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How to Shop Car Insurance: Car Insurance Buying Guide

How to Shop Car Insurance: Car Insurance Buying Guide

When it comes to shopping for car insurance, it can be overwhelming. That's why I put together a comprehensive guide to buying car insurance to help make the process easier. A buying guide can help you make the best decision about auto insurance coverage, since you only pay for what you need.

Check car insurance rates frequently

If you are like most people, then you live on a budget. Why pay more for car insurance when you don't have to? To ensure that you are getting the best deal on your car insurance, it is a good idea to check the rates frequently. Some people buy every time their car insurance is renewed, that is, every six months or a year. If you don't want to do this on every renewal, you should check at least every two years to compare auto insurance quotes. Taking this step can save you some money.

When certain things happen in your life, use this as a reason to buy car insurance:

  • Add a new controller
  • Increased premiums (especially if you don't file a claim)
  • Buying a new or used car
  • Moving to a different city or state
  • Unite families
  • Divorce


Some auto insurance companies offer loyalty incentives for customers who keep their insurance with them year after year. However, just because you get a loyalty discount does not mean that you are getting the best rate for your coverage. Each auto insurance company offers its own set of discounts and incentives that can lower your rate, even if you get the same coverage limits.

For example, being a member of certain professional organizations or having affiliations may offer you a discount.

If you have a student who drives, you may qualify for a good student discount, an out of school student (if you are in college more than 100 miles away), safe driving discount programs, and more.

When shopping for auto insurance, be sure to ask about all the available discounts to see which ones qualify for them so that you can get the best coverage at the lowest price.

Shop Top-Rated Car Insurers

While price is an important factor when shopping for car insurance, it is not the only factor to consider.

The financial strength of the company is also something that should be explored. If the company does not have a strong financial portfolio, it may not be able to pay claims when the time is right. When you pay your insurance premiums, you are paying for a great claims experience, including a fast and full refund when you have to file a claim.

There are other factors that make some companies better than others. You want to find the best car insurance that suits you and your individual circumstances.

Determine the Right Amount of Coverage for You

Almost all states have a minimum level of liability coverage that you must assume. The rest you have to decide what you need, which can be overwhelmed by the options available.

Here are some of the most popular car covers and what they cover:

  • Personal Injury Protection (PIP) - This coverage will pay for your medical bills and lost wages, regardless of who is at fault. Personal injury protection is not available in all states.
  • Medical Payments - Similar to PIP, this coverage is also considered error-free medical insurance to pay for medical costs incurred if you are involved in an accident.
  • Comprehensive, Comprehensive and Collision Coverage: Comprehensive coverage is "no collision" coverage for vandalism, theft, weather events, broken windows or windshield, and if you've injured an animal. Collision coverage of your car if you collide with another vehicle or stationary object. Together they are often known to have full coverage.
  • Uninsured and Uninsured Driver (UM or UIM) - This coverage pays to repair your car or cover your injuries if you are struck by an uninsured person or you do not have adequate vehicle insurance coverage.
  • Gap insurance: not all states can have this coverage. Your gap insurance coverage will pay for the "gap" between the value of your car and the amount you owe on a loan or lease if it was collected in an accident.
  • Roadside Assistance - Provides coverage in the event that your car breaks down, you need to tow your car, run out of fuel, or lock your car keys.

Find ways to save while shopping for car insurance

Whether you are looking to buy new car insurance or save with your existing insurance company, you can still create a savings budget. Before you shop around, you may want to contact your current auto insurance company to find out if there are ways to save money with your current policy.

You can make changes to your coverage or cancel those that are no longer needed. Your insurance company may offer discounts that you were not aware of or were not eligible for prior to obtaining the insurance.

Even if your dealer can save you money, it's still difficult to get more rates to compare your current policy for additional savings and lower your car insurance costs. When shopping for auto insurance, ask if you're getting all the discounts you qualify for so you can get the cheapest rate for the best coverage.

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