What are auto insurance quotes for car insurance?

A car insurance quote is an estimate of the cost of a policy. An insurance quote is calculated based on the information you provide, which includes, among other things, your age, the car you drive, your driving history, and where you live.

To calculate a car insurance quote, insurers each use their own unique formula, so even if you provide the same information to Geico, Progressive, or any other company, no two quotes will be the same. The more auto insurance quotes you obtain, the better your chances of locating the best car insurance company for you.

How to get free car insurance quotes

You can obtain free auto insurance quotes in a variety of ways. You can purchase directly online or over the phone, from a "captive agent" (who only works for one company), or from an independent agent or insurance broker.

First, some professional advice. Whatever option you choose, make certain that you:

1. Examine the complaint records and customer satisfaction of car insurance companies. Reviews of auto insurance are a good place to start.
2. Get at least three car insurance quotes online or from an agent to see if you're getting a good deal on the coverage you need.
3. Recognize your coverage limits. When comparing quotes, make sure that the liability limits and deductibles are comparable.

Auto insurance quotes can be obtained online or over the phone.

Obtaining free auto insurance quotes online is one of the most convenient methods of shopping for car insurance. Most companies, including State Farm and Allstate, provide free online auto insurance quotes. However, you will be assigned a captive agent to finalize your quote over the phone. Buying car insurance “direct” from the insurer means purchasing a policy online (or over the phone).

Purchasing insurance without the assistance of an agent gives you more freedom to adjust coverage and compare auto insurance quotes, but there are drawbacks.

Pros and cons of getting Auto insurance quotes online

Captive insurance agents

A captive agent could also provide you with a free car insurance quote. A captive agent works exclusively for one insurance company, such as Allstate, Farmers Insurance, or State Farm.

Any agent's job is to assist you in determining which policy is best for you and to provide a car insurance quote. In exchange, he or she receives a commission — or a percentage of your premium — when you purchase a policy. A captive agent, unlike other agents, may or may not be paid by the company for which they work.

Pros and cons of captive insurance agents

Independent insurance agents and brokers

If you want to discuss your car insurance options but don't want to commit to one company, getting an auto insurance quote from an independent insurance broker or agent may be a good option.

Independent agents and brokers work with a variety of insurers and can provide a variety of options and policies. Policies are sold by independent agents for major insurance companies such as Travelers and Progressive (as well as smaller companies). Because independent agents are paid on commission, they may strive to provide you with the best possible customer service or, on the other hand, steer you toward more expensive policies.

Independent brokers, as opposed to independent agents, charge a broker's fee and must disclose commission rates to customers. Because of this transparency, you will know exactly how much the broker earns from your business.

Pros and cons of independent agents and brokers

Specialty agencies

Drivers with a history of DUIs, speeding tickets, or multiple accidents may require the services of a nonstandard insurance company that specializes in policies for high-risk drivers. Many local and national organizations exist solely to serve this clientele. These agencies can find car insurance quotes from companies willing to cover drivers who are having difficulty obtaining coverage.

What factors influence a car insurance quote?

Several factors influence your auto insurance quote, and they vary by company. For example, one insurer may raise your rates by 10% if you live in a high-crime area, whereas another insurer may charge only 5% more. Both companies consider the level of crime in your neighborhood, but they calculate your insurance risk in different ways.

A car insurance quote is influenced by a variety of factors, including:

Personal characteristics such as your age, gender, marital status and education level typically affect an auto insurance quote because insurers can use statistics to predict how likely you are to crash. Teen drivers, for example, have higher insurance rates than almost any other age group because they are more likely to be involved in a car accident.

The coverage you choose will, not surprisingly, affect your car insurance quote. The higher the cost, the more coverage you require. According to InsuredCircle research, “full coverage” car insurance costs more than twice as much as “minimum coverage.”

Full coverage auto insurance refers to a package of coverages that includes higher liability limits as well as collision and comprehensive insurance. However, it is best not to base the amount of coverage you purchase solely on price.

Your driving record and frequency of driving can have a significant impact on the final insurance quote you receive. Accidents, speeding tickets, and DUIs will obviously raise your car insurance rates, but you will also receive higher insurance quotes if you do not yet have a driving record.

If you don't drive very often, you might want to look into usage-based car insurance as a way to save money on your insurance.

Details about your vehicle, including the make and model, and whether it has features like a GPS system or safety equipment all affect your car insurance quote. Why is this so? Luxury vehicles and vehicles with costly safety features or high-end audio cost more to repair, raising your rates. Your insurance quote will also take into account the likelihood of your car being stolen.

