Car Insurance Shopping Tips to Help You Save Money

Shop Car Insurance Rates First

Useful car insurance shopping tips to help you find the best available rates online.

One of the biggest mistakes a car buyer can make is shopping for auto insurance after buying a car. This could come as a huge surprise and financial burden if you didn’t budget enough money for car insurance.

Car insurance should be a forethought, not an afterthought. Find the car you are deciding on and get a few free insurance quotes to make sure you can afford the insurance premium along with your monthly car payment.

Table of Contents

Explore Online Quotes

Car Insurance quotes are based on factors like your driving record and vehicle. Find out how much your insurance premiums will be on any new or used car.

Where to find free auto insurance quotes online

Company Reviews

The best auto insurance companies provide car buyers with free, no-obligation quotes online.

Online car insurance company reviews

GAP Insurance

What is gap insurance, and why might you need it? Here we break down how gap coverage works to help you determine if it’s right for you when buying your next new or used car.

What is GAP insurance?

Insurance Myths

To help you get the most out of your car insurance policy, I separate fact from fiction by debunking some of the most common car insurance myths floating around the internet.

Standard auto insurance myths exposed

Standard Discounts

A quick guide to secret auto insurance discounts available for vehicles equipped a certain way and discounts available to college students.

Best insurance discounts and secrets

Credit Life & Disability

If you take out a car loan, you could be offered credit life or credit disability insurance. Find out how they work and more about what these entail.

What are credit life and disability insurance?

Car Insurance Buyer’s Guide

Most car buyers end up shopping for car insurance after they’ve already bought a car. This is one of the biggest mistakes car buyers make, costing them more money than they budgeted up front. Once you have a general idea of the car you would like to buy, you should shop for insurance rates.

The law requires complete coverage of car insurance if you’re financing a new or used car through a bank, lender, or financial institution. If you don’t check first, you could end up paying a higher monthly payment for insurance than you’re paying for your vehicle.

Benefits of Shopping for Car Insurance Online

Depending on your past driving record and the car you want to buy, the short answer is, “car insurance can be costly,” especially when it comes to buying a brand-new vehicle.

The internet makes it easy for you to shop and compare car insurance rates so you can choose the absolute best coverage for you and receive it at the lowest possible price.

Benefits of shopping for auto insurance coverage online:

Budget – Auto insurance is part of your monthly car ownership cost. Knowing how much your insurance coverage will cost you before buying a car will help you budget the amount with your monthly car loan payment. Depending on where you live, the vehicle, and your current driving record. Your insurance costs could be $1,500 or more a year. That’s $125 on top of your monthly car payment. If you let a car dealer close you on the higher side of your payment budget, this extra $125 will push you over the top.
Low pressure – not having to deal with pushy or overly aggressive agents just looking to make a sale. Car insurance agents, like any salesperson, may tend to lean on you or direct you in a specific direction. This direction may not be the right direction for you.
Free price quotes – Online insurance companies provide you with free, no-obligation quotes. This allows you to research, price, compare and choose a policy without ever being hassled or pressured into buying anything from anyone.
Convenience – some of us do our best online shopping from home in our underwear at 2 a.m.
Same coverage – a common misconception is that online insurance companies provide less reliable coverage than brick-and-mortar companies. This is not true; same company = same reliable coverage. Regardless of the coverage, I recommend reading the fine print on any auto insurance policy.
Comparison shopping – Shopping several companies and comparing them side by side to see which insurance coverage is the best value for your money.
Discounts – The same insurance discounts are available online as the discounts available in brick-and-mortar offices.
Customize – If you’re like me, you like to run through multiple scenarios, explore all your options or want to change your mind at the last minute. Online insurance shoppers don’t have to worry about spending hours in an agent’s office running through different scenarios looking for the best deal. Online customization features allow consumers to create different scenarios to choose which insurance coverage is best for them.
Savings – Last but certainly not least, the best reason to shop for car insurance online is the price. The insurance company online doesn’t have to staff offices, pay insurance agents, or pay utilities. These online companies will then pass these savings on to the consumer; this makes them often cheaper than their competition.

If You Don’t Have Insurance Coverage or let it Lapse

You do not want to be caught driving without auto insurance, it is illegal, and most states have very hefty penalties. Many insurance companies will not provide you with insurance coverage if you’re not currently insured.

Be cautious of fly-by-night companies offering cheap policies from unrated insurance carriers. These companies may not be in business if you ever need to file a claim. It’s well worth paying a little more to go with a well-known carrier and the peace of mind if something ever happens, you’ll be covered.

Only a few well-known companies will provide you with a free, no-obligation rate quote and consider providing you insurance coverage if you’re not currently insured.

Does Credit History Affect Auto Insurance Rates?

Not only does your credit history affect the interest rate you will pay for a car loan, but it will also affect the price you pay for auto insurance.

Every day more and more car insurance companies are taking into consideration your personal credit history and score when you purchase, renew or change your auto insurance policy.

Insurance companies have found a direct correlation that people with bad credit tend to also carry a higher insurance risk by filing more claims on their insurance policies.

This can also be an excellent reason to shop for car insurance rates to find a better deal. If you have some bumps in your credit history when you last purchased car insurance, and your credit history has since improved, it’s time to explore your options. An insurance company will not call and offer you a discount once your credit history improves. Knowing and maintaining what’s on your credit reports is a positive thing and will help you throughout your life.

Get a Free Online Car Insurance Quote Online

Liberty Mutual is a leader in the online auto insurance industry. They’ll provide you with a free car insurance quote so you can review and compare prices and make a good buying decision.

Ensure you provide accurate information; the goal is to get an idea of the monthly insurance premium for the car you want to buy.

You also want to be honest, don’t think you can “forget” about a speeding ticket you received a few months ago.

They will find out and possibly raise your rate or cancel you altogether once you’ve already bought the vehicle.

Please read my Liberty Mutual Auto Insurance Review to learn why I believe they are a trustworthy company to provide free online quotes.

Additional Car Insurance Buying Tips

Further tips and advice about shopping for car insurance:

Check insurance rates before buying a new or used car, not after you’ve already committed to the vehicle.
Shop for coverage frequently or whenever your circumstances change. You must insure a teen, get married, reduce your travel commute, or add another vehicle to your policy.
Insurance premiums will vary significantly by the make and model of a vehicle; choose wisely.
Your credit rating and driving record impact the price you’ll pay for car insurance. For the best premiums, you must have at least three years of clean driving history.
Ask the insurance agent which driver to be assigned as the principal driver to which vehicle in your household. Matching those individuals’ driving records and car values might save you money. Pairing a lower-value car with a driver who commutes the most extended distances, for instance, may cost less than giving that driver the higher-value car. You may find that matching a teenager to the oldest car in the household will save you money.

About the author
My name is Carlton Wolf, and I’ve been in the car business since 1994, both retail and wholesale. I created the Auto Cheat Sheet to better educate buyers about the deceptive sales practices used by many dealerships throughout the country. Please understand that not all car dealers are dishonest. However, you never know who you’ll be dealing with, though. I’m willing to share my knowledge and experience with anyone who listens. Keep in mind that I’m a car guy, not a writer.