November 9, 2022

auto insurance ratesThe Best Auto Insurance Rates Made Easy

Finding the best insurance coverage at the lowest rate doesn’t have to be a daunting task.  These tips will help take the hassle out of shopping for car insurance.

Compare Auto Insurance Companies

Many consumers take the time to carefully consider, when shopping around for their next car; but few people practice that same level of consideration when buying auto insurance.  It’s important to shop around when looking for auto insurance and failing to do so, can leave you paying more and prevent you from getting the best car insurance coverage for your needs.

Buying Smart

Finding cheaper car insurance is not necessarily the best thing.  You want to be sure you bought the right type of insurance with the amount of coverage you need.

Having “good coverage” means you don’t find yourself paying significant amounts of money out of pocket after an accident.

When you have found the right insurance provider:

  • You’ll feel assured that you’ll be able to handle the financial costs after an accident.
  • You’ll feel comfortable knowing you’re not overpaying for your car insurance.

Look around and do car insurance comparisons before you buy, to ensure you have the right coverage for your needs.

Do you have enough coverage?
Car insurance is a must!  You have to carry the minimum car insurance required by your state to comply with state laws, to satisfy your lender or leaseholder, and to protect your assets.

Each state has different laws that dictate the minimum amount of insurance you must have. However, unless you have very few assets, the smallest amount of insurance is most likely not enough coverage. It is smart to talk to your auto insurance broker or agent about how much coverage and what types of optional insurance coverages might be right for you.  Consider these coverages for your policy:

  • Comprehensive.
  • Collision.
  • Medical payments.
  • Uninsured/underinsured motorist.
  • Towing and labor.
  • Rental reimbursement.

NOTE: If you have a loan or lease on your car, it will typically come with coverage requirements. Be sure you understand these when reviewing your loan/lease agreement.

Remember, you need to at least meet the minimum car insurance requirements for your state. Most often, you’re required to have certain amounts of liability insurance (and sometimes personal injury protection (PIP), or no-fault insurance).

However, it’s a good idea to purchase higher limits and more coverages than what is required.  You should make your decision based on:

  • Your personal assets. The more valuable your assets, the more protection you need. For example, if you didn’t have very high limits and got into an accident, the other driver could sue you for damages your policy won’t cover. Your assets, such as your house, could be in danger.
  • Your budget. While insurance agents often recommend certain limits, you should only buy what you can reasonably afford. If you can’t pay your premium, you risk nonpayment of premium, which can lead to cancellation and lapse of coverage.
  • How much risk you can handle. If you feel you can pay a lot of out pocket in the even of a claim, you may be fine with higher deductibles and/or lower limits.
  • Your vehicle. If you have a new or very valuable car, you’ll probably want comprehensive coverage. You may even be required to have collision and comprehensive by your lienholder. However, if your vehicle is not worth much, the cost of comprehensive coverage may not be worth it.

New or Leased Cars

Your car insurance will NOT pay off your loan if your car is totaled.  In reality, it will pay the fair market value.

The fair market value, or actual cash value, is the sales price minus depreciation. A car depreciates at a surprisingly rapid rate. In fact, just driving a car off the lot after purchase decreases its value by an average of 11%. During the first 5 years, the car’s value depreciates by an average of 15 – 25%.

In the event of a serious car accident, you can be left with substantial costs due to normal depreciation. This is where GAP and loan/lease coverage come in.

To protect yourself from having to pay a loan on a car that no longer functions, you can purchase either:

  • Guaranteed Auto Protection (GAP) insurance – Covers the difference between your insurance payout and what you still owe on your car loan after insurance pays, without any maximum limits.
  • Loan/lease payments coverage – Also covers the gap between what you owe on the car and its current value, but only covers a percentage of your car’s actual cash value in the event of a total loss. This might not be enough to cover the gap between your loan and the cash value.

Consider Higher Deductibles

You can lower your monthly auto insurance premium just by choosing a higher deductible – However make sure it is a deductible you can afford if you get in an accident or suffer a loss.

Take Advantage of Discounts

Talk to your Auto Insurance Broker or agent about other ways to save money.  Some of those discounts to consider:

  • Reducing coverage on your older cars
  • Low mileage discount
  • Multi-Policy discount
  • Good student discount
  • Occupation discount

Thank you for viewing The Best Auto Insurance Rates.

For more information please call 800-459-6060 or visit our website at
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John Espenschied is a long-time veteran of the insurance industry. He's worked with thousands of clients over the years, helping to protect their personal and business needs. John's goal is to provide the best advice possible to assist customers in saving money while protecting their property and securing their financial future.
He truly enjoys helping others and takes great satisfaction in providing top-notch customer service. When he's not working, John has fun spending time with his family, golfing, bike riding, and blogging on insurance topics.