Best Car Insurance Companies of October 2022 | Money
Whether you’re looking to switch insurers or buying a policy for the first time, our picks for the best auto insurance companies offer all the coverage you need.
every company on our list offers the five main types of coverage: collision, comprehensive, personal injury protection, liability, and uninsured/underinsured motorist coverage.
They also have a host of discounts to help offset the cost of your monthly premium. You can lower your rate by choosing electronic billing, insuring multiple cars, taking safe driving courses, and staying with the same company, among others.
We put together a full breakdown of each company’s policies, provisions, and benefits to help you on your way to strong, affordable protection.
Then, join us as we review the top eight auto insurance companies for October 2022.
our top picks for the best car insurance companies of October 2022
- amica mutual – the best car insurance package
- progressive: best for customizable premiums
- State Farm – Best for Young Drivers
- Farmers: Best for Essential Workers and First Responder Discounts
- at the national level: best for flexible policies
- geico – best mobile app
- allstate: the best usage-based insurance program
- usaa – best for military
- combined policies and insurance of several vehicles
- Paperless payments, advanced premium payments and automatic payment
- good driving habits: be claim-free for three years and take a defensive driving course
- young drivers: for completing a training program, students with good grades and full-time students outside of school
- having anti-theft devices, passive restraints, or electronic stability features
- loyalty discounts after two years of being insured
- inherited discounts for drivers under 30 whose parents have been insured with amica for at least five years
- mobile app: claim tracking, roadside assistance request, bill payment
- car connect tool to compare new and used car prices
- combined auto insurance policy with home, renters, or life insurance
- insure multiple vehicles
- burglar alarms and other vehicle security features
- choose automatic and paperless payments
- maintain continuous coverage with progressive
- discounts for teen drivers: full-time students with good grades and students away from home
- find coverage options within your budget with the name your price tool
- car insurance calculator based on your status and personal data
- get personalized rates with snapshot, a usage-based insurance program (not available in california or north carolina)
- mobile app: view your driving status, view recent trips and learn ways to improve your driving
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- bundled with life, homeowners or renters insurance policies
- insure multiple vehicles
- drive safely & the save telematics program rewards you for good driving habits
- defensive driving courses (in select states)
- vehicle safety features (seat belt, air bags on older vehicles)
- mobile app: pay bills, file claims, request roadside assistance, view ID cards, and link your bank account
- make car reservations through enterprise or hertz
- directory of reliable auto repair shops
- bundle insurance policies and insure multiple vehicles
- discounts for students for good grades and being away from home
- automatic, paperless and punctual payments
- shared family vehicle (not available in california)
- anti-theft, anti-lock braking and passive restraint systems
- Hybrid/electric vehicles or those running on other alternative fuels (California only)
- discounts for military and other essential service professionals
- mobile app: chat with an agent, request roadside assistance, get a quote
- specialized insurance options, such as motorcycle and boat insurance
- save an average of $646 when you combine auto and home insurance
- vehicle anti-theft and security devices
- automatic and paperless billing
- safe driver rewards for customers who go five years without major violations or at-fault accidents
- complete a defensive driving course
- good student discounts for drivers ages 16-24 who maintain a minimum b average
- mobile app: manage insurance policies, make payments, file and track claims, and request roadside assistance
- smartmiles, a pay-per-mile auto insurance program for drivers with low miles
- smartride, a usage-based auto insurance program for safe drivers
- discounts on new car equipment, air bags, anti-lock brakes, anti-theft systems and others
- be accident free for five years
- wear a seat belt, take defensive driving or driver education courses, and be a good student
- membership discounts for military and federal employees
- insure several vehicles and have several policies
- discounts for drivers over 50 years old
- mobile app: access ID cards, pay bills and request roadside assistance or customer service 24/7
- driveeasy telematics program rewards safe driving behaviour
- car insurance coverage calculator
- vehicle equipment discounts for new cars, anti-lock brakes and anti-theft devices
- multiple policies
- safe driving
- sign your policy seven days before it goes into effect
- not miss any payments for a year
- discount for students with good grades, those who study away from home and complete a driver’s education program
- automatic payments, full payments and paperless billing
- mobile app: access ID cards, pay bills, report claims, request roadside assistance and crash assistance
- drivewise, a usage-based insurance program
- milewise, a pay-per-mile car insurance program
- bumper-to-bumper basics, a tool to select the right coverage limits and deductible
- safe driver discount for being accident free for more than five years
- defensive driving discount for taking an approved course
- driver training discount for completing a basic driver training course
- good student discount for teen drivers with good grades
- new vehicle discount for a car less than three years old
- multi-vehicle discount
- vehicle storage discount
- family discount
- duration of membership savings
- military installation discount
- automatic payments
- mobile app: manage policies, get car insurance quotes, get car ID cards and transfer funds
- How does auto insurance work?
