How To Find The Best Car Insurance Rates

low rates, best coverage, collision repair and more

Some companies spend a lot of money on commercials to convince you they offer the lowest car insurance rates. But no single insurer is the low-price leader for everyone. The car insurance company that’s cheapest for one person in one place might be the most expensive option for a driver in a different state.

The only way to ensure you’re getting the lowest rate possible is to compare car insurance rates.

An  analysis of rates shows why shopping around is so important. Here are some of the rates we found for a 40-year-old driver buying a full coverage policy on a 2018 Toyota Camry LE. Our hypothetical driver has good credit and a clean driving record, earning a "good driving" discount from most car insurance companies.

  • In Florida, State Farm would charge $1,766 a year, on average — the cheapest rate in the state for a driver without a military connection. Geico’s average rate is $239 higher.

  • In California, it’s the opposite: Geico is cheapest, with an average rate of $1,458, and State Farm’s average is $423 higher.

  • Progressive is the cheapest option for New York drivers at $1,298 a year on average, but in Florida, it's the most expensive at $3,015.

Just four companies — Allstate, Geico, Progressive and State Farm — control more than half of the nation’s auto insurance business. But smaller, regional insurers such as Auto-Owners Insurance and Erie Insurance often have higher customer satisfaction than the big names — and they may have lower car insurance rates, too.

Insurers typically provide car insurance discounts. While they will vary by insurance company and which state you live in, you can usually get a discount if you:

  • Bundle car insurance with other policies, such as homeowners insurance.

  • Insure multiple cars with one policy.

  • Have a clean driving record.

  • Pay your entire annual or six-month premium at once.

  • Agree to receive documents online.

  • Own a car with certain anti-theft or safety features.

  • Are a member of particular professional organizations or affiliate groups.

Don’t be swayed, however, by a long list of possible discounts. Compare rates from multiple insurers.

Your insurance credit score is a significant factor in the car insurance quotes you receive except for a few states. California, Hawaii, Massachusetts and Michigan don’t allow insurers to use credit when determining car insurance rates. Insurance companies say customers’ credit has been shown to correlate with their chances of filing claims.

A analysis found that having poor credit can increase people’s car insurance rates by hundreds of dollars a year compared with having good credit. (In most situations, a FICO score of 579 or lower is considered “poor” credit, but insurers have their own credit models that may have a different cutoff.)

Build your credit history — and get lower insurance rates — by paying your credit card bills and loan payments on time and reducing your debt. Track your progress by checking your credit score regularly.

Collision coverage pays to repair the damage to your vehicle from another car or an object such as a fence. Comprehensive coverage pays to repair vehicle damage from weather, animal crashes, floods, fire and vandalism. It also covers car theft. But the maximum payout under either policy is limited by the value of the car if it’s totaled or stolen. If your car is older and has a low market value, it may not make sense to shell out for these types of coverage.

If you buy comprehensive and collision coverage, you can save money by opting for higher deductibles. (There is no deductible on liability insurance, which pays for the damage you cause others in an accident.) But this should only be an option if you know you can afford the higher amount if you ever need to file a claim.

If you’re a safe driver who doesn’t log many miles, consider a usage-based insurance program such as Allstate’s Drivewise, Progressive’s Snapshot or State Farm’s Drive Safe & Save. You might qualify for a discount based on driving habits like how much you drive, what time of day you drive and how well you drive.

If you truly don't drive much at all, you could save money by switching to a pay-per-mile insurance program such as Metromile, Allstate’s Milewise or Nationwide’s SmartMiles.

Be aware that opting into a usage-based or pay-per-mile insurance program means you're allowing your insurance company to track your driving behavior. This is typically done through either a device that plugs into your car's diagnostic port or an app you download onto your smartphone.

You probably already pay attention to factors such as fuel efficiency and repair costs when picking a car to buy, but you should also consider insurance premiums. A  analysis of the cheapest cars to insure among top-selling vehicles found the lowest insurance rates are for the Subaru Outback, the Jeep Wrangler and the Honda CR-V.