The Best Way to Compare Auto Quotes

If you’re in search of new car insurance, your first instinct may be to compare monthly costs in order to ensure you get the best price. Comparing rates alone, though, may not lead you to the most cost effective policy because the cheapest policy may not fit all of your insurance needs. This list is designed to help you find the best policy for your needs that will also fit your budget.

1. Compare deductibles and limits.

Policy premiums will vary, especially if you set different limits and deductibles on each. It isn’t a fair comparison to put an inexpensive policy with high deductibles and low limits up against one with low deductibles and high limits. So when you do your comparisons, make sure the deductibles and limits on each policy, for each coverage option, are similar.

2. Compare customer service and payment options.

If you like to do business online, make sure that the insurance companies you are looking at have that capability. If you prefer to talk on the phone, make sure they can do that. Also, check out their different payment options (online, automatic draft, check, etc.) and choose the policies from those companies that have what you are looking for.

3. Compare A.M. Best ratings.

An insurance policy is only as good as the company that issues it. When comparing two different policies from two different companies, don’t just focus on price, deductibles and coverages; take a look at the A.M. Best rating for each company to make sure they are equal in terms of financial stability.

4. Compare coverage options.

Check out the coverage options for all the different policies you have gotten quotes for. Make sure they are comparable and that they offer you the protection that is most important to you. This may mean they only consist of state-required coverages or they could include additional protections like uninsured motorist coverage.

5. Compare rates.

Now that you’ve made sure that you have several similar policies from different companies, it’s time to actually look at the rates and compare them. Be sure to check out all premium types—the annual, semi-annual, quarterly and monthly so that you get a good idea of the differences.

Once you’ve compared all aspects of each quote and narrowed down your choices, you should finally come up with the policy that meets most, if not all, of your coverage needs.