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If you look at car insurance premium rates, you can come across many opinions about which company to use and what type of coverage you should receive.
Comparing quotes from different insurance companies is one of the best ways to save money. And it’s not a process that takes hours.
With a minimal investment of time, you can find the best car insurance premiums and policies that are right for you.
How do I get a free auto insurance quote?
Here are two ways to get an auto insurance quote that is always free.
1. Online. Many auto insurance companies offer free auto insurance quotes online.
You can visit several insurance companies’ websites to compare quotes. To save time, use websites that offer quotes from multiple companies.
2. Call or visit. Talk to or visit a local insurance agent who can help you find affordable auto insurance options and calculate the cost of auto insurance.
There are generally two types of insurance agents.
1. A “captive” agent may work for one insurance company and provide quotes only from that insurance company.
2. “Independent” insurance agents may sell policies from multiple insurance companies. You can get quotes from a variety of insurance companies.
Both methods have their pros and cons and there is no law against contacting multiple insurance agents. There’s nothing wrong with getting a quote online and talking to an agent who can help determine your insurance needs and design the policy that’s best for you.
What information do I need to get a car insurance quote? To make the
process go as smoothly as possible, we recommend that you have the following information ready:
Driver’s License. If there are other drivers in the family, their driver’s license information is also required.
Vehicle Identification Number (VIN). The VIN code can usually be found on the driver’s vehicle dashboard or on a sticker on the driver’s door or door frame.
If you haven’t bought a car yet but know what you’re buying, ask the dealer for the VIN. If you haven’t chosen a car yet, you’ll usually get an offer stating the make and model of your car. Runs
times. If you have a car, keep an odometer reading nearby.
What guarantee do you want?
You’ll want to know what type of coverage you want to buy and how much coverage you need. If you are unsure, we recommend that you speak with your insurance agent who can help answer your questions.
: Auto insurance companies collect additional information such as driving records, past auto insurance claims, and (in most states) credit.
What is the cheapest car insurance? An analysis of
cheapest auto insurance policies nationwide found that, on average, USAA offers the cheapest auto insurance quotes.
But USAA auto insurance is only available to active members of the military, veterans and their families.
If you don’t qualify for a policy through USAA, our analysis found that Erie, Geico and State Farm offer competitive rates, based on nationwide averages. It’s still good to get quotes from multiple companies because the cheapest car insurance companies can vary depending on your state, driving record and more.
Compare Car Insurance Rates by Company
USAA
Company
$1,141
Average national rates for good drivers
Compare Car Insurance Rates 2023
Comparing auto insurance quotes is all about gathering options so you can find the best car insurance companies.
Compare car insurance rates:
Compare Car Insurance Rates by Company Not all car insurance price their policies the same.
That’s why it’s so important to compare car insurance quotes from different companies. Here’s a look at the major insurance companies and their average national rates for drivers with a clean driving history (meaning no traffic violations or negligence-related accidents). Compare auto insurance premiums by state Compare auto premiums by state Compare auto insurance premiums by age and gender 2023
Age and gender affect auto insurance rates. Younger, inexperienced drivers pay the most, and you can expect rates to start dropping from the age of 25. Drivers with good driving experience can get the best rates in their 50s and 60s.
It starts to rise again around the age of 65.
According to a survey conducted by Forbes Advisor, most drivers do not like when auto insurance companies use gender in their auto insurance quotes. The majority of drivers (62%) believe that gender should not be considered when calculating car insurance costs. Nearly three-quarters of women (72%) do not apply, compared to 41% of men.
Do you think auto insurance companies should consider driver gender when pricing?
Comparing Auto Insurance Rates by Credit Score Auto insurance companies often use insurance-based credit scores to determine auto insurance quotes. Drivers with bad credit can expect higher interest rates than drivers with good credit. So shopping is important.
Insurance companies say that a person’s creditworthiness is related to their likelihood of filing an insurance claim. Many insurers place a high value on credit-based insurance scores when calculating rates.
Although the use of credit is controversial, drivers seem enthusiastic about the idea. June 2022 Forbes Advisor survey results:
42% of auto insurance customers believe credit should be included in auto insurance rates.
. This is almost double what it was last year, when only 22% in a Forbes Advisor poll approved of the practice.
