Compare Car Insurance: Cheap Quotes & Best Companies

Before comparing quotes, know what you're comparing. Car insurance policies combine different coverage types that protect you in different situations:

• Liability coverage pays for damage you cause to others when you're at fault. This includes bodily injury liability (covering medical bills and lost wages for people you injure) and property damage liability (paying to repair vehicles and property you damage).
• Collision coverage repairs or replaces your vehicle after accidents, regardless of who's at fault. If you hit another car, a guardrail, or roll your vehicle, collision coverage handles repair costs minus your deductible. Lenders require this for financed and leased vehicles.

Figure out how much car insurance you need by comparing what you'd pay out of pocket versus what you'd save on premiums. If your car is worth less than $3,000 to $4,000, minimum coverage may make sense because full coverage premiums could exceed your vehicle's value over a few years.

Check your lender's requirements if you're financing or leasing. Banks require full coverage until you pay off the loan or the lease ends. Once you own your car outright, you can drop comprehensive and collision coverage.

Understanding uninsured motorist coverage is also important—this protects you when other drivers lack adequate insurance.

The information needed to compare car insurance quotes is straightforward, but companies will require specific details:

• Vehicle Identification Number (VIN), make, model, and year
• Anti-theft or safety devices installed in your vehicle
• Estimated daily commuting or total annual mileage
• Driving incidents from the past five to ten years (speeding tickets, accidents)
• Current insurance company name and policy duration
• Social Security number
• Age when you first got your license or years of driving experience
• Information for any other drivers or vehicles on the policy

Compare identical coverage limits and deductibles across all insurers. Comparing a $500 deductible from State Farm against a $1,000 deductible from GEICO produces misleading cost comparisons. Use the same liability limits (like 100/300/100) and deductible amounts for every quote.

Make sure all applicable discounts appear on each quote. Different insurers offer varying discounts that impact final pricing. Common car insurance discounts include safe driver (20% to 30%), good student (15% to 25%), and multi-vehicle savings. Bundling policies delivers some of the largest savings—bundling home and auto insurance can save 10% to 25% on both policies, averaging $542 annually according to our analysis.

Contact agents if needed to confirm all discounts are reflected. Focus on the bottom line—a company offering discounts but similar overall rates provides little advantage over cheaper base rates with fewer deals.

Evaluate customer service, claims processing speed, and payment flexibility. The cheapest car insurance isn't always the best value if claim payments are delayed or customer service is poor. Check company reviews and financial stability ratings. Once you find a better rate, learn how to switch car insurance companies without coverage gaps. You can also explore strategies for how to lower your car insurance rate with your current or new insurer.