- types of auto insurance coverage
- How much does car insurance cost?
- common factors that increase coverage
- how to lower your car insurance premium
- how to take out car insurance
- Why change auto insurance companies?
- Liability insurance includes property damage and bodily injury liability; the latter covers medical expenses to third parties derived from a culpable accident.
- Uninsured and underinsured motorist coverage covers medical bills and repairs if you are in an accident caused by another driver with little or no insurance.
- Comprehensive coverage covers repairs if your vehicle is damaged by something other than another vehicle (including hail, fire, flood, theft, and vandalism).
- Collision coverage covers the costs of repairing your vehicle if you are involved in an automobile accident that is deemed to be your fault.
- medical payments coverage covers medical expenses if you or your passengers are injured in an accident.
- Personal Injury Protection (PIP), also known as no-fault insurance, covers medical bills, lost wages, and funeral expenses for you or your passengers if you are in an accident, regardless Whose fault is it?
- Guaranteed Asset Protection (Gap), supplements your auto insurance when you owe more on the car than its cash value. this would not normally be covered by a regular policy.
- Using the car: If you do not drive often, there is less chance that you will be involved in an accident. the opposite is also true; the more you drive, the more likely the insurance company will have to pay a claim, which leads to higher premiums.
- Place of Residence: Where you live influences your auto insurance premium. In general, metropolitan areas like New York City, for example, have higher rates of vehicle theft and vandalism than rural neighborhoods, which means higher risk.
- Age: Drivers under the age of 25 generally pay higher premiums because insurers see inexperience as a contributing factor in accidents. teenagers, therefore, are considered high-risk drivers and will often have to pay the highest premiums.
- Gender: Statistically speaking, women are involved in fewer car accidents than men, resulting in lower premiums.
- marital status: Insurers consider married drivers to be safer than single drivers.
- Commuting: Insurers ask for mileage information, such as how many miles you drive per year, because longer commutes increase your risk of an accident. some companies have specific guidelines to determine if your car is what is known as a pleasure vehicle (about 7,500 a year or 20 miles a day) and offer lower rates.
- Homeowner status: Generally speaking, insurers consider homeowners to be more financially stable and therefore less risky than renters.
- Sports or luxury vehicles: These cars cost more to repair, have higher rates of vehicle theft, and a lot of horsepower, making them more expensive to insure.
- accidents or fines: these can increase your payments for three years or more.
- credit score: while some states have banned the practice, many states still allow insurers to use credit-based insurance scores to price policies . Statistical data reveals that drivers with poor credit are more likely to file insurance claims.
- set of policies with the same company
- insure multiple vehicles
- take a driver’s education course
- automatic and paperless payments
- a higher deductible
- maintain continuous coverage
- safe driving
- driving student with good grades
- low annual mileage
- students at university
- vehicle safety features
- You want to save money: It’s never a bad idea to shop around, especially as prices and life circumstances can change.
- want to add a teen driver: teens are expensive to insure. While including your child on your car insurance will increase your rates, some companies have discounts available for teen drivers (state farm is one such example) to help offset these increases.
- You moved: One factor that affects your rate is location, and your rate could be affected if you move. It’s not a bad idea to shop around to see if your provider is still the best option given where you live.
- Your Credit Score Improved: While some states are banning the use of credit scores to set auto and home insurance rates, it is still used in many states. You may want to switch auto insurance if your score has improved because you could get a lower rate as a result.
- Your commute has changed: With hybrid schedules or working from home, some use their car substantially less. these drivers may now be eligible for low mileage discounts.
