Compare Car Insurance Rates: Find the Best Deals
NerdWallet's team looked at over 1.5 billion auto insurance rates from more than 700 companies in 29,000+ U.S. cities1. This shows how vital it is to compare car insurance rates to get the best deal for your needs and budget.
On average, 20-year-olds pay $3,647 a year for full coverage and $1,035 for minimum coverage1. But, 30-year-olds pay about $1,822 a year for full coverage1. Rates can change a lot between insurers. For example, Geico gives the cheapest full coverage to 20-year-olds at $2,454 a year1. USAA offers the lowest minimum coverage at $641 a year1. Experian Insurance Services® lets users compare rates from over 40 top insurers, offering savings and refunds on previous plans2.
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Where you live also affects car insurance rates. Hawaii has the lowest median full coverage rate for 20-year-olds at $1,610, and the cheapest median minimum coverage at $4911. But, Florida and Louisiana have the highest rates for 18-year-olds, costing $9,018 and $9,484 a year, respectively3.
To get accurate auto insurance quotes, you need to share personal info, vehicle details, driving history, and your current or previous insurer's name. By comparing rates from different providers, you could save hundreds of dollars a year on your insurance.
Key Takeaways
- Comparing car insurance rates from multiple insurers can lead to significant savings on annual premiums.
- Rates vary considerably based on age, location, and insurer, with younger drivers typically paying higher premiums.
- Geico and USAA offer some of the cheapest rates for young drivers, while Hawaii has the lowest median rates for 20-year-olds.
- Online comparison tools like Experian Insurance Services® allow users to compare rates from over 40 top insurers.
- Providing accurate personal, vehicle, and driving history information is crucial for obtaining the most precise auto insurance quotes.
Why Comparing Car Insurance Rates Matters
Finding the best auto insurance deals is key to getting coverage that fits your budget. The cheapest and most expensive options can differ by hundreds of dollars a year4. By comparing rates, you can find affordable insurance that suits your needs without spending too much.
Insurers look at many things like age, credit score, and driving history to set prices4. The type of car and where it's parked also affects rates5. Each company has its own way of figuring out prices, so the same driver might pay different amounts at different insurers.
By comparing rates, you can find the best deal for you. Bad credit can raise premiums by up to 103% for standard coverage and 140% for minimum4. Accidents and traffic tickets also lead to higher costs6. Shopping around helps you find the insurer that offers the best rates for your situation.
Among surveyed insurance customers, nearly half prioritize cost and discounts when choosing a provider4.
It's important to compare costs with the same deductibles, limits, and coverages for a fair look5. Look at customer service, reputation, and ratings too to find the best value5.
Checking your coverage and discounts with your insurance agent regularly can keep your insurance up-to-date and affordable5. Discounts like bundling policies and safe driver rewards can lower your premiums5.
Comparing car insurance rates is crucial for finding affordable and comprehensive coverage. Spending time to get quotes and look at your options can save you money and ensure you're well protected on the road.
How to Gather Your Information for Accurate Quotes
To get accurate car insurance quotes, you need to give insurers all the details about you, your car, and your driving history. They look at your driving history, any violations, accidents, and your car's details to figure out how risky you and your car are7. Having all your info ready can make getting quotes easier and help you find the best rates.
Personal Information
You'll need to give personal info for everyone on the policy. This includes:
- Full name
- Date of birth
- Address
- Occupation
- Driver's license number
- Marital status
Things like your age and gender can change how much you pay for insurance, but rules on this vary by state8. For example, Hawaii and Massachusetts don't let insurers use age to set rates. California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania don't use gender either8.
Vehicle Information
Insurers want to know a lot about each car you want to insure. Be ready to share:
- Make, model, and year
- Vehicle Identification Number (VIN)
- Date of purchase
- Current mileage
- Vehicle usage (commuting, pleasure, business)
- Estimated annual mileage
The car you drive can really affect your insurance costs. Some cars are seen as riskier because they're more likely to be stolen, have fewer safety features, or cost more to fix7.
Driving History
Your driving history is key to your insurance rates. Insurers will look at your driving history, including:
- All claims, violations, and tickets from the past three to five years
- Completed driving courses or defensive driving classes
- License suspensions or revocations
If you've had a lot of accidents or tickets, you're seen as a higher risk and might pay more for insurance8. A clean driving record can help you get lower rates, so it's important to drive safely.
Current or Previous Insurer's Name
When you're comparing rates, insurers might ask for your current or past insurer's name. This helps them see your insurance history and if you've had any gaps in coverage. Keeping your insurance active shows you're responsible and might get you discounts with some companies.
By having all your personal, car, and driving info ready, you can make sure you get accurate quotes that fit your needs and risk level. Remember, different companies might offer different rates based on how they see your risk, so it's smart to compare quotes from several providers7.
