What is the best way to shop for car or auto insurance?

 best way to shop for car or auto insurance

Insurance Agent at State Farm (2013–present)June 2

What is the best way to shop for car or auto insurance?

One of the most common ways to comparison shop for auto insurance is doing so directly via the insurance company's website. The downside to this option, though, is that you only can view one company's rates.

Expect to compare auto insurance quotes via specific websites more frequently. Lead generation sites oftentimes sell your information, and agencies might not provide you with the entire cost. Only comparison sites give you a free and no-obligation way to save money based on your driver profile and financial needs.

When shopping for car insurance, most insurers require specific pieces of information to calculate your rates. Most companies use the following:

• The date of birth of all drivers on the policy
• Driver's license numbers of all drivers
• Driver's records of all drivers
• Insurance history of all drivers
• Vehicle Identification Number (VIN) of all vehicles
• The address where the vehicle is kept

By taking a few additional steps, you might be able to secure even lower car insurance rates. Some of these steps include the following:

• Raise your deductible. A higher deductible means you will have lower payments. If you have both collision and comprehensive coverage, opt for a higher deductible.
• Install an anti-theft device. Putting in a car security system can lower the chances of your vehicle being stolen.
• Maintain a high credit score. Your credit score plays a role in your rates unless you live in California, Hawaii, Massachusetts, and Michigan. Insurers see a strong credit history as an indicator that you are acting responsibly and will file fewer claims.
• Bundle your insurance policies. Some companies allow you to bundle your auto policy with homeowner's or renter's insurance.
• Take a defensive driving course. Insurers love drivers who have a clean driving record, and taking this course can help you become a better driver.
• Drive less. Being on the road less can reduce your chances of getting into an accident.
• Ask for discounts. Many companies offer different types of discounts. Common ones include deals for members of professional organizations, pay-in-full discounts, good driving discounts, and multi-vehicle discounts.
• Consider local and regional insurers. According to NerdWallet, just four companies (Allstate, GEICO, Progressive, and State Farm) control more than half of the country's auto insurance business. However, smaller insurers such as Auto-Owners and Erie Insurance oftentimes have higher customer satisfaction ratings and lower rates.