Getting the best auto insurance rate

You want to get the best deal on auto insurance -- but you also want a reputable company that won't hassle you over a claim. Experts say a savvy insurance shopper will check these things first:

  • Figure out how much auto insurance you need. Every state requires certain minimum liability coverage. Check your state's department of insurance (find a list on the National Association of Insurance Commissioners website). Make sure your coverage protects your assets; you don't want to lose your house in an accident lawsuit. Experts often recommend $50,000 bodily injury for one person injured, $100,000 for all people injured and $25,000 property damage liability.
  • Uninsured/underinsured motorist coverage is important, too. That's in case a deadbeat driver hits you. Collision and comprehensive coverage will pay to fix or replace your car if you hit something or it's stolen or damaged in a hailstorm, etc. However, if you drive an old car that's worth less than 10 times your collision and comprehensive premiums, experts say you can probably drop this coverage.
  • Get a rough idea what you should pay. Check out your state insurance department's website -- there's probably a yearly report showing hypothetical rates for various types of customers at specific insurance companies. For example, one list might show rates at 20 major companies for a 25-year-old single male with no accidents, another might be for a 35-year-old married female, etc. A map at the National Association of Insurance Commissioners' website links to all state insurance departments.
  • Make companies compete for your business. One Edmunds.com writer got two quotes for the same policy that were $800 apart -- so it pays to shop around. You can type your information once into an online rate-comparison site (such as Netquote.com, Insure.com, Insweb.com or Insurance.com) and automatically get quotes from several major companies. Some companies aren't affiliated with these sites, though, so you'll have to visit their websites or call them. Or you could try an independent agent who represents several companies; he or she might be able to get one of those companies to beat a certain price.
  • Check up on the company. Just because it's a household name doesn't mean it's a good company, and a cheaper rate might translate into bad service later. We've researched major consumer surveys, state insurance commission studies, lawsuit reports, financial-strength ratings and consumer-complaint sites to pick the best -- and worst -- auto insurers for this report. But you can check on any company yourself by following the links in the Useful Links and Our Sources sections. Another good idea? Ask local auto repair shops what they think of a given company.
  • Read the policy carefully. Avoid companies that force you to fix your car with aftermarket parts, and don't sign away your right to sue the company.
  • Ask about discounts on your auto insurance. Many companies offer discounts for drivers over age 50, students with good grades, multiple cars, safe driving, safety equipment, low mileage and more, but they might not offer them to you unless you ask.
  • Raise your deductible. If you're willing to pay the first $1,000 or $2,000 of a claim, you'll pay lower premiums than if your deductible were only $250 or $500. Experts say this will probably save you money in the long run.

Auto insurance for luxury and vintage cars

Classic cars, exotic cars and other special vehicles require special auto insurance. Reviewers say that specialty insurance companies are probably your best bet. Regular car insurance companies might not want to insure your ride at all, or they might charge you higher prices. Some might only cover your car's actual, depreciated value, which may be only a fraction of what it's worth as a collector's item.

Specialty insurance policies will insure your car for a mutually agreed-upon price. They might require you to keep the car garaged and to drive it only a few thousand miles per year. Insure.com offers a thorough article about how to insure a specialty car and what you can expect from a policy. About.com's guide to classic cars recommends five good longstanding companies: Classic Collectors Insurance, Hagerty Classic Insurance, Chrome Specialty Car Insurance, Grundy Worldwide Insurance and American Collectors Insurance. (Note: ConsumerSearch is owned by About.com, but the two don't share an editorial affiliation.)

Back to top