How to Shop for Car Insurance: A Plain Guide to Comparing Quotes

This is the starting page for our car insurance section. It covers the basics in order, and links to the deeper pages where a question needs more room.

A note on where the rules come from

Car insurance is regulated by each state, not by one national rule. To keep this page concrete, it quotes the Texas Department of Insurance's consumer guide, which is unusually clear. The ideas apply everywhere; the specific numbers, like minimum coverage, are Texas's. Your state's insurance department publishes its own.

Step 1: Have your current policy in front of you

The most useful document is the declarations page. Texas describes it as "the first page of your policy," with "a summary of your policy, including your coverages, dollar limits, and deductibles." [1]

Also useful: each driver's license details, each car's details, and roughly how many miles each car is driven and for what (commuting, business, or personal use), because insurers price on "how you use your car." [1]

Step 2: Know what each coverage pays for

From Texas's guide: [1]

Listed in the order Texas's guide presents them.

Minimums are a floor, not a recommendation. Texas requires "at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage." [1] The same guide cautions that "the minimum liability limits might be too low if you cause a multi-vehicle accident or the other driver's car is totaled," and that if coverage runs out, "you might have to pay the rest out of your own pocket." [1]

A loan changes the requirement. "If you still owe money on your car, your lender will require you to have collision and comprehensive coverage." [1]

Step 3: Understand deductibles, because they move the price

A deductible is "the amount of a claim that you must pay yourself." Texas's example: "If you have a $1,500 collision claim and your policy has a $500 collision deductible, the insurance company will deduct $500 from your claim amount and pay you $1,000." [1]

The deductible you choose changes both the premium and what you pay after a claim. When comparing quotes, the deductible has to match, or the cheaper quote may just mean more out of pocket later.

Step 4: Choose how to get quotes

There are three common routes. Each has a tradeoff.

Listed from fewest to most companies receiving your details.

A federal appeals court described how many comparison sites work: consumers "consent to be contacted by the website's partners and affiliates," and the site "sells the 'leads' ... to the matched affiliates so that the affiliates can robocall or robotext the consumers." [3] Federal rules require the consent form to say signing is not "a condition of purchasing." [4] Our full explanation, including how to stop calls: quotes without phone calls.

Step 5: Compare like for like

For each quote, check:

• Same liability limits (per person, per accident, and property damage).
• Same deductibles for collision and comprehensive.
• Same drivers and cars listed. Texas notes some companies require "everyone who lives with you and is of driving age" on the policy, and may deny claims or decline to renew if a driver was left off. [1]
• Same optional coverages (rental, towing, uninsured motorist).
• The full-term price, not only the monthly figure, and any installment or payment fees.
• Discounts applied, and what you have to do to keep them. Each company "decides what discounts to offer and the amount of the discount." [1]

Step 6: Credit and your quote

Getting quotes does not lower your credit score. Experian says insurers use a soft credit pull, "a type of inquiry that doesn't affect your credit scores." [2] Credit can still affect the price itself, through a credit-based insurance score, in most states. The National Association of Insurance Commissioners says these scores "estimate how likely someone is to file an insurance claim." [5] More: does a quote affect your credit.

When it makes sense to compare

These are the moments when a price is most likely to have moved, or when your current policy may no longer fit:

• Before renewal. Renewal is when the price for the next term is set.
• After a move. "Rates can also vary between ZIP codes in the same city." [1]
• After buying or selling a car. Collision and comprehensive rates depend on "the kind of car you have." [1]
• When a driver joins or leaves the household. [1]
• After a price increase. See why did my rate go up.

Switching does not have to wait for renewal. See switching mid-policy.

How this site makes money on insurance

Kres Financial earns a commission when readers sign up with certain companies through links on our pages. This page has no paid links. If an insurance partner is added to a page later, the page will say so directly under the headline, and the link will be labeled. We do not collect phone numbers or run a quote form. Details: how we make money.

Who this fits

• Anyone comparing car insurance for the first time, or the first time in a while.
• Anyone who just got a renewal notice and wants to check the price.

Who should skip this

• Anyone without coverage right now. If a policy already lapsed, getting any legal policy in place first matters more than comparing. Texas warns against "a lapse in your liability coverage." [1]
• Anyone happy with their price whose situation has not changed. Shopping is optional; the main cost is time.

Related reading

• Does a quote affect your credit?
• Car insurance quotes without phone calls
• Can you switch car insurance in the middle of a policy?
• Why did my car insurance go up?