Comparing Auto Insurance Rates Online in 2021

January 28, 2021

Comparing Auto Insurance Rates Online in 2021

Anyone that owns an automobile is required by law to have auto insurance. However, the degree of coverage that drivers need differs from state to state. Even though each state sets its basic coverage requirements for drivers, that level of coverage seldom ensures that the drivers are adequately protected.

The law is designed to help provide a minimum level of protection in the case of injuries and if the property is damaged by another driver or vehicle.

Unfortunately, the required amount of state coverage is never sufficient to ensure full protection. All responsible drivers should consider their exact needs before determining what level of insurance they need. 

Key Terms To Know Before Comparing Auto Insurance Rates

Before individuals can become comfortable with comparing auto insurance quotes, they need to become more familiar with important industry terms.

Without understanding these terms, it can be difficult to understand what exactly they’re going to be comparing. 

Auto Insurance Claims 

Claims are a request for payment from the insurance provider to cover vehicle repairs, injury treatment, or any other costs. 

Car Insurance Quotes 

An estimate of how much the insurance provider is going to charge for insurance 

At-Fault Accident

An accident where the client is either partially or completely responsible. The ramifications of an at-fault accident involve the liability insurance paying according to the defined limits for any damages. They’ll also cover legal costs in the case that the client is sued. 

Collision Coverage 

The insurance provider will cover the vehicle if the driver causes a crash or is involved in a single-car accident. It’s typically required with an auto loan.

Comprehensive Coverage

The insurance provider covers the vehicle in the case of an animal collision. This also includes a specific number of non-collision events. 

Limit 

The maximum amount the insurance provider will cover for a specific accident. Each different type of coverage has a defined limit. 

Premium 

The total cost of auto insurance. It’s either given in a monthly, yearly, or six-month format. 

How To Compare Auto Insurance Rates And Find An Affordable Policy

There are several factors that determine what auto insurance rate a potential customer is going to get. These factors are driving history, age, credit score, type of vehicle, and location.

Insurance companies consider all of these factors before providing drivers with an inflation premium. For drivers that have a poor driving history and a poor credit score, their premiums tend to be significantly higher. 

There are a lot of websites out there that allow you to compare auto insurance rates. However, a lot of users aren't aware of exactly how they can go about and compare car insurance rates. Insurance quote comparison seems like an incredibly simple concept, but not a lot of people are familiar, and they end up comparing two insurance rates that are incredibly different from one another. Here are all the different variables to compare auto insurance rates around.

Car Insurance Rates by Age 

Insurance rates vary greatly by the driver’s age. Some of the most expensive insurance premiums are for teenagers and teenage dependents. In certain cases, adding teens to a car insurance plan can double the premium. Teenager insurance starts high from the age of 16. The insurance premiums remain high for a few years until the driver gains enough experience to lower their risk.

The next significant decrease in car insurance rates occurs when the driver reaches the age of 25; insurance premiums typically range from $700-$1200. From the age of 30-60, insurance premiums don't fluctuate a lot based on age alone. However, once individuals fall under the senior driver category, age becomes a significant determinant in the insurance premium.

Car Insurance Rates by Driving History 

One of the most important variables in determining the auto insurance rate is driving history. Insurance companies consider an individual's past driving history as an indicator of how they will drive in the future. Finding affordable car insurance with a bad driving history is difficult.

There are virtually no insurance companies that won’t increase insurance premiums after an at-fault accident or traffic violation. However, the degree of the increase can vary from company to company. 

Industry averages indicate that an at-fault property damage accident increases the insurance premium by $650 per year. It’s important to remember that insurance providers will continue to charge drivers extra for three years after an accident. 

A DUI charge is the costliest violation a driver can receive in many states. In the state of California, a DUI charge can stay on an individual record for an entire decade. Industry averages indicate that it could equal out to an increase of $1,000 per year.

