5 ways to compare car insurance companies

Comparing car insurance companies is easy, once you know what to look for.

While many people start with the lowest price on car insurance, it's also important to look at company reputation to be sure you'll get the help you need when you need it. So comparing car insurance companies on things like customer satisfaction is just as important as comparing car insurance quotes.

There are many ways to compare car insurance companies and rates, and by taking some time to do that you can save hundreds of dollars and find a company that meets your needs.

Below, we'll outline five different ways to compare car insurance companies to help you get the best car insurance.

1. Compare car insurance company rates online

You can compare car insurance rates quickly right now with just a few steps. Our online quote comparison tool let's you see side-by-side car insurance rates:

• By completing one form, you will remove the hassle of filling out multiple forms from various carriers.
• You will get online car insurance quotes directly from top carriers in our network.
• You will see multiple quotes from major insurance companies all on one page that will allow you to compare rates and make an educated choice.

Comparing online with a quoting tool is easier and less time-consuming than requesting individual quotes from each company, and allows you to ensure an apples-to-apples comparison by entering the coverage you need only once.

2. Compare car insurance companies by reputation

Not sure how to compare insurance companies by reputation? "Most states have a buyer's guide for auto insurance that lists the companies that sell insurance in your state," says J. Robert Hunter, former director of insurance for the Consumer Federation of America in Washington, D.C.

For an overall rating of company performance, including complaint ratios (state department of insurance websites and NAIC have reports) and financial ratings (A.M. Best). Insure.com's "Best insurance companies" will give you a great summary of top companies.

Hunter says state complaint ratios are more important than financial ratings for car insurance. Every state has an insurance guaranty fund that will pay some claims if the insurance company goes bust. It's still prudent, though, to check up on the insurer's financial health.

"However, if you're only shopping every few years, then you should look at the A.M. Best ratings just to make sure the insurance company is financially solvent and can pay you if you need to make a claim," he says.

"The two most important things to look at when choosing an auto insurance company are the price and the claims service," says Hunter. "Choose the company that has both a low level of customer complaints and low prices."

Hunter suggests choosing five to seven companies and checking their complaint records on the National Association of Insurance Commissioners (NAIC) website or on your state’s insurance department website. "You can quickly knock out the companies with the highest number of complaints, because you never want to work with an insurance company that doesn't offer good customer service," says Hunter.

Hunter also recommends checking the most recent Consumer Reports survey of car insurance providers.

3. Compare car insurance companies by coverage

The best way to save on your car insurance is to buy only what you need, says Hunter. However, some companies will include extra coverage at no extra cost, so it's important to see what's included in each quote you receive. Start by ensuring you request quotes at the coverage level you need for each of the basics:

• Liability. Liability insurance covers damage to vehicles and injuries of others if you caused an accident. Nearly every state requires drivers to carry a specific amount of liability coverage. It consists of two different types of coverage — bodily injury liability coverage and property damage liability coverage. 
• Uninsured/underinsured motorist. Uninsured Motorist Coverage is required by law in some states and covers damages done to yu by a driver who is either uninsured or doesn't have enough coverage.
• Comprehensive insurance & collision. Comprehensive (other than collision) and collision coverage both pay for damage to your car. Comprehensive covers anything that isn't an accident, like theft, while collision covers damage from a crash.
• Personal injury protection/medical payments coverage. Some states require one or both of these coverages. Personal injury protection (PIP) pays for your injuries in an accident regardless of fault, and is required in no-fault insurance states.

You may need additional coverage, like rental reimbursement or roadside assistance. When comparing companies, take a look at which options they offer and the cost of each.

"Don't take any optional insurance coverage unless you really think you need it," says Hunter.

4. Compare car insurance companies by state

Rates from each company vary by state, making one company cheapest in one state and more expensive in another. Below you'll see how major car insurance companies compare in your state for price for full coverage ($100,000 per person in liability, up to $300,000 per accident, with $100,000 in property damage liability; comprehensive and collision carrying a $500 deductible). Enter your state in the search field and compare insurance rates to see major insurers ranked cheapest to most expensive.

*Rates were fielded in 2022 by Quadrant Information Services from up to six major insurers in nearly every ZIP code of each state. Driver profile: male, age 40, married, clean record and good credit, driving a 2021 Honda Accord.

5. Compare companies by car insurance discounts

Before you begin comparing car insurance quotes, make sure you know about your potential car insurance discounts for things like bundling home and auto insurance with the same company, good grades, a good driving record, anti-theft devices and anti-lock brakes. Ask each insurance company for any other possible discounts so that you are comparing the lowest possible rates.

Here are some common car insurance discounts to look for.

• Safe driver. You can get up to 27% off if you are a safe driver. If you have no at-fault accidents or moving violations during the last three to five years, you can save.

• Bundling (multi-policy). Bundling auto and home will often get you up to 25% off. Even if you don't own a house then it's still possible with other types of coverage like renters, motorcycle or boat.

• Multiple vehicle (multi-car). If you insure two or more vehicles from the same insurance company you can get multiple vehicle discounts and save up to 25%.

• New car.  You can get a new car discount and save between 10% and 15% for a newer car, usually less than three years old.

• Defensive driving course. If you're a qualified driver of age 50 or older, some insurance companies will offer discounts for defensive driving courses. These may range between 5% and 10%.

• Anti-theft device. If you have a car with anti-theft features, there are discounts available between 5% and 25%. You can get a discount for both the after-market installed features and factory-installed anti-theft features.

• Usage-based programs. Usage-based insurance discounts are earned by allowing the company to monitor your driving habits. You may get a discount just for signing up.

As you shop, list which discounts that apply to you are offered by each company.

Related article:How to compare car insurance quotes - gives additional details and tips when you're shopping for car insurance.