Automobile Insurance
Auto Financing

Car Insurance Quotes: Discovering the Best Deals

by Amy Lillard

(04/12/2012) Finding the best car insurance rates is often a balancing act. While trying to find the best auto insurance that covers what's needed, many consumers are also looking to keep it cheap.

Locating the car insurance quote provides optimal coverage at rates you can afford is possible when keeping a few key things in mind.

Know what you need. If insurance and insurance quotes are a mystery to you, do the research needed to learn about different types of auto insurance and what's required in your state. Then do some critical thinking about what you really need for your car, driving patterns, and lifestyle. Simply knowing this information can help you narrow down appropriate plans from a multitude of car insurance quotes, and help ensure you don't pay for more than you need.

Shop around. Whether you call around to different companies, or you use the amazing resources available to you online, comparison shopping for auto insurance quotes is often a crucial way to find the ideal plan.

Bundle up. By looking for multiple insurance plans through one company, consumers can often find discounts on car insurance, life insurance, home insurance, and any other plans that are needed. In fact, bundling policies can often save you 10% or more on premiums.

Raise your deductible. When looking around for car insurance quotes, raising the deductible even slightly can reduce monthly premiums and save costs. The Insurance Information Institute says that raising a deductible to $500 from $200 can lower car insurance premiums by 20%. However, avoid raising a deductible to out-of-reach amounts to lower your auto insurance quote: if an accident does occur, that's money that must be paid out of pocket.

Apply discounts. Insurance companies offer more discounts than you may be aware of, for things like good grades, parking in a garage versus the street, anti-theft features in the car, low mileage, and more.

Trust your choice. Ultimately, it may not matter how much you're saving if the insurance company you choose is difficult to work with or otherwise unreliable. Part of an effective auto insurance quote search must be determining how a company handles claims, and if payments are made in full and promptly. Ways to determine if a company is worth your money:

• Visit your state's department of insurance website, and examine the list of car insurance companies with high complaint ratios
• Ask your mechanic or local dealership about problem car insurance companies
• Consult expert rankings. A.M. Best and Standard & Poor's publish financial strength ratings for insurance companies, measuring the ability of companies to pay out claims. J.D. Power and Associates publish highly respected auto insurance ratings as well.