Location plays an important part in how much your coverage costs. The population density, crime, and crash rates in your neighborhood can all affect the cost of your insurance. Furthermore, the amount of coverage required to legally drive a car differs by state, as do average rates for comparable policies.

In Maine, for example, drivers with good credit and no recent accidents had the cheapest full coverage car insurance, costing $1,006 per year. According to InsuredCircle 2021 state-by-state car insurance rate analysis, Louisiana was the most expensive state, with an annual rate of $2,915.

Your credit history will almost certainly influence the cost of your auto insurance. Your credit-based insurance score is used by insurers to determine how likely you are to file a claim. This score is comparable to (but not identical to) your standard credit score.

California, Hawaii, Massachusetts, Michigan, and Washington prohibit insurers from using credit to determine auto insurance rates.

Your car insurance history is an important factor in determining your auto insurance quote, which includes:

• Whether or not your car insurance has expired. Drivers who have had a lapse in insurance, even if they do not own a car, may be classified as high-risk. Non-owner car insurance can help customers avoid coverage gaps.
• Insurance claims. A recent at-fault accident will typically raise car insurance rates by 50% or more for full coverage insurance. Look for policies that include accident forgiveness to help you avoid a large increase.
• How long have you been with your previous insurer? Many businesses provide a loyalty discount. Even so, some insurers will raise rates on loyal customers if they believe they will not switch companies. This is known as price optimization.
• Your previous insurance provider. According to Consumer Federation of America research, if your previous insurer was a nonstandard company that insures high-risk drivers, your new insurer may charge you more.
• Questions you've posed to an insurance agent, even if you haven't filed a claim. Some states prohibit raising insurance rates solely based on an inquiry, but not all.

What information is required to obtain a free auto insurance quote?

Regardless of how you decide to shop for auto insurance quotes, make sure you have all of the necessary information and understand what factors go into determining your final premium. This includes the following:

• Basic information such as your name, address, occupation and birthdate.
• Your current auto insurance company, if you have one.
• Driver's license information for you and any other policyholders.
• Your car's annual and current mileage, how frequently you drive, and why (such as for pleasure or commuting to work). Note: If you drive for a ridesharing company such as Uber or Lyft, you should purchase rideshare insurance or get a quote for a business auto policy. [In the midst of the COVID-19 pandemic, many insurance companies are expanding coverage to automatically include a driver's personal vehicle when delivering food, medicine, and other necessities for a delivery company. See InsuredCircle coronavirus and car insurance guide for more information.]
• Vehicle information, such as whether you own or lease your vehicle, its VIN, and any safety features.
• Driving history for the past five years for all drivers on the policy, including tickets, accidents and other violations. Keep in mind that any company you choose will check your driving record before issuing a policy, so it's best to be honest in order to get an accurate car insurance quote.
• How much coverage you need. If you already have a policy, the declarations page lists your current coverage, which you can use to compare.

Choosing the right coverages for your car insurance quote

The amount of insurance you require, in addition to the coverage required by law, is determined by your personal needs.

As previously stated, full coverage car insurance can be costly, and it typically includes a combination of coverage types such as liability, collision, and comprehensive insurance. If you have a car loan or lease, your financing contract may require you to purchase collision and comprehensive coverage.

Full coverage may be worth the cost if:

• You own a brand-new or high-priced vehicle.
• As part of your daily commute, you encounter heavy traffic.
• If your car is wrecked or stolen, you will be unable to pay for repairs.
• Your location is prone to severe weather, animal collisions, and high rates of theft.

The following is an explanation of how these common types of insurance work:

Liability insurance

If you cause an accident that damages another person's property or causes injuries, your liability insurance will pay out. All drivers in most states are required to have a certain amount of liability insurance.

Liability insurance is classified into two types:

• Medical expenses and lost wages for another person are covered by bodily injury liability.
• Property damage liability compensates you for damage to someone else's car, property, or valuables.

A "liability limit" is the most money your insurance would pay out if you caused a car accident. Higher liability limits will increase your auto insurance quote, but will better protect your finances in the event of a bad accident. Certain states will allow you to purchase liability insurance with a per-accident limit for both injuries and property damage.

These limits are typically represented by three numbers, such as 100/300/50. In this instance, your liability insurance would pay up to: Here are some of the most common types of insurance to consider adding to your auto policy:

• Each person's injuries are worth $100,000.
• $300,000 for total injuries per accident.
• Property damage per accident is limited to $50,000.

