How to Compare Auto Insurance Quotes: Look Beyond the Price
Shopping for auto insurance can seem simple: request a few quotes, compare the premiums, and choose the lowest price. But the least expensive quote isn’t necessarily the best value.
Two auto insurance quotes can have very different prices because they provide different coverage limits, deductibles, optional coverages, discounts, or policy terms. An attractive price can come with lower coverage or higher deductibles.
Before choosing an auto insurance policy, make sure you’re comparing similar coverage. Here are some important areas to review.
1. Compare Liability Coverage Limits
Liability insurance can help protect you financially if you’re responsible for an accident that causes injuries or property damage to someone else.
When comparing quotes, look carefully at the liability limits being offered. A policy with lower limits may have a lower premium but also provide less financial protection.
Don’t assume that every insurance company or agent automatically quotes the same limits. Compare the numbers on each proposal and ask questions when something is different.
The goal shouldn’t necessarily be to purchase the lowest possible limits. Your coverage should reflect your individual circumstances and the amount of financial protection you’re comfortable carrying.
2. Look at Comprehensive and Collision Deductibles
Your deductible can significantly affect both your premium and the amount you’ll pay after a covered loss.
For example, one quote may use a $500 collision deductible, while another uses a $1,000 deductible. The second quote could have a lower premium, but you’d also be assuming more of the cost if you have a covered collision claim.
When comparing prices, make sure the deductibles are the same—or understand the difference before deciding which policy offers better value.
3. Compare Optional and Additional Coverages
The differences between auto policies don’t stop with liability limits and deductibles.
Depending on the insurance company and policy, you may have options such as rental car coverage, roadside assistance, loan or lease-related coverage, and other endorsements.
One quote may include additional protection that another quote leaves out. Instead of asking only, “Which policy costs less?“, consider asking: “What am I receiving for the premium I’m paying?“ That question can lead to a much more meaningful comparison.
4. Make Sure You’re Comparing the Same Policy Period
When comparing quotes, determine whether the quoted premium is for 6 months, 12 months, or another policy period.
Also review the payment options. The total cost of paying monthly may differ from paying the policy in full, depending on the insurance company and billing arrangement.
Looking only at the initial payment or monthly installment can therefore give you an incomplete picture of what the insurance will actually cost.
5. Review the Discounts Carefully
Discounts are another reason two quotes may look very different.
Insurance companies have different eligibility requirements and discount programs. Make sure a quote hasn’t been prepared using discounts you don’t actually qualify for.
For example, a quote might assume you’ll insure both your auto and home with the same company. If you don’t ultimately purchase both policies, the final premium may be different.
Ask the agent to explain the discounts included in the quote and whether additional action or documentation is required to receive them.
6. Verify the Information Used to Prepare the Quote
A useful comparison also depends on accurate information.
Review important details such as your drivers, vehicles, garaging location, vehicle use, estimated mileage, and other information used to prepare the quote.
If one company is quoting based on different information than another, you may not be making an accurate comparison. It’s better to discover a discrepancy while reviewing the quote than after you’ve decided to purchase the policy.
7. Consider the Agency and Service Behind the Policy
Price and coverage are important, but insurance is also a service.
Consider what happens after you purchase the policy. Will you have someone you can contact for billing questions, adding a vehicle, coverage questions, or assistance following a claim?
Working with an insurance agency allows you to discuss your individual situation and better understand the options available to you. For consumers in Northern Virginia and the surrounding area, having an agency that understands the local insurance market can also be valuable.
The Best Auto Insurance Quote Isn’t Always the Cheapest
Comparing auto insurance should be about more than finding the lowest number on the page.
Look at the coverage limits, deductibles, optional coverages, policy period, discounts, information used to prepare the quote, and the service you’ll receive after purchasing the policy.
A slightly higher premium may sometimes provide coverage or features that are more appropriate for your needs. Likewise, paying more doesn’t automatically mean you’re receiving a better policy. The important thing is understanding what you’re buying.
Have Questions?
Oberryman Insurance Agency can help you review your current auto insurance and understand the coverage options available to you. If you’re shopping for insurance, we’ll help you compare coverage—not simply premiums—so you can make an informed decision. Contact Oberryman Insurance Agency at 703-986-0468 to discuss your auto insurance needs or request a quote.
Insurance coverage, eligibility, discounts, limits, exclusions, and availability vary by insurance company, policy, state, and individual circumstances. This article is provided for general informational purposes and is not intended to modify or replace the terms and conditions of an insurance policy. Please refer to your policy and contact Oberryman Insurance Agency to discuss your specific insurance needs.
