Category: Auto

You know that auto-insurance is something significant. The average US citizen spends more time in their car than anywhere else in the world. You need to be sure that you are driving a safe vehicle. In case of bad luck and a car accident happens, you and your motor vehicle will have protection. It is expensive to pay for repairs and personal injury out of pocket or damage your credit score by running up high credit card debt.

That is why car insurance is so important. There are hundreds of car insurance companies in the country. It might be challenging to choose the best one for you. Don’t be scared. There are a few straightforward rules to guide you through the process. If you follow them, you should not have a hard time picking the coverage that suits your needs and individual requirements perfectly.

What You Should Know Before Purchasing Car Insurance

If you only want the lowest price possible, there will be pitfalls along the way. What you should aim for is to pay less for the most insurance coverage possible, which is not an impossible mission. First on your to-do list should be to see if your family and friends have recommendations. Think about the experienced drivers in your social circle. They might be able to share a few tips that will help you get the lowest car insurance premiums possible.

There are a few other factors you should consider too. The world we live in is changing, and so is auto insurance. Advice that was solid ten years ago might not be the best way to go. That’s why there are a few other things to do. Determine which car insurance policy to pick from the pool of quotes you’ve received. 

Go for the Highest-Rated Companies Only

You want an insurance provider that has a proven track record of: 

• Client satisfaction
• Financial stability 
• Range of policy options
• Easy-to-file claims

Some lesser-known car insurance companies may offer lower insurance premiums, but you should ask yourself, is it worth it the risk? There are many respectable studies on customer satisfaction and service quality. J.D. Power’s study is the most trustworthy one. It is published every year. Read it if you want up-to-date information on the best car insurance companies in the market. It is the best thing to do to opt for an industry leader. It will be worth it paying a little bit more. You will get reliable customer support, easy to file insurance claims, and assistance on every corner.

Consider the Deductible 

The level of deductible will determine both the money you pay every month toward your insurance premiums and the cost of out-of-pocket expenses in the unfortunate event of an accident. A higher deductible means lower premiums. A lower deductible means less out of pocket expenses in case of a car accident, but higher premiums.

Weigh the pros and cons, consider your budget, and be careful when making your choice. If you don’t understand how deductibles work for full coverage and liability insurance, don’t hesitate to ask your insurance agent. They will help you pick the option best fitted to your individual needs.  

Remember, the State-Minimum is Not for You

Every state has made car insurance mandatory, with very few exceptions. The state legislature determines the minimum amount of coverage you need to purchase to be allowed to drive on the state’s roads. This minimum coverage is typically not enough to pay for medical expenses due to a personal injury, repairs of a vehicle damaged due to a car accident, etc.

If you want proof of insurance to show the highway patrol when stopped for a check, the state-minimum will do. However, if you’re going to be genuinely protected, full coverage is better than simple liability. Your expenses will be a little higher. The cost will not be that much higher if you are eligible for specific discounts or you customize your policy. The best companies out there have a lot of options for less expensive insurance.

Shop Around and Compare

Don’t forget that your car insurance is a considerable monthly expense. You should not approach the process of choosing the right company lightly. Ask as many car insurance companies as possible for quotes and then compare them. You want the best protection for the right amount of money. You can achieve that with research and effort. After all, you do not want to have to dig into your savings account every time you have to pay your insurance premiums, right?

Another important thing about paying insurance premiums: if you miss making a payment that will reflect on your credit score or insurance scores. You may have a tougher time refinancing an auto loan, or mortgage on your house. That is why you must find a policy that you can pay for without trouble.    

Best Car Insurance Providers

Let’s take some time to take a look at some of the best car insurance providers in the US this year. It is essential to know their names when you begin your search for the policy that will protect you on the road.

Amica – America’s Favorite Vehicle Insurance Coverage Provider 

You can easily see why Amica has been one of the country’s leading car insurance companies for the past several years. J.D. Power’s 2019 Insurance Shopping study supports this fact. The company received an overall score of 885, according to the study, and it is higher than most other insurance providers in the country. Amica is at the top of the list in several New England states.

If you choose to purchase coverage from Amica, you are in for a lot of benefits. The financial stability rating of Amica Mutual is “A+ Superior.” This means that you can count on it staying afloat even in the worst-case scenario for the economy. Here’s what’s the best thing about getting an insurance policy from Amica.

Pros

In case of a car accident, there are no restrictions on the repair shops where you choose to repair your vehicle. That’s something very few insurance policy providers offer. The range of coverage options offered by Amica is also impressive.

We recommend that you look at their Platinum Choice Coverage. It costs a little more, but its comprehensive coverage has no match in the industry. No matter whether it is personal injury protection, uninsured motorist protection, or vehicle damage you’d like, this choice of insurance covers them all.

Cons

There are a few cons, of course. Amica does not have very reliable online support. If you want more information on their policy options, or make changes to a policy you’ve already signed up for, you will need to contact them directly.

If talking to a company’s representative is not a pleasant prospect for you, you might want to think twice before signing with Amica. People also complain that Amica offers fewer discount options for liability coverage in comparison to other car insurance companies. 

Geico is Perfect for Those Who Embrace the Digital Age

We live in a world driven by technology. It is only logical that there are car insurance companies selling coverage to customers who think of themselves as tech-savvy. Geico is the perfect example of a tech-savvy policy provider. Berkshire Hathaway owns the brand. In case you don’t know who that is – we are talking about the second-largest car insurance provider in the United States. That’s impressive.

Geico’s ads boast about low rates, excellent coverage for liability, and high-speed of service. That’s what most insurance providers promise. So, what makes Geico the right choice for you in case of an accident involving your vehicle? Let’s take a look.

