Wise Money Tips
Auto Insurance

How to Find the Best Deal on Auto Insurance Premiums

Finding a good deal on auto insurance is all about balance. While you want to get the most affordable premium, you don’t want to lose sight of getting the coverage level you need — or choose an insurance company you won’t be happy with.

Consider your needs and compare rates among reputable insurance companies to find the balance.

Try these tips:

Decide What You Need

Before you search for auto insurance, evaluating your specific insurance needs is important. This step will help you determine the level of coverage that is right for you.

First, decide on a coverage level. While liability insurance is required in most states — and often the cheapest option — it may not be enough to protect you financially. Collision and comprehensive coverage offer better protection but can come with higher premiums.

Assessing your risk tolerance and budget is crucial when determining the coverage level you need. If you have a newer or more valuable vehicle, comprehensive and collision coverage can provide added peace of mind. On the other hand, if you have an older car with a lower value, you might opt for less comprehensive coverage to save on premiums.

Consider your budget carefully to strike a balance between the coverage you need and what you can comfortably afford.

Already know what you need? Try our Auto Insurance Comparison tool to find a new policy without the hassle.

Research Auto Insurance Companies

Ensure the insurance companies you're considering have a solid financial standing. Look for independent rating agencies such as A.M. Best, Moody's or Standard & Poor's to assess the company’s financial stability. Choosing a financially stable insurer guarantees they can meet their obligations regarding claims.

Check financial stability

Ensure the insurance companies you're considering have a solid financial standing. Look for independent rating agencies such as A.M. Best, Moody's or Standard & Poor's to assess the company’s financial stability. Choosing a financially stable insurer guarantees they can meet their obligations regarding claims.

Customer service

Excellent customer service is crucial. Look for insurance providers with a strong reputation for responsiveness, accessibility and easy-to-use online account management.

Claims process

Review each auto insurance company's claims process. Check if they have a user-friendly online claims portal, a 24/7 claims hotline and prompt claims resolution. A smooth and efficient claims process ensures you receive the support you need during challenging times.

Look for Discounts

Look at available discounts and bundling options. While price shouldn't be the sole determining factor, discounts can significantly affect the overall cost of your insurance coverage.

Safe driving records: Insurance companies often reward drivers with safe driving records. You may qualify for a safe driver discount if you have a clean driving history, meaning no accidents or traffic violations. This discount acknowledges your responsible driving habits and demonstrates to the insurer that you are a lower-risk driver.

Multiple vehicles: If you have more than one vehicle to insure, you may be eligible for a multiple vehicles discount. This discount incentivizes insuring multiple cars with the same insurance provider and can lead to significant savings.

Bundling home and auto insurance: Many insurance companies offer discounts to policyholders who bundle their home and auto insurance policies together. By combining both policies with the same provider, you can potentially receive a discounted rate on both coverages.

Safety devices: Safety features like anti-theft systems, electronic stability control, anti-lock brakes and airbags reduce the risk of theft or accidents, making your vehicle safer, which can net you a premium discount.

Good student discounts: If you're a student and maintain good grades, you may qualify for a good student discount. Insurance companies view responsible academic performance as an indicator of responsible behavior on the road.

Remember that not all insurance companies offer the same discounts, and the availability and eligibility criteria may vary.

Not getting a discount? Compare rates with our Auto Insurance Comparison tool today to see if you could save by switching.

Review Policy Details

Before committing to an auto insurance provider, thoroughly review the policy details. Make sure you understand these key terms and conditions:

Coverage Limits: The maximum amount the insurance company will pay for a covered claim. For example, liability coverage may have separate limits for bodily injury and property damage. Ensure the coverage limits are adequate to protect your assets and meet your state's legal requirements.

Deductibles: The amount you're responsible for paying out of pocket before your insurance coverage kicks in. Review the deductible amounts specified in the policy for different types of coverage, such as collision or comprehensive.

Exclusions: Exclusions are specific situations or circumstances not covered by your insurance policy. Typical exclusions may include intentional damage, racing or using the vehicle for commercial purposes. Ensure you know any limitations or restrictions that may affect your coverage.

Additional features and discounts: Look for any other features or discounts offered by the insurance provider. These may include roadside assistance, rental car coverage or accident forgiveness. Consider whether these additional features align with your needs and if they add value to the policy.

Policy terms and renewal: Understand how long the policy will remain in effect and the renewal process. Familiarize yourself with any cancellation provisions, policy changes or renewal rate adjustments.

Compare Quotes

Don’t just opt for the first insurance company you find or assume your bundle discount from your current insurance provider is your best option. Compare rates for similar coverage with at least three (and ideally more) insurance companies to ensure you get the cheapest rate for the coverage you need.

Want to skip the hassle of comparing insurance companies one by one? Our Auto Insurance Comparison tool can help you quickly compare rates at a glance between the nation’s biggest providers.