How To Get The Best Car Insurance Quotes

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How to get the best car insurance quotes

 

If you are in the market for car insurance quotes you probably know that there are minimum requirements for coverage. Requirements vary state by state, be sure to check your state’s requirements. 

In addition to the basic insurance requirements it is important to understand what your car insurance includes. Most often you will need more coverage to protect yourself and your car. Let’s start by understanding some basics of auto insurance coverage. 

  1. Liability Insurance

Liability insurance covers incidents that you are deemed responsible for (therefore you are liable). This portion of the insurance covers costs to the other party. Not damage to you or your property. Each State stipulates the minimum coverage amount for liability insurance. Driving without the minimum required insurance may result in serious penalties including potential loss of license.

Check out the minimum amount of liability coverage for the following 5 states. Bear in mind, that these are minimum amounts and that it is recommended to get a reasonable amount of coverage to cover likely scenarios as you would be personally liable in the event of an accident. 

State 

Minimum Liability amount 

Texas

$30,000 bodily injury liability per person

$60,000 bodily injury liability per accident

$25,000 property damage liability per accident

California 

$15,000 bodily injury liability per person

$30,000 bodily injury liability per accident

$5,000 property damage liability per accident

New york

$25,000 bodily injury liability per person

$50,000 bodily injury liability per accident

$50,000 liability for death per person

$100,000 liability for death per accident

$10,000 property damage liability per accident

$25,000 uninsured motorist bodily injury per person

$50,000 uninsured motorist bodily injury per accident

$50,000 personal injury protection

Florida 

$10,000 property damage liability per accident

$10,000 personal injury protection

Georgia

$25,000 bodily injury liability per person

$50,000 bodily injury liability per accident

$25,000 property damage liability per accident

  1. Collision Coverage

Collision coverage pays for damage to your car. It won’t cover every incident your car may be involved in. An accident you cause and a collision with inanimate objects are examples of what collision coverage protects. If someone else is responsible for the accident their insurance should cover damages to your vehicle. If their coverage is insufficient to cover the cost of damage your collision policy would cover the rest. 

If you have a lease on the car or some debt against the car you may be required to pay for this insurance and have the lienholder as a benefactor in case of an accident as the lienholder will want to protect the asset which is collateral for the loan. Keep in mind you will have to pay your deductible before the insurance company covers the rest of the costs. 

If you don’t have a lien it makes sense to insure the car for collision coverage in cases where the value of the car is enough to warrant the cost of coverage. You may not want to pay $3000 a year to ensure a car worth $5000. If the value of the car is significant it’s important to have good collision coverage. 

  1. Comprehensive Coverage

Damage can come in many ways being involved in an accident is not the only one. Theft, damage due to hail, snow or rain, and other damages may occur. This is where comprehensive coverage protects you financially. This coverage, like collision damage, may be required if you have a lien on your vehicle.

Like collision damage, you want to make sure that the value of your vehicle is worth the cost of the coverage. 

If you purchase anti-theft protection and other safety features you may be able to reduce the cost of this coverage. 

  1. Personal Injury Protection

Personal Injury Protection (PIP) covers the cost of bodily injuries in the case of an accident, the cost of medical bills can be overwhelming, Proper coverage protects from these costs. This coverage can cover the cost of passengers as well as the driver. 

  1. Uninsured /Underinsured Motorist Protection

There are many drivers on the road who are uninsured or underinsured. In the case of an accident with one of these drivers you can protect yourself with Uninsured /Underinsured Motorist Protection. 

Considerations and how to choose:

Now that we have an understanding of basic coverage types consider various factors that impact coverage. 

The first is the value of the car, like any other asset that you protect, the value of the underlying asset is a major factor in the cost of the insurance. Expensive cars will cost more to insure than cheap ones. If the car is stolen or is in an accident the insurance company will need to pay to get the car fixed or cover the loss, therefore the more expensive the car the more the insurance company will be liable to pay. 