Discounts

Geico offers a wide range of comprehensive discounts. If you are always on the lookout for a bargain, you may very well find it in one of Geico’s offers. Look at the list of discounts offered to federal employees, retired military personnel, and other social groups. You may be eligible for a serious cut on your insurance premiums. Lower rates are a good reason to sign with Geico. 

Online Accessibility

What makes Geico’s policy options attractive, however, is how easy it is to use your coverage online. The mobile app run by Geico is far superior to any of its competitors. You have the opportunity to never talk to a real-life insurance agent ever. Thanks to the app, you can request a car insurance quote, purchase a policy, and even file an insurance claim with just a few clicks. That’s why we say Geico is the best choice for the tech-savvy vehicle owner.

It’s Not All Positive

There is bad news too. Geico does not do gap insurance. The guaranteed autoprotection policy (gap) covers the difference between the cost of your car and the damage caused in an accident. You cannot count this type of protection if you sign up with Geico.

Another drawback is that most of the communication is done online. Older people and those who do not like to live entirely in the digital world tend to find it off-putting. If you are one of them, you might want to look for car insurance elsewhere. The tech-savvy vehicle owners should be able to embrace Geico on the get-go. 

Progressive – Best for Discount-Hunters

Let’s face it – paying insurance premiums on your car can add considerably to your monthly expenses. When you are looking to optimize your budget, it is only logical that you’d want the best deal possible for your insurance coverage. It is essential, however, that your car insurance covers your basic needs:

• Medical expenses
• Personal injury and bodily injury 
• Roadside assistance
• Liability
• Repairs in case of a car accident 
• Uninsured motorist protection/underinsured motorist protection

The perfect balance between the cost of the insurance and what you are getting from the policy with Progressive is what you will strike. It is one of the top five car insurance companies in the US. Its financial stability rating is also impressive. It is “A+ superior.” They calculate your insurance premium based on both your driving record and habits. There are also many Car insurance discount options. 

There Is a Way to Pay Less

You can qualify for a discounted rate if you are a homeowner – even if you do not purchase your homeowner’s insurance from Progressive. Students with good grades pay less too. You can easily see what type of discount you are eligible for by requesting a car insurance quote on Progressive’s website.

Pet Insurance

You will be happy to learn that the policy Progressive provides offers pet coverage too. This coverage means that in addition to personal injury insurance claims you can have the vet’s bill reimbursed too. That’s in case your pet has suffered an injury in a collision.

Progressive’s customer support also deserves praise. Getting in touch with an insurance agent or learning more about their coverage will not be a problem at all since their customer service representatives are readily available.  

The Hartford – The Underdog No One Should Underestimate

The Hartford is not the most famous or largest collision coverage provider out there. They rank between 15th and 25th place on various rankings. However, they offer a reliable service throughout. What should make you consider buying coverage from them is the fact that there are many policy options to choose from. One of our favorites is the so-called “new car replacement program.” It ensures that you will get a new car if your recently purchased vehicle is totaled in a collision. Bodily injury coverage, towing, and roadside assistance programs are all coverage options too. You can build a custom policy. You purchase the minimum-required coverage, and then add programs that you like or think you are going to need. 

The Cons of Having Hartford as an Insurance Provider

One of the drawbacks is that The Hartford works almost exclusively with AARP-members in most states. Even if you manage to receive a car insurance quote from an independent insurance agent, you will have to go through the tedious application. This includes filling in and sending forms in the mail. In this tech-savvy day and age, the time-consuming process is among the main reasons why The Hartford ranks low on the customer-satisfaction scale.

State Farm – The Old-Timer is Still Solid

State Farm is an auto insurance company that has been around since 1922. The company has long traditions and persistently high levels of client satisfaction. They make it the best option for people who are looking to purchase a vehicle insurance policy from a financially stable institution that is not going to let them down. State Farm’s offices can be found all around the country. Some car owners find comfort in walking in physical offices and talking directly to an agent. That is something the online-only coverage providers cannot offer.

State farm gains praise for its treatment of clients. For example, in 2018 alone they have written over $40 million of private passenger auto insurance. Getting paid the money on an insurance claim when you work with State Farm is an easy and relatively fast process. You should not underestimate their online presence either. State Farm is famous for its physical offices which their clients love and cherish. With State Farm, you get the best of both worlds.

Wait, There’s More!

They also have a great mobile app and online client support and car insurance quote system that is relatively easy to use. State Farm’s financial stability is rated “A++ Superior,” which means it is better than any other car insurance company in the market today. It pays off to have been in the business for nearly a century. You know what your clients want and how to give it to them. There are a couple of drawbacks, though. For example, there are no automatic pay discounts and umbrella insurance discounts. Multi-car discounts are on the table, though. They do not offer uninsured motorist coverage. That can be a deal-breaker for the vast majority of those who are looking to pay less and have more protection. 

Liberty Mutual Insurance – Now We are Talking About Traditions

Liberty Mutual was established in 1912. They have been offering car insurance for well over a century. It is safe to assume that they know what they are doing. If you are among the 1.5 million vehicle owners who purchase their coverage, you already know that.

Liberty is described as a reliable, financially stable, and easy-to-work-with company. It certainly is better than most car insurance companies that you can find on the market right now. Their standard coverage offers you everything you could wish for in car insurance.

Additional Coverage Options

• Accident forgiveness – you don’t have to pay for an insurance premium increase after your first accident unless you caused serious bodily injury.
• New car replacement – in the unfortunate event of you totaling a newly purchased vehicle in a car accident, you get a new one.
• Better car replacement – you can get money to pay for a car that is one year newer/with 15,000 fewer miles on it, in case of a car accident.
• Deductible fund – if you pay for this option, you get a $100 tax deduction and $100 more the next year. That’s ideal for those who are looking for a higher deductible.  
• Multi-car discount – you pay less for the policy on a second or third car through Liberty Mutual.

