Comparing Auto Insurance Quotes Side by Side

Key takeaways

• Quotes are only comparable when the coverages, limits, deductibles and drivers match.
• Give every insurer the same accurate information, and gather quotes within a short window.
• Put six-month and twelve-month prices on the same footing, and include fees in the total.
• Look beyond price, and never cancel an old policy until the new one is active.

Why equal terms matter

A lower price is only a better deal if you are buying the same thing. One quote might carry state-minimum liability limits and a $2,000 deductible; another might include much higher limits, a $500 deductible and rental coverage. Compared on price alone, the first looks cheaper, but it is really a different and thinner policy. The point of comparing is to make the coverage identical, so that the difference in price means something.

Start with a baseline

If you already have a policy, your declarations page is the best starting point. It lists your drivers, vehicles, each coverage, its limits and its deductibles. Treat it as the specification you give every insurer.

If you don't have a current policy, or want to change what you carry, decide on your target first: liability limits, uninsured and underinsured motorist limits, collision and comprehensive deductibles, and any extras such as rental reimbursement. Our guides to coverage types and deductibles can help you choose.

Give every insurer the same facts

Quotes are only as accurate as the information behind them. Use the same details every time:

• Every licensed driver in the household, with dates of birth and license numbers
• Each vehicle's VIN, and where it is parked overnight
• A consistent estimate of annual mileage and how each car is used
• All accidents, claims and violations in recent years, listed honestly

Leaving something out may produce a lower number today, but insurers generally verify driving records and claims history before issuing a policy, and the price is corrected then. Try to gather your quotes within a week or two, too. Rates change, and quotes collected months apart may not be comparable.

Where quotes come from

You can request quotes directly from insurers online or by phone, through a captive agent who represents a single company, or through an independent agent or broker who can quote several companies. Each route has its uses. Whichever you choose, your state insurance department can confirm that the insurer and the agent are licensed in your state.

Build a simple comparison sheet

A spreadsheet or a sheet of paper works fine. List the items below down the left side, give each quote its own column, and fill in what each one offers. Here is what to line up and where to find it:

Put the term and payment plan on the same footing

Many insurers write six-month policies; others write twelve-month policies. To compare them, convert both to the same period, for example by doubling a six-month premium, while remembering that a six-month price can change at the next renewal. Also check whether the quoted price assumes paying in full, and what installment or service fees apply if you pay monthly.

Watch for the quiet differences

Once the headline coverages match, look at the details that don't always appear on the first page:

• Rental reimbursement caps, both per day and per claim
• Parts and repair terms, such as whether the policy calls for original-manufacturer or aftermarket parts
• Driver exclusions, where a named household member is not covered at all
• Use restrictions, such as whether driving for a delivery or rideshare service is covered
• Glass coverage, and how its deductible works

Look at the company, not just the price

Price is one part of the decision. You are also choosing who you will deal with after a crash. Reasonable things to weigh include:

• How claims are reported and handled, and whether the phone, online and in-person options suit you
• Financial strength ratings from independent rating agencies, which assess an insurer's ability to pay claims
• Whether the company is licensed in your state, and any complaint information your state insurance department makes available
• How clearly the insurer or agent answers your questions before you buy

Before you switch

1. Confirm the new policy is active before canceling the old one, so there is never a day without coverage.
2. Get proof of insurance for each vehicle, and keep it in the car or on your phone where your state allows digital cards.
3. Cancel the old policy in writing, and ask whether any unused premium will be refunded and whether a cancellation fee applies.
4. Tell your lender or leasing company about the new insurer if your car is financed or leased.

Helpful official resources

Independent public resources for going further. AutoQB is not affiliated with any of these organizations.

• National Association of Insurance Commissioners (NAIC)The organization of the chief insurance regulators of the 50 states, the District of Columbia and the U.S. territories.
• Federal Trade Commission: Consumer AdviceConsumer education from the FTC, the nation's consumer protection agency.
• USA.govThe official web portal of the U.S. government.

This guide is general educational information about how car insurance commonly works in the United States. Coverage terms, rules and requirements vary by state and by insurer, so your policy documents, your insurer or agent, and your state insurance department are the authorities for your situation.