Why Comparing auto Insurance Quotes Is not a Straightforward Task

Comparing auto insurance quotes for your car is not as easy as looking at the premium and picking the lowest one. Down below we will show you why and how to do it right.


Shopping around for auto insurance quotes is not a new concept in today market. However, easy as it may sound, it requires more thought and effort than mere comparing premium. Down below we will explain the situation and show you what you can do about it:

Are insurers are making it harder to compare car insurance policies?

If you have dipped your toe into the business, you might have realized already that for the same person, quotes can vary greatly. However, in a list of different providers, it is not so wise to sign up with the cheapest policy you can find. A low premium is inviting but it does not mean it is the most suitable for you. Have you ever wondered why some of the carriers are able to offer a surprisingly cheap rate compared to others? The car insurance market is notoriously competitive and it is not convincing enough to argue that the other companies raise the premium just to gain their business. That is when you should invest more effort in skimming what each provider offers. Add-ons, sweeteners, extras, and additional benefits are just a few concepts that make life harder for customers to compare policies.

Behind every premium is a cluster of different coverage and they are not the same from one policy to the other. The cheapest deal you can find might just include the state minimum requirement while another with a higher premium might have everything you need to cover your vehicles.

How to compare auto insurance quotes?

Many car owners do not know how to compare policies except looking directly at the price and make their decision based on who offers the lowest premium. Here is a quick guide to compare car insurance:

  • Take the companies into consideration: your state insurance commissioner's website is a good place to start. Most states offer this as a guideline for buyers to give them the first idea of which insurers are conducting business in the state. While you have done with the list, next look at the price, the claim service, and the claim ratios. Discounts are a great way to reduce your monthly amount so remember to look for them too. The last thing to consider is additional car insurance coverage. 
  • Compare with up-to-date information: Major life changes can have an impact on your premium so make sure that they are reflected in your policy. For example, if you recently got married or bought a new home, shop around for cheaper policies because married people and homeowners are believed to drive more carefully and file fewer claims than others. Other information to have at hand while comparing auto insurance quotes are your name, address, your VIN number, your driving record, and make and model of the car.
  • Understand basic terms: If you want to handle the process of choosing the policy on your own, you should familiarize yourself with some of the basic terms that appear on almost every site that involves insurance. Research them yourself or talk to folks working in the insurance field. It might be a daunting task at first but once you have made sense of them, you are getting closer to the most suitable auto insurance quote. This research step is required only for the first time you shop around for car insurance, next time you can use your knowledge and experience to make the job easier and less time-consuming.
  • Use a comparison website: quote-comparing sites are a great way to have an instant result in one go. All you need to do is to put in your information and then you will be able to see your premium. Some sites even put premium and details of different insurers side-by-side so that you can easily compare them. However, not all good carriers list their information online, so use the comparing tool to save time but look outside of these sites too, you might find something useful. 
  • Talk to an agent directly: you cannot deny that agents know a great deal more about car insurance than an average person, so why not take advantage of their expertise to reduce the time you have to browse the webs? While talking to them, make sure that you know exactly what you need, make a list and tell them about your current policy and premium. Ask questions like: “I am currently on a policy of $420 per year, do you have anything better than that?”.
  • Decide on deductible: Your premium will be reduced if you choose a higher deductible and goes down if you have a lower one. The deductible is the amount of money you pay for a claim before your insurance company starts paying you. So if you decide to reduce your premium by raising the deductible, make sure that you have a certain amount of cash-on-hand in the event of a road traffic accident. 
  • Consider signing up for add-ons: Add-ons might provide you with an extra layer of protection and benefit you when road traffic accidents happen. However, they will raise your premium significantly. So decide on what you need instead of what you want. For example, rental reimbursement coverage pays for your rental while yours is in the shop, so if you are fine with using other means of transport or have another vehicle, feel free to skip this coverage.

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