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: Jul 8, 2021

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If you are wondering which auto insurance company has the lowest prices on car insurance today, you are not alone. So many people would love to find a way to reduce the cost of auto insurance.

Auto insurance is often one of the most expensive items in a person’s budget behind their car payment as well as their rent or mortgage payment.

Make sure to utilize the FREE auto insurance comparison tool by entering your ZIP code now!

Trimming this expense down may help you free up some much-needed cash in your budget. Learning which company offers the lowest auto insurance rates seems like a great way to find savings.

Unfortunately, the company that offers the lowest auto insurance rates will vary from driver to driver.

Factors That Contribute to Rate Quotes

It certainly would be nice if all drivers could do a simple price comparison of auto insurance rates and automatically learn which company offers the lowest rates.

Auto insurance companies look at a number of key factors in order to determine rates, and each insurance company has their own unique way of reviewing and analyzing these factors.

So different drivers will find better rate quotes at different insurance companies.

Some of the many factors that are reviewed and analyzed by insurance companies to determine a rate quote for you include:

  • the vehicle you are insuring, including its make, model, age, and safety equipment like airbags
  • the zip code where you live
  • your age, gender, and marital status
  • your driving history
  • the coverage and deductible you are requesting

As you can see, there are numerous factors that are reviewed, and these factors may be different for each driver.

Coverage Limits

The coverage limits you request with an auto insurance quote will play a major role in your insurance premium. Almost every state requires drivers to carry a minimum level of liability coverage by state law.

Purchasing the lowest level required by state law is a great way to save money on your auto insurance. However, often additional coverage is recommended to provide you with greater protection.

Some insurance companies will recommend that drivers obtain liability coverage that is greater than state law requires, as any costs incurred in an accident above your coverage liabilities will be yours to pay out of pocket.

Further, most states only require liability coverage that pays for damages you created for other drivers on the roadway. This coverage may not pay to repair your car or pay for your medical expenses after an accident.

Budget-minded drivers should carefully consider their coverage needs and only purchase coverage that meets their needs to minimize premium costs.

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Your Deductible

Purchasing only the amount of coverage you need is a great way to cut down on the cost of your auto insurance premium. Adjusting your deductible is another great way to reduce your auto insurance cost.

The lowest priced insurance will be insurance with the highest deductible in place.

The deductible is the amount of money you pay per claim. A $500 deductible is very common, but increasing the deductible can lower your premium cost.

When getting quotes, you can request a quote for a $500, $750, and $1,000 deductible to compare the differences and find savings.

How to Shop for Rates

As you can see, if you want to find the lowest auto insurance rates, you do need to shop around for customized quotes from individual insurance companies.

It is possible to contact insurance companies individually for rate quotes, but more drivers today are making use of online rate comparison websites to get rate quotes in a faster and easier way.

With these rate comparison websites, you simply have to type a few key pieces of information about your car and yourself into an online form in order to receive rate quotes.

The quotes can quickly be compared against each other, and then you can see which companies will offer you the lowest rates on auto insurance.

Look for Discounts

After using a rate comparison website, you may be tempted to simply purchase auto coverage from the company offering the lowest rate quote.

However, you should keep in mind that often these rate quote websites do not factor in additional savings that may be available to you through special auto insurance discounts.

You can call each and every auto insurance company that the rate comparison website listed out for you.

However, this can take a great deal of time, and so it is often best to search for discounts with only the top quotes you received.

You can easily research discounts by reviewing an insurance company’s website, or you can call the company directly to learn about discount options.

In many cases, drivers who use a rate comparison website to search for the lowest insurance rates will have the answer they need very quickly. These websites are designed to help drivers quickly and easily find the information they need.

By using a rate comparison website today, you may be able to greatly reduce the price you pay for auto insurance. Enter your ZIP code into the FREE tool now!

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