Compare Car Insurance Rates

The best way to compare car insurance coverage is to get online quotes from multiple companies in order to determine which offers the cheapest premiums for your chosen coverage types and limits. Also, make sure to compare car insurance discounts and read reviews to get a feel for potential customer service issues.

All of that may be easier said than done, however. With that in mind, we'll keep things as simple as possible below, as we guide you through the car insurance comparison process step by step.

Steps to Compare Car Insurance Coverage 

Step One: Understand Your Options

Knowing what types of coverage exist and what your state requires drivers to carry is the first step to being able to confidently compare car insurance coverage. Pay attention to your state's requirements for liability insurance and if they mandate additional coverage like personal injury protection (PIP).

The most common coverage options are: 

• Liability
• Collision
• Comprehensive
• PIP/MedPay
• Uninsured/Underinsured Motorist
• Gap Insurance  
• New Car Replacement

Lenders may require you to have collision and comprehensive insurance even though they are not required by any state laws. Collision and comprehensive are also key components of full coverage insurance.

Step Two: Collect Your Information

In order to request quotes, you'll need specific details about any drivers and vehicles you intend to have on the plan. This includes:

• Driver names, dates of birth, license numbers, and relevant driving history such as recent violations, claims, or accidents
• Vehicle identification numbers (VIN), makes, models and years of all vehicles

Step Three: Pick Companies to Compare

Start with the best or the cheapest insurers in your state. Not all types of coverage are offered by every insurer so be sure to check that they offer the types you're considering buying.

Step Four: Get Quotes 

Once you've found a few companies you might be interested in, determine whether to get quotes online, through a captive agent, or through an independent agent or broker. Don't forget to also look into what discounts are offered by each company.

• Online

Using your driver and vehicle information, request quotes from different companies and see how their coverage options and costs compare. To better understand how coverage options and limits can affect premiums, you can also try requesting several quotes from the same company.

• Captive Agent

Captive agents work for one specific insurance company, but they can guide you through all the details of the coverage options for their company and get you quotes in person or over the phone. They'll be able to answer any questions you may have about policy limits and deductibles to help you compare your options.

• Independent Agent or Broker

Since they don't work for one specific company, independent agents and brokers can discuss coverage options from a variety of companies and give you quotes for each. Like a captive agent, they can answer any questions you may have about specific policy limits and deductible choices to help you compare your options.

Step Five: Consider Reviews

When choosing an insurer, it is important to read reviews from other consumers to understand whether or not the company has good customer service and claims processes. Even if a company has great rates and great coverage options, if they seem difficult to work with, the rates and coverage probably aren't worth it. 

Final Thoughts

It is generally best to purchase as much insurance as you can comfortably afford. That way, you know you'll be financially covered in the event of an accident.

To learn more, check out WalletHub's guides to getting car insurance and comparing car insurance rates.

The best way to get cheaper car insurance is to compare quotes from multiple companies and then switch to whichever insurer offers the coverage you want at the cheapest rate. Other ways to get cheaper car insurance include taking advantage of discounts, improving your driving record, and raising your credit score.

10 Ways to Get Cheaper Car Insurance

1. Compare quotes every 6-12 months.

Every car insurance company calculates premiums slightly differently, so the quote you get from one company can easily be hundreds of dollars more expensive than another company's quote. Getting quotes from multiple insurers every time you need to renew your policy can help you realize if you're overpaying for the same amount of coverage. 

2. Take advantage of discounts.

All major car insurance companies offer a variety of discounts, which can save drivers as much as 35% in some cases. For instance, many insurers offer multi-policy and multi-car discounts, as well as good student and good driver discounts, and more.

3. Increase your deductible.

Raising your deductible will lower your premium, though it's important to choose a deductible amount that you can afford in an emergency. A car insurance deductible is an amount that you have to pay out of pocket before your insurer will cover the rest. Deductibles apply to several types of coverage, including collision and comprehensive insurance.

4. Improve your credit score.

Insurance companies use credit-based insurance scores, where allowed by state law since studies have shown that these scores effectively indicate a driver's likelihood of filing a claim. Given that insurance scores are based on credit report information, raising your credit score can help reduce your rate over time.

5. Consider usage-based insurance.

Usage-based insurance is a type of car insurance that calculates your premium based on your driving habits. Each company's usage-based program varies, but most consider your total mileage, braking, acceleration, and speed. These programs are ideal for safe drivers, especially those who do not use their cars for long commutes or frequent trips. 

