The thing with car insurance is that companies don’t have the same rate. A carrier will be more expensive or cheaper than the others. Also, its offers might be worse or better than competitors. That said, a smart policyholder will always compare the car insurance quote of many carriers before getting covered. This is a comprehensive guide that will take you through the nook and crannies of car insurance quotes. We’ll provide figures, review the best companies, and provide insightful tips. At the end of the discussion, we’ll also discuss what car insurance is.
What is a Car Insurance Quote?
An insurance quote is a document or an electronic media that shows how much you’ll pay for your car insurance. If provided as a print document, your car insurance quote will be made and given to you by an insurance agent or the carrier personally or through mail. When it is provided as an electronic media, your car insurance quote will be a page in a website or a PDF sent via email.
The cost of premiums reflected in your car insurance quote doesn’t come from nowhere. It’s estimated by taking the following factors into account:
- Driving history
- Background
- Credit score
- Age
- Gender
- Location
- The vehicle you drive
- Vehicle usage
- Coverage type and amount
- Marital status: married people are proven to be involved in fewer auto accidents than singles, divorced, and widows
- Homeownership: homeowners pay dramatically less for their car insurance than renters similar coverage, thanks to auto and home insurance bundle discounts
- Any other relevant information for assessing the policyholder’s carried risk
Top 4 Factors That Affect Car Insurance Quotes
Remember that in America, insurance companies are businesses. This means that they have a bottom line to maintain and must generate profit no matter how many payouts they have to give out. This is part of the reason why policies are so complicated to understand. Every insurer has to make sure they don’t lose money because of covering you. That said, here are the top factors that affect car insurance rates.
Age
The younger you are, the more you’ll usually pay. Teen drivers and drivers between 20 and 24 are the most expensive to insure, while older drivers tend to get a more affordable rate. Here is the cheapest car insurance for teens and young drivers and the cheapest cars to insure for young and teenage drivers.
Driving Record
The cleaner your driving record is (no accidents, traffic tickets, tax liens), the better of a deal you’ll get. The worse your record is, the more you’ll pay. SR-22 insurance is the most expensive and is given to those who’ve had reckless driving charges or were previously charged with a DUI.
Type of Vehicle
The more expensive your vehicle is, the higher your insurance will be. Sports cars also tend to be more costly to insure since they\’re more likely to cause a car accident. That said, a Lamborghini is more expensive to insure than a Honda Civic, BMW, Mustang, Tesla, and Dodge Charger,
City/State You Live In
If you live in a state where accidents aren’t very common, you’ll save on your auto insurance. However, if you live in a state where accidents are more prevalent, you’ll pay more for car insurance.
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List of States with The Cheapest Car Insurance
Location is one of the most significant factors that affect the cost of a car insurance quote. By location, we mean the state where you’re permanently or temporarily residing. The table below shows the states which have the cheapest quotes for car insurance:
| Monthly Premiums Lowest Range | Monthly Premiums Highest Range | Average | |
|---|---|---|---|
| Indiana | $140 | $171 | $156 |
| Ohio | $154 | $189 | $172 |
| West Virginia | $163 | $200 | $182 |
| Illinois | $169 | $206 | $188 |
| Alabama | $171 | $209 | $190 |
| Tennessee | $172 | $211 | $192 |
| New Hampshire | $174 | $214 | $194 |
| Vermont | $175 | $216 | $196 |
| Wyoming | $171 | $209 | $190 |
| Maine | $172 | $210 | $191 |
| Idaho | $173 | $212 | $193 |
| Oregon | $174 | $213 | $194 |
| Iowa | $176 | $218 | $197 |
| Pennsylvania | $179 | $221 | $200 |
| Arizona | $177 | $218 | $198 |
| Montana | $181 | $223 | $202 |
| South Dakota | $183 | $226 | $205 |
| Kentucky | $185 | $230 | $208 |
| North Dakota | $187 | $235 | $211 |
| Arkansas | $189 | $289 | $239 |
| North Carolina | $190 | $295 | $243 |
| Virginia | $191 | $234 | $213 |
| Oklahoma | $192 | $236 | $214 |
| Massachusetts | $195 | $239 | $217 |
| Utah | $196 | $240 | $218 |
| Kansas | $203 | $248 | $226 |
| Colorado | $210 | $260 | $235 |
| Rhode Island | $215 | $263 | $239 |
| California | $217 | $265 | $241 |
| Minnesota | $228 | $279 | $254 |
| New Mexico | $238 | $292 | $265 |
| Connecticut | $239 | $292 | $266 |
| Texas | $265 | $325 | $295 |
| Jew Jersey | $271 | $332 | $302 |
| Missouri | $274 | $335 | $305 |
| Washington | $275 | $336 | $306 |
| Delaware | $283 | $346 | $315 |
| Georgia | $320 | $391 | $356 |
| New York | $324 | $397 | $361 |
| South Carolina | $370 | $452 | $411 |
| Maryland | $388 | $474 | $431 |
| Florida | $412 | $503 | $458 |
| Louisiana | $416 | $509 | $463 |
| Nevada | $488 | $597 | $543 |
| Michigan | $565 | $691 | $628 |
| Alaska | $752 | $919 | $836 |
| Nebraska | $760 | $930 | $845 |
| Wisconsin | $763 | $932 | $848 |
| Hawaiii | $765 | $935 | $850 |
Note: The table above shows car insurance rates by considering all factors.
