Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: Jan 13, 2020

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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

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Finding low auto insurance rates is the primary goal for most drivers but you need to understand how auto insurance works and how to find the best auto insurance rates to have any chance of success.

Simply calling a local agent is rarely the best way to find the lowest auto insurance so take a few moments and read the tips below to help find affordable auto insurance today.

Compare auto insurance quotes by entering your ZIP code today!

How much auto insurance costs should always be your last question!

Auto insurance rates are based on the risk of you filing a future claim however there is no magical formula standard between all auto insurance companies to define this risk.

Auto insurers spend millions of dollars annually employing professional mathematicians and risk analysts to help maximize profitability and this can mean very different rates from comparable companies for the exact same coverage.

While low auto insurance rates are your end goal the first step should always be to understand the different types of auto insurance and define how much you need.

Remember that unless you are comparing apples to apples the cost of auto insurance between two policies with different coverage means nothing… since they are not the same, you are comparing two totally different products.

What are the different types of auto insurance and how much do I need?

The starting point to buying anything is to how understand how it works and buying the wrong type of auto insurance can be much more damaging on your personal finances than buying the wrong TV.

Without the right type of insurance you could be underinsured or uninsured in a car accident leasing to serious personal liability. Before buying coverage always understand your different auto insurance options including:

  • Liability Insurance
  • Comprehensive Coverage
  • Collision Coverage
  • GAP Insurance
  • Personal Injury Protection
  • Medical Payments Coverage
  • and more

The more you know about how auto insurance works the more you can define exactly what type you need (and how much) to reasonably protect your family from most foreseeable accidents.

Get to know the factors auto insurance companies use to assess risk

Auto insurance rates are not the same for every driver and even people driving the same vehicle with the same driving record can have very different rates. There are many factors besides your driving skills which influence the cost of auto insurance including:

  • Type of vehicle insured
  • How the vehicle will be used
  • Where you live
  • Your credit score
  • and more

Some of these factors you can improve before buying auto insurance. For example buying a car just a year old or disputing inaccurate information a month or so before you apply for auto insurance may greatly lower your auto insurance rates.

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Understand Auto Insurance Discounts

There are no auto insurance companies who double check your application to make sure they are providing all the eligible discounts. Short request forms, telephone calls with customer service or even visiting a local agent all have a potential risk of not asking all the right questions which may lead to a lower cost of auto insurance.

By learning about the available discounts in the marketplace you can come prepared and ask potential insurers about your eligibility for these.

Think of it as a checklist you can use when interviewing auto insurance companies. You are the boss, ask the questions and you may just save. Don’t ask, then don’t complain down the road. Auto insurance companies are in the business of making money, you should be in the business of trying to save money.

Compare Auto Insurance Companies

At this point you should be armed with enough knowledge to find lower auto insurance rates than before. Take your time and request quotes from as many auto insurance companies as possible. When the quotes come in check all of them for differences in policy coverage.

If you want $100,000 in liability insurance and $100,000 in collision then make sure they all offer the same amount of coverage. You can’t compare quotes that are not equal so work collecting this information.

Once you have enough auto insurance quotes based on comparable coverage then its time to look at the cost of auto insurance. Just remember that many intangible factors such as customer service, how claims work and even online account management tools often influence the final decision of which auto insurance company to use.

No matter where you live you can almost always find lower auto insurance rates however it can take a little time. The upside is learning about auto insurance now can save you money every renewal period for the rest of your life.

Put your keys away and learn how auto insurance works today! Find auto insurance quotes by entering your ZIP code now!

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