Learn How to Compare Car Insurance

Car insurance rates differ drastically according to the company, which is why it is a good idea to shop around for the lowest rates. In this guide, we will explain the fastest way to compare car insurance rates for different companies to determine the right insurance company for every driver. 

The first step is to decide if a local car insurance company can address the insurance needs best or if a national, company would be a better option. Some people feel that local insurance companies are more easily accessible, in the event of a claim; however, it is really a matter of personal preference. Moreover, many national insurance companies offer local branches for added convenience. While local companies are often a good choice, many regionally located offices do not have a website, which limits the option for getting a comparison quote. If a local insurance company were the best option, then to receive a quote, the person would need to call the company directly or walk in to the office to get the rates. On the other hand, national insurance companies and other companies offer websites where individuals can input their information and receive a calculated rate estimate and a side-by-side comparison of the type of insurance offered by the company, as well as, any discounts (e.g. – teenage driving discounts, detailed below). In addition, some sites such as, progressive.com and others, provide a rate comparison with their rates and the rates of other companies (or visit sites such as, http://www.dmv.org/ or http://www.OnlineAutoInsurance.com to get an insurance rate comparison by location, as well).

Rate comparison sites are the fastest way to compare the rates of national car insurance companies because the information is compiled in one location. These sites either deliver the quote to the supplied e-mail address or they will receive an instant rate quote. Online websites that offer car insurance rate comparisons use personal information such as, name, gender, age, address, as well as, information about the vehicle including, the year, make and model to calculate an estimate and provide a side-by-side comparison of several national companies.

Important Fact: not all online sites can be trusted with this information, so it is important to be careful.  In addition, in order to receive a rate quote, these companies do not need a driver’s license or social security number — so avoid sites that ask for this information. This information is only necessary in cases where a person is dealing directly with the insurance provider. 

Shopping around for the best insurance rates is especially important for households with a teen driver. If the teenager will be driving their own vehicle, it can be added to the parents’ primary coverage policy, which raises the premium.  Additionally, teens are more costly to insure because studies have shown teens are more likely to get into a car accident than adults between the ages of 25 and 55, therefore the risk to insure teens is higher.  However, certain discounts for teens (e.g. – good grade discounts and lower rates for taking driving classes) apply through some companies, which can be determined by comparing rates of various companies and receiving information about various discounts offered by certain companies). 

Whether insurance comparison-shopping is intended for adults or teens, comparing rates for various insurance companies is always a great way to save money.

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