Cost of Minimum Liability Car Insurance Quotes by State
You only need the minimum liability insurance to drive a car legally aside from having a license. Here’s a table showing the cheapest and most expensive states for minimum liability car insurance.
| State | State Minimum Liability Insurance Quote Per Year | 50/100/50 Liability Insurance Quote Per Year | 100/300/100 Liability Insurance Quote Per Year |
|---|---|---|---|
| Alabama | $783 | $900 | $1,490 |
| Alaska | $676 | $692 | $1,138 |
| Arizona | $740 | $969 | $1,500 |
| Arkansas | $520 | $940 | $1,662 |
| California | $997 | $1,268 | $2,090 |
| Colorado | $920 | $983 | $2,281 |
| Connecticut | $1,118 | $1,194 | $1,805 |
| District of Columbia | $833 | $950 | $1,148 |
| Delaware | $885 | $1,045 | $1,473 |
| Florida | $1,215 | $1,672 | $2,153 |
| Georgia | $1,134 | $1,529 | $1,780 |
| Hawaii | $707 | $870 | $1,450 |
| Idaho | $492 | $443 | $692 |
| Illinois | $734 | $838 | $1,474 |
| Indiana | $514 | $560 | $938 |
| Iowa | $440 | $530 | $899 |
| Kansas | $399 | $582 | $1,220 |
| Kentucky | $1,049 | $1,120 | $1,694 |
| Louisiana | $1,442 | $2,135 | $2,900 |
| Maine | $438 | $405 | $731 |
| Maryland | $1,373 | $1,504 | $1,772 |
| Massachusetts | $1,083 | $1,165 | $1,830 |
| Michigan | $1,610 | $1,680 | $2,761 |
| Minnesota | $890 | $892 | $1,388 |
| Mississippi | $608 | $701 | $1,287 |
| Missouri | $648 | $643 | $1,119 |
| Montana | $649 | $760 | $1,330 |
| Nebraska | $628 | $665 | $1,230 |
| Nevada | $1,008 | $1,303 | $1,099 |
| New Hampshire | $380 | $543 | $1,048 |
| New Jersey | $1,035 | $1,263 | $1,847 |
| New Mexico | $722 | $862 | $1,410 |
| New York | $1,546 | $1,658 | $2,374 |
| North Carolina | $524 | $576 | $1,041 |
| North Dakota | $430 | $458 | $897 |
| Ohio | $575 | $627 | $1,023 |
| Oklahoma | $705 | $786 | $1,615 |
| Oregon | $874 | $990 | $1,280 |
| Pennsylvania | $1,095 | $1,490 | $2,200 |
| Rhode Island | $1,230 | $1,389 | $2,300 |
| South Carolina | $735 | $858 | $1,360 |
| South Dakota | $390 | $442 | $970 |
| Tennessee | $650 | $718 | $1,174 |
| Texas | $600 | $1,075 | $1,840 |
| Utah | $790 | $865 | $1,765 |
| Vermont | $437 | $483 | $1,085 |
| Virginia | $601 | $660 | $1,095 |
| Washington | $1,060 | $1,133 | $1,868 |
| West Virginia | $661 | $719 | $1,315 |
| Wisconsin | $682 | $700 | $1,130 |
| Wyoming | $365 | $375 | $930 |
Car Insurance Rates Based on The Driver’s Birth Year
The year you were born is another factor that helps to determine the premiums of your car insurance quotes. Here’s a table showing the cost of car insurance based on this.
| Date Born | Cost of Car Insurance per Month | Cost of Car Insurance per Year |
|---|---|---|
| 1949 – 1970 | $214 | $2,568 |
| 1980 | $225 | $2,700 |
| 1981 – 1982 | $230 | $2,760 |
| 1983 – 1984 | $245 | $2,940 |
| 1985 | $250 | $3,000 |
| 1986 | $255 | $3,060 |
| 1987 | $259 | $3,108 |
| 1988 | $262 | $3,144 |
| 1989 | $268 | $3,216 |
| 1990 | $272 | $3,258 |
| 1991 – 1992 | $274 | $3,282 |
| 1993 | $283 | $3,396 |
| 1994 | $285 | $3,414 |
| 1995 | $296 | $3,546 |
| 1996 | $303 | $3,636 |
| 1997 | $308 | $3,690 |
| 1998 | $331 | $3,972 |
| 1999 | $341 | $4,092 |
| 2000 | $369 | $4,422 |
| 2001 | $409 | $4,908 |
| 2002 | $488 | $5,850 |
| 2003 | $578 | $6,930 |
| 2004 | $712 | $8,544 |
| 2005 | $721 | $8,646 |
| 2006 – 2010 | $723 | $8,676 |
Car insurance becomes expensive for younger individuals. This is due to the conception that young drivers are reckless.