Liberty Mutual Insurance has been in the insurance game for a long time. They would not have survived in this competitive market for so long if they did not offer above-average client support and fast response. You can file insurance claims 24/7 and count on having your request processed in a short period.

There is only one drawback: the price for a single policy can be somewhat higher than the national average. You get a lot for the value of your money though. If it is stability you are after, you will get it from Liberty Mutual Insurance.

USAA – For the Military Men and Women Out There

USAA is the best option you have if you or a member of your family is a member of the military or is a veteran. You will be surprised how strong a presence USAA has on the market. They truly look after their policyholders and keep the cost for coverage low.

The only drawback is that you can only make use of its offers if you’re active duty, retired, or a veteran with an honorable discharge from the military. This goes for you or a family member that is eligible for car insurance coverage. The company has the highest financial stability rating possible – “A++ superior” – they are not going out of business any time soon.

Membership restrictions are one of the cons of the USAA. Another is that they do not offer gap insurance or new car replacement coverage. You cannot match a car insurance policy from USAA with renters’ insurance or other insurance coverage that you have to pay every month.

Erie Insurance – The Local Giant 

Set aside the nationwide-operating industry leaders. You might have the chance to get the best deal for an auto insurance policy with some local companies like Erie. You can pay for a car insurance policy with them if you are a citizen of one of the following states:

• Illinois
• Indiana
• Kentucky
• Maryland
• New York
• North Carolina
• Ohio
• Pennsylvania
• Tennessee
• Virginia
• West Virginia
• Wisconsin

Erie is not exactly a small, family-run business. You can easily see that it has a presence in several key locations throughout the country. The company’s financial stability is commendable. Their market share is expanding each year thanks to high levels of client satisfaction and the low cost of its insurance policies. It works with private customers, but Erie’s main strength is the commercial car-insurance sector. That’s why many rental car companies from their areas of operation choose to work with them. 

Esurance – A Chance to be Your Policy-Builder 

Allstate, one of the most significant insurance and financial services providers in the country, owns and runs Esurance. One of the best reasons to opt to pay for a policy offered by this company is the chance to customize the service very quickly. They have an excellent mobile app and online application form, which allows you to say what you want to receive for the insurance premiums you are ready to pay.

You will get an insurance quote. A client support operator and a real-life agent will also be prepared to talk to you about your wishes and what Esurance can offer you.

What Makes Esurance so Special?

Where Esurance truly stands out is its direct-marketing approach. They were among the first companies to start selling auto-insurance online without agents. The quick response time and the lack of necessity to go to a physical office make it perfect for the busy lifestyle of the modern age. You should be careful, though.

Due to the many options, you have to customize your policy, and you may end up having to pay more than with conventional car insurance companies. Get your car insurance quote and compare it with other competing offers before you sign up. Do it even if you have already been approved. This way, you have a better chance to bring the cost for your vehicle insurance down as much as possible.  

Allstate – Comprehensive Insurance Experience at a Cost

Allstate is in the upper half of nearly all car insurance review lists this year. The reason for this is simple. The company offers a thorough service and strives to top customer satisfaction charts. They have brick and mortar offices all around the country. It makes sense when you look at the name of the company – Allstate. They offer nationwide coverage for private citizens and commercial entities. Rental car users have particularly high praise to share about Allstate.

The online services provided by the company also deserve mention. Their website is straightforward to navigate. At the same time, if you have a problem, you can quickly get in touch with a real-life insurance agent who is going to help you out with anything you need.

You can mix and match different policies and options, including property and casualty coverage, gap insurance, no-fault insurance, and many more. Note that the cost of a single policy can be a bit higher. If you customize a bundle of policy options though, you should not have a problem paying less.  

Auto-Owners Insurance: The Surprising Leader

We are calling Auto-Owners Insurance the surprising leader because the company is not among the most “talked-about” in the business. You can easily miss their ads, or even physical offices in most cities. That does not mean that J.D. Power does not rank it “better than most” car insurance companies in the country in 2019. They have a very high satisfaction rating in the category of “insurance claims.” That means that when you request to get money for what your insurance covers, you will most definitely get it.

Auto-Owners Insurance maintains over 6000 insurance agents all across the country. If you need someone to help you pick a coverage that fits your needs and preferences, you should not have trouble finding them. The many discounts they offer are also attractive. One of the few negative things that can be said about Auto-Owners Insurance is that their website is not user-friendly.

Keep in Mind

You may want to find some additional information about the car insurance coverage they offer. If this is the case, get in touch directly with customer support or an independent agent. Be advised that it will cost you far less to purchase a policy with Auto-Owners Insurance if you qualify for some of their great discounts. If you don’t qualify, you will have to pay higher insurance premiums than the average for the US. 

Final Tips to Remember 

Now you know which are the best auto insurance providers out there. You can approach them for quotes and request exclusive coverage bundles. Insurance agents will be beneficial in that respect, and they can prepare these things easily for you. There are a few other simple rules that you might need to apply to make the process even smoother.

For instance, consider your car payments. If you are still paying off an auto loan on a new car, comprehensive insurance is a must. This way, if something terrible happens on the road and your new vehicle is totaled (or severely damaged) you will be protected. Many of the industry leaders require comprehensive insurance for vehicles that are still not paid off.

Consider Your Driving Habits

A car insurance agent might want to look at your driving record to determine the rate of your insurance premium. No one knows better what type of driver you are than yourself. If you think that you fall in the high-risk category, you might want to request higher liability limits. If you’ve been in several accidents already, those will come in handy.

The auto insurance policy has to cover your expenses in case of a problem on the road. You can save a lot of money, even if you pay higher premiums. The next step would be to improve your driving ability. That may seem hard at first, but it is the wise thing to do to avoid long-term costs and for your safety.

