Beyond Price: Maximizing Value When Comparing Auto Insurance Quotes
While comparing car insurance proposals can undeniably lead to cost savings, it’s not the sole factor to consider. As you explore various options, adhere to these guidelines to ensure you’re also securing substantial value.
1. Guarantee a Level Playing Field in Comparisons
Once you begin inputting your details and gathering quotations, verify that all presented offers feature identical coverage limits and deductibles. Take note of any supplementary features, such as roadside assistance or accident forgiveness.
If there are discrepancies in policy limits or included features, make certain you comprehend these differences thoroughly so you can account for them when evaluating your choices.
2. Conduct Due Diligence on Insurers
The last thing you want after an unforeseen incident is to deal with an insurer that delays your claim or is unresponsive to communication. Give particular attention to their complaint records and customer satisfaction ratings to confirm that the company will be agreeable to work with should you need to file a claim. Auto insurance reviews serve as an excellent resource for this information.
Additionally, ascertain that the companies offer the functionalities that are important to you. For instance, if you prefer submitting claims digitally rather than contacting an agent, check if the insurer’s website facilitates this. Do you have a side business driving for Uber or Lyft? Confirm if the company provides rideshare insurance.
3. Evaluate the Entire Coverage Portfolio
If you are simultaneously seeking another policy, such as homeowners or renters insurance, alongside your auto coverage, confirm your satisfaction with both the pricing and protection offered for those as well. Although bundling policies can provide discounts and convenience, in certain situations, you might discover superior pricing or more comprehensive coverage by acquiring your policies from two distinct providers.1
Illustrative Automobile Insurance Quote Comparison
Below are three hypothetical auto insurance quotations, accompanied by advice on how to effectively compare them. All three proposals include the same standard coverage with the following limits and deductibles:
- Bodily injury liability coverage: $100,000 per individual and $300,000 per accident.2
- Property damage liability coverage: $50,000 per accident.
- Uninsured motorist coverage: $100,000 per person, $300,000 per crash, and $50,000 for property damage.
- Collision and comprehensive coverage, each with a $1,000 deductible.3
| Company | Included Coverage | Quoted Annual Price |
| GEICO | Standard coverage only. | $2,000 |
| Liberty Mutual | Standard coverage plus declining deductibles. | $2,025 |
| Travelers | Standard coverage plus declining deductibles and accident forgiveness. | $2,250 |
These are simulated quotes provided for illustrative purposes only.
GEICO presents the lowest premium, but Liberty Mutual’s quote incorporates a “Deductible Fund,” which effectively reduces your collision deductible by $50 every six months. Is this additional benefit worth an extra $25 annually to you? Travelers’ rate is the highest among the three, yet you might conclude that its supplementary advantages justify the cost.
We also advise scrutinizing the companies themselves, not just their price estimates. Here’s a brief overview of how the aforementioned insurers rank based on NerdWallet’s analysis:
GEICO
- NerdWallet rating: 4.5/5
- Discounts: Extensive range of discounts
- Ease of use: Above average
- NAIC complaints: Close to expected
- Bottom line: With widespread availability and numerous discounts, GEICO is a popular and frequently economical choice for vehicle insurance.4
Liberty Mutual
- NerdWallet rating: 4.0/5
- Discounts: Comprehensive array of discounts
- Ease of use: Above average
- NAIC complaints: More than anticipated
- Bottom line: Liberty Mutual offers a broad spectrum of discounts, along with robust digital tools via its website and mobile application.5
Travelers
- NerdWallet rating: 5.0/5
- Discounts: Excellent selection of discounts
- Ease of use: Above average
- NAIC complaints: Fewer than expected
- Bottom line: Travelers provides a wide array of coverage options and discounts, enabling you to tailor your car insurance policy.6
All three companies boast strong star ratings and a wealth of discounts, but Travelers exhibits the fewest consumer complaints.7 If superior customer service is your paramount concern, you might consider paying a slightly higher premium for the Travelers policy. However, if you prioritize an affordable price from a reliable insurer and don’t require additional perks, GEICO’s quote is likely the most suitable option.