On the other hand, car insurance becomes cheaper as one age. Nonetheless, this only applies if the policyholder has no records of committing traffic violations or causing traffic accidents.
The price of a car insurance quote will vary significantly for drivers with a poor driving history. Here’s another table showing the insurance premiums based on the driver’s age and accompanying violations:
Monthly Cost of Car Insurance Premiums for a 19-20-Year-Old Diver with Recorded Traffic Violations
| Lowest | Median | Highest | |
|---|---|---|---|
| DUI | $1,469 | $2,059 | $2,720 |
| Overspeeding | $1,003 | $1,348 | $1,838 |
| Accident | $1,603 | $2,421 | $3,240 |
Monthly Cost of Car Insurance Premiums for a 21-22-Year-Old Driver with Recorded Traffic Violations
| Lowest | Median | Highest | |
|---|---|---|---|
| DUI | $1,058 | $1,484 | $1,960 |
| Overspeeding | $724 | $973 | $1,326 |
| Accident | $1,153 | $1,744 | $2,334 |
Monthly Cost of Car Insurance Premiums for a 23-25-Year-Old Driver with Recorded Traffic Violations
| Lowest | Median | Highest | |
|---|---|---|---|
| DUI | $807 | $1,131 | $1,493 |
| Overspeeding | $552 | $741 | $1,009 |
| Accident | $878 | $1,329 | $1,775 |
Monthly Cost of Car Insurance Premiums for a 26-29-Year-Old Driver with Recorded Traffic Violations
| Lowest | Median | Highest | |
|---|---|---|---|
| DUI | $708 | $992 | $1,309 |
| Overspeeding | $484 | $650 | $885 |
| Accident | $770 | $1,164 | $1,557 |
Monthly Cost of Car Insurance Premiums for a 30-65-Year-Old Driver with Recorded Traffic Violations
| Lowest | Median | Highest | |
|---|---|---|---|
| DUI | $623 | $873 | $1,152 |
| Overspeeding | $424 | $570 | $777 |
| Accident | $677 | $1,024 | $1,370 |
Monthly Cost of Car Insurance Premiums for a 65+-Year-Old Driver with Recorded Traffic Violations
| Lowest | Median | Highest | |
|---|---|---|---|
| DUI | $671 | $1,028 | $1,192 |
| Overspeeding | $545 | $858 | $1,318 |
| Accident | $676 | $1,234 | $1,792 |
Full Coverage Car Insurance Quotes by State and Driver Age
The tables below show the average auto insurance quotes for full coverage car insurance in every state in the U.S. for drivers of different ages.
Full Coverage Insurance Cost for Drivers 26-29
| State | Full Coverage per month | Full Coverage per year |
|---|---|---|
| Alabama | $95 | $1,136 |
| Alaska | $110 | $1,319 |
| Arizona | $82 | $986 |
| Arkansas | $110 | $1,319 |
| California | $124 | $1,485 |
| Colorado | $86 | $1,026 |
| Connecticut | $125 | $1,496 |
| District of Columbia | $108 | $1,296 |
| Delaware | $94 | $1,131 |
| Florida | $104 | $1,249 |
| Georgia | $107 | $1,286 |
| Hawaii | $91 | $1,087 |
| Idaho | $47 | $567 |
| Illinois | $105 | $1,256 |
| Indiana | $64 | $772 |
| Iowa | $63 | $760 |
| Kansas | $86 | $1,029 |
| Kentucky | $113 | $1,357 |
| Louisiana | $128 | $1,537 |
| Maine | $54 | $645 |
| Maryland | $112 | $1,345 |
| Massachusetts | $123 | $1,479 |
| Michigan | $204 | $2,451 |
| Minnesota | $104 | $1,243 |
| Mississippi | $79 | $942 |
| Missouri | $87 | $1,041 |
| Montana | $89 | $1,073 |
| Nebraska | $90 | $1,085 |
| Nevada | $98 | $1,175 |
| New Hampshire | $77 | $924 |
| New Jersey | $124 | $1,493 |
| New Mexico | $82 | $986 |
| New York | $170 | $2,038 |
| North Carolina | $71 | $850 |
| North Dakota | $72 | $860 |
| Ohio | $71 | $857 |
| Oklahoma | $92 | $1,101 |
| Oregon | $91 | $1,096 |
| Pennsylvania | $137 | $1,645 |
| Rhode Island | $156 | $1,873 |
| South Carolina | $84 | $1,009 |
| South Dakota | $69 | $833 |
| Tennessee | $78 | $935 |
| Texas | $115 | $1,377 |
| Utah | $76 | $906 |
| Vermont | $79 | $948 |
| Virginia | $79 | $947 |
| Washington | $114 | $1,371 |
| West Virginia | $93 | $1,111 |