- Due to various factors, including chip shortages, factory closures, port delays, and other supply chain issues, new car buyers are now required to make payments of $1,000 or more at month. If you’re still looking to buy a new car this year, the money guide on how to buy a car in 2022 can help you get the best price.
- If you’re considering buying a new car, you may need to reconsider the make and model, as some brands have seen significant price increases. while the conventional wisdom is that used cars are more affordable options, they also command higher than average prices.
- in some auto and home insurance news for washington state residents, a new law will ban the use of credit scores to set auto and home insurance rates. Similar laws exist in Hawaii, California, Michigan, Massachusetts, and Maryland. insurance companies argue that this will lead to higher premiums for drivers.
- Experts say the recent spike in US road fatalities. roads will mean higher car insurance rates for drivers in 2022.
- The growing number of EV cars, which are generally found in the luxury car range, is one reason why average car prices are approaching $50,000. While prices are still higher than ever, there may be a light at the end of the tunnel as the average used car price is down 4.6%.
reviews of the best auto insurance companies
why we chose it: amica mutual was included in our list for its platinum choice auto policy, which allows drivers to earn advantage point rewards and save significantly on their deductible.
the amica platinum choice auto policy is an out-of-the-box package that includes all the basic coverage most people need, plus exclusive benefits like identity fraud control.
In addition, it offers glass coverage without a deductible, rental car coverage and an advantage points program where drivers can earn points to reduce their deductibles or prevent rates from increasing after a claim.
For drivers who prefer to pick and choose, amica divides its coverage into two categories: the things you need to have and the things you’re good at having. You can customize your plan to include these extras, but keep in mind that they can make a significant difference to your premium.
these extras include: medpay, which provides additional coverage for medical bills and funeral expenses. collision to cover accident-related damage and comprehensive collision to repair non-accident-related damage, such as fire, natural disaster, or theft.
two important clauses that amica provides are a credit control service that very few competitors offer (and amica includes it in the platinum plan) and guaranteed asset protection (gap), which covers the “gap” between what you owe and the depreciated value of your car if totaled.
for customer satisfaction, amica has earned the highest score in the new england region for 10 consecutive years at j.d. power car insurance customer satisfaction study. amica also has a low national association of insurance commissioners (naic) complaint rate (rate increases and claims handling delays are recurring issues) and received a b+ on the 2022 accident report card, where mechanics rate insurers based on how they handle policies and make payments.
amica car insurance discounts
amica car insurance tools
Why We Picked It: We picked Progressive as the best auto insurance for customizable premiums because its name, its pricing tool, allows drivers to choose the coverage that fits their budget.
customization sets progressive apart from the rest. With the name of your pricing tool, customers set a budget and you progressively create a policy to match it. From there, policyholders can choose coverage limits and deductibles.
For example, you can increase your collision coverage deductible and save on your premium; however, keep in mind that if you have an accident, you will have to pay a higher amount before the insurance kicks in.
Among the notable progressive add-on offerings is gap coverage. For an additional $14 per month, this coverage pays up to 25% of the difference between the value of the vehicle and what you owe. Another valuable add-on is custom equipment coverage that you can use to repair any accessories intended to aid mobility, a GPS system, or any other customizations you’ve made to the vehicle.
progressive also covers some things that few other insurers do. One is rideshare coverage, which covers you if you work for any type of rideshare service (Uber, Lyft, or even food delivery), whether you do it full time or as a side job. In addition to this, the progressive collision policy covers medical care for any injury suffered by your pet during an accident.
in terms of savings, progressive’s telematics snapshot program uses driving data such as acceleration, braking and distance and offers drivers a discount for safe driving behaviour. it also gives clients the option to adhere to their deductible savings account. this program saves $50 for every six months you go without a claim until you reach your deductible limit. then if you file a claim, your deductible will already be paid.
In terms of customer satisfaction and complaints, progressive 862 out of 1000 in jd. powers’ auto claim satisfaction study is 20 points below the industry average and ranks second from last on the list, while its naic complaint rate is around the national average.
progressive discounts on car insurance
car insurance progressive tools
Why We Picked It: We picked state farm as the best auto insurance for young drivers because it rewards student teen drivers with a 3.0 or higher gpa with up to 25% savings.