Ask as Many Questions as Possible

Your insurance agent will be happy to answer all your questions. They are there to provide you with the best deal possible. Don’t forget that the agent is not a clairvoyant. They need to know your precise requirements and preferences in advance so that they can make an offer that covers your needs completely. That is why when you walk in an insurance provider’s office, you have to be ready to ask about anything that interests you and answer their questions.

Learn about coverage options, insurance premiums rates, discounts, liability, etc. The same goes for when you are shopping for car insurance online. If you run into any trouble, contact the website’s customer support to receive assistance.

Remember, buying car insurance is not hard. Everybody does it. What you should aim for is getting the best deal possible. Do you have more tips about shopping for car insurance coverage? Would you like to share your personal experience with one or more of the companies we’ve talked about here? Don’t think twice about getting in touch with us now. We’d be happy to hear from you in the comments.

Have you ever wondered why you need car insurance? You make all these payments and get nothing in return – until you’re involved in an accident. The purpose of having a car insurance policy is to protect you in the event of loss, damage, liability, or injury. It helps you to prevent financial disaster.  

Is Car Insurance Mandatory or Optional?

Financial responsibility laws apply in all 50 states. In some states, it is not required to have car insurance, but it’s advised to at least have standard liability and property damage insurance. When leasing or financing your car, you may need to have additional insurance coverage.

6 Main Types of Car Insurance Coverage

Every driver has different needs, and each state has different laws. No policy will cover everything, so choose one that best suits your purpose.

Liability Insurance

When you are at fault, liability insurance will help protect you against a lawsuit. It should cover all expenses related to injury, death, or accident property damage to others. Any excess cost not included will be at your expense. 

Comprehensive Insurance

Comprehensive insurance policies cover financial loss for any damage caused by vandalism, riots, theft, hail, falling items, explosions, fire, and striking an animal. It will cover the current value of your car.

Collision Insurance

Collision insurance offers coverage of expenses or replacement costs in the event of damage or destruction of your car. It covers an at-fault accident or other collision. Although it is optional in most states, it may be required while you are still paying off the cost of your vehicle. Repairs only happen once you have paid the excess amount or deductible. 

Gap Insurance

If you’re still paying off your car and it’s written off, gap insurance covers the loan amount. To get gap insurance, you must also buy comprehensive and collision coverage. A deductible does apply when claiming the total loss of your vehicle. You only benefit from gap insurance if your car is worth less than you still owe on it. 

Uninsured or Underinsured Motorist Coverage

Underinsured motorist coverage covers your repair cost if the other (at-fault) driver isn’t insured or has insufficient coverage. Your injuries, medical bills, lost wages, and pain-and-suffering are also covered. Some states may require one or both forms of these coverages.

Personal Injury Protection and Medical Payments

With at-fault accidents, this form of insurance covers expenses related to injuries and medical care for you, authorized drivers, or your passengers. In “no-fault” states, they require personal injury protection (PIP) or medical payments coverage, regardless of who’s to blame for the accident.

Additional Coverages

• Sound system insurance: covers replacement costs of stolen or damaged sound and video equipment. Renters insurance will also cover your sound system as well as any other belongings kept in your car.
• Roadside coverage: gives standard roadside services like changing tires, jump-starts, or towing.
• Personal umbrella policy: provides additional liability cover.
• Rental reimbursement coverage: covers car rental costs or alternative modes of travel expenses if your car is in for repair.

7 Factors Influencing Your Car Insurance Quote

Many factors play a role in your car insurance quote. The cost reflects how likely the insurer thinks you are to make a claim. Other factors, such as your homeowner status, your occupation, how you use your car, and your education level may also affect your quote. Compare how different car insurance companies weigh these factors when settling on a premium.

Credit Score

In most states, your credit score is one of the main factors that affect your car insurance quote. Your credit score gives the car insurance company an idea of how well you can pay off premiums. You are considered to have a poor credit score in the 300 to 579 range. A fair credit score ranges from 580 to 669, good from 670 to 739, very good from 740 to 799, and excellent from 800 and above. 

Driving History

Are you a high risk to the insurer? Having an unfavorable driving history will leave you labeled as a high-risk driver, which results in a premium increase. These rates vary depending on the company and the incident. Being a safe driver will pay off.

Your driving history affects how insurance companies predict your driving in the future. Your auto insurance quote is affected by your history of accidents, fines, and other traffic violations. A limited driving history might also reflect poorly.  

Violations that influence a rate increase include:

• At-fault property damage accidents: by filing a claim, your premium will be raised for up to three years, depending on the insurance provider. The average increase is $612 per year. Where possible, you should consider paying out of pocket rather than filing a claim. Your increased premium might add up to more than the immediate out-of-pocket expense.
• DUI conviction: a DUI conviction could be one of the costliest when it comes to car insurance. The violation can stay on your insurance record for up to ten years.
• Reckless driving: dangerous driving will also increase car insurance rates.

Vehicle Type

Collision and comprehensive insurance cover the cost of your car in the event of an accident. The more expensive the vehicle, the more the insurance will cost. Keep in mind that it also caters for the possibility of damaging another road user’s vehicle.  

The size of your car engine influences the cost of insurance. A faster and more powerful car is more likely to be involved in an accident. Modifications to your vehicle should also be mentioned to ensure coverage. Lastly, a more desirable vehicle is at a higher risk of theft. Consider additional security measures, and be sure to note them with your insurance agent.

Security

You might reduce your premium by installing an alarm, immobilizer, or other security measures. Do you park the car on the street, in a monitored car park, or within a secure garage? These considerations will also influence your premiums.

Your Location

If you are living in a high-risk area, where events such as floods, hurricanes, or wildfires are frequent, you can expect elevated car insurance rates. Living in an area with higher accident rates and vehicle theft also adds risk and, consequently, an increase in premiums.

Your Age

 Age affects your car insurance rates. According to age-related claim statistics, the generalization is that you become more responsible with age. Typically, your premium will nearly double when adding a teen driver to your policy. After the age of 25, you can expect to see a decrease in insurance premiums. Between the ages of 30 and 60, your rates should remain stable. You might see rate adjustments again in your late 50s.