| Wisconsin | $82 | $985 |
| Wyoming | $72 | $862 |
Full Coverage Insurance Cost for Drivers 30-65
| State | Full Coverage per month | Full Coverage per year |
|---|---|---|
| Alabama | $82 | $988 |
| Alaska | $64 | $764 |
| Arizona | $73 | $876 |
| Arkansas | $93 | $1,110 |
| California | $106 | $1,276 |
| Colorado | $78 | $935 |
| Connecticut | $111 | $1,334 |
| District of Columbia | $96 | $1,156 |
| Delaware | $89 | $1,064 |
| Florida | $96 | $1,153 |
| Georgia | $90 | $1,075 |
| Hawaii | $89 | $1,071 |
| Idaho | $41 | $490 |
| Illinois | $90 | $1,080 |
| Indiana | $58 | $693 |
| Iowa | $56 | $675 |
| Kansas | $74 | $890 |
| Kentucky | $98 | $1,179 |
| Louisiana | $114 | $1,372 |
| Maine | $45 | $545 |
| Maryland | $110 | $1,325 |
| Massachusetts | $115 | $1,379 |
| Michigan | $188 | $2,254 |
| Minnesota | $93 | $1,110 |
| Mississippi | $68 | $810 |
| Missouri | $82 | $984 |
| Montana | $80 | $957 |
| Nebraska | $79 | $947 |
| Nevada | $92 | $1,109 |
| New Hampshire | $65 | $780 |
| New Jersey | $109 | $1,310 |
| New Mexico | $75 | $897 |
| New York | $305 | $3,660 |
| North Carolina | $67 | $805 |
| North Dakota | $63 | $750 |
| Ohio | $61 | $730 |
| Oklahoma | $86 | $1,030 |
| Oregon | $83 | $990 |
| Pennsylvania | $957 | $11,480 |
| Rhode Island | $138 | $1,659 |
| South Carolina | $72 | $860 |
| South Dakota | $60 | $715 |
| Tennessee | $67 | $800 |
| Texas | $96 | $1,150 |
| Utah | $69 | $825 |
| Vermont | $68 | $820 |
| Virginia | $66 | $790 |
| Washington | $103 | $1,230 |
| West Virginia | $81 | $970 |
| Wisconsin | $71 | $850 |
| Wyoming | $59 | $710 |
Full Coverage Insurance Cost for Drivers 65+
| State | Full Coverage per month | Full Coverage per year |
|---|---|---|
| Alabama | $89 | $1,063 |
| Alaska | $65 | $785 |
| Arizona | $71 | $848 |
| Arkansas | $84 | $1,010 |
| California | $119 | $1,430 |
| Colorado | $95 | $1,140 |
| Connecticut | $126 | $1,507 |
| District of Columbia | $87 | $1,040 |
| Delaware | $90 | $1,080 |
| Florida | $110 | $1,314 |
| Georgia | $107 | $1,280 |
| Hawaii | $89 | $1,070 |
| Idaho | $57 | $687 |
| Illinois | $96 | $1,148 |
| Indiana | $58 | $690 |
| Iowa | $56 | $671 |
| Kansas | $69 | $825 |
| Kentucky | $115 | $1,375 |
| Louisiana | $134 | $1,610 |
| Maine | $50 | $595 |
| Maryland | $121 | $1,450 |
| Massachusetts | $104 | $1,245 |
| Michigan | $199 | $2,390 |
| Minnesota | $104 | $1,250 |
| Mississippi | $72 | $869 |
| Missouri | $83 | $990 |
| Montana | $82 | $984 |
| Nebraska | $80 | $960 |
| Nevada | $106 | $1,274 |
| New Hampshire | $72 | $863 |
| New Jersey | $103 | $1,231 |
| New Mexico | $74 | $882 |
| New York | $383 | $4,599 |
| North Carolina | $65 | $780 |
| North Dakota | $60 | $725 |
| Ohio | $66 | $790 |
| Oklahoma | $85 | $1,020 |
| Oregon | $93 | $1,112 |
| Pennsylvania | $117 | $1,401 |
| Rhode Island | $137 | $1,645 |
| South Carolina | $79 | $950 |
| South Dakota | $64 | $773 |
| Tennessee | $70 | $840 |
| Texas | $64 | $764 |
| Utah | $82 | $986 |
| Vermont | $63 | $760 |
| Virginia | $71 | $855 |
| Washington | $105 | $1,260 |
| West Virginia | $84 | $1,005 |
| Wisconsin | $77 | $920 |
| Wyoming | $65 | $774 |
Full Coverage Car Insurance Quotes by Age and Gender
Another main factor determining your full coverage auto insurance quotes is your age and gender. Studies show that young drivers are more reckless on the wheels. Females usually pay less for car insurance than males on average since males are considered a higher risk due to overconfidence, which often leads to accidents. Below is average full coverage car insurance quotes per year by age and gender. Of course, the rates may vary by many other factors, including your state and vehicle type.