Choosing the Right Liability Limits for Your Needs
When looking at car insurance rates, picking the right liability limits is key. These limits protect your assets and meet your state's minimum coverage. Liability insurance covers damages and injuries you might cause in an accident. Picking the right limits helps protect your money.
Understanding Your State's Minimum Requirements
Every state requires a minimum amount of car insurance to drive legally. This should be part of your insurance quote. The usual minimum limits are $25,000 per person and $50,000 per accident for bodily injury, and $25,000 for property damage9. But, these limits vary by state; for example, in California, it's $15,000 per person for bodily injury and $30,000 per accident for property damage9. Make sure you know your state's specific rules to follow the law.
Protecting Your Assets with Higher Limits
Meeting state minimums is a must, but it's wise to choose higher liability limits for asset protection. The National Association of Insurance Commissioners suggests having enough insurance to follow state laws, satisfy your lender, and protect your assets9. It's common to aim for $100,000 per person for bodily injury liability, $300,000 per accident for bodily injury liability, and $100,000 for property damage9.
The National Safety Council found the average cost of a crash causing non-disabling injuries was over $40,000 in 202110. It's important to tailor your coverage to your net worth. This ensures your insurance can cover the full cost of an accident, protecting your assets10. For instance, if your net worth is $90,000, consider a policy like $50,000/$100,000/$50,00011.
About 1 in 8 drivers don't have car insurance, according to 2019 data from the Insurance Research Council10. This shows why having uninsured motorist coverage is crucial. With 57% of Progressive customers choosing more bodily injury coverage and 61% opting for higher property damage coverage, many drivers value asset protection11.
When comparing car insurance rates, think about your unique situation and assets to find the right liability limits. Choosing limits above state minimums and matching them with your net worth ensures you're well-protected and at ease on the road.
Determining If You Need Full Coverage
Do you need full coverage car insurance? The average cost for full coverage is $1,765 a year12. This type of insurance includes liability, comprehensive, collision, uninsured/underinsured motorist protection, and state-mandated coverage12.
Comprehensive and collision coverage are key parts of full coverage insurance. They cover most damage to your car after an accident, no matter who was at fault. You'll need to pay a deductible first. The suggested deductible for comprehensive is $250, and for collision, it's $50013.
If you have a car loan or lease, your lender will want you to have full coverage insurance. MoneyGeek suggests full coverage over liability-only if your car is not very valuable14. Full coverage costs more than the minimum insurance required by your state12.
But, if your car is old and not worth much, you might not need full coverage. Many things affect insurance costs, like your age, gender, marital status, driving record, where you live, credit score, insurance history, and the car's features12. Sports cars often cost more to insure because they're more likely to be in accidents from speeding12.
Think about your car's value and if you could afford to replace it if it got totaled. Insurance rates change based on your age, driving history, claims history, and where you live14. To get the best deal, compare rates from at least three insurance companies to find the cheapest policy for you12.
Where to Compare Car Insurance Rates
When looking for the best car insurance rates, it's key to check out quotes from several providers. The price difference between the cheapest and priciest car insurance can be hundreds of dollars a year4. With full coverage costing an average of $2,348 and minimum coverage at $639 in September 202415, shopping around can save you a lot. Here are three ways to find the best car insurance rates:
Online Comparison Tools
Car insurance quote marketplaces are a quick way to get several quotes at once4. You enter your details once and get quotes from many insurers. But, not all insurers are part of these marketplaces, so you might miss some options.
Direct Insurer Websites
Checking individual insurers' websites is another option. This lets you see rates from insurers not in marketplaces. But, it takes more time since you have to fill out each website separately.
Independent Insurance Agents
Using an independent insurance agent might be the quickest way to compare rates. They can get quotes from many insurers for you, helping you find the best match for your needs15. Just remember, these agents work with certain insurers and might not have quotes from all big companies.
Experts say to get quotes with the same coverage limits from at least three companies15. This ensures you're comparing fairly and helps you find the best rates for your situation.
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By trying these options and comparing rates, you can find affordable coverage that suits your needs. Remember, your age, credit score, location, and driving history can change your premiums4. So, give accurate info to get the best quotes.
Factors That Impact Your Car Insurance Rates
When looking for car insurance, knowing what affects your rates is key. Understanding these factors can help you save money. You can make better choices with this knowledge.
Age and Driving Experience
Your age and how long you've been driving matter a lot for insurance costs. Drivers under 25 often pay more because they're newer to the road16. Those 70 and older usually pay about $2,495 a year for full coverage16. Men usually pay more because they take more risks and get into accidents more often17. Women, on the other hand, tend to pay less16.
Driving Record and Claims History
Your driving history, like accidents and tickets, changes your insurance rates. A speeding ticket can raise your rates by $554 a year, and an accident can increase them by $91017. These incidents can stay on your record for three to five years, making your premiums go up17.