Teen drivers are the most expensive to insure, but state farm stands out from other insurers by offering deep discounts to teen drivers that can offset high premiums. With the nice student discount, policyholders can save up to 25% if their teen driver maintains a 3.0 or higher gpa through their 25th birthday. drivers under the age of 21 can also get a discount for taking a driver’s education course.
In addition, the “student out of school” discount helps customers save by only covering the student while they are home during vacations and holidays.
state farm is well known for its network of nearly 19,000 agents in all fifty states. this makes it ideal for people who prefer a more personalized service and prefer to have a dedicated agent they can turn to with questions.
As for its policies, State Farm offers car rental and travel expense coverage for when you have an accident more than 50 miles from your home. others cover roadside assistance if your car breaks down (i.e. you get a flat tire, need a jump start, or left your keys in the car), while state farm travel expense coverage extends its assistance into the road if you have an accident and the accident is covered by your comprehensive and collision insurance. This pays up to $500 per loss for expenses like hotel and food, as well as a rental car while your car is in the shop.
one of state farm’s notable discounts is the drive safe and save telematics program, which monitors and provides feedback on your speed, braking, and other driving factors. state farm gives you a discount just for signing up and once you start using the app you can get up to 30% off for safe driving habits.
in j.d. In Power’s 2021 Auto Insurance Customer Satisfaction Report, State Farm was the highest-ranking auto insurer in the Southwest region and ranked second in the Texas, New York, and New England and Northwest regions. state farm improved its naic customer complaint index by lowering its score from 0.71 to 0.67.
state farm auto insurance discounts
state farm auto insurance tools
Why We Picked It: We picked Farmers as the best auto insurance for essential workers because of its variety of discounts designed specifically for teachers, healthcare workers, and other first responders.
Why We Picked It: farmers is our pick for best auto insurance for essential workers for its variety of discounts geared specifically toward teachers, healthcare workers, and other first responders.
Although the farmers’ rates are not the lowest in the market, it makes up for them by offering policies and discounts not offered by many other insurers. An example is its affinity discount, which it gives to healthcare professionals, members of certain organizations, as well as active, reserve, or honorably discharged military personnel.
Another notable discount is the senior driver discount for people age 55 and older (or 65, depending on the state) who complete state-approved safe driver training. this is valuable because older drivers, like teen drivers, pay higher premiums because they are considered riskier to insure.
For classic car enthusiasts, farmers offers classic and collectible car insurance. With this coverage, you can protect your collection at the car show later on or even while you’re abroad. policyholders can combine this with parts coverage and get up to $750 toward the repair or replacement of parts at no additional cost.
a drawback for farmers is their slightly higher than average fees; however, its unique offerings make it a great option for those willing to spend a little more on personalized coverage.
auto insurance discounts for farmers
car insurance tools for farmers
Why We Picked It: We picked it nationally as Best for Flexible Policies because it offers a free annual policy review where drivers can review their coverage, ask questions, make changes and request discounts.
nationwide offers a variety of standard and optional coverage to choose from. To help drivers choose the right coverage year after year, the By Your Side Review, an annual evaluation where customers can ask questions about their policy and assess whether discounts and benefits still work for them, is offered across the country. them.
nationwide offers two programs that can help you save based on your driving habits. smartride is a telematics program that tracks your driving (miles travelled, idle time, acceleration and braking during night driving) and provides you with information to improve your driving. you get a 10% discount when you sign up and you can save up to 40% depending on how safely you drive. the other program is smartmiles which charges a base rate of $60 and a variable rate of $0.07 per mile traveled each month.
national also offers the deductible that disappears. this discount rewards you with $100 off your deductible for each accident-free year, up to $500. So let’s say he’s been around the country for four years without incident. if you have an accident in your fifth year, you’ll pay a $100 deductible and continue to earn a $100 annual reward next year.
nationwide has the lowest naic complaint rate on the list at 0.39, however its j.d. the power is us the customer satisfaction survey was below average.
auto insurance discounts nationwide
Nationwide auto insurance tools
why we chose it: the geico mobile app not only allows you to access digital insurance cards and file claims, but also connects to carfax, giving you access to your insurance history. your vehicle and verification of recalls.