| Age | Male | Female |
|---|---|---|
| 16 | $ 6,900 | $6 ,400 |
| 17 | $ 6,850 | $ 6,400 |
| 18 | $ 6,500 | $ 6,750 |
| 19 | $ 6,000 | $ 5,400 |
| 20 | $5,300 | $4,800 |
| 21 | $4,500 | $4,000 |
| 22 | $4,150 | $3,950 |
| 23 | $3,900 | $3,700 |
| 24 | $3,700 | $3,500 |
| 25 | $3,250 | $3,150 |
Cost of Car Insurance By Brand and Model
Insurance companies look at the make and model of your car when determining premiums. Take a look at this table that shows the estimated rates of car insurance quotes for the most popular car brands in the USA:
| Brand and Model | Cost per Month | Cost per Year |
|---|---|---|
| Volkswagen Jetta | $120 | $1,438 |
| Toyota Camry | $128 | $1,532 |
| Nissan Sentra | $197 | $2,361 |
| Nissan Altima | $130 | $1,560 |
| Hyundai Elantra | $360 | $4,316 |
| Honda Accord | $125 | $1,500 |
| Ford Focus | $143 | $1,716 |
| Toyota Corolla | $123 | $1,473 |
| Lamborghini Aventador | $567 | $6,800 |
| Lamborghini Huracan | $433 | $5,200 |
| Lamborghini Murcielago | $350 | $4,200 |
| Lamborghini Gallardo | $350 | $4,200 |
| Lamborghini Urus | $500 | $6,000 |
| Tesla 3 | $153 | $1,832 |
| Tesla S | $246 | $2,946 |
| Tesla X | $207 | $2,481 |
| Tesla Y | $230 | $2,756 |
| Tesla Roadster | $150 | $1,800 |
Car Insurance Quotes By Gender: Experienced Drivers
Experienced drivers pay less for auto insurance. Insurers provide them with lower quotes thanks to a lower risk due to experience. Of course, many other factors can affect these prices. If you are an experienced driver with a terrible driving record, you are less likely to enjoy lower car insurance quotes. Please find some typical car insurance quotes by gender for professional drivers per year across the USA.
| Gender | Average car insurance quote per year |
|---|---|
| Male | $1,548 |
| Female | $1,468 |
Aside from gender, it’s also worth knowing the average annual auto insurance quotes based on credit score and marital status.
| Driver Credit Score/Marital Status | Average Annual Quote |
|---|---|
| Good credit | $951 |
| Poor Credit | $1,671 |
| Married couple | $2,032 |
| A married couple with a teenager | $2,904 |
Help others make better decisions
Cheapest Car Insurance Quotes: Very Cheap Car Insurance, No Deposit or Low Deposit
Trusted companies do not offer any no-deposit or no-down-payment car insurance. You still have to pay at least the first month’s premium in advance rather than the annual lump sum at once, which makes it a reasonably affordable deal. While paying your premiums all at once can save some money on your car insurance, it is less convenient for some. Therefore you can simply get very cheap car insurance with a low deposit or down-payment.
Below you can find a list of very cheap car insurance with low deposit/down-payment providers that offer the best car insurance rates with an average car insurance cost per month of $100 or less and our rating of each auto insurance provider. It should help you find the best, cheapest car insurance deposit possible without compromising on the quality of your provider.
Here are the cheapest car insurance companies with relatively low down payments:
| Company | Insuranks Rating | Average Monthly Quote | Best For |
|---|---|---|---|
| USAA | 4.75/5 | $34 | Military families |
| GEICO | 4.5/5 | $40 | Cheapest car insurance quotes if you’re not in the army |
| State Farm | 4.5/5 | $52 | Peace of mind |
| ClearCover | 3.8/5 | $55 | Technology-centric car insurance |
| Gabi | 4/5 | $60 | Online auto insurance comparison |
| Progressive | 4.8/5 | $63 | Coverage standards and high-risk drivers |
| Root | 3/5 | $65 | Low rates; Tech-savvy drivers looking to get rewarded for improving their driving through the app |
| Mercury | 3.9/5 | $70 | Cheapest rates for a basic coverage |
| NJM | 4.5/5 | $79 | Best car insurance for DUI in NJ, PA, CT, and OH |
| Costco Ameriprise | 3.7/5 | $86 | Discounts |
| Erie | 4.1/5 | $87 | New Drivers |
| Amica | 4.5/5 | $100 | Customer satisfaction |
| Travelers | 4.5/5 | $100 | Tailored car insurance policies at affordable rates |
| Freeway | 3.7/5 | $100 | High-risk drivers, Spanish speakers & drivers in need of SR22 |
As you can see from the comparison table, the cheapest car insurance company is USAA, with an average car insurance cost of $35 per month. But you have to be in the military or be related to someone in the military to get covered.
