SmartFinancial partners with Americaâs best Insurance companies
 Written by Dan Marticio Dan MarticioDan Marticio is an insurance specialist for SmartFinancial. His past experience writing in small business and personal f... Read more |  Edited by Fran MajidiFran MajidiFran Majidi manages content on SmartFinancial's website. She's had nearly a decade's worth of experience writing about i... Read more |
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Car insurance rates change every day and you could be leaving money on the table if youâre not comparison shopping. With car prices and repair expenses shifting, so does the cost of auto insurance. Insurers use these market changes plus other factors, like your age and driving history, when underwriting policies â that's why a different carrier may charge less for the same coverage.
There are generally two ways to shop for car insurance: the traditional way or the SmartFinancial way. For comparisonâs sake, letâs start by listing out the steps for shopping for car insurance the first way.
Liability insurance is the most commonly required type of car insurance but you may need additional coverage depending on your state. For example, California requires only liability coverage but in Florida, youâll also need to buy personal injury protection. If youâre financing or leasing your vehicle, youâll also need to buy collision and comprehensive insurance.
In addition, you may want to buy coverage limits higher than what your state requires. This will provide added coverage if you get into a high-cost car accident.
Before you start contacting insurance companies, youâll need to have some information handy. In general, youâll want to have the following details to get the most accurate quote:
Next, youâll need to contact each insurance company youâre considering for a quote. Many companies allow you to generate online quotes through their website, while others will require you to speak with a live agent. Either way, youâll often need to supply the information listed in the last step to get your quote.
While pricing is important, it shouldnât always be the deciding factor. You should also research each insurance company based on their customer service and financial strength.
Otherwise, you may wind up with an insurance company that charges low rates but has an awful claims process.
After deciding on a company, you just need to choose your coverage start date and pay your premium to start your policy.
Shopping around can be a tedious chore. Imagine calling each company one-by-one and repeating your information each time. Doing the legwork yourself might waste hours (possibly days) of work.
Hereâs a better way to save you time, money and effort: Complete one convenient form to compare big carriers alongside smaller local ones for free by shopping with SmartFinancial.
Weâll ask you some questions about yourself, driving history and the insurance coverage you want.
Review the offers and choose the policy that best fits your coverage needs and budget. The best part: Itâs 100% free and only takes a few minutes.
Weâll sort through over 200 insurance companies large and small (so you donât have to) and find the best rates available in your area.
Auto Insurance is required by law in all 50 states. Learn more about how it works and if minimum coverage is right for you.
Auto Insurance is a contract between the insured and an insurance company. If the insured suffers a covered loss, the insurance company will help pay for expenses. A policy lists all coverages and limits as well as a deductible amount if you have collision and/or comprehensive coverage.
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Car insurance premiums are the amount you pay your insurance company to receive auto insurance coverage. In order to keep your policy from lapsing, you must pay your monthly, bi-monthly or annual premium.
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An insurance deductible is the amount you must pay before your insurance plan covers the difference. A $500 car insurance deductible leaves you responsible to pay $500 out-of-pocket before your insurance picks up the remaining balance for repairs and other losses.
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A car insurance claim is a formal request for payment to the car insurance company to help pay for damages, loss or liability from a covered incident.
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Also called a rider, an endorsement can add coverage, exclude coverage or modify an insurance policy in some other way. Some common types of endorsements include gap coverage, mechanical breakdown coverage and accident forgiveness.
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Auto liability insurance is required in most states so that your insurance policy can help cover losses if you cause damage or injury to another driver, their passengers and/or their property or if you injure pedestrians. There are two components to liability coverage: bodily injury liability and property damage liability.
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Collision insurance can pay to repair or replace your car after a collision-related car accident, even if you are the at-fault driver. Collision coverage is optional and is typically bought along with comprehensive coverage for individuals who require full coverage auto insurance. It is required when financing or leasing a car.
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Comprehensive insurance covers damages to your car that result from non-collision related losses like car theft, vandalism, falling objects and storm damage. It is required when financing or leasing a car but is otherwise optional.
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Insurers, agents, and lenders use the term "full coverage" to describe auto insurance that covers you for damages even if an accident is your fault and if something outside of your control, like a hail storm, causes damage to your car. Full coverage means that you carry collision and comprehensive coverages along with state required coverage.
