Auto Insurance: The Buying Process

Getting auto insurance rates is only one step in the insurance-buying process. We’ll walk you through the other steps here.

Start with the right mindset. Your goal in getting auto insurance rates should be to find the maximum savings possible. You might think there isn’t much difference in price between insurers, but you’d be surprised. The same policy can vary in cost by up to hundreds of dollars between insurers.
Calculate your needs. Before you look for auto insurance rates, you should know how much coverage you need. This will depend on your assets, your driving behavior, and your state’s laws. People with a lot of assets and a history of collisions will need more coverage than other drivers.
Get a copy of your driving record and current auto insurance policy. You will need to tell prospective insurers how many tickets you’ve had recently, so pull up your driving record to verify this information. Also get out your current policy to see how much coverage you’re getting for what you’re paying.
Find competitive auto insurance rates. Now you can start shopping around online for quotes on auto insurance. Get at least three or four quotes.
Compare auto insurance rates. If you get quotes from multiple sites, you will need to write them down so you can compare offers easily. If you use our site, you will get all the quotes you need side by side, so comparison shopping is a snap.
Make some calls. You’re not going to get all the information you need on auto insurance rates from the quotes you receive. It is usually a good idea to also give the prospective insurers a call to ask any question you may have about their policies.
Ask about discounts. While you’re talking to agents from prospective insurers, ask them about discounts on auto insurance rates for which you might qualify. Insurers usually offer a considerable number of discounts for everything from belonging to an organization to having a car alarm. Don’t choose your insurer based on discounts, though—sometimes the insurers with the biggest discounts also have the biggest premiums.
Choose your insurer. When selecting your insurer, you will want to assess the company’s financial stability, customer service record, and complaint history. You can find financial ratings through A.M. Best. For customer service information, go to the J.D. Power website. Finally, to find out the company’s customer complaint ratios, visit the department of insurance website for your state.
Read the policy over carefully. Don’t sign anything until you’ve thoroughly reviewed the policy.
Cancel your old auto policy. Once your new policy is in effect, don’t forget to cancel your old policy. Also make sure there are no lapses in coverage between the two policies.

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