How to Find the Best Auto Insurance Companies with Affordable Rates

Posted by
Charlotte Smith

  • 3/19/2023

  • 4 min

Most car owners think of auto insurance as an extra unwelcome expense. However, it has a vital purpose. Auto insurance protects you from financial loss in the event of an accident, car theft, or natural disasters.

How do you find the best auto insurance with the best auto insurance rates? If you are a new car owner, this process will be overwhelming for you. This article compiles a list of effective ways to get the cheapest auto insurance service providers without compromising on quality and delivery.

1. Understand the Different Types of Auto Insurance Coverage

The majority of auto insurance companies offer the same coverage types. However, options vary depending on locations. Some states have no-fault laws set up, while others require car owners to have third-party liability coverage.

Property damage and bodily injury liability cater for damages and injuries to other parties if you are held liable for an accident. Alternative coverages found on an auto insurance policy include;

  • Collision coverage, which pays for accident-related damages to your car, regardless of who is liable
  • Comprehensive coverage. It covers non-accident-related damages to your car, for example, theft, vandalism, or weather damage
  • Personal Injury Protection and Medical Payments. PIP and MedPay are similar but provide different coverages. They pay for medical expenses for you and any car occupants regardless of the liable party
  • Guaranteed Asset Protection. It covers gaps between what you owe on your car and the current value at the time of the accident
  • Uninsured Motorist and Underinsured Motorist. Uninsured Motorist coverage pays for your damage when an uninsured car hits you. Underinsured Motorist coverage pays for your damage when the liable driver's policy limits were not high enough.

Understanding what you are signing up for allows you to get the best cheapest deals.

2. Check the Company's Financial Ratings

Auto insurance companies are financial institutions. Therefore, ensure you know their ratings before dealing with them. An auto insurance company's financial rating tells you a lot about how secure it is.

3. Check Customer Reviews

Regardless of how good or bad the financial rating is, it is pertinent to check what the current or previous customers say about the company. What are they saying about the ease of filing an insurance claim? How long does it take the insurance company to settle the insurance claims? How easy is it to contact the customer service team?

How to Find the Best Auto Insurance Rates

Once you have a list of potential car insurance companies, take the time to choose the best rates from the list

You can use several ways to find the cheapest auto insurance rates. These include;

  • Compare quotes. You can use an online auto insurance comparison tool to compare prices. Take your time to shop for the best competitive prices. While checking out the big companies, consider the smaller ones. The smaller unpopular auto insurance companies tend to have the cheapest deals
  • Learn the factors affecting your insurance premium since they impact your quote in some way. Premiums are not entirely based on your driving records. Most states use one's credit history as a determining factor
  • Check how much liability coverage you are buying. Each state has its standard minimum, but you can add more at your discretion
  • Consider increasing your deductibles, which helps to lower your monthly premium amount. Ensure you pick the one you can afford easily
  • Most importantly, look out for discounts. Insurance companies often issue several discounts.

Car insurance Discounts

Depending on the insurance provider, potential discounts that can lower your auto insurance rates include;

  • Good drivers
  • Full-time students with impressive academic records
  • Veteran or military member discounts
  • Drivers with multiple policies within the same insurance company
  • Retired or active federal employees
  • Policyholders with more than one car insured
  • Drivers with defensive driving courses or whose cars have certain safety features.

Moreover, it is best to consult your friends and family with car insurance when looking for the best auto insurance rates.

Bottom Line
Use all the data you gather from your research for the best auto insurance companies to make the right choice. Avoid rushing into a purchase if you have little information on the company. Most importantly, ensure you compare the prices to find the cheapest auto insurance rates ideal for you.