No-Claims Bonus

The insurer will want to know if you’ve made any claims or have points on your driver’s license. If you’ve made an insurance claim within the last five years, it will commonly result in a higher premium. A no-claims bonus should apply if you haven’t made any claims for at least a year.

First Steps to Compare Car Insurance Quotes

Although it may seem tedious, comparing car insurance quotes helps determine if you are getting value for your money. Car insurance rates for different profiles vary from one insurance provider to the next.

A car insurance quote should always be free of charge. It is only an estimate of how much your insurance policy premiums will be. Compare at least three quotes with the same criteria, limits, and deductibles before making your decision.  

When obtaining a quote, make sure you have the following information at hand:

• ZIP code 
• Coverage level
• Marital status
• Social security number
• Vehicle Identification Number (VIN)
• Annual mileage
• Driving record
• Vehicle make, year and model
• Credit history
• Current or previous insurer’s name

Once you accept the quote, you receive the actual rate. The rate is the amount you pay over a specified period. Some car insurance companies may require a down payment to start your policy.

Guidelines for Choosing a Car Insurance Policy

Find a car insurance policy and company that works for you and your budget.

How to Choose the Right Liability Coverage Levels

Bodily injury liability and property damage liability are subdivisions of liability car insurance. When an at-fault accident occurs, you might be held accountable for the damage and injuries of the other victims involved. You may face a lawsuit and in the worst case, even lose assets such as your home or savings.

Liability auto insurance provides a buffer between your assets and your liability. It is, therefore, the most crucial aspect of your car insurance policy. You might see the limits presented in three numbers. In typical insurance policies, they would be from 50/100/50 up to 250/500/250. These numbers represent bodily injury liability / total bodily injury liability / physical damage liability. The numbers represent thousand-dollar increments. If you choose 50/100/50 as an example, you will be covered as follows:

• $50,000 bodily injuries per person injured in the crash.
• $100,000 in total physical injuries.
• $50,000 for property damage.

The total bodily injury liability (middle) amount should be equal to or higher than your home’s value and total savings combined.

State Requirements for Car Insurance

Each state has its minimum requirements when it comes to car insurance. As mentioned before, liability is a requirement in most states. You may also be obligated to have personal injury protection (PIP), medical payments coverage, or uninsured or underinsured motorist coverage. Each car insurance comparison website should be able to tell you about your state’s requirements.

Choose or Re-evaluate Your Level of Coverage and Limits

The type of coverage and limits should fit your needs and provide sufficient financial cover. If you are still paying off your car, you might want to consider full coverage. Full coverage includes liability, comprehensive, and collision coverage. You will need to add collision and comprehensive coverage to your policy in the amounts you want.

Each insurance provider evaluates your factors differently. Be sure to compare car insurance minimum and full coverage options with various car insurance companies. Look at the type of coverage, your deductibles and limits, and the premiums you pay.

Full coverage might be unnecessary if you can put your car insurance premiums towards saving for a replacement vehicle. If you don’t have health insurance, you might want to consider adding medical coverage to your car insurance policy. If you do have health insurance, you should look at whether you have enough savings to cover deductibles. Also, do your regular passengers have health insurance? We recommend uninsured motorist coverage if you are unable to cover your expenses in the event of an accident.

Compare At Least 3 Car Insurance Companies

When comparing, make sure that you list the same set of requirements for each quote. These should include:

• Levels of liability property cover.
• Uninsured or underinsured motorist protection.
• Deductibles for comprehensive and collision coverage, if applicable.
• Drivers and cars.
• Discounts for which you are eligible.

You should also be able to compare car insurance quotes depending on minimum and full coverage, your credit score, and driving history. We often tend to look only at the cheapest quotes, but customer satisfaction is also essential. Your insurer should be helpful, efficient, quick to respond, and handle claims reasonably. 

Financial stability is essential when settling on an insurance company. Independent rating agencies can provide you more insight into the current and future security of your insurer.

Lastly, only accept quotes from companies that are licensed to operate in your state. The state insurance department can provide a list of licensed companies.

Compare Deductibles

You can easily influence your car insurance rates by adjusting your deductible. If you have sufficient savings to cover a higher deductible when filing a claim, it could result in lower rates.

Look for Car Insurance Discounts

You are eligible for a multi-policy discount when insuring more than one asset with the same insurance company. You can choose to bundle up home and car insurance, or insure multiple cars. For a teen driver, look at companies with a good student discount.  

Other companies may offer “pay-as-you-drive” types of plans. If you are a low-mileage driver or Uber and Lyft driver, you can qualify for discounts by merely enrolling after purchasing a policy. Discounts can go up to 50%.  

Payment Plans

A car insurance down payment of 8% to 33% typically applies with privilege fees ranging from $3 to $10 per payment. Look at the payment method accepted by your provider. Are you able to pay by check or money order, bank bill pay, EFT, credit card, or debit card? Some insurance companies also offer a 5% to 10% discount when you pay in full.  

The Fine Print

If you have a poor driving, credit, or insurance history, you may be looking at nonstandard companies as an insurance provider. Standard terms on their coverage and situations include limitations on who drives your vehicle. You are not permitted to lend your car to another driver with nonstandard companies, while standard policies do allow it.   

When renting a car, standard policies will automatically cover you, while nonstandard policies do not.

How Car Insurance Comparison Sites Work

When comparing quotes online, you will find two kinds of car insurance comparison websites.

Auto Quote Comparison Sites

Auto quote comparison sites are online platforms where you provide some personal information and receive rates from various providers. Once you decide on a quote, they transfer your data to an agent or the actual company website. They don’t sell your information to insurance companies or agencies. Auto quote comparison sites quicken the process of comparing quotes.  

