News
The 3-step guide to shopping for car insurance and maximizing your coverage
Published
11 months agoon
By
New Yorker
Car insurance is a requirement for anyone on the road. But, it’s often a large expense. According to Bankrate, the average cost of full-coverage car insurance across the U.S. is $2,014 per year.
There are a handful of factors that influence the amount you’ll pay for coverage, also called your premium: things like your driving record, the number of miles you drive per year, where you live and even your credit score. When pricing your policy, insurance companies weigh these factors differently — sometimes resulting in one insurance company offering you a very different price than another insurance company.
To get you started, CNBC Select narrowed down some of the best car insurance providers on the market. Geico takes the top choice overall for car insurance coverage, offering some of the most affordable premiums for minimum and comprehensive coverage. State Farm ranks close behind for earning impressive marks from J.D. Power for customer satisfaction.
Geico Auto Insurance
-
Cost
The best way to estimate your costs is to request a quote
-
App available
-
Policy highlights
Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
State Farm Auto Insurance
-
Cost
The best way to estimate your costs is to request a quote
-
App available
-
Policy highlights
State farm is one of the largest auto insurers based on market share and has an excellent reputation for customer satisfaction. It offers 13 discounts, including ones for safe driving and young drivers.
Now that you have two top providers in mind, it’s time to shop around for any others that may be a good fit. Here’s a step-by-step guide to shopping for car insurance so you can save money on your auto coverage.
1. Gather your information and documents
To get started shopping for auto insurance, you’ll need some information from your car and your driver’s license, along with personal details.
A few things to have on hand as you start the process of shopping include:
- Your driver’s license
- Your vehicle’s VIN number (generally found at the bottom of your windshield on the driver’s side)
- Your car’s mileage, make, model and year
It might also be helpful to have information on your previous car insurance policy if you had one. This will allow you to match your new policy to the coverage you currently carry and compare how the new quotes stack up.
2. Get quotes from several insurers, and look for discounts
In order to compare quotes, you’ll need to get several different options from a variety of insurers. Generally, you’ll want to get three or four quotes to start.
To get started finding quotes, do your homework on the companies you’re considering. Looking at financial strength ratings from AM Best and customer satisfaction data from J.D. Power is helpful when evaluating insurers. We’ve done some of that work for you already by considering these factors (and more) in the process of recommending some of the top products in the space in our rankings of the best car insurance providers.
Consider also car insurance companies that offer discounts. One of our top picks, Farmers, offers 23 different discounts on car insurance, including discounts for bundling home and auto insurance, automatic payments, paying on time and insuring multiple cars.
Farmers Auto Insurance
-
Cost
The best way to estimate your costs is to request a quote
-
App available
-
Policy highlights
Farmers sells car insurance in every state except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, Washington, D.C., and West Virginia and offers a whopping 22 discounts.
It’s also worth getting quotes from insurance companies ranked highly for specific drivers. For example, teens and their families may want to consider one of our top picks for young adult drivers, including Auto-Owners, which we rated best for customer satisfaction. Similarly, those who are high-risk drivers with a DUI on their record might want to consider Progressive, which was a top pick for that category. Senior drivers may want to get quotes from Geico, our best overall pick for this age group.
Auto-Owners Insurance
-
Cost
The best way to estimate your costs is to request a quote
-
App available
-
Policy highlights
Auto-Owners offers affordable premiums with high customer satisfaction ratings. There are 12 different types of discounts available, as well as various other types of insurance besides auto.
Progressive Auto Insurance
-
Cost
The best way to estimate your costs is to request a quote
-
App available
-
Policy highlights
Progressive offers a number of lines of insurance to allow for bundling, and convenient tools to help you keep your coverage in your budget.
As you collect quotes, make sure that you’re choosing the same amount of coverage, or more than, as you’re currently carrying. You’ll also want to check that the deductible, or the amount you’ll pay out of pocket if you need to file a claim, is the same on your quote as it is on your current policy.
3. Compare quotes by looking at coverage limits, deductibles and cost
After you’ve compiled several quotes, you’ll want to look beyond the premium to find the best deal.
Ideally, you’ll want to look at the different types of coverage and the limits of coverage available. Make sure that the deductible is an amount that you could comfortably afford if you need to file a claim.
Then, consider the premium amount. Whichever policy offers you the premium that best fits your budget and that offers the most coverage is the best policy.
Bottom line
When you take the time to shop around for car insurance, you can find the most coverage at an affordable price. Get several quotes and compare them, looking at the price, deductible and coverage types and limits to find the best car insurance policy for you and your family.
Subscribe to the CNBC Select Newsletter!
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Source: CNBC
You may like
The Best Sleeping Bags for Every Adventure
Trump hush money trial live: Biden roasts Trump at White House Correspondents’ dinner
Have a unique phobia? Fear not! You're not alone
Court upholds New York law that says ISPs must offer $15 broadband
Kerry Condon Had a Blast Making Star Wars: Skeleton Crew
This Easy Addition to Your Egg Muffins Will Double Your Protein at Breakfast
17 Comforting Recipes to Bring to a Friend Who Is Grieving
Olivia Munn’s Cancer Treatment Led to ‘Medically Induced Menopause’—Here’s What That Means
The Truth About Popular Sleep Supplements, From Magnesium to Melatonin
What My First Time Having Sex After Giving Birth Felt Like
The Best Sleeping Bags for Every Adventure
The Beatles’ Method for Making the Studio Comfortable Was Terrible for Their Music
No limit to how low the yen will go – Asia Times
Celtics right the ship, blow out Heat in Game 3: 10 takeaways
Ceretone’s Core One Over-the-Counter Hearing Aids Are Near Invisible, and Barely Helpful
Trending
-
Lifestyle2 hours ago
Colin Jost Wins Over Tough White House Correspondents Dinner Crowd With Praise for ‘Decent’ Biden
-
News3 hours ago
Chinese EV makers zooming by pioneer Tesla – Asia Times
-
News3 hours ago
Biden places politics over strategy in US Steel sale – Asia Times
-
Tech2 hours ago
There’s never been a better time to get into Fallout 76
-
Tech2 hours ago
Seattle mayor joins tech leaders on Homeland Security’s new AI safety and security board
-
News4 hours ago
‘SNL’ Star Colin Jost Ends Brutal Roast With Heartfelt Biden Endorsement
-
Sport3 hours ago
Rory McIlroy expected to rejoin PGA Tour policy board after surprising resignation: reports
-
Sport4 hours ago
Colts owner Jim Irsay denies he overdosed when police found him unresponsive in December