10 Tips to Find Cheap Auto Insurance Companies

Finding car insurance carriers with better prices may look to be a daunting task. But like most things in life, starting the process is the way to approach it rather than keep delaying until you run out of time. Most motorists get the cover they want at reasonable rates and from a company they are happy with at the end. Here are ten points to keep in mind while searching for the one that will be perfect for you in many aspects including premium, coverage and reliability.

  1. There Are Plenty Affordable Auto Insurance Carriers

One thing is certain that motorists have at least one hundred choices in any state. Therefore, you should not be discouraged even if first few quotations are high. This only means that it will take a little longer to find it. Perhaps you should enlist an independent broker to help you in the search and use comparison websites online to speed up the process. Here is a state by state list of the cheapest vehicle insurance companies to get you started with.


  1. Insurers Prefer Low Risks and Drivers Want the Lowest Prices

They are looking for lower risk motorists while you are looking for better rates. Success of underwriters depends on how well they can price the risk and therefore it is the key factor in determining quotes. Each of them has a set of measures in place and they are only happy to go out of their ways when those measures are met. Only then, they can offer you lower premiums or other attractive incentives.

Even you are not entirely happy with what you can find in the market today you may have to reduce damage to your wallet for now. This is often the case for the first year, just after claims and traffic convictions. It gets a lot better if you can keep out of trouble for the next year. Then, you can start looking for better deals as more and more of them will be happy to offer lower rates.

  1. Each Goes After the Risks They Are Comfortable with

It is difficult to say that one is the most competitive because competitiveness changes depending on the type of risks. A classic example is that reputable names may offer the lowest vehicle insurance rates for good drivers but they can deliberately over-price bad ones. They get plenty applications to choose from and therefore they can be picky. Good ones will always have more options open to them while bad drivers must try harder to shift through until they locate an acceptable policy. Here are the cheapest automobile insurance companies based on driver types. You will see that each category has different names that supports what is discussed above.

Sometimes you need to search for specialist risk carriers to figure out who has the cheapest auto insurance for you. They may have particular expertise in areas like classic or sports cars, high risk drivers or a particular region. Alternatively, they may have chosen a market segment strategically to avoid competing head on with the largest car insurance companies. Whatever the reason this concentration on certain types of risks allows them to be more aggressive on their chosen segment. Search for the ones with great coverage due to specialist knowledge but don’t limit quotes to those ones. Talk to others as well.

  1. Find a Vehicle Insurer Who Likes Your Kind of Policyholder

Searching for a reliable and competitive one is like looking for the most suitable job. You have requirements and they have own criteria to fulfill. The same applies to underwriters who know what type of motorists deserve to be rewarded with lower premiums. The good news is that each has their own pick and some of them cannot pick and choose due to a disadvantaged position.

In other words, you would be looking for those that are less choosy when you have recent claims and traffic convictions. Most established names would tell you that they are not interested by pricing you out. But the position would be completely different if you have a great record.

  1. Big Insurers Are Highly Competitive to Keep Market Share

Most businesses study historical figures in their industry to carve out a position in the market. One particular characteristic of US motorists is that they stay put for a long time. There are many policyholders who have never even thought about switching or getting alternative automobile insurance quotes in their entire life. They stick with one as if it is a religion. They get married, have children, get divorced but the only thing that doesn’t change is the carrier.

Certainly, they love to have cult like following. However, they need to persuade those motorists to buy policies from them in the first place. This is not easy as the competition is fierce. They need to offer good incentives to win over new customers. Therefore we often see great companies eagerly priced as part of a push to increase market share.

Some firms may even be happy to offer good rates for teenagers in the hope that they will turn out to be low risk drivers and stay with the firm for years. In the same way, they may be happy to pick up the pieces in the market like drivers who have just had a claim and hence premium hike.

Generally when they like to increase market share they have three weapons in their disposal depending on budget, background and aggressiveness. They can come up with creative and comprehensive policy packages and hope that motorists will appreciate them. They can reduce rates and attract new customers that way. Or they can just throw money on advertising and be seen wherever you look including whenever you turn on the TV.

You should always be on the lookout for these with aggressive campaigns even though you shouldn’t be overly influenced by self-promotions. These days, advertisements concentrate of how much money you can save. There is no harm in calling them after seeing an advert but you should check other alternatives as well.

  1. Certain Companies May Have a Unique Advantage

Quite a few insurers have long history and association with a particular group of motorists. Identifying the ones that are likely to give you discounts as a result of this association can be rewarding. Generally, these unique relations afford you around 10 – 15% additional savings that you cannot get somewhere else. They may be related to profession or association with a particular trade body. You should ask around and explore these avenues to get easy savings.

  1. List of Cheap Car Insurance Companies Changes with Time or Risk

You may still think that the current provider was very competitive when you bought the coverage from them for the first time. A lot may have changed since within them or the market. Remember, the only thing that doesn’t change is the fact that change happens. That is why you should keep checking for quotes every so often.

Also, changes in the type of risk can affect the cheapness of the existing policy. For example, they may be happy to offer you lower rates when you have a typical family sedan or have no teenagers listed. Buying a sports car or adding a teenager onto a policy may upset this balance and the adjusted premium may lose its attractiveness. When you have a serious change in particulars it may be time to get a few quotes, especially when you see visible rate hike.

  1. Rates Differ Quite Much Among Companies

Each has own identity and way of calculating premiums that the difference can be as much as twice between two similar ones. Any particular detail in the application can trigger an increase with one while it doesn’t affect rates with another. For example, you may be charged 25% more for having bad credit history by one while the other doesn’t care about credit score as much.

It would be a big mistake to get only one quote and go with it without searching for cheap automobile insurance carriers. This mistake is even more obvious when most studies show that motorists could have saved as much as $800 by simply shopping around. 

This point cannot be ignored. You will need to be extra careful for years to avoid any accidents and keep clean history so that you can qualify for discounts. And a kid buying his first coverage can get on his laptop and within minutes can find as much as 50% savings, which probably is bigger than yours. So, don’t miss out.

  1. It Is No Use when An Insurer Is Over Budget

When you are looking for an affordable policy you don’t have the luxury to pick the name you like most. You need to be flexible to go with the one that offers the best deal as long as there is nothing adverse about them. You really should be able to dump the expensive ones regardless of who offers them and concentrate on the ones in the lower end of the price chart. Perhaps, you should dump the least expensive one as well especially when it is miles apart from the rest.

It is a good sign to see that several of them offer similar premiums. Hopefully, they are affordable and you can pick one of them. There is no use in checking details, reviews and recommendations until you get a quote and confirm that you can afford it.

    10. Fastest Way to Find Economical Auto Insurance Carriers

You need to find an efficient way of picking the right one. Assuming that price is an important factor in a decision you should first check how competitive they are. As mentioned above you have plenty choices and you need to pick one. If you cannot find a company you can trust at lower end of the quotes you can always go up in the list up to a point where the premium becomes too expensive. But you should exhaust your options first before accepting to pay more.

Furthermore, you should make a habit of getting quotes at each renewal. They are free and easy. So, your only investment is time and it can potentially yield a good return. Don’t forget to go over coverage details at renewals to make sure it still meets the needs, too. Overall, don’t settle for anything less than fully satisfactory.