With so many insurers and so many options, comparing quotes can feel like a chore. Every company asks slightly different questions, presents its prices differently and uses its own jargon. The good news is that a simple method makes the job much easier and keeps you from comparing apples to oranges.
Step 1: Decide on your coverage first
Before you look at a single price, decide what coverage you want. That means your liability limits, whether you want collision and comprehensive, and any extras such as rental reimbursement or roadside help. Write these choices down and use them for every quote.
Liability limits are usually shown as three numbers. A policy written as 25/50/25 means up to $25,000 per person for injuries, $50,000 per accident for injuries and $25,000 for property damage. Many states set their minimums at or near that level, but a serious accident can easily cost more than that. Consider quoting a higher tier, such as 100/300/100, alongside the minimum so you can see the difference in cost.
Step 2: Match the deductibles
A quote with a higher deductible will look cheaper, but it may cost you more if you have a claim. If one company quotes you with a $1,000 deductible and another with $500, you are not comparing like with like. Make sure the deductibles are the same on collision and comprehensive.
Step 3: Give accurate information
Quotes are only as good as the details behind them. Insurers check your motor vehicle record and your claims history through databases such as CLUE, and many also check credit-based information where the state allows it. If you guess at your mileage, leave out a ticket or forget a driver in the household, the price can change once the company verifies the details. A quote is an estimate until the insurer has checked, and the final price may be higher.
Have your license number, vehicle details, current policy and a rough idea of your yearly mileage ready before you start. It saves time and gives you more accurate numbers.
Step 4: Look beyond the monthly price
The monthly figure is just one number. Compare these as well:
- Any fees added to monthly payments, and what you would pay by card versus bank transfer.
- The total cost for the full policy term, not only one month.
- Discounts included and the conditions for keeping them, such as automatic payments or a minimum term.
- How claims are handled, and what other customers say about the insurer.
- Whether the policy is a six-month or twelve-month term, because that changes the comparison.
Step 5: Check the company, not just the price
A cheap policy is not much use if the company is hard to deal with when you actually need it. You can check a few things for free. Your state’s department of insurance usually publishes consumer complaint information, and the National Association of Insurance Commissioners maintains a complaint index that compares companies to the average for their size. Financial strength ratings from agencies such as AM Best show how likely an insurer is to be able to pay its claims.
None of these tells the whole story, but a company with a poor complaint record or weak financial rating deserves extra scrutiny, even if its price looks attractive.
Where to get quotes
There are three common routes, and each has trade-offs:
- Direct from an insurer’s website or phone line. You see one company’s price at a time, so it takes longer, but you deal with the company directly.
- An independent agent, who can quote several companies for you and explain the differences. Agents are paid by commission, so ask how they are compensated.
- An online comparison tool, which can show several offers from one form. It is quick, but it may not include every insurer, so use it as a starting point rather than the full market.
Using more than one route is often a good idea. Prices for the same driver can differ in surprising ways.
Step 6: Read the fine print before you buy
Once you have narrowed the field, read the declarations page and the main exclusions. Check the policy start date, the named drivers, the vehicles listed and the coverage limits. Confirm that you will receive proof of insurance right away. If anything is unclear, ask before you pay, not after.
Step 7: Take your time, but not too much
Do not rush into the first low price you see. Read the details, ask questions and choose the policy that gives you the right protection at a price you can sustain. At the same time, do not let your current policy run out while you decide. A lapse can cost more than the savings you are chasing, and quotes often expire after a few days to a few weeks.
If you switch, do not cancel your old policy until the new one is active, and make sure you get a refund for any unused premium. Our free comparison form only takes a few minutes to complete.
This article is for general information only and is not insurance, legal or financial advice. Coverage, rules and prices vary by insurer and state.