In this guide, we’ll walk you through how to shop auto insurance the right way, so you can get the best deal without sacrificing the coverage you need.
Steps to Shop Auto Insurance
The best way to shop auto insurance is to compare coverage and pricing from different providers. Follow these simple steps to get started:
1. Understand Your Coverage Options
The type of coverage you choose affects your insurance rate and the protection you get. Here are the main options:
- Liability Coverage – Covers damages and injuries you cause to others. This is usually the minimum required by law.
- Comprehensive Coverage – Protects against theft, vandalism, natural disasters, and other non-collision incidents.
- Collision Coverage – Pays for repairs or replacement if your car is damaged in an accident.
- Uninsured/Underinsured Motorist Coverage – Helps if you’re hit by a driver with little or no insurance.
If you lease or finance your car, your lender may require comprehensive and collision coverage. Even if you own your car outright, these coverages can save you from high out-of-pocket expenses if your car is damaged.
2. Choose Your Coverage Limits
A coverage limit is the maximum amount your insurance will pay for a claim. Each type of coverage has its own limits.
- Liability Limits – Choosing only the state-required minimum might save money upfront, but it may not be enough in a serious accident.
- Uninsured/Underinsured Motorist Coverage – Helps cover costs if the at-fault driver doesn’t have enough insurance.
If you’re unsure how high to set your limits, consider using an auto insurance calculator to estimate your needs.
3. Select the Right Deductible
Your deductible is the amount you pay out of pocket before your insurance covers the rest.
- A higher deductible lowers your monthly premium but means you’ll pay more in case of a claim.
- A lower deductible increases your monthly payment but reduces out-of-pocket costs if you need repairs.
Make sure your deductible is an amount you can afford in case of an emergency.
4. Compare Auto Insurance Quotes
Once you know what coverage you need, it’s time to compare insurance quotes. Your auto insurance premium is the amount you pay for your policy, either monthly, every six months, or annually.
When comparing quotes:
- Ensure each quote includes the same coverage, limits, and deductibles to get an accurate comparison.
- Look beyond just price—customer service, claims process, and available discounts matter too.
- Some insurers offer lower rates for safe drivers, multi-car policies, or bundling home and auto insurance together.
A cheaper policy isn’t always the best choice—look for a balance between affordability and the protection you need.
When to Shop for Auto Insurance
It’s a good idea to shop auto insurance at least once a year since rates change frequently. Here are some key times to compare rates:
- Your policy is about to renew – Check if you can find a better deal before automatically renewing.
- You’re adding a teenager to your policy – Insuring young drivers can be expensive, but some companies offer discounts.
- Your driving record improves – If past accidents or tickets have dropped off your record, you might qualify for a lower rate.
- You move to a new location – Where you live affects your premium, so check if you can get a better deal in your new area.
If you find a better rate, switching is easy. Your current insurer will refund any unused portion of your policy once you cancel—just be sure your new coverage is active first.
What You Need to Get a Car Insurance Quote
Before you start shopping for auto insurance, gather some basic details to get an accurate quote:
- Your car’s make, model, and year – Some insurers offer discounts for safer or newer vehicles.
- Your driving history – Honest details about past tickets or accidents ensure an accurate quote.
- Your car’s mileage – Some companies offer lower rates if you drive less.
- Personal details – You may need your driver’s license number, vehicle identification number (VIN), and Social Security number to finalize your policy.
With this information ready, you can get quotes online, over the phone, or through an insurance agent. Online shopping is usually the fastest way to compare rates, but an agent can help if you want guidance.
How to Maximize Auto Insurance Discounts
Many insurance companies offer discounts that can help lower your premium. Here are some common ways to save:
- Multi-policy discount – Bundling auto insurance with home, renters, or life insurance can lead to big savings.
- Multi-car discount – Insuring more than one vehicle under the same policy often lowers costs.
- Safe driver discount – Some insurers reward accident-free drivers with lower rates.
- Usage-based insurance – Programs like Progressive’s Snapshot® track your driving habits and offer discounts for safe driving.
- Good student discount – If you have a teen driver, look for insurers that offer savings for students with a B average or higher.
When shopping, ask each insurer about available discounts to maximize your savings.
How to Buy Auto Insurance
Once you’ve found the right policy, purchasing coverage is easy. You can shop auto insurance and buy a policy in three main ways:
- Online: Most insurance companies allow you to get a quote, customize your coverage, and purchase a policy directly on their website.
- Over the phone: Call an insurance representative who can walk you through your options and answer any questions.
- Through an agent: If you prefer personal assistance, an independent agent can compare multiple insurance companies to find the best deal for you.
Final Thoughts
When you shop auto insurance, the goal is to find the right balance between affordability and coverage. Comparing quotes from multiple providers, understanding your coverage options, and taking advantage of discounts can help you get the best deal.
Don’t wait until your policy renews—take a few minutes today to see if you can save!