back to articles | May 23, 2023 | Moses Mwangi

Categories: Vehicle & Buying Research

How to Find the Best Insurance Deals for Your Car

Getting auto insurance is important and a legal requirement for drivers in many countries. Auto insurance shields you from financial losses when driving. However, to enjoy the benefits of car insurance, you have to ensure you get the best deal.


Getting auto insurance is important and a legal requirement for drivers in many countries. Auto insurance shields you from financial losses when driving. However, to enjoy the benefits of car insurance, you have to ensure you get the best deal.

On average, car insurance will account for $622-$2015 annually, depending on the type of insurance, car type, location, and driving history. Your priority as a car owner should be getting the best deal for your car insurance on a budget. Here are some tips to help you acquire the best auto insurance deal.

1. Conduct proper research

Most drivers end up paying high costs for car insurance with little knowledge about the auto insurance market. Before settling for car insurance, ensure you know what to expect from the insurance companies, the best companies in the market, and the services they offer their clients. If you have a busy schedule that you cannot conduct the research yourself, it is advisable to contact an independent agent. These agents will research on your behalf and get your insurance coverage with lower premiums.

2. Start shopping early

Car insurance should not be treated as an emergency expenditure. Hence, when you seek to renew your insurance, shop for one before your current one expires. This is a good way to ensure that you have ample time to shop for good insurance deals. It also saves you from being on the wrong side of the law, as driving without a valid insurance cover is illegal.

3. Learn how car insurance works

In this case, you must read about car insurance and the basic procedures around the sector. There are many cases of new and experienced drivers not being knowledgeable about handling insurance concerns. You need firsthand information on insurance regulations, when and how to place a claim based on your country of residence.

Avoid getting insurance information from friends and family. Instead, visit reputable sources online to learn more about auto insurance or consider consulting an insurance broker.

4. Evaluate your needs

Evaluating your needs is critical to getting the best insurance deal for your car; you cannot afford to skip it. You should first consider the state's minimum requirements for coverage. Mostly these requirements are too low to cover you fully. Therefore, you need to get a higher liability cover that you can afford, which totally depends on your car's value. Full coverage has a lot of options to consider choosing from, so ensure you get familiar with the options.

Since this step determines how much you can pay for your car insurance and the risks you want covered, you must conduct a critical assessment. Consider factors such as your net worth, your car model, and the type of business you own. Before committing to any car insurance policy, ensure your needs are well evaluated.

5. Consider yourself and your vehicle

Many factors go into determining your insurance premium rates, both personal and those related to your car. Based on the car, ensure you consider factors such as the model of the car, the mileage, the car's age, and the car's safety features. Personal factors such as your driving record, age, residence, and credit history affect your insurance premium. You need to know that car insurance companies weigh the personal and vehicle factors differently and hence give different rates.

6. Shortlist the potential insurance companies

With the continual growth in the auto insurance industry, there are a lot of insurance companies to choose from. It would be best to have an elaborate criterion when listing your potential insurance providers. Ensure you look for companies with a reputable settlement history by talking to people around you and looking out for reviews given about the companies online.

7. Ask and compare quotes

Once you identify your potential insurance providers, request for quotes based on your coverage needs. It is fast and easy to get this information via email. Some companies also display online request forms which you can fill out. This step gives you several competitive quotes to choose from, depending on what you can afford.

You are sure to have multiple quotes after requesting them. To get the best car insurance deal, compare the quotes depending on your coverage needs. Remember that the amount you need for your insurance has a direct impact on your premium rates. The higher the coverage, the higher the amount you will pay for the policy, and vice versa. When comparing the quotes, remember your budget and choose what is best for you.

8. Research available discounts

It will help to pay attention to discounts given by insurance companies, especially if you are working on a budget. Most auto insurance companies give discounts to their clients to help them get good rates. These discounts vary for each carrier. Understand the car insurance discount that works for you before settling for a company.

9. Maintain a good credit score

Most companies provide insurance quotes using the credit-based insurance score. To get the best deal for car insurance, ensure that your credit score is in a good position. Most insurance companies use this criterion because research shows that people with bad credit scores are prone to making more insurance claims than those with good credit scores.

10. Downsize your car

In some cases, you will miss out on the best car insurance deals depending on the size of your car. For instance, insuring a huge SUV may be more expensive than insurance a small, low-cost commuter car. Some insurers also offer discounts if you purchase a hybrid or an alternative fuel-efficient car. If you intend to work on a budget, you can consider changing your car to suit the best deals in the market.

11. Increase your deductibles

Deductibles mean the amount you can be able to pay from your pocket before the insurance company tops up the balance. Deductibles vary with the type of policy you take for your car. However, before choosing to go the deductible way, ensure that you understand its effect on your premium, as you may find the savings minimal on certain occasions.

12. Consider the available payment plans

Putting your budget in mind, you need to consider the available payment plans offered by the company of your choice. You may choose the monthly or annual option, depending on what works for you.

An annual payment plan may be a good choice if you can afford to pay your premium upfront and your company offers a discount by doing so. However, paying a large lump of money upfront can leave you in a tight financial spot, making monthly payment a better option. Typically, whether you should pay for your car insurance in full or monthly installments depends on how you prefer to pay your bills, your financial situation, and how likely you are to switch companies.

Bottom line

Shopping around for car insurance companies is the way to go when looking for the best deal. Car insurance prices are likely to go up, and knowing what works for you can help save you a lot of money. These essential tips can help you land the best car insurance deals. Remember to evaluate the available insurance companies and always stick to your budget.