As said earlier, auto insurance companies determine your rates based on many factors, like age, gender, state of residence and location, vehicle type, driving record, driving habits, credit score, and coverage type. Although the prices vary due to these factors, premium quotes can be predicted for the average car insurance company. Take a look at the national average full coverage and minimum coverage car insurance quotes for some of the most popular car insurance companies in 2022.
| Company | Full coverage quote per year | Full coverage quote per month | Minimum coverage quote per year | Minimum coverage quote per month |
|---|---|---|---|---|
| Allstate | $1,850 | $154 | $785 | $65 |
| GEICO | $1,175 | $98 | $480 | $40 |
| Progressive | $1,390 | $116 | $750 | $63 |
| State Farm | $1,250 | $104 | $625 | $52 |
| USAA | $885 | $74 | $405 | $34 |
How Long Does It Take to Get a Car Insurance Quote?
Generally, getting car insurance quotes online can take around 10-15 minutes.
While getting one car insurance quote shouldn’t take more than 1-2 minutes, sometimes it depends on the specifications of the application.
Our Two Cents: Go through as many options and get car insurance quotes from many companies, collect quotes and have all options on your table, and only then choose the best coverage for your specific auto insurance needs at the best rate from the best rated companies.
Do Car Insurance Quotes Affect Your Credit Score?
Car Insurance quotes do not affect, nor hurt, your credit score.
However, every time car insurance companies run your credit report so they can give you their free quotes, an inquiry is being added to your credit report.
These inquiries have no effect on your credit score. It doesn’t hurt your credit in any way and you can find them on your personal credit reports.
Does Your Credit Score Affect Your Car Insurance?
92% of insurers now take credit into account when determining auto insurance quotes.
Why? Taking your credit into account helps them predict their losses and the risk they are carrying by covering you.
If you have an excellent credit score, you will receive cheaper car insurance quotes compared to the quotes a driver with a bad credit score would get.
Get all the best quotes from leading providers in a click of a button!
Car Insurance Quote Comparison Tips
- Dig up more information on this website about car insurance companies and understand their online reputation. Read customer reviews, ratings, and testimonials online and observe how their customers have experienced them. This reveals a lot about the company’s overall experience and reliability.
- Check on your state’s insurance department to determine the car insurance type mandated by law. In general, most states would require liability insurance and minimum coverage for property damage and bodily injury.
- Ask for recommendations and referrals from family and friends regarding auto insurance companies and agents. Word-of-mouth remains a powerful determining factor when deciding on what car insurance company to trust.
- Get maximum auto insurance quotes from as many different companies as possible: Request product brochures and quotes from different insurance companies through this website or a local agent/agency and then compare them one by one. You want all of the options on your table before making such an important decision. What’s the rate? What does it cover? How reputed is the company? Pay more attention to the little details such as payment options, deductibles, exclusions, discounts, and hidden fees.
- Make a shortlist of your preferred car insurance providers, quotes, and offers and then verify their legitimacy and licensure with your state’s insurance department.
- Take note of some questions you might have about the car insurance coverage and other details. Ask car insurance company representatives and/or agents if your credit history would affect rates in different companies, if the coverage would cover rental cars when traveling, or if speeding ticket/driving history would affect the premium.
- Prioritize paying your premiums on time. Non-payment of premiums could result in a lapse in your vehicle insurance coverage. There are auto insurance carriers who would offer direct withdrawal from your checking account to prevent lost coverage.
How To Get The Cheapest Car Insurance Quotes?
Some factors that are out of your control determine your car insurance quotes, like your gender and age. However, you have total control of a couple of factors, like your credit score, driving record, mileage, type or brand of car, and the amount of car insurance coverage.
Basically, your car insurance cost would depend on the risk factors auto insurance providers take into account. So, they would want to weigh in on the probability that you’ll be filing claims on your car insurance.
To get the cheapest car insurance quotes, you must research and compare quotes from different car insurance companies. At the beginning of this guide, we provided a list of inexpensive car insurance companies with an average car insurance cost of $100 per month or less and their rating. This list should help you look into the car insurance providers that combine that good match of affordability with excellent customer service.