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The declarations page is the front page of a policy that specifies the name of the insured person, their residence, the policy period and coverages. It also lists deductibles, limits, your user ID and other key data. Insurers informally refer to this document as the dec page.
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A named insured is someone, like a spouse or child, who is listed on a car insurance policy. People who often use the insured vehicle should be listed on the policy to ensure coverage.
Learn MoreEach insurance company has its own methodology for calculating insurance rates but factors commonly considered include age, location, your deductible and more.
Teenage drivers sometimes pay more than double for car insurance compared to someone in their 30s. As you get older and gain more driving experience, you can generally expect your car insurance rates to decrease.
| Age Group | Monthly Premium for Insured | Monthly Premium for Uninsured |
|---|---|---|
| Teenage | $307.50 | $334.70 |
| 20s | $210.88 | $227.21 |
| 30s | $160.29 | $157.54 |
| 40s | $150.71 | $142.94 |
| 50s | $135.36 | $126.23 |
| 60s | $129.78 | $120.00 |
| 70+ | $145.35 | $142.54 |
Location matters when it comes to car insurance because local repair costs, car prices and crime rates all affect how much insurance companies charge. In fact, the difference in cost of insurance between two states can range from a couple hundred dollars to thousands of dollars. Take a look at how the states with the cheapest car insurance rates compare to the states with the most expensive.
| Rank | State | Avg monthly rate | 12 month premium |
|---|---|---|---|
| 1 | Idaho | $82.40 / month | $988.80 / year |
| 2 | Maine | $100.51 / month | $1,206.12 / year |
| 3 | Vermont | $102.70 / month | $1,232.40 / year |
| 4 | Indiana | $105.37 / month | $1,264.44 / year |
| 5 | Ohio | $105.52 / month | $1,266.24 / year |
| 6 | Washington | $107.77 / month | $1,293.24 / year |
| 7 | North Dakota | $108.68 / month | $1,304.16 / year |
| 8 | Iowa | $110.72 / month | $1,328.64 / year |
| 9 | Arkansas | $118.30 / month | $1,419.60 / year |
| 10 | Illinois | $118.99 / month | $1,427.88 / year |
In some states, car insurance can cost over $2,743 on average.
| Rank | State | Avg monthly rate | 12 month premium |
|---|---|---|---|
| 1 | Texas | $180.84 / month | $2,170.08 / year |
| 2 | Wyoming | $189.17 / month | $2,270.04 / year |
| 3 | Georgia | $190.49 / month | $2,285.88 / year |
| 4 | New Jersey | $195.69 / month | $2,348.28 / year |
| 5 | District of Columbia | $211.52 / month | $2,538.24 / year |
| 6 | Connecticut | $222.65 / month | $2,671.80 / year |
| 7 | New York | $231.59 / month | $2,779.08 / year |
| 8 | Nevada | $259.94 / month | $3,119.28 / year |
| 9 | Louisiana | $273.87 / month | $3,286.44 / year |
| 10 | Florida | $329.92 / month | $3,959.04 / year |
In addition to location and age, insurance companies often consider the below factors when calculating your car insurance quote.
Liability insurance is mandatory in most states, with some states also requiring personal injury protection and uninsured motorist coverage. You can also buy collision and comprehensive coverage, which both insure your car against physical damages, including striking another car, fire, theft, hail and more.
If you want the cheapest insurance possible, youâll want to adjust your policy so that it meets only your stateâs minimum insurance requirements. However, this will decrease how much coverage you have in a car accident and youâll have to pay out of pocket for your own vehicleâs repair costs.
The best way to buy car insurance is to compare rates. Not only do car insurance rates change daily, but you will get different pricing from each insurer.
Weâve compared over 400 car insurance companies side by side. Check out our reviews, discounts, and average rates from the top rated auto carriers.
How much is car insurance for your vehicle? Your make and model are one of the biggest factors in determining the price you pay. Check out the average rates for the biggest car brands
With hundreds of companies and coverage options it can be a bit overwhelming. We wanted to make things easier so we researched and reviewed some of the top companies around.
We compiled our insurance data from thousands of insurance quotes across the country. Here is the average cost of coverage in each state.
Are you paying too much for car insurance? Check out the average rates that drivers in your age group are paying.
Answer a few questions and let Penny find the best rates in your area.
