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.
In the realm of financial planning and security, few investments are as crucial as home and auto insurance. These policies serve as a safety net, protecting your most valuable assets and providing peace of mind in the face of unexpected events. However, navigating the world of insurance can be daunting, with a multitude of options and considerations to weigh. That’s where savvy decision-making comes into play.
Home insurance is designed to protect your home and its contents in the event of damage or loss due to unforeseen circumstances such as fire, theft, or natural disasters. A comprehensive home insurance policy typically covers not only the physical structure of your home but also your personal belongings and liability for accidents that occur on your property.
Auto Insurance: Essential Protection on the Road
Auto insurance is a legal requirement in most states, but it’s also a vital component of your financial security. In addition to covering damage to your vehicle in the event of an accident, auto insurance provides liability coverage to protect you from financial responsibility in case you injure someone else or damage their property while driving.
The Benefits of Bundling: Saving Time and Money
One of the most significant advantages of savvy insurance planning is bundling your home and auto policies with the same provider. Bundling not only simplifies the insurance process by consolidating your policies under one roof but also often results in significant cost savings through multi-policy discounts.
Assessing Your Coverage Needs: Tailoring Policies to Fit Your Life
No two households are alike, which is why it’s essential to assess your coverage needs carefully. Take stock of your assets, evaluate potential risks, and consider factors such as your home’s location, age, and value of your vehicles. By customizing your policies to fit your specific circumstances, you can ensure that you’re adequately protected without paying for coverage you don’t need.
Shop Around: Finding the Right Provider for You
When it comes to insurance, it pays to shop around. Take the time to compare quotes from multiple providers, considering not only price but also coverage options, customer service reputation, and financial stability. Look for insurers with a track record of reliability and responsiveness, as well as those who offer discounts for factors such as a clean driving record or home security features.
Stay Informed: Reviewing and Updating Your Policies Regularly
Once you’ve selected your insurance policies, don’t simply set them and forget them. Life circumstances change, and so do your insurance needs. Make it a habit to review your policies annually or whenever significant life events occur, such as buying a new home, adding a driver to your auto policy, or renovating your property. By staying informed and proactive, you can ensure that your coverage remains up-to-date and effective.
Conclusion: Protecting What Matters Most with Savvy Insurance Planning
In an uncertain world, savvy insurance planning is key to safeguarding your most valuable assets and ensuring financial stability for you and your loved ones. By understanding your coverage options, assessing your needs, and partnering with a reputable provider, you can enjoy the peace of mind that comes with knowing you’re protected against life’s unexpected twists and turns. Don’t wait until disaster strikes—invest in savvy home and auto insurance today and rest easy knowing that you’re prepared for whatever the future may hold.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.
Pros & Cons
Pros
Lots of coverage options, including accident forgiveness, new car replacement, and a safe-driving bonus every six months.
Offers rideshare insurance in many states.
Cons
Customer ratings are below average for auto insurance shopping satisfaction compared with other companies.
Full Review
Allstate earned 4.5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, complaint data from the National Association of Insurance Commissioners, and financial strength ratings.
One of the nation’s largest auto insurers, Allstate offers customers numerous ways to customize its policies and save on premiums. The company also sells several other financial products, including life, home, and renters insurance.
Why you can trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage so you can choose the insurance policy that works best for you. These carrier ratings are specific to auto insurance — a company’s rating for other products may be different on our site. See our criteria for evaluating auto insurance companies.
How we review auto insurance companies
Allstate auto insurance coverage
When you’re shopping for car insurance coverage, it’s essential to understand what car insurance coverage you want and what you’re required to buy. For instance, most states require a minimum amount of car insurance to drive a vehicle. Alternatively, if you want extra protection, you may be interested in full coverage insurance. Read about the most common types of car insurance coverage to see how they work.
Allstate offers the usual auto coverage choices, plus some optional features you can add (depending on your state) for an extra cost. These include:
Accident forgiveness. Your rates won’t increase because of an accident, even if it’s your fault.
Safe driving bonus. For every six months of accident-free driving with Allstate, you can receive money back.
Deductible rewards. For each year with no driving violations, you earn $100 off your collision deductible, up to $500. Allstate takes the first $100 off when you sign up.
New car replacement. If you total a new car within the first two model years, you can get a check for a new car, not just your car’s depreciated value. Allstate also offers “newer car replacement” coverage for 3 to 15 years old vehicles.
Roadside assistance in three different options. Customers can buy roadside assistance as a one-off cost during their time of need, as an add-on to their auto policy, or from Allstate’s Motor Club, which is a subscription service similar to AAA.
Rideshare insurance. Known as Ride for Hire, this coverage is for people who drive for a ride-hailing service such as Uber or Lyft. Usually, rideshare companies’ full range only applies while you’re carrying passengers, with limited coverage in between rides. But with Ride for Hire, you’re covered the whole time your app is on.