Vehicle Make, Model, and Age
The car you drive also changes your insurance rates. On average, Dodge cars cost the most to insure, while Mazda is the cheapest17. The specifics of your car, like its make, model, and type, affect your insurance costs16.
Credit Score
In some places, your credit score helps set your insurance rates. If your credit is poor, you might pay about 69% more for insurance16. But, in states like California and Michigan, credit scores don't matter for insurance17.
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Other things that can change your insurance rates include if you're married or not, and the insurance options you choose1716. There are different insurance choices beyond the minimum state requirements17.
Compare Car Insurance Rates by Age Group
Age is a big factor in how much you pay for car insurance. Young drivers, especially those under 25, are seen as higher risk because they're less experienced and more likely to have accidents18. This makes car insurance very expensive for 16-year-olds, costing about $632 a month or $7,581 a year19. In fact, 18-year-olds pay the highest premiums among all ages20.
But the good news is, insurance rates go down as you get older and gain more driving experience. For example, 25-year-olds pay about $195 a month or $2,336 a year19. By 35, the average cost drops to $167 a month or $2,008 a year19. This trend continues, with 45-year-olds paying $160 a month or $1,923 a year, and 55-year-olds paying $147 a month or $1,767 a year19.
Gender also affects car insurance rates, especially for young drivers. At 18, males pay 15% more than females on average20. But as drivers get older, the difference in premiums between men and women gets smaller20. For instance, a 16-year-old girl can save $495 a year compared to a boy18. By 50, the difference in premiums between men and women is very small20.
Teen drivers are at a higher risk of accidents, with nearly 2,800 teens killed and 227,000 injured in 202019. The CDC says males aged 16-19 are almost twice as likely to die in car accidents as females of the same age, which affects insurance rates18.
While young driver insurance is pricey, rates start to even out in your 30s. However, around age 70, rates start to go up again because older drivers are seen as higher risk20. This creates an upside-down bell curve in car insurance rates by age, with teens and senior driver rates being the most expensive19.
Here's a table comparing average car insurance costs for different age groups:
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It's smart to shop around and compare rates from different insurers, as costs can vary a lot by provider and state19. Some states, like Hawaii and Massachusetts, don't let insurers use age to set premiums20. By knowing how age affects your rates and looking at your options, you can find the best car insurance deal for your needs and budget.
The Cheapest Car Insurance Companies for Various Driver Profiles
Looking for the cheapest car insurance? Your driver profile matters a lot. Rates change a lot based on your age, driving history, and coverage type. For example, good drivers pay about $2,026 a year on average21. But, a speeding ticket can raise rates by 26%, and a DUI by 71%21.
Young Drivers
Young drivers often pay more because they're new to driving. Adding a teen to a parent's policy can almost double the cost21. Yet, some companies offer better deals for young drivers. USAA is the cheapest at $1,240 a year, and Geico is best for full coverage22.
Senior Drivers
As seniors get older, rates go up. They increase by 6% from 60 to 70, and 23% from 70 to 8021. But, some companies are kinder to seniors. USAA is the cheapest at $1,840 a year for full coverage, and Travelers also offers good rates22.
Drivers with Speeding Tickets
After a speeding ticket, rates go up by 26% on average21. But, some companies are more understanding. Military drivers do well with USAA, while others should look at Travelers22.
Drivers with a DUI
A DUI can really hike up your insurance costs, by 71% on average21. Yet, some companies offer better deals for those with a DUI. Travelers is the cheapest at $2,345 a year for full coverage22.
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Remember, these are just trends. Your rates might be different. Bankrate's team looked at rates and other factors to find affordable policies with good ratings23. By comparing rates and considering your profile, you can find the best deal for you.
How to Get the Best Car Insurance Rates
Looking to save money on car insurance? There are ways to get the best car insurance rates. By making smart choices and taking action, you can lower your insurance premiums without losing coverage.
Keeping a clean driving record is key to lower premiums. Insurers see drivers with accidents or tickets as higher risk, raising your rates15. By driving safely, you show insurers you're responsible. This could lead to insurance discounts and better rates.
Choose a Higher Deductible
Choosing a higher deductible on your comprehensive and collision coverage can help. The deductible is what you pay before insurance kicks in. A higher deductible means you pay more out-of-pocket after a claim, but you get lower premiums.
Bundle Your Policies
Bundling your car insurance with other policies, like homeowners or renters, can save you money. Many companies offer discounts for bundling. This simplifies insurance and can cut your costs.
