How to Compare Auto Insurance Prices in 10 Steps

You have probably heard a few things about people who saved money by shopping for lower rates already. So how to compare car insurance prices and find cheap coverage? You probably think that there has got to be a methodology or things to prepare beforehand. Well, there is. Otherwise, people would get bored or confused very easily. Here are the things to keep in mind and the questions to ask during the comparison process.

1. How Much Cover Do I Need?
The first step is to answer this question and figure out how much coverage you are looking for. You don’t go to market without knowing what you want to buy. If you do, you would be surprised with what you would bring home at the end of shopping without a list. You should determine a comfortable level of coverage for yourself and try to buy it at a reasonable price from a reputable enough insurer. The point here is to buy auto insurance coverage you need and buy it at a lower cost. You probably wouldn’t want to get the cheapest policy if it means compromising on coverage.

2. How Much Time Should I Spare?
It doesn’t take long to compare quotes. It shouldn’t take more than couple of hours if you do it online. But you may need to wait for your broker to come back to you if you use an agent. You may be under pressure when you leave checking rates to last minute. You should start checking for alternative quotes the moment you receive your renewal terms. Most quotes are valid for a month. If you are not pressed for time you can even sleep over it before making your decision, ask further questions or get more quotes.

3. Am I Comparing Apples to Apples?
Secondly, you should provide the same information each time you get quotes. It is essential to request all your quotes for the same level of coverage. It is very important to reduce confusions while you pit vehicle insurance prices against each other and have a fair comparison between quotes received from various companies. In other words, you need to compare apples to apples.

4. How Many Car Insurance Quotes Should I Get?
Once you know how much coverage you need and what information to provide you are ready to get several quotes. Get them whichever way you like; online, offline, through agents or direct. It is advisable that you mix it up a bit and get quotes from smaller, larger, local and national companies. You can find top 10 insurers listed on that post. You should at least get five quotes in any case even though you may think you found the best price after the first quote.

Online auto insurance quotes comparison websites like ours can help to speed up the process of finding those cheap quotations. You can find several of the finest companies in your zip code here to compare auto rates.

5. Do All the Quotes Offer the Same Coverage?car insurance companies
Find out if any of the policies with reasonable price is offering extra coverage. Companies do offer extras at no cost at times to stand out in the crowded market place. Also, some policies may come with unexpected restrictions like limiting occasional drivers to anyone over the age of 25 or providing no coverage for your travels abroad. Thirdly, you should look at the deductible. Most people don’t realize that each policy quote may have different deductible. Obviously, a quote with higher deductible is expected to be cheaper.

6. What Comes First: Prices or Companies?
You should compare auto insurance prices and then start looking at companies. This saves time as you wouldn’t be wasting time finding about a company that is way above your price range. You can start looking into individual insurers when there are two or three great quotes from companies you believe acceptable.

7. What Are Car Insurance Payment Options and Charges?
This is particularly important when you need to pay by installments and quotes are close to each other. This is extra important if you are looking for low or no down payment car insurance. Companies are known to charge for arranging installments or monthly auto insurance. And these charges can make a reasonable price quote less attractive when they are taken into account. Some motorists don’t even realize that they are charged for paying premiums in installment because some companies quote the final figure, including installment fee and interest.

8. Should I Eliminate Some of the Quotes?
It is good to get 5 quotes and drop the most expensive. I would also drop the cheapest quote if; a) I know nothing about the company offering the quote, aa) It is much lower than the next one up in the list. What I would try to do is to pick one quote around the average. For example, my quotes are $900, $1,300, $1,500, $1,600 and $2,200. I would have no problem dropping $2,200 quote since I have 4 cheaper quotes. I would be inclined to drop $900 as well unless, it proves to be a solid quote. It is the odd one out and away from average. I would take extra comfort in seeing several quotes lined up around the same price range like above.

9. Is Five Quotes Enough?
Sometimes, rates can be all over the place. You should get several more quotes and see where they are going to form a middle ground. When I go to market, first thing I do is to go around and check prices. If I know the price of apple is around $1 per lb, I would question when I see one for 50 cents. But this is just me. My aim would be not to pay $2 for apples when there are several vendors selling it for $1. I hope it makes sense.

10. Are There Last Minute Discounts?
It may come to you as a surprise but you can get discounts for the way you buy car insurance. For example, you can get around 5% discount for buying online, switching to a particular insurer, renewing your current policy early or paying the full premium at once. So, finally check for these discounts before completing your purchase.

Now you know how to weigh up automobile insurance prices. Hopefully, you can get the best deals by using the information on this post or on this site.

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