6. Choose a car that is inexpensive to insure.

Cars that are particularly fast, powerful, and/or costly to repair are among the most expensive to insure. Insurers also charge higher premiums for cars that are more likely to be stolen. The next time you go car shopping, compare insurance quotes for different models in advance with this in mind. And if your premiums are prohibitively expensive now, consider trading in your vehicle for a car that is cheap to insure.

7. Take a defensive driving course.

In some states, insurance companies are required to give you a discount for completing a defensive driving course. Even where it isn't mandatory, insurers will sometimes provide a discount to encourage customers to improve their driving techniques.

If your insurer does not lower your premium just for taking a course, working on your driving skills will still pay off in the long run and help you keep your record clean. On that note, certain states also allow you to take a course in order to prevent driver's license points from affecting your car insurance rates.

8. Consider your coverage types and amounts.

All the different types of car insurance can make it difficult to determine what exactly is worth paying for. At a minimum, you need to fulfill your state's requirements and also purchase any coverage your lender or lessor requires. But beyond that, you can weigh whether each add-on coverage option is worth the price.

For instance, maybe you should drop uninsured motorist property damage insurance from your policy if you already have collision insurance. Or maybe you don't need rental reimbursement coverage anymore because you could borrow a family member's car if needed.

9. Practice good driving habits.

Moving violations like speeding tickets signal to your insurer that you are a risky driver, as do serious convictions like reckless driving. By driving safely, you can keep yourself safe and your premium low. If you have tickets or at-fault accidents on your driving record already, work on driving carefully from now on, since they will only affect your rate for a few years.

10. Check out local and regional companies.

Large car insurance companies spend billions on advertising every year, but smaller insurers may be able to provide the cheapest premiums in some cases. So, when you're shopping around, make sure to compare quotes from companies of all sizes. You can use WalletHub's cheap car insurance guide as a starting point. Just click on your state to compare the cheapest insurers.

Car insurance premiums are based on drivers' individual risk factors as well as the coverage types and limits they choose. Check out WalletHub's full guide on the factors that affect car insurance rates for more information.

To get car insurance online, you need to find an insurance company that lets you buy a policy without having to talk to an agent on the phone or in person. Companies like Geico, Progressive, Nationwide, and Esurance are known for streamlining online purchases. Other companies prefer to emphasize agent/customer relationships and strongly encourage (or require) purchasing a policy with the help of an agent – State Farm, USAA, American Family, and Allstate, for example.

5 Steps For How To Get Car Insurance Online

1. Find a company that allows you to purchase a policy online. Not every company offering online quotes will allow you to purchase a policy without speaking to an agent.
2. Gather the information you'll need to get car insurance quotes. You will have to provide information about all the drivers and cars you want to include on the policy.
3. Research the coverage levels that are right for your needs. Pay attention to the coverage types, amounts, and deductibles.
4. Compare quotes from at least three different insurance companies. Then, formally apply for insurance online. Remember, your quoted rate isn't a guarantee and may be a little different than your final rate.
5. Pay your premium. You should be able to get approved the day you apply, and you're covered as soon as you pay your premium.

Buying car insurance online requires detailed information about yourself, your car, and other drivers in your household. You'll need names, dates of birth, and driver's license numbers for yourself and all other drivers, along with any relevant driving history, such as moving violations, accidents, or claims filed in the past five years.

You should also have detailed information about the cars you want to add to the policy. You'll need the make, model, year, and Vehicle Identification Number (VIN) for all cars, as well as current mileage. In addition, you'll probably be asked to disclose whether you drive your car for work or personal use and to estimate the number of miles you drive each year, including how many of those miles are driven commuting to work.

In addition, you'll want to do some research on what insurance coverage is right for you. You can't effectively compare prices or policies until you have some sense of what car insurance you need. Consider:

All states have financial responsibility laws, which require you to prove you have enough money to pay for damages in a car accident. Most states expect you to meet that requirement with minimum liability insurance. Liability coverage protects the other driver and their property if you cause an accident.

You'll want to know your state's laws on minimum car insurance coverage, but extra coverage is usually very affordable and a good value. The Insurance Information Institute (iii) suggests liability coverage of $100,000 per person, $300,000 per accident.

Comprehensive and collision are the most common coverage types added to policies. Comprehensive protects against unexpected events like hail, flood damage, vandalism, and theft. Collision covers the cost of repairs to your car after an accident. Some people also add uninsured motorist coverage, personal injury protection, medical payments to others (Med Pay), or gap insurance.

