How to compare car insurance quotes properly

A lower number only means something if it buys the same protection. Comparing insurers well is mostly about making sure each price describes the same driver, the same car and the same coverage, then looking at what the price leaves out.

Know what you are comparing

A quote is an insurer's offer based on the details you provide, and it can change once those details are verified. An estimate is something else. The figures from our estimate calculator and state averages are useful for setting expectations, but they are not quotes, and only an insurer can give you a binding price.

Gather your details first

Have these ready so that every insurer gets the same information:

• Your current policy's declarations page, which lists your coverages and limits
• Driver's license details and dates of birth for all regular drivers
• Vehicle identification numbers, annual mileage and how each car is used
• Dates and details of recent accidents, claims and tickets

Be accurate. Insurers commonly check driving and claims records, and an optimistic answer may only produce a low number that later changes.

Match the coverage line by line

This is where most comparisons go wrong. For each offer, line up the following:

• Liability limits for bodily injury and property damage
• Collision and comprehensive deductibles
• Uninsured and underinsured motorist coverage
• Medical payments or personal injury protection, where relevant
• Extras such as rental reimbursement and roadside assistance
• The policy term, since many policies run for six months and others for twelve

A six-month price can look far lower than a twelve-month price until you convert both to the same period. If you are unsure about the coverage level to request, see full coverage vs liability only.

Check several kinds of sellers

Some insurers sell directly, some through their own agents and others through independent agents who represent several companies. Checking more than one channel can widen your options. Your state insurance department can usually confirm whether a company or agent is licensed where you live.

Be aware that some comparison websites, including sites that earn referral fees, pass your details on to several companies, which may then contact you. Read the privacy notice before you enter personal information.

Look beyond the price

• Complaint records. Many state insurance departments publish complaint data, and the National Association of Insurance Commissioners offers consumer lookup tools.
• Financial strength. Independent rating agencies assess insurers' ability to pay claims.
• Claims handling. Ask how claims are filed and whether you can choose your own repair shop.
• Total cost. Ask about installment fees and which discounts are already included.

Compare within a short window

Prices and available discounts can change, and a quote may expire. Try to collect your offers within a few days, and note the date on each one. If an insurer will check your credit where this is allowed, ask what kind of check it is and how it may affect your report.

Switch without a gap

Do not cancel your old policy until the new one is active, and overlap by a day if needed. A lapse could leave you uninsured and may affect future pricing. Ask your current insurer about any refund or cancellation fee, keep proof of the new coverage in your car and tell your lender if you have a loan or lease.

Keep learning

If every offer seems high, read what affects car insurance rates to find out why, and how to lower your premium for ways to bring the price down.