The use of insurance-based credit scores for auto insurance is prohibited in California, Hawaii, Massachusetts, and Michigan.
Comparison of car insurance premiums by credit rating
Geico
Company
$1,221
Average annual interest rate
43.
30%
Average increase for drivers with poor credit
The table shows the average national rate increase for drivers with poor credit compared to good drivers.
Compare Car Insurance for Drivers with a DUI
A DUI is a costly mistake. Our analysis found that the national average car insurance rate increase for drivers with a DUI is 74%. Here’s a look at rate increases after a DUI among large insurance companies.
Compare Car Insurance for Drivers with a DUI
State Farm
Company
$1,942
Average annual rates with one DUI
38%
Average rate increase after a DUI
Related: Best cheap car insurance after a DUI
Compare Car Insurance Rates for Drivers with an At-Fault Accident
If you cause a car crash, you can expect your car insurance to go up after an accident.
Here’s a look at rate increases for drivers who caused an accident that caused an injury compared to good drivers.
Compare Car Insurance Rates for Drivers with an At-Fault Accident
USAA
Company
$1,676
Average annual rates with one at-fault accident causing injury
50.90%
Average rate increase after one at-fault accident causing injury
Compare Car Insurance Rates for Drivers with a Speeding Ticket
Drivers with a heavy foot can expect car insurance rates to go up after a speeding ticket. Here’s a look at rate increases for drivers with one speeding ticket.
Compare Car Insurance Rates for Drivers with a Speeding Ticket
USAA
Company
$1,190
Average annual rates with one speeding ticket
7.
10%
Average rate increase after a speeding ticket
Compare Car Insurance Rates for Seniors
Geico and USAA have the cheapest car insurance rates for seniors and well below the national annual average for senior drivers of $1,719. The older you get once you hit your senior years, the more you’ll likely pay for car insurance, so it’s vital to get multiple car insurance quotes from other companies to make sure you’re getting the best rates for your coverage.
Compare Car Insurance Rates for Seniors
Geico
Company
$1,021
Average rates for 65-year-old male
$1,044
Average rates for 65-year-old female
Compare Car Insurance Rates for Adding a Teen Driver
Nationwide
Company
55%
Average national rate increase after adding a teen driver
Compare Car Insurance Rates for Adding a Teen Driver
Here’s a look at the national average car insurance rate increases for a married couple that adds a teen driver to a policy with coverage of 100/300/100 and collision and comprehensive insurance.
Related: Best cheap car insurance for teens
What Factors Influence My Car Insurance Quotes?
There are several factors that play a role in car insurance quotes.
The most common pricing factors are:
Driving Record
Drivers without a driving record pay less than drivers with traffic violations and accidents. Insurance companies usually check your driving record for the last three to five years, depending on the state.
Your vehicle
The type of vehicle you have affects your quota. Certain security features (such as airbags and rear-view cameras) and anti-theft features can help reduce car insurance costs.
Your location
Where you live plays an important role in bidding.
For example, drivers in urban areas tend to have more auto insurance claims, which usually results in higher rates.
Your Driving Experience
Young, inexperienced drivers (eg teenagers) pay more than experienced drivers.
Other Pricing Factors
Auto insurance companies often also consider factors such as gender, age, occupation, marital status, home ownership and credit. State law sometimes prohibits the use of certain elements. For example, California, Hawaii, Massachusetts, and Michigan prohibit the use of credit scores for auto insurance quotes.
Other Drivers on Your
Policy If you have other drivers in your household, their driving records will affect your rates. For example, be prepared for a significant increase in car insurance premiums if you add a teenage driver to your policy.
How to choose the right coating type?
The type of coverage you choose and the amount of coverage have a huge impact on the cost of auto insurance. But don’t dwell on the price and don’t skimp on the coverage you need.
Not getting enough insurance can leave gaps in your coverage that can cause serious financial problems if you get into a car accident.
Your goal is to find the best coverage for your specific situation at the best price. Here are some common types of coverage to consider.
Automobile Liability Insurance
Automobile Liability Insurance is a mandatory insurance that compensates for medical expenses and property damage of others in the event of a traffic accident caused by one’s fault. It also pays for legal defense if you are sued for a car accident.