Understanding Auto Insurance Terminology: Rates, Quotes, and Premiums
An auto insurance rate is a projection of how specific characteristics might influence what a driver pays, derived from publicly available data concerning how insurers establish their prices.
An auto insurance quote is an estimation of what you could pay for a policy, based on the vehicle and driver details you furnish to an insurance provider.8
An auto insurance premium is determined once the insurer gathers more comprehensive information about you. It represents the actual cost you will incur when the policy is issued.
The prices presented on this page represent the median values from thousands of rates supplied by Quadrant Information Services and meticulously analyzed by NerdWallet’s editorial team.9
Variables Influencing Car Insurance Quotes
Automobile insurance companies take numerous diverse factors and driver characteristics into account when deciding the cost of coverage – and each insurer employs its own unique calculation methodology.10 The subsequent sections highlight factors such as age, driving history, credit, and location, illustrating the significant variation in rates for different drivers and across various companies.11
It’s important to note that even if none of these personal factors change for you, your premium could still increase due to rising costs impacting the entire insurance industry.
Below you will find national average rates for various profiles, as well as the average rates from nine of the ten largest private passenger auto insurers in the country, based on market share data from the National Association of Insurance Commissioners. (Data for Liberty Mutual was not available.)
Rates by Age
Your age can considerably affect your car insurance rates. Teenagers typically face the highest costs, with rates generally declining once you reach your thirties and then rising again in your seventies.12
These represent average full coverage car insurance rates in the U.S. for a driver with a clean record and good credit:
- Age 20: $5,195 per year13
- Age 35: $2,571 per year14
- Age 70: $2,358 per year15
Rates by Driving History
Having a DUI or an at-fault accident on your record will inevitably cause your rates to increase – potentially even doubling them. However, each auto insurer prices these incidents somewhat differently, making it worthwhile to shop around for the most favorable rates.
These are average full coverage car insurance rates in the U.S. for a 35-year-old driver:
- Clean driving history: $2,571 per year
- Recent DUI: $4,841 per year16
- Recent at-fault accident: $3,798 per year
Rates by Credit
Your credit history is one of the most substantial factors impacting your car insurance rate. In states where it is permitted, carriers utilize credit history to assess how likely you are to file a claim.17
California, Hawaii, and Massachusetts do not permit insurers to use credit when determining car insurance rates.18 In Washington, the legal framework surrounding this issue is currently under debate.
These are average full coverage car insurance rates in the U.S. for a 35-year-old driver with a clean driving record:
- Good credit: $2,571 per year
- Poor credit: $4,285 per year
Rates by State
Because insurance regulations and the cost of living differ across states, your place of residence can significantly influence your car insurance rates.19 Click on your state on the map below to view our compilation of the most economical auto insurance companies in that location.
Delving Deeper into Car Insurance Insights
We are dedicated to car insurance expertise.
NerdWallet’s editorial team takes pride in offering meticulously researched resources that empower our readers to make well-informed decisions concerning their car insurance needs.20
Here’s why you can rely on NerdWallet:
- Rigorous Research: All our auto insurance content undergoes diligent fact-checking prior to publication. Furthermore, our editorial team regularly evaluates and reviews many of the auto insurance companies we feature. This ensures that the star ratings presented in our company reviews remain current.
- Data-Driven Analysis: NerdWallet updates our published car insurance rate averages on a monthly basis.21 To achieve this, we meticulously analyze over 500 million auto insurance rates from across the nation, provided by Quadrant Information Services.
- Unbiased Perspective: NerdWallet’s content is purely editorial and is never influenced by our business partners or advertisers.22 Learn more about our editorial guidelines.
I’ve aimed for a comprehensive rephrasing using:
- Synonyms: “Substantial value” instead of “good value,” “proposals” instead of “quotes,” “unforeseen incident” instead of “accident.”
- Sentence Structure Variety: Mixing active and passive voice, changing sentence beginnings, and combining or splitting sentences where it enhances flow.
- Reordered Phrases/Clauses: Adjusting the order of information within sentences to present it differently.
- Slightly more formal or varied vocabulary where appropriate to create a distinct tone without losing clarity.
Let me know if you have any other sections or articles you’d like me to work on!