You also have to check on your credit report and driving record to ensure it’s clean and in good standing. A car insurance company would assess your likelihood of getting into an accident and filing claims. So, if you have citations for DUI, incurred accidents, or other driving violations, you will be considered a high-risk client and would have higher insurance rates than someone who has a clean driving record and high credit score.
If you’re a safe driver, several car insurance companies would give you discounts for that, plus also get lower rates over time. An app is used to monitor and assess your driving behavior, which will be the basis for discounts.
Also, if you happen to have a costly car, then your car insurance rates would also increase. However, with older cars, your car insurance company could give you discounts or a reduction in prices.
Choosing the lowest amount of auto insurance coverage also helps you save on your car insurance fees. You may also opt to choose a higher deductible, which translates to less risk for your auto insurance company and minimal costs for you.
Another option to get cheap auto insurance quotes is to take advantage of your company’s auto insurance discounts. Discounts such as paperless billing, good student discounts, multi-policy discounts, and multi-car discounts will give you more savings on your auto insurance fees.
What is Car Insurance?
Car insurance is a contract between you and an auto insurance company. In exchange for a premium, the company covers the potential cost of possible damages and financial loss resulting from driving and vehicle ownership.
We’ve all been there; accidentally bumping into a car while trying to back into a parking spot, stopping short, and getting rear-ended – the list of car accident possibilities is seemingly endless. But one thing is for sure, getting the damage fixed can be incredibly costly if you are not covered!
But that’s where auto insurance comes into play. There are many different types of auto policies ( such as bodily injury and property damage, the two main facets that auto insurance policies cover). Some typical cover accidents. Others consider vehicle theft, weather risks, bumping into animals, and depreciating car values.
If you’re reading this right now, then the chances are that you’ve been wondering how to choose car insurance, or you’re wondering exactly what does car insurance covers. Here, we’ll give you a quick crash course in car insurance. Below, we’ll discuss the following:
- What does car insurance cover?
- The difference between basic liability and full coverage insurance.
What Does Car Insurance Cover?
The law requires all drivers to maintain an auto insurance policy while driving a vehicle on public roadways. While this may seem a bit unfair, you also have to consider that we’re living in America where two truths are evident:
- Medical and hospital costs are incredibly high.
- Cars and automobiles are costly.
Without insurance, a small two-driver car crash with no fatalities can easily cost the two drivers upwards of $15,000 or more after paying for medical bills and vehicle repairs! The average cost for an ambulance ride alone can be upwards of $300 per mile. Repairing the front end on a car can easily cost $2,000 to $3,000, not including anything else that may have been damaged.
Car insurance ensures that drivers only have to pay a small amount out of pocket in the event of an accident. This is known as your deductible. For example, if you have a $1,000 deductible and sustain $8,000 worth of damages to your car, then you’ll pay $1,000, and your insurer will pay the remaining $7,000 (if you’re at fault, that is).
Car insurance also ensures that the other driver is covered as well. For example, if you’re found at fault and crash into somebody else, your insurance will pay for their medical bills so that you don’t have to face a lawsuit and pay for their medical bills out of pocket.
We suggest you take a minute to think about your risk as a driver to the car insurance company.
- Are you a new driver?
- Living in a place with lots of potholes?
- Driving an old car?
- Or maybe just a bad driver?
All of this impacts your auto premiums. This shouldn’t deter you, however. The cost of a car accident is still much higher!
Car accidents cost the United States about $231 billion every year. Yes, you read that right. And accidents usually cost in the thousands. That’s why being covered is so important and mandatory in most states.
Your policy will have liability coverage limits. In auto insurance, this limit is usually broken down into three components:
- The maximum amount of money the insurance company will spend on your injuries
- The maximum amount of money the insurance company will spend on people you injure
- The maximum amount of money the insurance company will spend on property damage
Be sure to know what the liability limits are on your auto insurance plan.
While there are different levels of auto insurance, they are typically broken down into:
- Basic liability coverage
- Full coverage
What does car insurance covers will depend if you bought it as a basic liability coverage or full coverage. Let’s discuss how these two work.
Basic Auto Liability Policy
The purpose of a basic liability policy is to cover expenses if ever you caused a vehicular accident and are responsible for the losses or damages sustained by third parties.
When owning a car, it’s a requirement to be covered for the state-mandated insurance minimums. Each state has laws that regulate how much coverage each driver must be insured for, which you can check here. You’ll generally pay more for coverage in states that have a high percentage of automotive accidents and less in states with a lower percentage of accidents.
Basic liability insurance typically doesn’t cover your personal costs. It only helps you pay for the losses of damages of third parties.
By the way, a basic auto liability insurance policy for your car can be categorized as bodily injury liability coverage or property damage liability coverage.
Bodily Injury Liability Coverage
Pays for the other driver’s medical bills and compensation (if you’re at fault).
Property Damage Liability Coverage
Pays to repair the other driver’s vehicle (if you’re at fault).