All states except New Hampshire and Virginia require a minimum amount of auto liability insurance, but it’s best to buy more than you need. This is because the minimum amount is often completely insufficient to cover medical bills and property damage in the event of a major accident.
If your policy limits are too low, you may have to pay the rest yourself. A good rule of thumb is to have enough liability insurance to cover your net worth or any amount you may lose in a lawsuit.
A great way to add liability insurance to your car insurance is to buy umbrella insurance.
You may have heard the term “full coverage car insurance.” This typically refers to an insurance policy that includes liability, collision and comprehensive insurance.
Collision and Comprehensive Insurance
Collision and comprehensive insurance pay for repairs to your car for a variety of problems, such as car accidents (regardless of fault), car theft, vandalism, fires, floods, falling objects (like tree branches) and collisions with animals.
While collision and comprehensive coverage are often sold together, you can purchase them individually. For example, if you only want coverage for problems like theft and floods, you can get a car insurance quote for comprehensive insurance without collision.
Just keep in mind that buying one without the other can leave you with a significant coverage gap. For example, if you back into a pole, you need collision coverage to pay for repairs.
If you have a car loan or lease, you’re likely required to carry both anyway.
Uninsured and Underinsured Motorist Coverage
Uninsured and underinsured motorist coverage pays for medical bills and other expenses like lost wages when you are in a car accident caused by someone who doesn’t carry liability insurance, or who does not carry enough liability insurance to cover all your medical bills.
Some states require that car owners have uninsured motorist insurance.
Medical Expenses Coverage
This type of coverage varies by state, but generally it covers medical bills and other types of expenses (such as lost wages) if you or your passengers are injured in a car accident, no matter who caused it.
Some states require personal injury protection insurance (PIP) as part of their “no-fault” auto insurance systems.
Other Car Insurance Coverage Types
You’ll generally find several options beyond the basics when you compare car insurance quotes. These types can help you fill coverage gaps if you want to pay the extra money:
Gap insurance. If your car is totaled or stolen and the vehicle’s value is less than the amount you own on a car loan or lease, this coverage pays the “gap” between the insurance check and what you owe.
Car insurance with rent rebate. This covers the cost of renting a car while it is being repaired for accident insurance coverage. However, the daily limit may be low, so check if you need it.
Roadside Assistance Insurance. If you get stuck on the side of the road, roadside coverage pays for towing, starting an engine with a dead battery, gas for an empty tank, and a locksmith if you can lock your car with a key.
You may be able to find a better deal on roadside assistance elsewhere, such as an auto club.
How to Compare Car Insurance Quotes Many Drivers Don’t Know That Car Insurance Quotes are Free
One potential barrier to consumers shopping for coverage is the misbelief that getting quotes costs money. About a quarter (27%) of respondents said that getting car insurance quotes costs money either some of the time or all of the time according to a recent survey by Forbes Advisor. It doesn’t.
More men than women incorrectly thought you have to pay to get car insurance quotes:
Half (50%) of men surveyed said they thought you have to pay at least some of the time to get quotes compared to just 16% of women
61% of women correctly said you typically don’t have to pay to get car insurance quotes.
Only 36% of men knew that.
Here are tips for comparing car insurance quotes:
Here are tips for comparing car insurance quotes:
Determine how much coverage you need
Assess whether it makes sense to buy more than your state-mandated minimum liability requirements—in nearly all cases it does as low limits can be exceeded by even minor accidents. Decide if you want comprehensive and collision coverage to cover your own car, and choose a deductible amount.
Research customer service
Review customer satisfaction ratings so you can find an insurance company that will be responsive if you have to file a claim and that can help you identify the best coverage options for your needs.
Check coverage options and discounts
Make sure the companies you’re considering provide coverage options and price breaks that match your driver profile.
For example, if you want pet injury coverage included and the option to have a usage-based plan or accident forgiveness, check to see if these are offered. If you have a teen driver and work from home, a company with good student and low-mileage discounts is worth considering.
Shop identical coverage amounts
Compare car insurance quotes for the exact same coverage amount to be sure you’re getting an equitable comparison. Check out multiple insurers for pricing.
Methodology
To determine average national rates, we averaged the rate increase in each state among large insurers for drivers with liability coverage of $100,000 bodily injury per person, $300,000 bodily injury per accident and $100,000 for property damage (100/300/100), and collision and comprehensive insurance.