Gap insurance. This coverage pays out when the amount you owe on your car loan or lease is greater than the value of your vehicle at the time it’s declared a total loss.
Allstate also has features that don’t cost extra, such as:
Car-buying service. Allstate advertises discounts and savings when you use this service, which provides information about what others paid for the same type of car, including incentives and fees.
Claim satisfaction guarantee. Allstate issues up to a six-month credit on your car insurance premium if you’re unhappy with how a claim was handled. In states where it’s available, the guarantee comes free with all standard policies.
Allstate offers two programs that track your driving behaviors in exchange for potential discounts.
Milewise: Based on the miles you drive, Milewise insurance has a daily base rate plus a per-mile rate. If you aren’t often behind the wheel or don’t have a long commute, this type of coverage may save you money. This policy isn’t offered in all states. Learn more about pay-per-mile car insurance.
Drivewise: Allstate rewards you with a discount just for using its Drivewise app, which analyzes your speed and braking behavior, as well as what time of day you drive. You can get cash back every six months you drive safely and earn rewards points toward shopping discounts. Even noncustomers can sign up for the rewards points program, but it’s not available in every state.
Complaints and customer satisfaction
Allstate had close to the expected number of complaints about auto insurance to state regulators relative to its size, according to three years’ worth of data from the National Association of Insurance Commissioners.
Allstate received an overall satisfaction score of 75 out of 100 by a pool of its customers in a NerdWallet survey conducted online in June 2022. To put that in perspective, the average score among seven insurers was 77, and the highest was 82.
2022 J.D. Power study
Allstate ranking
Auto insurance shopping
No. 6 out of 8 companies.
Auto insurance claims satisfaction
No. 5 out of 21 companies.
More about Allstate auto insurance
Website: Allstate’s website has several tools and resources, including a retirement planning calculator and articles on various types of car insurance. You can also find a local agent, get a quote, locate a mechanic, or file a claim.
App: You can use Allstate’s app to pay your bill, access ID cards, upload claim photos, get roadside help, and even find out if your digital information has been part of a data breach. The app also includes the Drivewise feature that tracks driving behavior.
Life, homeowners, and renters insurance from Allstate
Allstate offers standard insurance for homes, including apartments, condos, and mobile homes. To get more details about coverage options and discounts, see our Allstate homeowners insurance review.
Through partners, Allstate also offers a range of life insurance products, including term life, whole life, universal life and variable universal life policies. Learn more about policy details and coverage amounts on our Allstate life insurance review page.
Other insurance from Allstate
Allstate sells these types of insurance:
Motorcycle.
Boat.
ATV.
RV.
Business.
Landlord.
Umbrella.
Allstate also sells the following policy types through third parties:
Pet.
Special event.
Flood insurance.
Methodology
2022 auto insurance survey methodology
The survey of 7,755 adults aged 18 and older was conducted online by Russell Research on behalf of NerdWallet in June 2022. Respondents were asked to rate one auto insurance brand they obtained or renewed a policy with within the past 12 months, and the policy had to be in their name at the time of the survey. These brands were rated on overall satisfaction, overall value, online experience, trustworthiness, and customer support on a scale of 1-100.
Of those respondents: 300 were Progressive, 300 were State Farm, 299 were Allstate, 299 were Geico, 121 were USAA, 116 were Liberty Mutual, 105 were American Family, 105 were Farmers, 105 were Travelers and 101 were Nationwide.
The results have been weighted to be nationally representative. Additional subgroup sample sizes may be available upon request. Any differences noted between subgroups have been tested at a 95% confidence level.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo), and life insurance.
What do CarShield reviews have to say about the company?
CarShield extended warranties stand out by offering flexible payment options and month-to-month contracts, but is a CarShield extended warranty a good investment? To help you decide, our team has taken a close look at CarShield reviews, benefits, plans, and exclusions. We summarize everything you need to know in this article.
To make the best financial decision, we recommend getting a quote from at least three providers, as extended warranty prices vary based on vehicle age, your location, and other factors. Check out our review of the best extended car warranty companies to see our top recommendations.
We rate CarShield 4.2 out of 5.0 stars and recognize it for having the Best Value for 2022. CarShield is the most popular extended warranty company on the market, and its plans can cover vehicles up to 300,000 miles.
CarShield is an independent extended warranty provider with coverage for new and used cars. The company offers six types of warranty service plans, ranging from a basic drivetrain warranty to a plan comparable to a new car’s factory warranty. Used car warranties from CarShield can cover up to 300,000 miles, making CarShield a solid choice for high-mileage vehicles.
