Car Insurance

COMPARE AUTO INSURANCE RATE QUOTES!

Compare Car Insurance Rate Quotes

Choosing the right car insurance can be tough, but using our simple car insurance rate comparison tool helps you save time and money! Enter your zip code to get car insurance quotes.

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According to statistics, many policyholders are still not aware of how fast they could check the competitiveness of renewal terms. Around seventy percent of them never search for better offers and quite a few of them have been renewing with the same carrier for a few years unquestioningly. It is more than likely that most drivers like the idea of staying with a familiar name and change scare them.

Below are the average car insurance costs from 2001-2010.

Year Average expenditure Percent change Year Average expenditure Percent change
2001 $726 5.2% 2006 $818 -1.7%
2002 786 8.3 2007 798 -2.4
2003 830 5.6 2008 791 -0.9
2004 843 1.6 2009 787 -0.5
2005 832 -1.3 2010 791 0.6

Source: ©2012 National Association of Insurance Commissioners (NAIC).

What is Auto Insurance For?

Car insurance protects you against financial loss if you have a car accident. Essentially, you enter into a contract with the insurance company providing you the insurance policy. You agree to pay the monthly insurance premiums and your insurance provider agrees to pay your losses as defined in your insurance policy. Auto insurance typically provides property, liability and medical coverage:

  • Property coverage pays for damage to or theft of your car.
  • Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
  • Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

A car insurance policy is comprised of six different kinds of coverage. Each state has specific requirements for car insurance, so be sure to look up your states auto insurance requirements. If you're financing a car, your lender may also have requirements for the type of insurance you must carry. Most auto policies are for six months to a year and your insurance agent can help with any questions you may regarding your specific policy.

How Can I Save Money On Auto Insurance?

The cost of auto insurance can vary greatly for many different reasons, that is why it is important to compare insurance rate quotes from several different providers. Here are some ways to save money.

1. SHOP AROUND

Prices vary from company to company, so it pays to shop around. Get at least three rate quotes. Contact your state insurance department to find out whether they provide information on consumer complaints by company. Pick an agent or company representative that takes the time to answer your questions.

2. BEFORE YOU BUY A CAR, COMPARE INSURANCE COSTS

Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the car’s price, 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 injuries or theft.

3. ASK FOR HIGHER DEDUCTIBLES

Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.

4. REDUCE COVERAGE ON OLDER CARS

Consider dropping collision and/or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. You can look up car values online at Kelley’s Blue Book (www.kbb.com).

5. BUY YOUR HOMEOWNERS AND AUTO COVERAGE FROM THE SAME INSURER

Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-time customers. But it still makes sense to shop around! 

6. MAINTAIN A GOOD CREDIT RECORD

Establishing a solid credit history can cut your insurance costs. Most insurers use credit information to price auto insurance policies. Research shows that people who effectively manage their credit have fewer claims.

7. TAKE ADVANTAGE OF LOW MILEAGE DISCOUNTS

Some companies offer discounts to motorists who drive a lower than average number of miles per year. Low mileage discounts can also apply to drivers who car pool to work.

8. ASK ABOUT GROUP INSURANCE

Some companies offer reductions to drivers who get insurance through a group plan from their employers, through professional, business and alumni groups or from other associations. Ask your employer and inquire with groups or clubs you are a member of to see if this is possible.

9. SEEK OUT OTHER DISCOUNTS

Companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who is a good student, has taken a drivers education course or is away at college without a car, you may also qualify for a lower rate.

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