While the first thing that comes to mind when you think of Geico is their pet gecko, where their service stands out the most is their all-digital experience, which is ideal for those who prefer to connect online than call customer service.
With the Geico mobile app, policyholders can request roadside assistance, upload photos for damage estimates, and submit and manage their claims. it can also serve as a kind of “agent in your pocket” answering insurance-related questions and helping you stay on top of your car’s history, sending you alerts about recalls or when it’s time for maintenance.
geico offers all the standard types of coverage, such as bodily injury liability, collision, comprehensive, uninsured/underinsured motorist, and medical coverage. their site offers a breakdown of these along with information on limits, premiums, and deductibles to help customers create a policy that fits their needs and budget.
also offers a host of discounts to help customers lower their rates. these are divided into four areas: vehicle equipment, driving history and habits, driver affiliation and customer loyalty. for example, their anti-theft system discount can save members up to 23% and a driver who has been accident-free for 5 years can save up to 22%.
geico also offers significant military discounts: one for active or retired membership and one for emergency deployment. these can save policyholders 15% and 25% respectively. Of all the companies on our list, Geico is one of only two that offer such discounts to military personnel.
In terms of third-party ratings, Geico scored above average in nearly every region surveyed by J.D. power of 2022 usa uu. auto insurance customer satisfaction study, excluding texas and the mid-atlantic and southeast regions.
geico car insurance discounts
geico car insurance tools
Why We Picked It: We picked Allstate’s as the best auto insurance for usage-based programs because of its Drivewise telematics feature, which helps drivers save by tracking their driving, offer feedback and reward them for being safe on the road.
Today, the best auto insurance companies offer telematics services and our best choice among them is allstate drivewise. this telematics provides information on your driving behavior and rewards you for driving safely. customers get a 10% discount just for signing up and can save up to 40% with all discounts combined.
One of drivewise’s notable safety features is accident detection. As its name says, it detects when you’re in an accident, regardless of whether you’re the driver or passenger, and sends you a notification offering to contact roadside assistance or 911.
allstate also stands out when it comes to package discounts. customers can get a 10% discount on auto insurance and a 25% discount on home insurance when they get both policies. Unlike other providers, allstate home insurance policies include flood protection, making the combination a very attractive alternative.
also, unlike many competitors, allstate offers coverage in mexico for your own vehicle or for rental while traveling. This makes them a great option for customers in Texas and other border states.
Having said that, allstate’s low customer satisfaction scores at both j.d. The 2020 power studies (claims satisfaction and auto insurance customer satisfaction) could be cause for concern, especially since these scores have not improved much in the 2022 auto insurance study. (Note that the study of claims satisfaction for 2022 has not been published). customer satisfaction varies by specific location, so our advice would be to research allstates service in your area to determine if it’s right for you.
allstate auto insurance discounts
allstate auto insurance tools
Why We Picked It: Our pick for the best auto insurance company for military families and veterans is usaa because it caters specifically to these groups and has one of the highest customer satisfaction ratings. high of all companies. we review.
in j.d. Power USA’s 2022 Automobile Customer Satisfaction Study In the US, it scored highest in every state and region studied except California. (Note that usaa did not earn a rank because, according to j.d. power, it does not meet the study’s award criteria.)
Like other companies, USAA offers a variety of discounts with some unique features. These include a car storage discount for those members who store their vehicle at a military facility. in this case, customers get up to a 60% discount on their policy and can save up to 15% on comprehensive coverage by keeping their car at a military base or installation. It also offers a low mileage discount that both deployed members and US residents can take advantage of.
another area where usaa excels is its safepilot telematics program. Upon signing up, members get an automatic 10% discount and can then earn up to 30% off for safe driving. however, keep in mind that safepilot works through an app, and the latest reviews of these show a pattern of complaints describing the latest update as “bumpy” and frustrating to use.