Look for comparison sites that provide real-time quotes. Examples of real-time quote comparison websites are Insurify and Compare.com.

Some websites offer estimate quotes based on historical data, which is often out of date. Estimate quote websites’ rates get compiled using information from other drivers in your area with similar histories.

Lead Generation Sites

These sites do not give you accurate, personalized quotes, but instead sells your information to their advertising partners. Lead generation sites attract your attention by advertising competitive rates. They then redirect you to other websites where the prices are often less attractive. You should avoid lead generation sites as they send you on a wild goose chase. Such sites often lead to endless cold calls from insurance carriers and insurance agents.

Where to Shop? Let’s Compare Car Insurance Companies

When involved in a car accident, you’re already troubled with the experience, damage, and possible injuries. When making an insurance claim, it should not add to the stress of the situation.  

A lousy auto insurance company typically has high premiums or low premiums with inadequate cover. Customer service is also below average, and they tend to handle the claims process poorly. They might have specified repair shops that may not be convenient for you. A financially unstable insurance company might not be able to deliver on claims when the time comes.

That is why we are going to look at some of the best insurance providers in 2019. When shopping for an insurance company, you should look for affordable car insurance premiums, adequate coverage, customer satisfaction, claims processes, and financial stability.

USAA

Founded in 1922, USAA serves millions of U.S. military members. To qualify, you need to be a current or former military member, family of a military member, cadet, or midshipmen. J.D. Power scored USAA with an incredible 5 out of 5 rating. They are known for excellent customer service, a smooth claims process, good communication, reliable coverage, and competitive rates.

State Farm

Even with a 3 out of 5 customer rating, customers say they are likely to renew their policy with State Farm. Filing a claim is easy; they offer competitive rates and personalized insurance experiences. As a mutual insurance company, State Farm holds 18% of the market share, and its annual report shows over $1.7 billion net gain.  

GEICO

Geico initially catered to U.S. government employees and military personnel. They have since expanded to provide to customers in the private sector as well. J.D. Power scores Geico with 3 out of 5 in customer satisfaction. Most customers are satisfied with the claims process and would renew their policy with Geico. They offer lower rates than competitors. Geico has nine regional offices, three service centers, and three claims centers across the states. You may receive unfavorable rates from Geico if you have an accident history.

Progressive

Established in 1937, Progressive is the third-largest insurance company in the U.S. today. They boast over 400 offices nationwide and more than 33,000 employees. With a 3 out of 5 J.D. Power rating, customers show an overall satisfaction when it comes to submitting claims. Customer reviews are less favorable, though, concerning customer service, communication, claim resolution, and value. Although Progressive offers competitive rates for drivers with accident history, they have very average coverage options.  

Allstate

Allstate was established in 1931 and is the second-largest publicly-traded insurance company in the states. J.D. Power scored Allstate with a 3 out of 5 overall satisfaction rating. Many customers feel unhappy with the high rates, average claims experience, and coverage options. The most attractive aspect of insuring with Allstate is that they offer a wide variety of discounts to customers. Esurance, a subsidiary of Allstate, targets self-directed and brand-sensitive customers.  

Farmers

J.D. Power scored Farmers with a rating of 4 out of 5. Customers are generally satisfied with the claims process, and customer service claims resolution, but are unsatisfied with value for money. They tend to have higher rates than most competitors but offer a variety of insurance coverage options and discounts. Farmers operate across all 50 states.    

Nationwide

Nationwide is a Fortune 100 company that operates across all 50 states. They scored 3 out of 5 on overall customer satisfaction with their overall customer service and claim resolution. Other customers are unhappy with their value for money and wouldn’t recommend the company. Rates are higher than usual with standard coverage options, but they do offer some typical discounts.

Considering Switching Insurance Providers? Follow These Steps

Do you find yourself wanting to switch insurance providers? Here are some guidelines to ensure that you can transfer your coverage without any penalties or insurance gaps.

When is a Good Time to Switch?

You should start shopping for a new insurance provider for at least a month in advance. The best and easiest time to switch insurance is before you need to renew your current policy. If you’re unhappy with your current provider or want to find lower rates, you can choose to switch at any time.

First You Shop Then You Drop

Always ensure that you don’t have a gap between policies. If you have an accident during the gap period, it could be costly. Also, your state might penalize registered cars that don’t have continuous coverage.  

Changes in Circumstances

You might be able to save on insurance if you’re changing vehicles, moving to a new location, or getting married. If any of these apply, you might want to shop around for a new provider or update your policy.  

Weigh Your Options

While some companies charge early cancellation fees, others might offer new customer discounts. Weigh these expenses and discounts to determine if it’s worth switching now.

Make Sure You Cancel Your Old Policy

Typically, you will need to cancel your policy in writing. You need to provide your old company with a new policy number to confirm continuous insurance. Failing to cancel will typically result in automatic renewal and billing. Failing to pay will eventually lead to cancellation, but also put a black mark on your credit history. Your insurance company should always confirm that they received notice of the cancellation.

Check For Possible Refunds

Upon early cancellation, you may receive reimbursement for unused premiums less any fees that may apply.  

Tell Us More

Are you surprised by how many different car insurance policies there are? Do you now have a better idea of how to compare car insurance? Comment below and tell us about your experience.

For most Americans, “Buying” means exploring financing options or secured loans for most major purchases.

In today’s technological world, this can be as easy as filling out an online application, but before you purchase, you should arm with the information you need to make an informed decision before signing on to your next car payment.

Buyers typically have questions like:

How long does it take to get approved for your auto loan?

Which credit scores qualify for the best auto loan rates?

What credit score do you need to apply and qualify for an auto loan?

So to take the guesswork out, we have compiled our best recommendations to help you answer these questions as a savvy consumer.

