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: Decide How Much Coverage You Need

Liability insurance is the most commonly required type of car insurance, but depending on where you live, you may need additional coverage. For example:

• In California, only liability coverage is mandatory.

• In Florida, you’ll also need personal injury protection (PIP) in addition to liability coverage.

If you’re financing or leasing your vehicle, your lender will typically require collision and comprehensive coverage as well.

Furthermore, while each state has minimum coverage requirements, you might want to consider purchasing higher coverage limits. This will provide extra protection in the event of a high-cost car accident, ensuring you are financially covered beyond state-required limits.

Fairshot Financial can help you determine the right coverage for your needs and budget, ensuring you’re fully protected on the road.

Step 2: Make Sure You Have the Right Information and Documentation

Before reaching out to insurance companies for quotes, it’s essential to have some key details ready. Here’s the information you’ll typically need to get an accurate quote:

• Vehicle Year, Make, and Model or Vehicle Identification Number (VIN)

• Vehicle Mileage – Current mileage on your car

• Prior Insurance History – Details about any previous coverage

• Driver’s License Number

• Ticket and Accident History – Any past traffic violations or accidents

• License Suspension Information – If applicable

• Financing or Leasing Information – If you are financing or leasing the vehicle

• Home Address

• Phone Number and Email Address

Step 3: Research and Contact Insurance Companies

Once you have all the necessary information, it’s time to get quotes. You can contact each insurance company you’re considering directly, either by using their online quote tool or speaking with a live agent. For the most accurate quote, you’ll need to provide the details listed in Step 2.

While price is a key factor, it’s also important to consider other aspects, such as customer service and the financial stability of the insurance company. A low premium can be enticing, but if the company has a poor claims process, it could cost you more in the long run.

Once you’ve selected the insurance company that meets your needs, simply choose your coverage start date and pay your premium to activate your policy.

Fairshot Financial can help you compare companies and find the best deal for your coverage and budget.

The Fairshot Financial Way To Compare Auto Insurance

Shopping for auto insurance can feel like a time-consuming chore. Imagine calling each company individually, entering your information over and over again—it can quickly become overwhelming and waste hours, if not days.

But there’s a better way to save time, money, and effort:

Complete one simple form to compare both large national carriers and smaller local ones—all for free with Fairshot Financial. This streamlined process saves you the hassle of repetitive work, helping you find the best coverage at the most competitive rates.

Fairshot Financial makes comparing auto insurance easy and efficient, so you can focus on what’s important—driving safely and confidently.

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

Each insurance company has its own methodology for calculating car insurance rates, but common factors include age, location, deductible, and more. One of the most significant factors affecting car insurance rates is age.

Teenage Drivers

Teen drivers typically pay much higher premiums compared to more experienced drivers. This is because they are considered higher-risk due to their lack of experience behind the wheel. In fact, teenage drivers can sometimes pay more than double the amount for car insurance compared to someone in their 30s.

Age and Experience

As you get older and accumulate more years of safe driving experience, your car insurance rates tend to decrease. Insurance companies often reward drivers who demonstrate consistent, safe driving behavior with lower premiums.

Car Insurance Rates by Age Group

Here’s a breakdown of monthly car insurance premiums by age group, comparing the premiums for those with insurance coverage versus those who are uninsured.

Observations:

• Teenagers and young drivers (in their 20s) typically face higher premiums, often due to a higher risk profile.

• Middle-aged drivers (30s-50s) benefit from the lowest rates due to their established driving experience and safety record.

• Older drivers (60s and 70+) may see a slight increase in premiums compared to younger groups, though still lower than teenage rates.

Car Insurance Rates by State

Your location plays a significant role in determining car insurance premiums. Factors such as local repair costs, car prices, and crime rates all affect how much insurance companies charge. In fact, the difference in car insurance costs between two states can range from a couple of hundred dollars to thousands of dollars.

Here’s a comparison of states with the cheapest and most expensive car insurance rates:

Key Insights:

• States like Michigan often have the highest rates due to state laws requiring more extensive coverage or higher-risk factors such as weather conditions and population density.

• On the other hand, states like California and Georgia typically have lower premiums, thanks to more competitive markets and fewer accident-prone areas.

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

Other Factors That Affect Your Car Insurance Rate

In addition to location and age, there are several other factors that insurance companies consider when calculating your car insurance quote. These factors can have a significant impact on the cost of your premium:

• Credit Score: Drivers with higher credit scores generally pay less for car insurance, while those with low credit scores may face higher rates. This is because insurance companies often view good credit as an indicator of responsibility.

• Deductible: Opting for a higher deductible on your car insurance will typically lower your monthly premium. However, this means you’ll pay more out of pocket in the event of a claim.

• Driving Record: Drivers with a clean driving record—meaning no accidents, violations, or claims—usually enjoy the cheapest rates. Safe drivers are seen as lower-risk by insurance providers.

• Vehicle Type: Insurance companies usually charge more to insure expensive luxury and sports vehicles. These cars are often more costly to repair or replace, leading to higher premiums.

• Discounts: Many insurance companies offer discounts that can help lower your premium. These may include:

  • Good driver discount for safe driving.

  • Good student discount for those earning good grades.

  • Multi-policy discount if you bundle home and auto insurance with the same provider.

These factors can significantly influence your car insurance rates, and understanding them can help you save money when comparing quotes.