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Ways to Get the Lowest Rates Guaranteed Auto Insurance

Things to Remember...

  • To drive legally in the USA, you must have some type of insurance coverage
  • The Insurance Information Institute  defines auto insurance as a contract between the driver and the insurance company
  • Insurance companies use a number of factors to calculate your auto insurance premiums

Driving in the United States is a privilege and it is mandatory for licensed drivers to get some amount of auto insurance before they get behind the wheel.

Unfortunately, prices for car insurance can be exorbitant. While it is almost impossible to guarantee the lowest rates for auto insurance, some in-depth research can help consumers get affordable insurance policies.

It is important to learn about the auto insurance industry and their various offerings. This will improve your chances of getting the best insurance deal available for the lowest price possible.

Click here and type your zip code into the FREE search box, to view several auto insurance quotes all at once!

Understanding Auto Insurance

Auto insurance is meant to protect you and your family from overwhelming financial losses in case of an automobile accident.

The Insurance Information Institute defines auto insurance as a contract between the driver and the insurance company. It stipulates that the driver pay a certain amount of money as a premium

There are different forms of auto insurance but not all types of coverage are mandatory. Each state has a different set of requirements from its drivers.

You can find the minimum requirements from your state’s Department of Motor Vehicles.

For instance, the New York State Department of Motor Vehicles states that drivers require liability coverage and should have a minimum of $25,000/50,000 for injury, $50,000/100,000 for death, and $10,000 for property damage per auto accident.

Most automobile insurance policies are six-month or yearlong contracts and need to be renewed before they expire.

Usually, auto insurance companies are required to send you a reminder but drivers should be aware of expiry dates so as avoid being caught with lapsed insurance.

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Calculating Auto Insurance Premiums

Insurance companies use a number of factors to calculate your auto insurance premiums. Each company has a different formula to calculate car insurance premiums.

While you are unlikely to get details from insurance company actuaries, you should know that certain factors influence your insurance rates more than others do.

Some of the leading considerations are as follows:

  • Your driving record – A clean driving record is of paramount importance in determining your insurance premium. Tickets, citations, moving violations or points against your driver’s license can raise your insurance cost substantially
  • Automobile specific – The type, make, model, year, and crash ratings from the Insurance Institute for Highway Safety can make a difference to your insurance bill. For instance, a brand new luxury car will be expensive to insure since its repair and replacement costs are noticeably higher than an older, less expensive vehicle. Similarly, an SUV is more likely to have safety features that a truck might not. So all other markers being equal, an SUV will likely be cheaper to insure
  • Location – While this is largely out of your control, geography is a huge determinant in your insurance calculations. If you live in an area that is prone to destructive climatic patterns that foster hurricanes, floods, tornadoes, and earthquakes, be ready for higher insurance bills. Similarly, urban drivers will pay more than rural or suburban drivers since they are likely to face higher volumes of traffic. If you live in a high-crime area, your insurance rate will be higher to counter higher probabilities of car theft, vandalism, and accidents
  • Demographics – Age, gender, and marital status also influence your insurance rate. Younger drivers invariably pay more. Adding teenagers to your auto insurance policy can triple your insurance bill! Generally, women pay less than men do and married people pay lesser than single individuals. People with college degrees get better rates than high school graduates
  • Occupation – Surprisingly, your choice of livelihood can make a difference to your insurance bill. Teachers, doctors, and engineers get better rates than other professions such as small business owners or contractors. Research shows that some professions are on the road more and therefore, more exposed to accidents. People who are retired, unemployed, or work from home get lower rates.
  • Your credit rating – According to MyFICO, your credit report is based on your financial behavior. The FICO scores allow creditors such as insurance companies determine your capability to make timely payments, which in turn decides your insurance rating

Different Forms of Auto Insurance Coverage

Insurance companies extend different forms of auto insurance to their customers. While some are mandatory, others have been created to offer further buffers to drivers and their families.

Liability insurance, the most common form of insurance, is required by most states. It covers the driver for damages when he or she is at fault.

Liability insurance pays for all the damage caused by an accident that includes the vehicles involved, property such as fences and road signage, as well as the cost of medical treatment or funeral arrangements.

Collision insurance is a form of insurance pays to repair or replace your car that has been damaged or totaled in an auto accident.

While collision insurance is not mandatory, it is a good idea to get such coverage if you are driving a new or expensive car. Additionally, you are required to purchase collision insurance if you are financing your vehicle purchase.

Comprehensive insurance covers your car if it is damaged or totaled in an auto accident.

Whether it is animal collision, theft, vandalism such as keying or broken windows, Acts of God such as volcanoes, floods or tsunamis, an errant shopping cart or a falling piano, you will be grateful to have opted for this form of coverage.

While this is expensive, it can provide much-needed peace of mind, especially if you are driving an expensive and/or new car.

Personal injury protection covers the cost of treating all physical injuries caused by an auto accident.

Pay-as-you-go insurance allows those people who are unable to pay huge auto insurance premiums, the option of lower cost insurance.

This form of auto insurance is dependent on the driving record of the insured and the number of miles being driven.

No-fault insurance: An expensive form of insurance, it pays for all accident-related injuries, death costs and property damage, irrespective of which driver is at fault.

Steps to Get Low Auto Insurance Rates

The Internet has made getting quick auto insurance quotes an easy and largely safe process.

While you might not have to haggle with your insurance agents to get the best rates, you still need to be prepared to do some bargaining.

Go to your state’s DMV office or website to make sure you know what the minimum requirements for your state are. Additionally, you can ask them for any resources that are available for insurance.

One of the easiest ways to reduce your insurance bill is through discounts. Research your discount options and ask each insurance company you contact for any specials that they are running.

Remember that certain groups such as good drivers, veterans, good students and certain professionals get better deals. So ask!

The final step is to collect all the required information such as license numbers of the drivers in your household, the vehicle information, driving records and claim records.

Means of Lowering Insurance Bills

Saving money in today’s poor economy is an unsaid given. Consumers are sticking to their ever-shrinking budgets. Car insurance is a major outgoing expense for every family that is usually not expendable.

  • Raise your insurance deductible – As long as you can pay your deductible amount in case of an accident, raising your deductible can save you a pretty penny.
  • Insurance and discount shopping – If your insurance policy term is ending, look at other companies to see if they have better deals including discounts.
  • Remove comprehensive – If you have a new car, a luxury car or a car loan, keep your comprehensive coverage. Otherwise, it is an unnecessary expense. Drop it!
  • Raise your credit rating – Your FICO scores also matter in your insurance calculations. So make your payments on time, and watch your FICO scores rise while your insurance bill drops.

Whether you go online to consolidator websites or to a brick-and-mortar office, you have multiple options. But choose your policy carefully, be vigilant about the terms and conditions, and know your rights.

Compare insurance rates now when you type your zip code into our FREE toolbox on this page now!


  1. http://www.iii.org/individuals/auto/a/whatis/
  2. http://www.dmv.ny.gov/insurance.htm
  3. http://legalbeagle.com/4488554-clean-driving-record.html
  4. http://www.iihs.org/ratings/
  5. http://www.myfico.com/CreditEducation/InYourReport.aspx
  6. https://www.libertymutual.com/auto/car-insurance-coverage/bodily-injury-liability
  7. https://www.libertymutual.com/auto/car-insurance-coverage/collision-insurance
  8. https://www.esurance.com/info/car/myth-comprehensive-covers-everything
  9. https://www.irmi.com/online/insurance-glossary/terms/p/personal-injury-protection-pip-no-fault.aspx
  10. https://www.progressive.com/auto/car-insurance-discounts/

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