Although well known for its customer service, recent reviews on file with the best business agency point to a possible drop. customers complained of problems with the claims process and inconsistent customer service.
although usaa is one of the best providers for military, we recommend that you make sure that usaa’s other insurance policies are also suitable, as there may be other providers that offer a better package.
auto insurance discounts in usa. uu.
us auto insurance tools uu.
other companies we consider
series
erie came up as the top auto insurance company in j.d. Power’s 2022 Automobile Customer Satisfaction Study in the North Central and Mid-Atlantic regions.
The fare lock feature helps erie stand out from the crowd. This unique feature locks in policyholders’ insurance premium year after year, even after a claim is filed. We couldn’t find any other providers that offer this feature.
When it comes to discounts, Erie offers discounts similar to others on our list, most notably decreasing deductibles, first accident forgiveness, and vehicle storage.
mutual freedom
liberty mutual was not included in our top list because it has one of the highest complaint rates with the national association of insurance commissioners (naic) of the companies we evaluate. this does not mean that your coverage is poor or deficient.
Like many other companies, Liberty Mutual offers payments for medical expenses, uninsured motorists, personal injury protection, liability coverage, collision and comprehensive coverage. also offers passengers roadside assistance, gap coverage, and rental reimbursement.
Some unique features include coverage for teachers who store valuable supplies in their cars and no limits on the discounts you can earn. also provides a coverage calculator right on their site that you can use to determine the level of protection you want.
travellers
Travellers can give you a quote in five minutes or less, and you don’t even have to provide a driver’s license number. If you order your auto insurance quote while you’re still insured with another company, you can receive up to a 10% discount once you sign up.
Coverage options for travelers include liability, collision, comprehensive, personal injury protection and medical expenses. also offers additional coverage options, such as loan/lease gap coverage, rental reimbursement, accident forgiveness, new car replacement, and roadside assistance. Please note that it only offers rideshare coverage for Uber or Lyft drivers in Colorado and Illinois.
travellers’ is not on our list because it does not offer car insurance in alaska, hawaii, louisiana, michigan, south dakota, north dakota, or west virginia.
appointment wizard
If you want to compare car insurance quotes from different companies, the Quote Wizard Marketplace is a great option. their site makes it fairly easy to compare quotes and coverage types from the major carriers, saving you the time it would take to contact each individual provider.
Please note that the quotes provided are estimates, as there are many factors that affect your premium and average rates, including the make and model of your vehicle, location, and of course, the type of coverage you want. . You’ll also need to check your state and local laws to make sure your policy meets the minimum liability requirements.
quotewizard is not on our list because it is a marketplace, not an insurance provider, therefore its quotes do not reflect the price customers will end up paying.
spark car insurance
spark auto insurance is an online marketplace where customers can compare quotes and coverage from some of the best insurance companies on the market, including progressive, state farm, liberty mutual, travelers, and allstate.
This provider network offers standard and optional coverage options such as bodily injury liability, tort liability, collision, comprehensive, personal injury, medical payments, and underinsured motorist, among others.
To obtain a quote, users must enter basic information such as their address, vehicle make and model, and marital status. spark then displays one or more results from providers that offer a policy that matches your particular profile. however, when we tried to get quotes for a hypothetical customer, it returned only one result.
car insurance guide
In this section, you’ll learn what auto insurance covers, the types of coverage most companies offer, and what can increase (or decrease) your monthly premium.
We also include a step-by-step guide on how to buy car insurance and explain why car insurance is worth paying for.
table of contents
how does car insurance work?
Auto insurance helps you cover losses from theft, collision and civil liability involving your vehicle. In simple terms, you pay your premiums to an insurer and they pay for the losses stipulated in your policy, which generally include damage to other vehicles and injuries to the people involved.
These policies always have a deductible, that is, an amount that you must pay out of pocket before the insurer covers the rest. these can range from $250 to $2,000. policies with higher deductibles will cost less than those with lower deductibles because you will bear more of the cost of repair or replacement in the event of an incident.
However, auto insurance does not usually cover the property inside your vehicle. For example, if someone breaks into your car and steals your laptop, the insurer will pay to replace the window and any other damage done to the car, but not the computer. to cover that, you would need homeowners or renters insurance.