Take Advantage of Discounts
Insurers offer many insurance discounts to help you get the best car insurance rates. Common discounts include:
- Safe driver discount for a clean record
- Good student discount for young drivers with good grades
- Vehicle safety features discount for cars with anti-theft devices or safety tech
- Low mileage discount for drivers who don't drive much
Always ask your agent about discounts you might qualify for. Using these insurance discounts can greatly reduce your car insurance premiums and get the best car insurance rates.
"Drivers under 25 or over 70 and those with violations or accidents tend to pay higher premiums based on insurer risk calculations."15
Insurance rates change a lot based on your age, driving history, car type, and where you live3. Young drivers pay more, but those 50 and 60 pay less3. It's important to compare quotes and look for insurance discounts to get the best car insurance rates for you.
The Importance of Regularly Comparing Car Insurance Rates
It's key to check car insurance rates often to make sure you're getting a good deal. Even if you like your current insurer, it's smart to look around for better prices. Car insurance rates can change, so it's good to stay on top of them24. With car insurance costing over $2,000 a year on average, finding the best rates is crucial24.
Try to compare rates once a year or before your policy needs renewal. This is especially true if your life has changed, like adding a new driver to your family. This can raise your insurance by $4,200 to $4,500 a year24. By comparing rates, you can save hundreds on your insurance.
About 39% of drivers in the U.S. never look for cheaper car insurance rates25. But, being in an accident can raise your rates by about 42%, and a speeding ticket can add $4122425. So, it's vital to check rates often to lessen the blow of these increases.
Car insurance companies also look at your credit score to set your rates. Those with poor credit pay an extra $1,246 on average25. Keeping an eye on your credit and comparing rates can lead to cheaper insurance that fits your budget.
Don't forget to look for discounts when comparing car insurance rates. Many companies offer savings for safe driving, young drivers, and good students, with discounts up to 30%26. Using these discounts and regularly comparing rates can help you save money on your insurance.
"An ounce of prevention is worth a pound of cure." - Benjamin Franklin
This old saying is still true today. Regularly comparing car insurance rates can keep you ahead of rate changes and ensure you're getting the best deal. Don't let laziness cost you; take action and compare rates now.
Conclusion
Looking for the best car insurance deal is key. Start by gathering your personal info, car details, and driving history. This helps you get accurate quotes from different companies. Make sure to pick the right liability limits to protect your stuff and meet your state's laws.
Think about whether you need full coverage, based on your car's value and how much risk you can handle. Online tools like Insurify, Compare.com, and Policygenius make it simple to check rates from many insurers. Insurify works with over 100 companies, and Compare.com with more than 7527. These sites can help you find cheap policies, with some drivers paying as little as $34 a month through Insurify27.
Remember, your age, driving experience, car type, and credit score can change your rates28. To get the best rates, drive safely, pick a higher deductible, combine your policies, and look for discounts. The average monthly cost for full coverage in the U.S. is $196, but it can be lower or higher depending on you28.
By following these tips and using available resources, you can find affordable, comprehensive car insurance. Don't just take the first quote you see. Compare rates and choose the policy that fits your needs and budget best.
FAQ
How much money can I save by comparing car insurance rates?
By shopping around and comparing rates, you could save hundreds of dollars a year. Each insurer has its own pricing method. So, one might be much cheaper than another for the same driver.
How often should I compare car insurance rates?
You should compare rates at least once a year or before renewing your policy. Rates can change over time. Your current insurer might not still offer the best deal. Your situation may also change, like adding a new driver or buying a new car, which affects your rates.
What information do I need to gather for accurate car insurance quotes?
For accurate quotes, gather the following: personal info like address, birth date, job, and driver's license details. Also, collect vehicle info like mileage and purchase date. Don't forget your driving history, including claims, violations, and completed courses. Lastly, include the name of your current or previous insurer.
How do I determine the right liability limits for my car insurance?
Most states require a minimum car insurance amount to legally drive. This should be part of your quote. But, if costs after an accident exceed your limits, you'll pay out of pocket. It's wise to set liability limits high enough to cover your assets.
Do I need full coverage car insurance?
Full coverage includes comprehensive and collision coverage. If you have a car loan or lease, you likely need full coverage. But, if your car is old and not worth much, you might not need it.
What factors impact my car insurance rates?
Your age, driving record, vehicle type, and credit score all impact your insurance rates. Accidents, tickets, and the car you drive also play a role.
Which car insurance companies offer the cheapest rates?
Rates vary by company. For 18-year-olds, Erie offers the cheapest full coverage. USAA gives the lowest rates for minimum coverage to military families. For seniors, Travelers and Nationwide are often the most affordable. Progressive and Farmers offer cheap rates for drivers with tickets or DUIs.
How can I get the best car insurance rates?
For the best rates, keep your driving record clean. Choosing a higher deductible can also lower your premium. Bundling policies can give you a discount. Don't forget to look for other discounts like safe driver, good student, or safety feature discounts.
Source Links
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