Which company has the best rates for auto insurance coverage? No matter which state you live in, if you drive a car, you are going to have to have some sort of insurance for it to cover you and your vehicle in case of an accident. Some states allow for you to show a certificate of financial responsibility or to submit a deposit to the DMV in lieu of purchasing insurance through more traditional means. Those options, however, cost ten or more thousand dollars (depending on what state you live in) and are not affordable for many people. Overall, the most common way for a person to provide coverage for their vehicle is through auto insurance from an insurance company.
Many people wonder which insurance company provides the best rates for auto insurance. This is a very difficult question to answer because there are so many factors that goes into deciding what a rate should be. Read on however, and you will learn many of the things that you need to know in order to get the lowest price possible for your required insurance.
To compare personalized auto insurance quotes online from top car insurance companies then enter your zip code in above to start finding car insurance now!
The Factors that Decide What You Pay for Your Auto Insurance
The first thing that you need to understand is that where you live will affect how much you pay for auto insurance. In some states, the Department of Insurance or the Secretary of Insurance (each state has one or has a similar entity) establishes a base rate for auto insurance, establishing what an insurance company can charge for each level of coverage. In those states, you will find that there is little difference between what each insurance company charges. Most states, however, do not determine how much an insurance company can or cannot charge, which makes the rates in those states more competitive.
Based on state, Arizona, North Dakota and Washington, D.C. all saw the largest rate declines in 2009. However D.C.’s average rate is still around $2700 while Arizona’s is closer to $1450. The annual national average hovers around $1870. So where you live will have as much of an impact as your choice of insurer.
There are quite a few things that will determine the price of your auto insurance. First of all, where you live is a very important factor. It is not just about the state that you live in, but the city, the zip code and even the street that you live on can affect your rates. There are areas that are considered more high risk for drivers and for vehicles in general. Neighborhoods with higher crime rates, especially car theft rates, for example, will see higher rates for auto insurance.
Another thing that is taken into consideration is how much you drive your vehicle. The less you drive the less you will pay for your car insurance. The longer you are on the road the more you are at risk of having an auto accident.
The type of car that you drive will also determine how much you pay for your auto insurance. Many people are under the misconception that if they purchase a new car that they will see lower rates. The problem is, that isn’t true whether your finance the car or purchase it outright with cash. A new car equals a larger cost and a larger cost means that the insurance company will have to fork over more money if you have an accident or your vehicle is stolen. While it is true that if you have numerous safety features on your car you will get a discount, your rates will still be higher for your 2010 Dodge Caravan than for your neighbor’s 2002 Dodge Caravan.
Another thing to consider if you purchase a new vehicle is that if you finance the vehicle you will have to get a comprehensive insurance policy (required by your lender), which is much more expensive than purchasing your state minimums. Even if you don’t finance your car, if you purchase a brand new vehicle, you want to ensure that your coverage is adequate to pay for your car (or other type of vehicle), if you have an accident and it needs to be repaired or replaced.
The age and gender of the drivers in your home is a major factor for the cost of your auto insurance. Girls cost less than boys (just as women cost less than men). Study after study shows that females are better drivers overall. However, teenagers are going to increase your insurance costs significantly and in many states, the costs are going to increase whether you let your child drive your vehicle or not. Many insurance companies will assume that your licensed teen driver will drive your vehicle at one time or another and will charge you accordingly. Many of those costs are 150% or more higher than your current costs.
Other things that are taken into consideration are your driving record (safety pays with auto insurance), your credit score, whether you are married, if you have a college degree (or have some college), what you are using your vehicle for, and how many past claims you have made for your past (or current) automobiles. There are sure to be other factors but these can vary from insurance company to insurance company.
Ways that You Can Decrease Your Car Insurance Premiums
Despite what might seem like bad news when it comes to finding the best car insurance rates, there are ways for you to save money. Every insurance company offers discounts for different things. What these discounts are will vary from company to company and some companies have stringent rules regarding who qualifies for each type of insurance. For example, Progressive offers a good student discount for drivers. If you make As and Bs then you qualify. This applies to students of any age, including adult students. However, many companies stipulate that you have to be under 21 to qualify for this discount.
It is impossible to list all of the discounts available to drivers by insurance companies because there are so many. Some insurance companies have some that are even location specific (for example, being part of certain club). However, there are some common ones that you will see from most providers. They are discounts for: good students, safe drivers, multiple types of policies, multiple car policies, loyalty discounts, and limited driving discounts. When you consider a policy, visit the site of the insurance company you are considering and look for their discounts page.
How to Get the Very Best Auto Insurance Rate
In order to get the very best rate possible, you are going to have to compare the coverage offered by multiple insurance companies. You should compare at least three but five is even better. The easiest way to do this is by using a free quote tool like the one we have at the top of the page.
There are many reasons that a free quote tool offers you the best option. First of all, it is easier. If you were to do an independent search, you would have to fill out questionnaires and forms on every site that you visit, answering the same questions over and over again. With a quote tool you only fill out the information once and it sends it to the different auto insurance companies.
The second reason that a quote tool option is so good is that you won’t have to search for insurance companies that sell auto insurance in your area. You might be surprised to learn that some companies are not licensed in every state. When you use a quote tool you are only quoted prices from your specific area, (which is why the first thing you are asked for is your zip code).
Lastly, a quote tool ensures that your quotes only come from reputable companies. Like any big purchase, you are still going to want to check online for customer reviews, check the Better Business Bureau and so on about your choices, but you will have a good head start with highly regarded companies.
Choosing the cheapest car insurance rates does not have to be hard and with our free quote tool (at the top of this page), you can start you no obligation search for your auto insurance right now!
