, too.
  • Deductible: If you have a collision or comprehensive claim, you'll have to pay a deductible – an amount of money you're responsible for before your insurer starts covering the cost of repairs or damages. In general, a lower deductible will cause you to pay higher premiums, but you'll have lower out-of-pocket costs if you have a claim.

What to do to compare car insurance rates

Once you have that information together, you’ll have to determine the car insurance you need, based on state requirements and your budget and preferences. Then you’re ready to request quotes from insurance companies. Follow these steps to get through the process: 

1. Reach out to at least three companies

If you've had a good experience with your current insurer, you can keep them in the mix and request quotes from two other companies. Some companies allow you to get quotes online, while others require you to work with a representative, in person or on the phone. 

2. Research factors other than insurance rates

While price is likely a major consideration, it's not the only one to consider; the cheapest car insurance isn't always the best fit. When you compare car insurance quotes, consider the following details: 

  • Customer satisfaction ratings: You can look up customer reviews on sites like Trustpilot, and also view J.D. Power's Auto Claims Satisfaction Study to see how major companies perform in terms of customer satisfaction. 
  • Claims handling: If you're in a car accident, you want to know that the insurance company will be there for you and handle your claim quickly and smoothly. You can get information on how well companies handle claims by viewing The Crash Network's Insurer Report Card. This report card surveys mechanics and body shops on their experiences with insurers as they handle repairs. 
  • Optional benefits: Not all companies offer add-ons or optional benefits, but some insurers have perks like roadside assistance, GAP insurance and rental car reimbursement. 
  • Discount programs: Many car insurance companies have discount programs you can use to make your auto policy more affordable. Common discounts include multipolicy, multivehicle, paid-in-full, and reductions for driving safely for a number of years or taking a defensive driving course. If you have a teen driver in the household, a company that offers discounts for taking a safe driving course and maintaining good grades can be particularly helpful.

3. Consider the ways you can access your insurer

Think about how you like to manage your coverage and best get in touch with your insurer. If you prefer a digital experience, pay particular attention to each company's online tools and mobile app, including if they maintain a chat function and whether they allow you to file a claim online or through the app. 

If you prefer more traditional contact with your insurer, such as by phone, closely consider customer experience rankings from J.D. Power and elsewhere – and gather quotes and pose questions in a phone call to the company, to assess its phone support for yourself.

How and why insurance quotes can differ 

As you compare car insurance quotes, you'll likely see significant variations in price for the same coverage levels and deductible amounts. The pricing differences in car insurance rates are due to several factors: 

  • Formulas: Each company has its own formula or algorithm to determine how much to charge any particular driver for insurance. Insurers vary in how they weigh certain factors. For example, some may give more significant price reductions for vehicle safety features than do competitors, causing you to have a lower car insurance premium. 
  • Credit: Many insurance companies use credit-based insurance scores as a risk indicator to determine rates. These scores are typically based on factors such as payment history, length of credit history, amount of outstanding debt and types of credit in use. 
  • Bundle discounts: If you have other forms of coverage with one insurer, such as homeowners insurance, that insurer may give you a discount if you bundle that insurance type with your auto coverage. (Bundles that include life insurance are also available, but less often than those comprising car and home insurance.)
  • Safe driver discounts: Some insurers offer discounts if you’re accident-free or complete an approved defensive driving course. 
  • Loyalty discounts: If you stick with one insurance provider for a specific period, such as two years or more, you may be eligible for a loyalty discount. 
  • Telematics: Some insurers offer robust discounts for drivers who opt into their telematics or usage-based insurance (UBI) programs. These programs track your driving and base your premiums on your driving habits.

Decide whether to change your car insurance 

After the work of gathering and comparing car insurance quotes, it’s entirely possible that you’ll stay with your current insurer. If you do, you’ll enjoy peace-of-mind from confirming that the company you already have is indeed the best choice for you – and you may even have identified improvements to your current coverage in the process. 

If another provider appears to offer a better option, though, resist letting the process of changing companies deter you from doing what makes sense. Switching your car insurance to another company is a relatively painless process, and one that insurers are accustomed to, so you shouldn’t encounter unpleasant pushback from the company you’ve decided to leave behind.

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This story was created in partnership with Money.com.
 

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