Auto insurance is regulated at the state level, so your policy’s minimum liability limits will depend on local laws. With the exception of New Hampshire and Virginia, all other states require drivers to purchase auto insurance or pay some kind of fee if they don’t have insurance.
types of car insurance coverage
There are seven standard components of auto insurance coverage:
In addition to these, optional insurance riders can give you additional coverage such as roadside assistance, glass replacement, and rental reimbursement at an additional cost.
what does full coverage car insurance cover?
Full coverage auto insurance refers to a combination of liability, collision, and comprehensive coverage. These coverage options financially protect drivers by reimbursing them for damage to their vehicle, injuries to passengers, and any damage to other cars and their occupants.
how much does car insurance cost?
Car insurance costs $1,204 on average, according to the most recent report from the National Association of Insurance Commissioners (NAIC) Auto Insurance Database. however, this can vary greatly depending on a wide range of factors. in fact, the naic explicitly mentions that comparisons between states are difficult to make due to the high degree of variability in insurance requirements and other factors.
common factors that increase premiums
While your driving record and the type of car you drive influence your premium, there are other factors that affect what you pay for auto insurance. Generally speaking, the higher the risk you appear to present to an insurer, the higher the premium.
what makes car insurance premiums go up?
These are some of the factors that will determine your premium.
how to lower your auto insurance premium
package of insurance policies
On average, the combination can save you 8% on your combined premiums. Consider one of our best homeowners insurance providers if you’re looking for an auto and home package.
raise your deductible
The deductible is the portion of the damage you’ll have to pay out of pocket before the insurance company pays the rest. Increasing your deductible can lower your premium payments to more affordable auto insurance rates. this can be a worthwhile gamble, especially for infrequent drivers.
review your policy periodically
Re-evaluating your current policy annually before renewal, or whenever you make life changes that affect who drives your car, can ensure you get the type and level of coverage you need and can afford.
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request discounts
Companies offer discounts to policyholders who maintain a clean driving record and drive vehicles with good safety features.
While discounts vary from lender to lender, they often include:
reduce coverage on older cars
You can lower your premium by dropping collision or comprehensive coverage on vehicles that are 10 years old or older. Similarly, you might consider canceling collision coverage on vehicles you don’t use or have in storage.
consider usage-based insurance
Usage-based (ubi) insurance options take into account your current driving habits to set your premium.
for example, pay-per-mile insurance can help infrequent or short-distance drivers save 20% to 40%, while pay-per-mile insurance could help good drivers save up to 40%, plus a discount for signing up.
Usage-based insurance options that measure how fast you drive, how fast you turn and how hard you brake could end up costing you more if you don’t drive safely.
shop rates
Finding and comparing price quotes from at least three different insurance providers can help you get the cheapest car insurance rate, without sacrificing important coverage. Using a car insurance comparison tool can help you find a provider that offers the best car insurance policy for your vehicle.
You can get rate quotes directly from insurance companies online or over the phone. Some state insurance commissioners also provide information on average auto insurance prices in your state.
In addition to average rates, consider available discounts, coverage limits, and deductible options when shopping for coverage. If you’re not sure where to start, an independent insurance agent or broker may be able to help you narrow down your options.
If you want to learn more about savings opportunities with online insurers, read our guide to the best cheap car insurance companies.
Finally, check out our article on lowering your auto insurance premiums for more ways to save on auto policies.
how to take out car insurance
To buy auto insurance, you need your driver’s license and vehicle registration. You will also need a copy of your existing insurance declaration page if the vehicle is already insured.
Read our article on how to buy car insurance for detailed information on what you need to know before you sign on the dotted line.
why change car insurance company?
Even if you’re satisfied with your insurance coverage, you should review your policy annually to make sure the coverage and discounts still fit your lifestyle and driving habits. If you’re interested in switching, check out the money guide on how to switch car insurance.
A few reasons why you might consider switching are:
latest news in car insurance
how we choose the best auto insurance companies
To find the best auto insurance companies, we examined 23 insurers, all of which were featured in the NAIC’s 2021 Ownership/Accident Market Share Report for Private Passenger Cars, as well as J.D. power of 2021 usa uu. automobile claims satisfaction study.
We only consider companies with relatively few complaints related to their private passenger policies, as reported by the National Association of Insurance Commissioners (NAIC).
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