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How to Find the Best Car Insurance, and Maybe Save Some Money Too

Wednesday, February 20th 2019. | Tips

In the “gotta have it” category in life, car insurance definitely makes the list. If you own and drive a car, even if it’s mostly to run errands around town, you have to have a current auto insurance policy.

Tips and trick find the best car insurance
While you must have car insurance, it is not necessary that you pay through the nose for it. At the same time, you want to be sure you have a solid policy that will cover you and others in the event of a fender bender or other accident. Fortunately, it is more that possible to find the best car insurance for your needs, all without breaking the bank. The following step-by-step guide will show you how to do just that.

Step one: don’t assume that the popular companies are the cheapest

You have probably seen those funny commercials on TV for different insurance companies. And you might naturally assume that the companies that are paying the big bucks to convince you their rates are the best are correct. But as Nerd Wallet notes, insurance companies vary widely on what they can offer for rates, and a lot of it depends on what state you live in. Do some research and see which car insurance companies offer coverage in your city and state and make a list of these firms.

Step two: get and compare your quotes

Once you have the list of possible companies ready, Howard Clark suggests setting aside some time to give each one a jingle. While some companies offer quotes on their websites, most require you to pick up the phone and call. Be sure to have your current policy handy so you can answer specific questions and expect to spend maybe 15 minutes per call per company. If you are not a “phone person” this might be your least fave part of this process but if you end up saving literally hundreds of dollars a year, it is well worth it. Once you have the quotes in front of you, see who offers the best deal — ideally, you have inquired about the same amount of coverage from each company so this should be an easy process.

Step three: ask about multi-policy discounts

As you are shopping around for auto insurance for your vehicle, it’s wise to ask about any multi-policy discounts that may or may not be available to you. If you have ever seen ads that promise a lower price for “bundling,” this refers to discounts that reward you for having multiple insurance plans with one company — for instance, homeowners or renters insurance along with car insurance. Protect My Car is a great example of a company that offers this type of savings; the firm, which also offers service plans and extended warranties, also offers car and homeowners insurance plans.

Step four: pay your bills on time

Many people do not realize this, but your FICO score can impact your car insurance rates. With the exception of California, Hawaii, and Massachusetts, the only states that don’t let insurers use FICO scores as a factor, Esurance.com notes that your credit score is a major determinant in what premium quotes you will receive. The reason is fairly straightforward: Insurance companies have found that their customers’ credit is linked to their chances of filling a claim. So, as you start this process of finding the best car insurance possible, check your FICO score and if it’s lower than it should be due to high debt and/or late payments, make a vow to pay everything on time moving forward.

The right car insurance is out there — it’s time to go find it!

It is reassuring to know that although car insurance is a necessity, paying a huge amount for it is not a given. By comparison shopping, doing your due diligence, and checking out multi-policy discounts, you can rest assured that you have a great car insurance policy at a decent price.

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