Should you shop around for car insurance?

Shopping for car insurance is the best way to get the coverage you need at affordable rates. When shopping for car insurance, use our free online car insurance comparison tool below.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 17, 2021

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Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.

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Here's what you need to know...

  • To find the best deals on car insurance, you should shop around and compare rates for coverage
  • If you currently have insurance, check with your provider to see what discounts you qualify for
  • You will most likely receive a variety of rates for insurance coverage based on a number of factors

There are a variety of tips and secrets you can employ to get a discount on car insurance. However, it is always a good idea to shop around for the best coverage.

Enter your zip code above to access car insurance rates from multiple companies today!

Years ago, shopping for car insurance deals was a very complicated task.

You would have to go through car insurance agents or make dozens of phone calls to compare prices. However, with better technology comes more opportunity for insurance shopping.

Nowadays, you can comparison shop and instantly receive detailed comparisons online.

Shop for a Lower Rate

Why must you shop around for car insurance in order to receive a better deal? Simply put, the car insurance companies are in business to make money.

If you are willing to pay a high price for a standard policy, they are not going to convince you otherwise.

Therefore, it is your responsibility as an educated consumer to go to your insurance company and tell them you know the standard rates for car insurance and you need a policy that reflects those prices.

You really have to know the standard rates and average monthly car insurance premiums before you start asking for a discount. For instance, you have to consider the typical price of liability insurance, comprehensive insurance, and collision insurance.

You may also want to add on uninsured or underinsured motorist protection coverage.

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When Sourcing Car Insurance, Shopping Around is Necessary

Once you decide what policies are appropriate, you must decide how much coverage you need.

Experts recommend that you carry 100/300/100 in just liability coverage; state minimums are woefully lower. Of course, you will pay more for better coverage which is why many folks only take out the state required amounts.

To some extent, your age, car model, credit, and driving history will determine your monthly premium.

However, do not conclude that every insurance company is going to offer the same rate.

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While your insurance company is regulated by the state you live in, the actual price they give you is dependent on their own financial strategy and their understanding of current market trends as well as your risk factors.

Usually, when an insured driver stays with an insurance company for multiple years, the insured starts to expect a discounted rate — not only for loyalty but also for safe driving performance.

The company may be willing to offer the discount outright or may be waiting to see if you notice you’re overpaying.

There will be times when the insurance provider may not budge on a policy rate.

Maybe they’re suffering financially or are convinced that you are a high-risk driver.

If so, then you have to take the initiative and start shopping for car insurance with a different insurance provider.

What is the best way to shop for car insurance?

Insurance companies are highly competitive, so you may be able to negotiate a price.

It may also help to tell your current insurance company that you have a competing offer. The original company may then offer you a discount.

Remember that the quote you initially get from an insurance company is not a hard estimate. It is a quote based on statistical averages. No company is going to give you an exact quote until all data is reviewed.

Be sure to check with any provider you are considering and ask about special discounts, such as:

You may also be eligible for savings from your current provider or another provider if you are a senior or a military veteran.

We’re not just spouting hype for insurance companies. You can actually save money when you shop.

A recent shopping investigation conducted by San Francisco Chronicle found some interesting survey results, suggesting that a married people couple got 17 different prices from 17 different insurance companies.

The price range was between $1,422 a year to $3,651 a year for the same insurance policy!

Enter your zip code below to access car insurance rates from companies in your area today!

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

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Average Monthly Car Insurance Rates by State