Check Your Credit

Purchasing a car is a significant investment, and you need to prepare before taking out a loan. It is essential to know your credit score. Your credit score is a three-digit number that predicts the likelihood of repayment of borrowed funds. The minimum credit score required is not fixed but depends on the lender’s policies and preferences. Understanding your credit score will help you gather information about the lender financing your loan. You can access your credit report from the major reporting bureaus free of charge.

If you check your credit and find yourself needing to build a credit score, applying for a secured credit card can help.

There are several websites that you can use to access your free credit report.

The only agency authorized to bring you Equifax, Experian, and TransUnion at no cost is AnnualCreditReport.com

Have a Budget in Mind

As much as you should feed your eyes, it should be within a set boundary. You need to determine your monthly budget for the car to get the one you can afford. Hence, focus on the overall cost of the vehicle and the number of payments and interests you will need to pay. Dealers will always fill the table with sweet deals and suggestions, some of which may be unnecessary. Having a budget will provide an escape from extra car features that are above your budget. Lesson? Don’t allow dealers sweet-talk you into paying a higher purchase price.

If you need help getting a grasp on your finances and making a budget check out YNAB (You Need a Budget).

Research Loan Rates

With your credit stand in mind and a set budget, you can look around for auto loan rates that apply to your needs. You can submit a loan application online to obtain an auto loan preapproval. Applications can also be completed through the phone and can then be delivered in person at a bank or credit union. Finding the best car loan rates also means that you need to ask for a quote to see their requirements and charges as they differ from lender to lender. We will take you through some of the lenders in the course of this article.

Obtain Loan Preapproval

Do not engage in mindless car shopping when you don’t have enough money for a car. Getting a pre-approval loan is possible with most credit unions, banks, and online lenders who will give you a loan preapproval letter to take with you for your shopping. With the preapproved car loan, you can set realistically budget your money to get the best interest rates. Having a pre-approval letter from the lender will also give you an added negotiating advantage with the dealership. Having this letter adds leverage and gives you a stronger bargaining power at the dealership. With the guarantee, you can confidently walk into the store and feed your eyes. However, preapproval does not mean secured loans. You can still reduce the loan amount if you find a more affordable car.

What do lenders look at in your application for a pre-approved loan?

Before you can gain approval for a loan, your full financial profile, including credit history, will be checked. To evaluate credit history, your credit score and will be used. The reports cover unpaid debts, foreclosures, and the number of credit applications, which may affect your interest rate. Your employment history can also be considered to measure the stability of your income. If your employment history is not stable, it may attract a higher interest rate.

Careful examination of your income and expenses is done. The lender will be more willing to give you the loan if your income exceeds your expenses. This will provide evidence that you are able to meet your obligations every month. The down payment on the car purchase is also considered. If the loan amount is small, it is less risky to the lender. When there is a large down payment, the lender will give a reduced interest rate and vice versa. It is important to reserve a portion of your money in savings rather than using all for a down payment.

The length of the car loan is another consideration. Longer loans will reduce monthly payments but increase the interest paid over the life of the loan. With shorter distances, monthly car payments are high with less interest over the loan period. The value of the collateral used can impact on the acceptance of your loan application. There is a lower interest rate when there is a secured guarantee. When an asset is used as collateral, it can be lost if you are not able to repay the loan. Hence, caution should be exercised before putting up assets like a house as collateral.

What Companies Can Help Me With Finding the Best Auto Loan?

It is possible to get great auto loan rates even with bad credit. Some of the best options for all credit types are briefly described below.

Carvana: Online Car Dealer with Financing Options

If you are looking to get financing for quality cars from online dealers, Carvana is an option you should explore. With Carvana, direct financing is only provided for vehicles in its online inventory. Thus, your car purchase can be completed from the comfort of your bed and delivered to you. Those with bad credit can also apply for loan financing as no minimum credit score is required. However, there is a minimum loan requirement of at least $10,000 annual income.

Their auto loan rates have a soft credit pull with free delivery available in some cities. Its maximum loan term is 72hours, and Carvana offers a stress-free 7-day return policy. You can use the Carvana Auto Loan Calculator to determine how much loan you can afford. Applicants have to be at least 18years with a single-buyer offer. The Annual Percentage Rate (APR) is not fixed but depends on the car and financing terms. The services of Carvana are only available in the United States.

LightStream

If you are going to use LightStream, you need to make sure you have an excellent credit profile. Applicants with excellent credit can be funded the very day they make the applications. This is what makes it one of the top choices for applicants that need immediate or fast funding.

However, if you don’t have a credit history or you defaulted in your payment before, this option isn’t for you. Lightstream will ask for at least five years of credit history and offer APR between 3.99% and 8.34%. Lightstream offers borrowers competitive rates and quick car loans from $5,000 to as high as $100,000. However, there are no preapproval options provided.

To qualify, applicants must be at least 18years and must be a US citizen or a permanent resident. More importantly, their existing assets and income must be enough to cover the new loan and any outstanding debt. The interest rate is determined by considering credit standing, loan term, vehicle cost, and method of payment. No restrictions are placed with regards to the make or model of the car into consideration. They offer unsecured and secured loan options.

Capital One: Auto Finance

This lending is provided by Capital One, a national bank for new and used cars. However, it is restricted to some types of vehicles. The bank’s Auto Navigator will ensure that selection is dependent on the vehicle available near your location. For new purchases, loan terms cover 24 to 84months. It is well-known with a vast network of car dealerships.

The loan amount ranges from $4,000 to $40,000, with APR offers as low as 3.59%. Applicants must be at least 18years with a valid street address to qualify. They must have a minimum monthly income of $1,500 to $1,800, which is dependent on their credit score. The average credit score is 550, with a minimum of 500.

Capital One facilities are available in all states except for Alaska and Hawaii. A prequalification offer from Capital One is not an immediate guarantee that the loan will be approved.