Reckless driving citations also significantly impact the auto insurance rate a driver gets. Individuals that have received reckless driving citations can expect an average insurance premium to reach $800-$2000. That's why it's so important to compare insurance rates in terms of driving history. Each insurance provider handles driving profiles differently!

Comparing Car Insurance According To Credit Score

Even though it isn’t related to driving, car insurance companies consider credit score when giving clients an insurance premium. Car insurance companies split credit scores into five major categories. The categories are as follows; Very Poor (300-579), Fair (580-669), Good (670-739), Very Good (740-799), and Great (800-850). 

Drivers that fall under the bad credit category typically have to pay over $1,500 more than those that have very good credit scores. Drivers with bad credit score should ideally shop around for car insurance premiums after improving their credit score. Not only do individuals with good credit scores get better auto insurance rates, but they also get additional insurance benefits. 

Individuals that have fair credit scores are looking at an average insurance premium of $1,100. However, there are auto insurance providers out there that will offer a lower rate than average.

For drivers that fall under the good credit score category, companies begin getting very competitive in terms of insurance rates on offer. They’re typically looking at average insurance premiums between $650 and $1200. That’s how much a credit score impacts an individual’s insurance premium. 

Clients that are in the highest credit tier can expect auto insurance rates ranging between $500-$900. Maintaining a good credit score is crucial towards ensuring that the individual can find the most affordable insurance option. 

Comparing Auto Insurance Rates According To Vehicle Type 

When it comes to comparing car insurance rates, the type of vehicle up for insurance also has an impact on the premium. Typically, trucks or luxury vehicles are more expensive than insuring sedans that have a standard trim. 

Certain types of vehicles are more expensive due to collision and comprehensive coverage. They are designed to replace the vehicle in the case of an accident. The greater the cost of replacing the vehicle, the higher the insurance cost. 

Comparing Car Insurance Rates According To Location 

The client's location has a huge impact on the insurance premium. Car insurance is regulated at the state level and works according to each state's regulations. States that are at high risk of suffering natural disasters typically have higher insurance rates. Insurance will give higher quotes according to the potential risk factor of the location.

Comparing Car Insurance According To Discounts

A great way to save money on car insurance is by getting a discount. However, not every car insurance company provides a discount. That’s why it’s important to compare auto insurance rates according to the discounts on offer. 

There is all different kind of discounts on the market; these include discounts for honor students, good drivers, teachers, military, and several others. Clients can also get discounts by joining their auto insurance with homeowner’s or renter's insurance.

These are all the different factors that clients need to take into consideration when they compare auto insurance rates. The cheapest car insurance company in one variable might be the most expensive in another. Assessing their own needs, then deciding which variable will provide them with the best interest rate will help ensure that they find the best auto insurance policy. 

Auto Insurance Comparison FAQ

How Can I Compare Auto Insurance Quotes Online?

One of the best ways to compare auto insurance quotes online is by making use of websites like OfficialCarInsurance.com. They have an easy-to-use interface that allows them to provide clients with the optimal place for comparing and buying car insurance. 

The website allows customers to compare auto insurance policies according to different variables so they can find the best price. Once they’re satisfied with the choice, they can simply buy the insurance right there on the website. 

Where Can I Get Multiple Prices?

Officialcarinsurance.com collects information from clients and then will provide insurance premium rates from local advertisers and insurance agents in the area. The website gathers personalized quotes from different insurance providers that are advertising on the website. They aren't associated with any particular insurance provider, and there's no misrepresentation of rates.

Instead of making clients do all the searching, officialcarinsurance.com collects information from the clients first. After collecting the information, they identify what insurance agents are advertising in the client’s area and provide the client with quotes. It’s a very convenient way to compare insurance quotes in one location. 

What Information Do I Need To Compare Car Insurance Rates?

A lot of car insurance websites will require clients to provide certain information before they can get access to auto insurance quotes. It’s handy to have the following information ready when looking to compare car insurance quotes: birthdate, vehicle storage area, license number, driving history, insurance history, and the vehicle’s VIN.