Car Insurance Quotes: How to Shop and Compare Online

Auto insurance shouldn’t drain your bank account. Here’s how to save money while getting the coverage you need.

Companies base your rate on various factors, from the kind of car you drive to how long you’ve been insured. You can get good coverage without breaking the bank by understanding what affects your auto insurance costs.

Here are eight ways to help you save money on car insurance.

1. Shop around

Although auto insurers use similar factors like age, driving history, and location to calculate your car insurance costs, they weigh these factors differently. That’s why it’s crucial to compare rates.

NerdWallet compared rates for 35-year-old drivers buying full coverage insurance to analyze the importance of shopping around. We found that costs vary by hundreds of dollars a year.

Good drivers with good credit can save more than $150 a month, on average, by switching from the most to the least expensive insurer in their state. And savings can be even bigger for drivers with a recent at-fault accident or poor credit — almost $250 and $400 a month on average, respectively.

But the company with the lowest rates in one state can be the most expensive in another. And the cheapest company for a good driver with good credit might not be the most affordable for someone with, say, a DUI or a recent accident.

Get quotes from several companies once a year to lower your car insurance rates. NerdWallet’s car insurance comparison tool can also help you find the best deal.

2. Take advantage of car insurance discounts

Every insurance company offers unique ways to save on your car insurance premium. To ensure you get all the discounts you’re entitled to, check out your insurer’s discounts page and ask your agent to review your possible savings.

Our car insurance discounts page details what insurers offer different discounts. But remember to compare quotes based on your situation. Just because an insurer offers multiple discounts doesn’t mean it offers the lowest overall price. 3. Drive safely

Speeding tickets, accidents, and other traffic violations increase car insurance premiums. If you get a ticket, you may be offered the opportunity to go to a traffic school to get it dismissed or reduce the number of violation points on your driving record. According to our analysis, if you can keep the violation off your driving record, the time spent in class could lower your car insurance by up to $413 per year.

4. Drop car insurance you don’t need

If your car is a clunker, it might be time to drop collision and comprehensive insurance, which pay for damage to your vehicle. Collision insurance pays to repair damage to your car if it crashes into another vehicle or object or flips over. Comprehensive insurance pays if your car is stolen or damaged by storms, vandalism, or hitting an animal like a deer.

If your car is worth less than your deductible plus the amount you pay for annual coverage, it’s time to drop it. Collision and comprehensive coverage never pay out more than the car is worth.

Evaluate whether it’s worth paying for coverage that may reimburse you only a tiny amount.

But if you drop collision and comprehensive, remember to set aside the money you would have otherwise spent. Put it in a fund for car repairs or a down payment on a newer car once your clunker conks out.

5. Drive a car that’s cheap to insure

Before you buy your next car, compare car insurance rates for the models you’re considering. The vehicle you drive affects your car insurance premium, mainly if you buy collision and comprehensive coverage. Safe and moderately priced vehicles such as small SUVs are cheaper than gocheapquote.com. Then, flashy and expensive cars.

6. Increase the deductible

You can save money on collision and comprehensive insurance by raising the deductible, which is the amount the insurance company doesn’t cover when paying for repairs. For example, if you have a $500 deductible and your repair bill is $2,000, the insurer will pay out $1,500 once you’ve paid the $500.

Savings vary by company, so compare quotes with different deductible levels before you decide.

7. Improve your credit

Your credit can be a big factor when car insurance companies calculate how much to charge. It can count even more than your driving record in some cases. But this isn’t the case in California, Hawaii, Massachusetts, and Michigan, where insurers aren’t allowed to consider credit when setting rates.

To build your credit, focus on these three steps:

• Make all your loan and credit card payments on time.
• Keep credit card balances well below your credit limits.
• Open new credit accounts only when necessary. Applying for too many credit cards can hurt your score.

8. Don’t drive a lot? Consider usage-based insurance

If you don’t mind tracking your driving behavior, consider usage-based or pay-per-mile insurance to lower car insurance costs. To participate, you use an app or install a small device in your car that transmits data to the insurance company.

Metromile, Allstate, Nationwide, and Mile Auto offer pay-per-mile insurance in certain states. With this coverage, you typically pay a base rate plus a per-mile rate. So it could be a good option if you don’t drive long distances or commute daily.

Several other insurers, including State Farm, Progressive, Safeco, and Travelers, offer usage-based insurance programs that track behaviors like speeding and hard braking. They offer discounts or reduced rates for safe driving.

Getting a discount just for signing up for some of these programs is possible so that they might seem like a no-brainer. However, some insurers may increase your rates if you’re deemed an unsafe driver. Check what behaviors are tracked and how your rate is affected before enrolling.