Founded: 2005
Headquarters: St. Peters, Missouri
Coverage options: Six levels of coverage, including a powertrain warranty, a bumper-to-bumper warranty, and a plan specially designed to cover high-tech electronics
On average, CarShield costs between $99.99 and $129.99 per month. What you pay depends on the type of plan you want and your vehicle condition. CarShield offers limited and unlimited terms with affordable payments compared to other extended auto warranty providers.
To get an idea of pricing, our review team reached out to CarShield for extended automotive warranty quotes on a few vehicles. The quotes below apply to plans with unlimited mileage and a $100 deductible. Each CarShield vehicle service contract requires one month’s payment to begin coverage.
How To Get A Quote From CarShield
To get a quote from CarShield, you can call the company or submit some quick information in an online form. If you request a quote online, a representative will call you to discuss your options. Factors such as mileage, service history, your current warranty coverage, and recent mechanical issues can impact the price or type of plan available to you.
During a phone call, you’ll learn about a coverage plan and monthly payments. While some of CarShield’s plans break up the cost over 24 months, most plans are monthly so you can keep the coverage as long as you choose.
According to CarShield reviews on Trustpilot, many customers find affordable monthly payments from the company. To see how much you would pay for extended warranty coverage, get a free quote from CarShield for your vehicle.
Does CarShield Have A Deductible?
The CarShield quotes we received included a $100 deductible per repair. You may find higher or lower deductibles, depending on the plan you select and your vehicle. Some extended warranty plans have a $0 deductible.
As mentioned, CarShield offers six general types of warranty service plans. These plans vary from basic coverage for the most important components to comprehensive coverage for the whole car. Take a look at some details described in the table below:
CarShield extended warranties are more accurately described as vehicle service contracts since the vehicle manufacturer doesn’t fulfill them. CarShield is a vehicle service contract broker, meaning another company administers its plans.
Note that CarShield’s vehicle service contracts only cover specific parts listed on the contract (except the Diamond plan, which lists excluded parts).
Sample contracts on CarShield’s website list American Auto Shield as the administrator, but contracts may use other administrators. This adds to the available options.
CarShield Extended Warranty Benefits
In addition to paying for covered repairs, all CarShield contracts include the following perks:
Emergency roadside assistance
Rental car reimbursement
Trip interruption reimbursement
Details such as reimbursement amounts may vary from contract to contract, depending on your state and contract administrator. These benefits are typical and come with most extended car warranties.
There are a few things to know about extended warranty plans from CarShield.
What To Do After A Breakdown
If you experience a breakdown, you can contact the roadside assistance provider outlined in your contract to get a tow to a repair shop. You can take your car to any shop authorized by the National Institute for Automotive Service Excellence (ASE®). There are over 30,000 across the country.
Make sure the auto repair shop calls a CarShield claims representative for authorization before performing any repairs. The only case when you can authorize a repair is when it’s an emergency after-hours. You’d have to foot the bill and have CarShield reimburse you in that situation.
If CarShield authorizes the repair, you’ll just pay the deductible to the shop. You can also get reimbursed up to $40 per day ($280 maximum) for a rental car if the shop needs to do more than four hours of work.
What Is Not Covered By A CarShield Extended Warranty?
CarShield plans don’t cover everything. Exclusions common to CarShield contracts are:
Repairs performed without prior authorization from the contract administrator
Damage caused by a lack of maintenance
Damage caused by acts of nature, theft, vandalism, or falling objects
Modifications to the vehicle
Misuses such as racing or off-road driving
Tampering with the odometer
Pre-existing mechanical issues
All these exclusions are common for factory warranties and third-party providers.
CarShield Waiting Period
CarShield plans have a standard waiting period of 20 days and 500 miles before coverage kicks in. This delay protects the company from paying for a repair the customer already knew about. Representatives can note what is wrong with your car when you sign up for an extended vehicle service contract.
Does CarShield Really Pay For Repairs?
The vast majority of customers report no issues with CarShield paying for repairs. However, CarShield can deny a claim for the following reasons:
The specific part isn’t covered
The damage was caused by a non-covered part failing
The damage was due to a lack of maintenance
The damage is due to normal wear and tear
How To Cancel CarShield
To cancel a CarShield plan, you can contact CarShield’s customer service team at 800-587-4162. You will need to provide a written cancellation request and a notarized odometer statement to the contract administrator (American Auto Shield). You can also reach out to a customer service representative at CarShield.com for help.
You can get a full refund if you cancel within 30 days and haven’t used the plan. You’ll get a prorated refund based on the time and coverage used after that point. You can also transfer most contracts to secondary buyers if you sell your car.
Over 10,000 CarShield reviews on Google give the company an average score of 4.2 out of 5.0 stars. Similarly, over 28,500 CarShield reviews on Trustpilot rate the company 4.0 out of 5.0 on average.