MyAutoloan

MyAutoloan acts as a car-buying concierge, matching borrowers with lenders for new and used car purchases. If you do not mind being contacted by many companies from your single submission, then this is for you. It is a platform that allows one shop around for the best rate, even without proper credit. The process may require hard credit pull which may temporarily affect credit.

The loan amount ranges from $8000 to $100,000. You can apply for a loan if you earn a monthly income of $1,800 per month and have a credit score of at least 500. Services are available in all states except Alaska and Hawaii. Applicants are expected to enjoy a fast preapproval process without paying a dime on the application. APR can range between 2.74% to 27% with the minimum granted to those with an excellent credit score. It also provides several tools that can help you decide on the best loan to use.

Consumers Credit Union: Credit Union Auto Financing

Based in Illinois, ConsumersCredit union is a full-service union that offers different financial services. They can lend to applicants with both good and fair credits. This means that the credit union can give to those with as low as 640 credit score. To qualify for this loan, applicants must be members of the credit union. Loan amounts of $250 to $500,000 can be obtained with APR of 2.99% to 21.99%.

The minimum loan rate of 2.99% is offered to those with excellent credit and with loans of 36months and below. It is widely available in all states. The membership fee is $5 plus a $5 per month. They require a hard credit pull to ascertain the creditworthiness of members, which affects your credit score. Loan decisions may be made in as quick as 24hours. Refinancing options are also offered with restrictions on vehicle mileage and age. Members enjoy discounts on loan rates when automatic payment arrangements are made.

LendingTree: Auto Loans

Within a single platform, applicants can be connected to Lending Tree’s trusted partners on the submission of their forms. Through the online platform, applicants are exposed to other options that may not have been considered before. Once necessary details like loan type, down payment, vehicle make, and financial standing is entered, it matches applicants with lenders.

The online application process is quite simple and does not affect your credit. It allows for more comparison of auto loan options to make choices that are within your budget, from your home. Loans are offered for new cars, used cars and refinancing options. Applicants must be 18years and above and a United States citizen with good to excellent credit.

Lending Tree offers additional tools like loan payment calculator, credit score check, and live rates based on the current market situation. Loan rate varies between 2.29% to 3.99% with repayment terms of up to 84 months for new car loans. The ARPs are slightly higher for loans regarding used cars. However, it should be noted that the rates vary from lender to lender. Down payment may be required for some of the loans.

RateGenius: Refinance Auto Loan

RateGenius is the lenders’ choice for those with good-excellent credit scores, as the average credit score accepted is 690. However, the minimum credit score is 550, with a household income minimum of $2000 every month. RateGenius offers auto loan refinance for any vehicle including motorcycles and boats.

Founded in 1999, RateGenius helps you get access to loans from its extensive network of more than 150 partners. However, the process can be quite rigorous as some lenders may demand more paperwork than others. With RateGenius, multiple options can be obtained through a single application. This affords you many options to select from and potentially lower payment.

Their APR is between 3.49% and 25.87%. Loan amounts of $10,000 to $90,000 can be accessed. A full credit check is done on all applications. When a lender is selected, a hard credit pull is performed, which temporarily reduces his or her credit score. This is done to provide a preapproved loan offer. RateGenius is meant for qualified applicants interested in obtaining a new loan and not merely to inquire about auto loan rates. However, the best rate of 3.49% will only be available to those with excellent credit. RateGenius is available in about fifty states.

AutoPay: Financing Option

With Autopay, poor credit doesn’t have to stop you from buying a car you love. While credit score can play a role, some loans are still available for those without proper credits. AutoPay specializes in new and used car loans, lease buyouts, and loan refinancing of up to $100,000. They act as a middle party between lenders and their customers, offering low-interest financing.

There is no minimum income requirement to apply. Eligibility is determined by vehicle cost, market value, and your credit standing. If you are looking for a low monthly payment, AutoPay claims to have some of the lowest rates you can find. They also claim to reduce APR by more than 50% with increased annual savings of over $1000.

APR ranges from 1.99% to 17.99%. The lowest interest rate of 1.99% is reserved for people with excellent credits. The minimum document fees of about $400 to $500 are required if you want to escape the stress of doing paperwork. Using the provided refinance calculator, you can estimate your savings through their refinancing program. If you are tired of exorbitant rates, Autoplay can find affordable loans for you or help you refinance your current one.

Clearlane: Auto Financing

Clearlane requires that applicants must make at least $2,000 every month with a minimum credit history of three years. Their services should only be used for those who are looking to refinance their current car loan. The minimum loan amount is $5,000, with an APR range of about 3.64% – 21.9%. The minimum credit score acceptable is 600. It is an excellent option for those who may find it difficult to obtain loans from the bank. Since Clearlane is not a lender in itself, you may be restricted to only lenders in Clearlane’s network. Credit score, the market value of the car, and the remaining balance of your loan will be considered. Powered and backed by Ally Bank, Clearlane offers gap insurance for events of uncertainty.

Auto Credit Express

If you are discouraged by your poor credit or previous bankruptcy status, Auto Credit Express has got you covered. It is a preferred referral source that helps you find a lender according to your budget for new or used cars. It does this by connecting applicants to lenders and dealers that specialize in bad credit holders.

Your credit history doesn’t have to limit you from accessing a loan to buy your dream car. However, it is not available for applicants making less than $1,500 monthly or without full-time employment. There is no fixed APR as it varies according to the lender. It is open to current residents of the United States or Canada who are above 18years, and it has no origination fee.

Final Words…

No matter what anyone says, paying for something isn’t as fun as using it. Before you buy, we can’t stress enough about having a budget in mind. You don’t want to overbuy. The benefits of getting the best auto loans are numerous. Please take advantage of each lender and do your research to understand their loan terms better. Check your credit regularly and develop good credit behavior to increase your chances of a favorable loan.