Your deductible is how much you'll pay out of pocket before insurance kicks in after an accident. A higher deductible might make sense if you don't mind paying more out of pocket if something happens. A lower deductible will cost more upfront, but you won't have to spend as much if you wreck your car.

With your personal information organized and a sense of what coverage you need, you're ready to shop! The Insurance Information Institute recommends pricing at least three insurers for comparison. Just make sure each quote has the same coverage types, limits, and deductibles, and remember that the quoted rate isn't necessarily guaranteed. Once you formally apply, the chosen insurance company will confirm information you provided by pulling your credit, driving, and insurance claims histories, which can affect your final rate.

The insurance company that has the highest customer satisfaction is USAA based on a 2021 customer satisfaction study by J.D. Power. Additionally, State Farm, Geico, and The Hartford have very satisfied customers based on user reviews on WalletHub, NAIC ratings, and J.D. Power research.

Car Insurance Companies With High Customer Satisfaction

The National Association of Insurance Commissioners (NAIC) rates insurance companies based on complaints from consumers. Companies with a score above 1.00 have more complaints than the average insurance company of a similar size, while those with a lower score receive fewer complaints.

Just remember that customer service isn't everything. Affordable rates, coverage options, and available discounts are also factors to consider when shopping for car insurance. They will affect your overall satisfaction, too.

To learn more, check out WalletHub's picks for the best car insurance companies.

It can be cheaper to buy car insurance online than through an agent, if you are willing to do the work of understanding and comparing policies. Using an agent can cost you 5% to 20% extra on a new policy in the first year and 2% to 15% every time you renew, according to numerous sources.

There are two kinds of car insurance agents: independent and captive. Independent agents work for themselves and sell car insurance from multiple companies. Their income comes from sales commissions. You will pay these either directly, as a service fee, or indirectly through higher premiums. According to the Independent Insurance Agents & Brokers of America, Inc., independent agents earn 8% to 15% of a new policy's first year premium and 2% to 15% at renewal.

Captive agents work for a single company, offering only that insurer's products. They earn a salary, usually plus commissions. Their initial commissions range from about 5% to 10% of the value of new auto policies that they sell, plus a small percentage at each renewal. This cost is included in your premiums.

Commission costs tend to be higher for independent agents than captive agents. However, an independent agent can comparison shop among multiple insurers to find the best price for the coverage you need. Sometimes, this may be worth the higher commission.

Direct comparison shopping online, with no agent and no commissions, is the cheapest way to buy car insurance. But it takes time and research. As a good rule of thumb, you should get 3-5 quotes. Plus, you'll need to understand the coverage in detail to compare quotes accurately. Look closely at insurance types, protection levels, deductibles, coverage limitations, discounts and any special services. Also read reviews of the companies you're considering to learn from the experiences of other consumers.

If you only want state minimum insurance, buying directly online is probably your cheapest and best method. If your needs are more complex, decide whether getting expert help is worth the extra cost.

WalletHub is the best car insurance comparison site because it's simple to use, includes both regional and national insurers, and has great reviews from consumers, including a 4.7/5 star rating on TrustPilot. WalletHub also allows you to compare key insurer characteristics, like rates, reviews and coverage options.

This might seem a bit biased, but the point of using a car insurance comparison site is to find the best coverage at the cheapest price, and WalletHub helps you do just that.

What the Best Car Insurance Comparison Sites Have in Common

In general, the best car insurance comparison websites and apps give users a wide variety of insurers to compare, and they help simplify the process of finding affordable coverage. Good comparison sites also include additional information about each insurer beyond prices, such as reviews from customers and details about coverage options.

On that note, the Better Business Bureau (BBB) and National Association of Insurance Commissioners (NAIC) are great resources to use alongside WalletHub when comparing insurance companies. They give helpful information regarding an insurer's business practices and history of customer complaints.

Signs of a Bad Car Insurance Comparison Site

Some car insurance comparison sites that you should avoid are known for pushing people to offers from their advertising partners, providing misleading quotes, and offering little information about the insurance companies themselves. As a result, consumers could be missing out on better deals elsewhere, and they might purchase a policy from an insurer that offers lower rates at the expense of a good customer experience.   

To learn more, check out WalletHub's guide to comparing car insurance.

The best way to compare quotes is to have an independent agent run you through their matrix to begin wtih.

Once you have that basic understanding then you can compare those numbers to separate numbers you may get from an online service such as Geico.