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With car insurance rates climbing, drivers are looking for ways to slash their premiums. One of the most effective ways is to shop around for coverage. According to Consumer Reports, the median savings for people who switch providers is $461, and LendingTree found most save at least $100. While you can get quotes directly from insurance companies, the quickest way is to search multiple insurers at once using comparison platforms like Insure.com.
Key Takeaways
- The majority of people who shop for cheaper insurance and switch insurers save at least $100, with a median savings of $461.
- For the most savings, shop around every year before your policy renews.
- Use insurance comparison platforms to get quotes from multiple insurance companies in minutes.
Car insurance rates spiked 15% in 2024 and they’re expected to rise 5% in 2025 as tariffs loom, threatening higher costs and disrupted supply chains. The average monthly cost of full-coverage car insurance is $195, but you can pare your premiums by looking for new insurance on a regular basis.
How Often Should You Shop Around for Auto Insurance?
If you can’t remember when you took out your policy, it’s probably time to get quotes. Ideally, you should shop around for better rates once a year, usually before your policy renews. You’ll also want to comparison shop after you experience a significant household or lifestyle change. For instance, if you need to drop coverage or add a new policy, it’s a good time to request quotes.
Insurance companies are allowed to review and adjust their rates at renewal periods, usually every six or 12 months, depending on the policy. Insurers determine your rates based on market conditions and your risk factors. Some insurance providers may also raise your rates if you haven’t shopped for coverage in a while. Since they believe you’re less likely to switch providers, they’ll charge you more. This is known as price optimization and it’s banned in 20 states.
Tip
Free tools like Auto Quote Tracker can alert you in advance about whether to expect a rate increase, so you have time to shop around before your policy comes up for renewal.
How to Shop Around for Auto Insurance
Don’t be intimidated by shopping for car insurance. If you know what to expect during the process, it can go a lot more smoothly.
1. Gather Vehicle and Driver Information
In order to get a quote, you’ll have to give some basic details:
- Vehicle make, model, year, and vehicle identification number (VIN)
- Contact information for the drivers
- Drivers license numbers
- Driver and claims history
2. Decide How Much Coverage You Want
The good news is that any quote you’re given has to meet your state’s minimum coverage requirements. However, you can buy higher liability limits for better financial protection. It helps to consider the value of your vehicle when determining how much insurance to purchase.
3. Consider Optional Features
Depending on the insurer, you might have the opportunity to purchase extra features like roadside assistance or accident forgiveness. Research a company’s offerings and think about how likely you are to use them before automatically adding them to your quote.
4. Gather Quotes
It’s easier than ever to shop for car insurance. You can head to a local insurance agent if you prefer face-to-face interactions, call insurance companies and request quotes over the phone, or fill out a quote request on a company’s website.
However, you can speed up the process by using websites and apps that search multiple car insurance companies for you, such as Insure.com, SelectQuote, and NetQuote.
5. Check the Company’s Reviews
Read reviews from sites like J.D. Power to see how these companies handle claims and how satisfied their customers are. You can also search complaint records for each company using the NAIC Complaint Index to get an idea of which insurers to stay away from.
If you plan on managing your accounts online or using a company’s mobile app, take a look at the mobile app’s ratings and spend some time navigating the website to see if it’s intuitive and helpful.
6. Consider Bundling Your Policies
If you already have homeowners or renters insurance, see if your provider offers auto insurance and gives a discount for every policy you bundle. Keep in mind that some auto insurance companies partner with other homeowners or renters insurance companies, so you can still bundle even though a different insurer handles those policies.
The Bottom Line
Shopping around for car insurance is one of the most effective ways to save on your car insurance costs. When you request quotes, consider increasing your deductible. This lowers your monthly payment, but you’ll have to pay more out of pocket if you need to file a claim. You can also save on your premium if you improve your credit score. While this can take time, insurers will see you as less of a risk and charge you better rates.
