find your car insurance
Prices differ from company to company, so it’s worth shopping around.
get at least three quotes, both from different insurance companies and from different types of insurance companies, i.e. those that sell through their own agents; those that sell through independent agents; and those that sell directly to consumers over the phone, an app, or the internet. Ask friends and family for recommendations based on their experiences, and do your own due diligence by researching the company before committing.
Understand enough about auto insurance to be able to ask a potential insurer informed questions. Anyone you talk to should take the time to respond to your satisfaction. remember, these are the people you will trust if the worst happens and you need to file a claim.
Please note that the lowest price is not always the “cheapest” option. Make sure the company you choose is reputable and that you are comfortable with the service you receive from the insurance professionals you speak with. Your state insurance department or online consumer information sites may provide information on consumer complaints by company to help you choose the right insurance company for your needs.
compare insurance costs before buying a car
Car insurance premiums are based in part on the price of the car, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of auto theft or personal injury, or for cars that are known to be safe. When you’re comparing new or used vehicles to buy, also research how much each will cost to insure. To get started, you can check safety ratings for specific models with the Insurance Institute for Highway Safety’s (IIHS) online top safety selection rating tool.
increase your deductible
By choosing a higher deductible on your auto insurance, you can significantly lower your premium costs. Of course, make sure you have enough money set aside to pay the higher deductible in case you have a claim.
reduce optional insurance on your old car
As a general rule of thumb, if your old car is worth less than 10 times the insurance premium, it may not pay to have collision or comprehensive coverage. To find out if this is true for you, check the value of your car. You can look up the value of your car for free on websites like Kelley Blue Book, the National Automobile Dealers Association (NADA), and Barter.
bundle your insurance and/or stay with the same company
Many insurers will give you a discount if you buy two or more types of insurance from them, such as homeowners and auto, or if you have more than one vehicle insured. Some companies offer a price discount to long-term customers. There are no guarantees, so do your homework and compare the costs of a multiple policy discount from a single insurer versus buying your insurance separately from different companies.
maintain a good credit history
Establishing a strong credit history has many benefits, including lower insurance costs. Many insurers use credit information to price auto insurance policies. (Research shows that people who manage their credit effectively make fewer claims.) To make sure you get the good credit you deserve, it’s a good idea to check your credit file regularly to make sure all the information is accurate.
take advantage of low mileage discounts
Some companies offer discounts to motorists who drive less than the average number of miles per year. Low mileage discounts may also apply to drivers who share a ride to work.
ask about group insurance
Some companies offer discounts to drivers who obtain insurance through a group plan from their employers, through professional, business and alumni groups or other associations. check with their affiliated organizations to see what they offer.
look for other discounts
There are other discounts that your insurer may offer to policyholders. For example, some companies offer discounts to those who have had no accidents or traffic violations for a specified period, or who have taken a defensive driving course. If there is a young driver on your policy who is a good student, has taken a driver’s education course, or is in college without a car, they may also qualify for a lower rate.
Ask your insurer what discounts you might qualify for, but keep in mind that it’s the final cost of your policy that matters. a company that offers few discounts may still offer you a lower overall premium price.
- insurance institute for highway safety (iihs), the best safety options ranking tool
- kelley blue book
- national automobile dealers association (none)
Next Steps: When shopping for auto insurance, have this information ready.