Positive reviews for CarShield often mention paid claims, knowledgeable agents, and excellent customer service. On the other hand, some customers are disappointed when certain parts aren’t covered. Below are a few examples of positive and negative reviews.
Recent Positive CarShield Reviews
“I’ve had two claims paid without a problem. The [first] claim took less than 24 hours to finish and saved me $400. The second claim for my alternator was done the same exact day, and CarShield saved me $1,300. I have no complaints at all!” – Eliza P. via the Better Business Bureau (BBB)
“So far, CarShield has showed up to do exactly what it promised. I appreciate that [service] was timely, professional, and efficient.” – Michele via Trustpilot
Recent Negative CarShield Reviews
“My starter went out in my Infiniti Q56. They only want to pay $178 for a starter. Where in the world [can] you get an Infiniti starter for that price? I called the auto store local to me, and their price was $375. My total bill was $900 with the dealership. They will only pay $563.” – Gloria S. via BBB
“My fuel pump was cracked, and I ended up paying $1,400 for the repair because it was denied for coverage.” – Ni-Ni via Trustpilot
More than 65 percent of CarShield reviews on Trustpilot give the company 5.0 stars. Most negative CarShield reviews come from customers who are surprised when the company denies repairs. When choosing a vehicle protection plan, potential CarShield customers should carefully review their contract so there’s no question about covered repairs.
CarShield Mobile App Ratings
CarShield’s mobile app allows customers to view the details of their contracts from their phones. The app has over 250 reviews on Google Play and a 3.4-star rating out of 5.0 overall. CarShield’s app fares better on the Apple App Store with 3.7 stars from over 150 reviews.
CarShield: Best Value Extended Warranty
Considering CarShield’s plan options and affordable prices, we rate it the Best Value extended warranty company for 2022. CarShield can be an excellent option if you’re looking to stay within a steady monthly budget.
Other Recommended Providers
It’s always a good idea to get quotes from more than one company so you can compare pricing and determine what’s right for you. In our review, we found Endurance, CARCHEX, and Protect My Car to be industry leaders.
Endurance
Endurance offers five standard extended warranties plus a sixth plan that combines warranty coverage with regular maintenance coverage. The warranty company can cover over 250,000 miles and it accepts vehicles up to 20 years old. Endurance also has a solid reputation, with a 4.3-star rating from customers on Trustpilot. Read more in our Endurance warranty review.
CARCHEX
CARCHEX offers five extended warranties that come with extras like roadside assistance and trip interruption. In our CARCHEX review, we found the provider stood out of the pack for its A+ rating from the BBB and partnerships with industry authorities like Kelley Blue Book. CARCHEX can cover vehicles up to 200,000 miles.
Protect My Car
Protect My Car is known for great customer service. It has a 4.2-star customer rating on the BBB, which is very high for the industry. Protect My Car also has a 4.6-star rating on Trustpilot. What makes Protect My Car unique is its Ambassador maintenance plans. These plans cover 50 to 75 percent of all mechanical breakdowns plus a variety of maintenance services like oil changes and tire rotations. Learn more in our Protect My Car review.
FAQ: CarShield Extended Warranty
Is CarShield worth buying? If you’re able to easily cover expensive, unexpected car repairs out of pocket, you probably don’t need an extended warranty. However, if you’d rather keep your budget more predictable, a CarShield extended warranty is a great option.
How much does CarShield cost on average? According to our research, CarShield costs between $99.99 and $129.99 per month. When we reached out to CarShield for a quote on a 2017 Honda CR-V with 45,000 miles, our quote was $129.99 per month for an unlimited-term bumper-to-bumper plan.
What repairs does CarShield cover? CarShield covers mechanical failures on a wide range of parts in the engine, drivetrain, transmission, brake system, electrical system, suspension, and more. Its highest plan is similar to a factory warranty and only lists excluded components.
Is CarShield good? CarShield offers six warranty plans that range from comprehensive exclusionary coverage to a basic powertrain plan. Thousands of CarShield reviews rate the company with an average of 4.2 out of 5.0 stars on Google and 4.0 out of 5.0 on Trustpilot. CarShield is one of the most popular warranty companies in the industry.
Does CarShield cover brakes? CarShield plans cover parts in the brake system, but they don’t cover brake pads, shoes, or rotors. CarShield covers parts such as the master cylinder, power assist booster, and actuators.
Does CarShield cover towing? All CarShield plans come with 24-hour roadside assistance that includes towing to the nearest certified repair facility.
Does CarShield cover oil changes and other preventative maintenance? No, CarShield doesn’t cover oil changes and other preventative maintenance. However, this is typical for the industry. Most extended warranties don’t include maintenance coverage.
Does CarShield cover electrical problems? Yes, CarShield covers a variety of electrical problems under its Diamond, Platinum, and Gold plans. The Diamond plan covers the most electrical components, while Gold covers the least.