How much you drive is the next factor that can impact pricing. The logic for insurers is simple, the more miles you drive the more likely you are to be involved in an accident. A car used for short distances on occasion compared to a car used for a 2 hour commute will have drastically different risk profiles and policy rates will follow suit. 

The number of drivers on the policy and their respective profiles will impact the cost of the premiums. More drivers means more risk. Young or inexperienced drivers do the same. Insurance carriers will assess the risk associated with the entire profile and issue a policy accordingly.

Ownership type. Leasing or privately owning the vehicle may impact what type of coverage you will be required to purchase. The lease company may demand a more comprehensive level of insurance or they may require you use specific vendors that they choose. If you own the car yourself, you choose every aspect of your policy. You could find yourself paying $2,000 a year insuring a car worth $4,000 which means you are paying roughly half the value to insure the car.   

State requirements impact the minimum coverage you will need to insure. For example, in Texas, auto insurance minimum requirements for 2020 are: 30k for bodily injury or death of one individual, 60k for 2 or more people, 25k for property damage (30/60/25 plan), you could choose to insure for a larger amount but this would be the minimum amount you would need to abide by state law.   

How to reduce costs:

After reading up on multiple types of coverage and how premiums are affected by numerous factors it is easy to understand why car insurance quotes vary so greatly. Here are options to reduce costs.

Insuring multiple cars with the same provider may help secure a discount. The insurer reduces risk across two vehicles. Most often one vehicle will get more use than the other. It’s also in the insurance companies interest to secure two policies and a bigger deal which may incentivize them to offer a lower price to insure more than one car.

A clean driving history will impact on your premium. Lower risk drivers receive less expensive offers. Maintaining a safe driving history will pay less for your insurance over time. 

Selecting a higher deductible, may reduce the premium. A deductible is the amount you pay in the event of an accident. For example, if the damage is $5,000 the policy may stipulate that you pay the first $250 or $1000 before the policy kicks in. The higher the deductible the lower your monthly premium will be. The reason for this is that the insurance company is shifting some of the risk to you, they also know that below the deductible threshold you won’t file a claim which further reduces their risk of payout.

Your credit score is used by the insurance company to ascertain whether you are likely to pay ontime. Insurance companies also use this as a way to assess risk and the likelihood of the customer filling a claim. With a good credit score you can expect to pay less than a similar person with a poor credit score. 

Installing an anti-theft device means your car will be at a lower risk of getting stolen. Insurance companies will take that into consideration when assessing risk and offering a quote.

Research and price comparison If you have made it this fart, you are in the right place and on track to receiving a great deal on your car insurance. We built a comparison tool to assist you in receiving quotes from many carriers to select what best suits your needs. 

Don’t be shy asking for a discount directly. There are many options that can play a role, membership to certain clubs and enrolling autopay are two of them.

Don’t renew blindly, when your policy is up for renewal be sure to shop your policy. The cost of your insurance could go down every year as your car ages (the value goes down.) The car isn’t the only thing that ages, you also age therefore becoming a more  experienced, safer driver. You might find the cost reduces assuming you maintain a clean history. Don’t miss out on opportunities to save on your insurance.  

Where to buy car insurance:

Purchasing car insurance doesn’t need to be a hassle. Compare rates and educate yourself online. Our site offers comparison nationwide and will help you find the best deal. Review multiple quotes and compare the coverage each provider offers. Be sure the comparison is apples to apples. 

Information you need to provide in order to get a quote:

If you believe you found the right coverage and carrier for your needs be prepared with the following information: 

Driver Licence number

Car make, model, year, mileage, 

List of safety features, 

Name(s) 

Date of Birth 

Current coverage and insurance company

Driving history 

Summary: If you ever wonder how to get the best car insurance quotes make sure you do your homework on what type of coverage you need. Compare multiple car insurance quotes. Collect all the necessary information to move forward with the right offer. Check out price comparison here.

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