Collision insurance

Collision insurance covers damage to your own car if you hit another person or object, or if you are hit by an uninsured or underinsured driver. Collision coverage also includes a deductible, which is the amount you must pay out of pocket before your insurance company will cover any damage.

Collision insurance will not pay out more than the cash value of your car after you pay the deductible. If you have an older vehicle that isn't worth much more than your deductible, you may not need collision coverage.

Assume your deductible is $1,000 and your vehicle is worth $1,500. In that case, your insurer will only pay you $500 because the $1,000 deductible will be deducted from the initial cash value of your vehicle. Furthermore, if you file a claim, your insurance rates may rise.

Comprehensive insurance

Comprehensive insurance pays out if your car is stolen or damaged in any way other than a car accident. This can include a flood, a fire, animals in the road, or objects falling from the sky.

Although comprehensive coverage will pay for most vehicle damage, it will not pay for injuries or damage caused by you to someone else. It also does not cover damage to your vehicle caused by another vehicle. As with collision insurance, you may not want to pay for comprehensive coverage if your car is older and worth less than, or close to, your deductible.

Collision vs. comprehensive insurance

Other types of car insurance coverage

Most insurers provide additional coverage in addition to these types, such as:

• Gap insurance, also known as guaranteed asset protection, pays the difference between what you owe on your car lease or loan and the value of your car if it is stolen or totaled in an accident. To purchase gap insurance, you must typically have comprehensive and collision coverage.
• Rental car reimbursement coverage pays for the cost of a rental car when you can’t use your vehicle because of a covered claim.
• Roadside assistance can come in handy if your car breaks down. It usually includes assistance if you have a flat tire or a dead battery, if you lose your key, run out of gas, or if you need your car towed. You can, however, purchase roadside assistance from a variety of sources, including your cell phone carrier, and having an excessive number of emergency road claims through your insurer may cause your rates to rise.
• Uninsured and underinsured motorist coverage kicks in if another driver causes an accident and does not have any insurance or enough coverage to cover your injuries. In many states, either uninsured coverage or both of these types of coverage are required.

How much should my car insurance be?

We can't predict the exact auto insurance quote you'll receive because car insurance quotes vary widely from person to person depending on your car, location, and driving record, among other factors, so we can't predict the exact auto insurance quote you'll receive, but our analyses determined these averages.

The following are the national average car insurance rates for the bare minimum of coverage:

• A 40-year-old with good credit and a clean driving record pays $565 per year.
• A 25-year-old with good credit and a clean driving record pays $642 per year.

Full coverage insurance can cost more than twice as much as minimum coverage insurance. Full coverage rates shown include liability coverage, uninsured motorist protection, comprehensive and collision insurance.

Here are the national average full-coverage car insurance rates.

• A 40-year-old with good credit and a clean record can expect to pay $1,592 per year.
• A 25-year-old with good credit and a clean record can expect to pay $1,857 per year.

Those with at-fault accidents or DUI infractions on their record, as well as those with poor credit, will generally pay higher rates in most states. The average annual cost of car insurance for various driver profiles is shown below:

How to get the cheapest car insurance quote possible

Shopping around for car insurance quotes on a regular basis is the only way to find the best policy and the cheapest auto insurance for you. Even if you have a clean record and are satisfied with your current insurance provider, you may be able to find a better deal elsewhere.

Still, your current insurance provider may end up being the cheapest option. The only way to find out is to shop around for car insurance quotes.

Other than shopping around, you can try the following strategies to keep your premium low:

• Work on your credit. Another reason to make on-time payments on your bills? According to our 2021 car insurance rates analysis, drivers with bad credit but a good driving record pay nearly as much for car insurance as a driver with a DUI.
• Before purchasing a car, look into insurance options. Insurance companies will charge you more (or less) based on the type of vehicle you drive. According to a recent InsuredCircle study, the Subaru Outback, Jeep Wrangler, and Honda CR-V are the cheapest cars to insure among best-selling models.
• Drive with caution. Car insurance is almost always more expensive for drivers who have had a history of car accidents, speeding tickets, DUIs, or other violations in the previous three to five years.
• Look for discounts. If you own a home, take a driver's safety course, or belong to certain organizations, you can save money on car insurance.
• Increase your insurance deductibles. If you choose to pay more out of pocket if you file a collision or comprehensive claim, you will be able to lower your monthly premium.