est Auto Insurance Companies February 2023
To find the best price for your car insurance, first determine the coverage you need. You want to compare auto insurance quotes between companies for the same level of coverage every time. Here’s how to find the best car insurance.
1. Shop at
. You can’t tell if your car insurance premium is low or high unless you compare prices.
Getting quotes from multiple insurance companies will help you find the cheapest car insurance company.
For example, rates for good drivers in California range from $1,470/year (Wawanes) to $4,979/year (NET) and over $3,500 for the same driver.
You can get an auto insurance quote online or at an auto insurance agent. Independent insurance agents are useful because they can provide quotes from multiple companies. Insurance quotes are always free.
2. Request a discount on
Car insurance discounts are a great way to help you get the best price on your car insurance. Many discounts are automatically locked in when you apply for a policy, but it never hurts to find more discounts when you get a quote or change a policy.
You can reduce your car insurance costs with discounts:
Be a safe driver. If you have a driving record that is free of fines and accidents, you can get good driver discounts, usually between 10% and 40%.
Shop ahead. You may qualify for a discount if you get a quote before your current policy expires. It is best to shop 7-14 days in advance to receive this “pre-purchase discount”.
Payment completed. To save money, pay your car insurance bill upfront instead of making monthly payments.
Transition to paperless. You can get a small discount if you choose paperless invoices and policies. Discounts are usually less than 5%, but they are easy to get.
Merging policies. You can get lower rates by combining your home and car insurance, meaning you buy it from the same company.
According to research, discount rates vary from 6% to 23%.
Multi-Vehicle Insurance. If you have more than one vehicle on the same car insurance policy, you can get a discount on multiple vehicles.
Members of specific organizations. Request a discount based on the association or organization you are a member of, such as a college alumni association or union.
safe driving lessons. If you’re 55 or older, you can usually get a 5% to 10% discount if you hone your skills at an approved driving course. Before taking a particular course, check to see if the discount has been approved by your insurance company.
If you have a teenager or young adult on your insurance, call
Discounted rates for “out-of-school students” who attend college at least 100 miles from home and do not have a vehicle.
Receiving a discount if your young driver completes an approved driver training program.
Asking for discounts is the most popular action taken to reduce car insurance costs, according to a December 2022 Forbes Advisor survey: 45% of car owners have used this tactic. Switching car insurance companies is the second favorite way to cut costs: 27% of car owners have changed auto insurance companies to get a better rate.
Paying a bill in full rather than monthly can also earn you a price break: 21% of those surveyed have paid in full to get lower car insurance prices. If you cannot pay upfront, another way to save is to choose a higher deductible, as 15% of surveyed drivers did.
Have you taken any of the following steps to lower your monthly car insurance premium? (Check all that apply) 3. Choose a higher deductible
The deductible is the amount deducted from your billing check. The higher the deductible, the lower your insurance premiums usually.
accident and comprehensive insurance includes deductibles.
This type of coverage pays for car repairs after an accident or certain events, such as theft or damage caused by bad weather such as hail.
For example, let’s say your car is flooded and the damage is $2,000. If your comprehensive insurance deductible is $500, the insurance company will deduct it from the settlement amount and you will receive a check for $1,500 to cover the cost of repairs. If your deductible is $1,000, your insurance check will be $1,000.
According to Forbes Advisor’s analysis of the cost of auto insurance for various deductibles, increasing your auto insurance deductible can save you between 7% and 28% annually.
A $500 deductible is the most popular choice, but you can choose a higher deductible and lower your car insurance premium. This is because the insurer will pay slightly less if you file a claim when you choose a higher deductible. Our analysis shows that by increasing the deductible from $500 to $1,000, the average savings on auto insurance is 11% per year.
Average Savings for $500 Increase in
Deductible It is recommended that you contact your auto insurance agent for a quote on
deductible ranges. Potential savings will tell you if it’s worth changing something to grow your franchise.
USAA, increasing your deductible from $1,000 to $2,000 would save you only $4 per year. With
Westfield, upgrading your deductible to $1,000 or $2,000 will save you the same amount, or $246 per year, so going down to a $1,000 franchise is a smart decision. If you have a
Allstate, choosing the $2,000 deductible instead of the $1,000 deductible will save you over $280 per year.
: If you decide to go for an upscale franchise, set aside money for that franchise in case you have to file a claim later.
If you own a
car but are retired, use public transit, or don’t drive at all, check out a pay-per-mile car insurance policy.
The pay-per-mile policy consists of two parts: the base monthly rate (which remains the same) and the per-mile rate (which varies). Let’s say the base rate for pay-per-mile insurance is $40 per month and the rate is 5 cents per mile. If you drive 500 miles in a month, your monthly bill is $65 ($40 + 500 miles x $0.05).
5. Ask about usage-based car insurance
Usage-based insurance (UBI) is similar to pay-per-mile in that it tracks your mileage but is quite different otherwise.
UBI is also known as telematics. It collects data on your driving using a device installed in your car or a smartphone app and produces a driving score. Usage-based car insurance programs generally track certain factors such as:
Time of day
How quickly you accelerate
How hard you brake
How you turn corners (if you have “hard-cornering” habits)
Some programs also track the use of your phone while driving.
Usage-based auto insurance programs usually offer an initial enrollment discount and a potential permanent discount based on good driving scores. However, most UBI drivers do not save money because their driving scores are not high enough. This program is best for experienced drivers.