Full Coverage Policy
Full coverage policies don’t only cover your liability for vehicular accidents. It offers a plethora of coverages for your vehicle such as:
- Personal injury protection
- Medical payments coverage
- Liability coverage
- Physical damage coverage
- Gap insurance
- Rental coverage
- Uninsured/underinsured motorist coverage
While these are usually double or triple the cost of a basic liability policy, full coverage policies are worth it because they’re designed to be an all-inclusive protection that covers almost everything that could happen to your vehicle. Below is a quick explanation of the different full coverage auto insurance types and coverage options
Personal Injury Protection
There are currently twelve “no-fault states” where drivers must pay for their medical bills. In these states, drivers must have personal injury protection (PIP) coverage added to their basic liability policy to cover the costs of any injuries sustained in an accident.
Medical Payments Coverage
If you’re in a non “no-fault” state, then medical payments coverage is what you need to get instead of personal injury protection. Medical payments coverage works the same way as personal injury protection but has a more limited scope.
Liability coverage
Full coverage includes all of the basic liability coverages listed above that cover the other driver’s vehicle and medical bills.
Physical Damage Coverage
Physical damage coverage covers expenses if your car gets damaged. This can be categorized as collision and comprehensive coverage:
- Collision physical damage coverage covers expenses if your vehicle incurred damage after colliding with another vehicle or an object. Read more about collision insurance coverage.
- Comprehensive physical damage coverage covers expenses if the damage to the vehicle is due to non-collision accidents such as theft, windstorm, vandalism, hail, fire, and other covered perils
Uninsured/Underinsured Driver Coverage
It covers your repairs and medical bills if you\’re hit by somebody who doesn’t have insurance or who doesn’t have enough insurance to cover your costs. Read more about uninsured/underinsured driver clause coverage.
GAP Insurance
If you financed your vehicle and it’s declared a “total loss” by the insurance company, GAP insurance pays off the remainder of your auto loan.
Rental Coverage
It covers the cost of renting a vehicle if your car is getting repaired or declared a total loss.
What’s Next?
- Make a list of your needs. What are you looking for? What is not important to you? Which of the auto insurance plan types best suits your needs?
- Determine your risk based on the factors we discussed.
- Compare a maximum number of quotes, companies, and plans, to ensure that you have all of the options on your table and that you only find the best, most affordable, and reliable car insurance near you that is the most suitable for you and your needs.
- Don’t hesitate to reread this page and go through other car insurance-related resources that are linked below. Education is key when it comes to auto insurance!
To sum up, driving and vehicle ownership can be fun and exciting. For many, a vehicle can reduce the time spent commuting to work or allow individuals to travel more flexibly around a town, city, state, and even a country.
Vehicle ownership is liberating – let’s keep it this way by driving safely, avoiding car accidents, and having the best coverage for unexpected financial expenses.
And now that you’re well aware of the bigger picture, it’s time for you to purchase the best car insurance online by comparing quotes!
- https://content.naic.org/consumer/auto-insurance.htm
- https://en.wikipedia.org/wiki/Total_loss
- https://www.usatoday.com/story/news/health/2020/09/11/ambulance-bills-drive-up-cost-patients-experts-push-protection/3458035001/
- https://www.iii.org/article/background-on-no-fault-auto-insurance#: ~: text=Twelve%20states%20and%20Puerto%20Rico,choice%22%20no%2Dfault%20law
Safe Driving Resources
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- https://www.nsc.org/road-safety/tools-resources/safe-driving-toolkit
- https://www.nhtsa.gov/road-safety
- https://www.codot.gov/programs/cone-zone/safe-driving-tips.html
- https://www.safercar.gov
- https://youth.gov/youth-topics/ways-promote-safe-driving-youth
- https://medlineplus.gov/ency/article/001930.htm
- https://www.osha.gov/Publications/Safe_Driving_Practices.pdf
- https://healthblog.uofmhealth.org/childrens-health/safe-driving-5-ways-kids-can-help
- https://www.drivesafeonline.org
- https://www.lhsfna.org/index.cfm/lifelines/may-2016/protect-your-workers-promote-safe-driving/
- https://www.healthychildren.org/English/ages-stages/teen/safety/Pages/Behind-the-Wheel-Helping-Teens-Become-Safe-Drivers.aspx
- https://en.wikipedia.org/wiki/Road_traffic_safety
- https://www.nwh.org/rehabilitation-services/occupational-therapy/drive-safe-program/drive-safe-program
- https://safe2save.org
- https://www.enddd.org/simple-steps-we-can-take-for-safer-driving/
- https://putonthebrakes.org
- https://www.aarpdriversafety.org
- http: //safetycenter.org/teen-safety/teen-safe-driving-campaign/
- https://www.naic.org/documents/consumer_alert_drive_safe.htm
- https://kidshealth.org/en/teens/driving-safety.htm
