How To Compare Auto Insurance Rates

With the rise of premiums, comparing auto insurance rates will help you find the most cost-effective option. Your car insurance rate is highly personalized by your age, driving history, amount of coverage, and other factors.

When you compare quotes from multiple providers, you can save money while getting the coverage you need. This blog post will discuss ways to compare quotes and weigh if you're getting the most value for your money.

How To Get Free Auto Insurance Quotes

Did you know that you can get car insurance quotes within minutes? Many companies offer personalized auto insurance quotes when you visit their website. Simply fill out their online quote form, and you will receive an estimated quote. If you want to save time, there are comparison sites that make it easy to compare insurance rates side by side. 

Another way is getting a free quote over the phone. You can speak with a local insurance agent who can help you find the best deal. All you need to provide is your personal and vehicle information, including address, Social Security number, vehicle identification number (VIN), and your car's mileage. In some cases, driving history and past auto insurance claims are requested by the agent.

Factors Affecting Auto Insurance Quotes

• Driving History
• Age and Gender
• Credit-Based Insurance Score
• Make and Model of Vehicle
• Location and ZIP Code
• Driving Experience
• Amount of Coverage
• Limits and Deductibles

Ways You Can Compare Auto Insurance Rates

No two auto insurance quotes are the same. Since insurance companies rate clients differently, it’s suggested to compare at least three quotes from different providers. For a more reliable comparison, each car insurance quote should be based on the same amount of coverage, limits, and deductibles. Here are three things to consider when you assess auto insurance rates:

Choose Appropriate Liability Limits

Having full coverage insurance means you have the three main types of car insurance: liability, collision, and comprehensive. Let’s first discuss what the liability insurance portion means. 

Auto liability coverage is required by law in most states. It protects you financially if you’re found responsible for a car accident. Liability coverage will pay for medical bills or repairs to the other party’s vehicle. If your liability limits are too low, you’ll pay out of pocket for the other expenses. 

Most states set minimum liability coverage limits, but it’s a good idea to buy more than what’s required. There’s an option to increase your auto liability limits and have at least as much liability coverage as your net worth. When you choose your auto liability coverage, make sure the limits are the same for every quote.

Set the Same Deductibles

Both collision and comprehensive coverage typically come with a deductible. This is the amount that you need to pay for each claim you make. To lower auto insurance premiums and save money, you can raise your deductible by just a few hundred dollars. The higher deductible, the lower your car insurance rate will be. However, you’ll end up paying higher out-of-pocket costs in the event of a claim.

When comparing insurance rates, the deductibles for collision and comprehensive coverage should be the same for each quote. Speak with your insurance agent if you have questions about how deductibles work.

Decide Whether You Need Full Coverage

There are different types of car insurance coverage that you can purchase depending on your needs. Before requesting quotes, you might want to familiarize yourself with these coverage options. Start with determining your state's minimum coverage requirements. From there, you can customize your auto insurance policy and add optional coverages. The more add-ons you choose, the more comprehensive your car insurance will be.

Learn about the standard and optional coverage for most auto insurance policies. 

Required Car Insurance Coverages

• Auto Liability Coverage
• Property Damage Liability
• Bodily Injury Liability
• Uninsured and Underinsured Motorist Coverage

Optional Car Insurance Coverages

• Collision Coverage
• Comprehensive Coverage
• Medical Payments Coverage (MedPay)
• Personal Injury Protection
• Rental Reimbursement
• Towing and Roadside Assistance
• Gap Insurance Coverage

Key Takeaway

The best auto insurance is the one that’s tailored to fit your unique needs. Local Retirement Group provides you with a wide range of choices when it comes to auto insurance. Finding the right insurance coverage is stressful, but we’re here to guide you from deductibles to low-mileage discounts.  Give us a call today for more details.