Shopping for auto insurance can feel overwhelming with so many companies, coverage options, and pricing variables. But comparing quotes effectively is the single best way to ensure you’re getting the best deal. Drivers who compare quotes save an average of $400 to $600 per year.
Here’s a step-by-step guide to comparing auto insurance quotes like a seasoned professional.
Step 1: Know Your Current Coverage
Before you start shopping, pull out your current policy declarations page. This document lists every coverage type and limit on your policy, along with your premium. Understanding exactly what you have now ensures you’re comparing apples to apples when you get new quotes.
Note your coverage types, limits, and deductibles. Pay attention to any endorsements or add-ons you might have, like roadside assistance or rental car reimbursement.
Step 2: Determine the Right Coverage Levels
Use your current coverage as a starting point, but also assess whether your needs have changed. If you’ve paid down your car loan significantly, you might not need as much collision coverage. If you’ve acquired more assets, you might want to increase your liability limits.
Step 3: Gather Your Information
To get accurate quotes, you’ll need your driver’s license numbers for all drivers, vehicle identification numbers (VINs) for all vehicles, your current insurance policy information, driving history for all drivers, and information about your daily commute and annual mileage. Having this information ready before you start will make the process much smoother.
Step 4: Get Multiple Quotes
Aim for at least five quotes from different insurers. Include a mix of large national companies like State Farm, GEICO, and Progressive, regional companies that may offer competitive rates in your area, direct-to-consumer insurers, and independent agents who can quote multiple companies at once.
Step 5: Compare Beyond Just Price
The cheapest quote isn’t always the best value. Consider the company’s financial strength ratings, customer satisfaction scores and reviews, claims handling reputation, available discounts, ease of filing claims online or via app, and local agent availability if that’s important to you.
Step 6: Ask About Discounts
Once you’ve narrowed your choices, call each company and ask about every available discount. Some discounts are only applied when you specifically ask for them. Be sure to mention any safety features on your vehicle, your occupation, any affiliations with organizations that offer group discounts, and whether you’d be willing to bundle with other policies.
How Often Should You Compare?
Insurance experts recommend comparing quotes at least once a year, and always after major life changes such as moving, getting married, buying a new car, or having a teenager start driving. The market changes constantly, and the cheapest company two years ago may not be the cheapest today.
