There are generally two ways to shop for car insurance: the traditional way or the SmartFinancial way. For comparison’s sake, let’s start by listing out the steps for shopping for car insurance the first way.

Step 1: Determine Your Coverage Needs

Liability insurance is the most commonly required type of car insurance, but depending on your state, you may need additional coverage. For example, California mandates only liability insurance, while Florida requires both liability coverage and personal injury protection (PIP). If you’re financing or leasing your vehicle, lenders typically require collision and comprehensive coverage as well.

Beyond state requirements, it’s often wise to opt for higher coverage limits to protect yourself financially in the event of a costly accident. Fairshot Financial can help you compare policies and find the right coverage for your needs.

Step 2: Gather the Necessary Information

Before reaching out to insurance companies, make sure you have key details ready. Having accurate information will help you get the most precise quotes. You’ll typically need:

• Vehicle details – Year, make, model, or Vehicle Identification Number (VIN)

• Mileage – Current odometer reading

• Insurance history – Details of prior coverage

• Driver’s license number

• Driving record – Any tickets, accidents, or license suspensions

• Financing or leasing details – If applicable

• Personal information – Home address, phone number, and email

Step 3: Compare Insurance Providers

Once you have your details ready, it’s time to reach out for quotes. Many insurance providers offer instant online quotes, while others may require speaking with an agent. Be prepared to provide the information from Step 2 to receive the most accurate estimate.

While cost is a major factor, don’t base your decision solely on price. Research each provider’s customer service reputation and claims process to ensure you’re choosing a company that’s reliable when you need them most.

After selecting the best option for your needs, simply set your coverage start date and pay your premium to activate your policy.

Fairshot Financial can help you compare policies and find the right fit for your budget and coverage needs.

The SmartFinancial Way To Compare Auto Insurance

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.

Here’s 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.

We’ll 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: It’s 100% free and only takes a few minutes.

We’ll sort through over 200 insurance companies large and small (so you don’t have to) and find the best rates available in your area.

Factors That Affect How Much You Pay for Car Insurance

Every insurance company has its own formula for calculating premiums, but common factors include your age, location, deductible, driving history, and more.

Car Insurance Rates by Age

Age is one of the biggest factors in determining car insurance costs. Teen drivers often pay significantly higher premiums—sometimes more than double compared to drivers in their 30s. However, as you gain experience and maintain a clean driving record, your rates typically decrease over time.

Fairshot Financial can help you compare rates and find the best coverage for your age and driving profile.

Car Insurance Rates by Age

Car insurance premiums vary significantly based on age. Younger drivers, especially teens, tend to pay the highest rates, while experienced drivers in their 30s, 40s, and 50s enjoy lower premiums. However, rates may increase slightly for older drivers.

Average Monthly Car Insurance Premiums by Age Group

​Car insurance premiums vary significantly across the United States due to factors such as local repair costs, vehicle prices, crime rates, and state-specific insurance regulations. These variables can cause annual insurance costs to differ by thousands of dollars between states.​

Below is a comparison of the 10 states with the cheapest and 10 states with the most expensive average annual car insurance premiums:​

In some states, car insurance can cost over $2,748 on average.

Other Factors That Affect Your Car Insurance Rate

Beyond location and age, insurance companies consider several other factors when determining your car insurance premium. These include:

• Credit Score: Drivers with higher credit scores generally pay lower premiums, while those with poor credit may face higher rates.

• Deductible Amount: Choosing a higher deductible can reduce your monthly premium, though it means paying more out of pocket in the event of a claim.

• Driving History: A clean driving record with no accidents or violations typically results in the lowest insurance costs.

• Vehicle Type: Insuring luxury or sports cars is often more expensive due to higher repair and replacement costs.

• Discounts & Savings: Many insurers offer discounts for safe driving, good student grades, bundling home and auto insurance, and more.

By understanding these factors, you can take steps to lower your insurance costs. Fairshot Financial can help you compare policies and find the best rates available.