Best car insurance company of August 2022
We evaluate major auto insurance companies based on average rates for different drivers, available coverage features, complaint rates, collision claim rates from body repair professionals, and the clarity of insurance company websites. Check out our top picks below.
Why People Buy New Car Insurance
While you can save money by researching auto insurance, many car owners renew their insurance annually without checking the prices of other insurance companies.
A survey of 2,000 drivers conducted by Forbes Advisors in March 2022 asked what motivates them to buy new car insurance. More than half say they shop for one of three reasons:
- Looking for a better price (54%)
- Company currently has no preferred coverage type (52%)
- Bad experience with car insurance claims (55%)
- Older drivers (ages 58-76) chose price as their main reason for shopping.
Factors Affecting Vehicle Insurance Costs
The cost of car insurance usually depends on several factors, including:
- Your age and years of driving experience
- where do you live
- Credit-based insurance scores (using credit to calculate auto insurance premiums is prohibited in California, Hawaii, Massachusetts, and Michigan)
- your driving record
- Choosing Vehicle Insurance Coverage
- vehicle model
- Deductible (if you buy Collision Cover and Comprehensive Coverage)
- Car insurance history, including ongoing coverage and irregularities
How can I find the best price for car insurance?
Once you determine how much car insurance you need, start buying insurance. It is wise to compare auto insurance quotes from several insurance companies, as rates often vary greatly from company to company for the exact same coverage. For example, in California, fees for a good driver range from $1,668 (Wawanesa) to $3,940 (Hartford), and about $2,270 for the exact same driver.
Here's what you have to do to find the cheapest auto insurance.
1. Ask about the discount
When getting a car insurance quote, ask about auto insurance discounts. You can usually save money on your car insurance with the following discounts:
- By "combining" several policies from the same company, such as car or home insurance.
- Insure multiple vehicles with the same company.
- If you are 55 or older, take a defensive driving class.
- You deserve a big discount for the driver.
- If you have an insured student, get a discount if you go to school without a car (it usually has to be at least 100 miles away).
- Pay your car insurance bill in full, not monthly.
- If you have students on your policy, you get a discount if they are good students.
2. shopping
Unless you do your research, you won't know if the price is high or low. Getting multiple quotes can help you find the most affordable auto insurance company. You can find free quotes online or by working with an auto insurance agent. Independent insurance agents can provide quotes from several companies. Insurance offers are always free.
3. Choose a higher reduction
There is a reduction for Collisions and Comprehensive Coverage. The deduction is the amount your auto insurance company will deduct from your claim check.
The higher the deductible, the lower the premium.
Here's an example: Let's say you were in an accident and your car was damaged $2,000. If the collision deduction is $500, the insurance company will deduct it from the settlement amount, so you'll receive a $1,500 check to cover repair costs.
If you decide on a high deduction, make sure you set aside that deduction.
4. Ask about the pay-per-mile policy if you rarely drive
If you have a car, but travel by public transport and don't drive often, check your car insurance per mile.
This policy charges a base monthly rate and a rate per mile. This can be a more affordable option if you don't spend a lot of time driving.
Assume that the base rate for pay-per-mile insurance is $40 per month and 5 cents per mile. If you drive 500 miles a month, your monthly bill will be $65 ($40 + 500 miles x $0.05).
5. Ask about pay-as-you-go car insurance
Usage-based insurance (UBI), also known as telematics, may sound like pay per mile, but very different. With a usage-based policy, your auto insurance company will closely track your driving and create a driving score.
For example, usage-based insurance programs can track speed, braking, acceleration, mileage, and time of day. The program tracks your driving using a smartphone app or a device attached to your vehicle.
These programs often have an introductory discount. Then you may be able to save even more depending on your driving. However, not all drivers using UBI can save. These programs are perfect for good drivers.
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