How to Compare Car Insurance Rates

How Much Is Car Insurance?

The average cost of car insurance nationwide is $1,556 annually or $130 per month for minimum coverage, according to 2026 Experian data. Full coverage car insurance, which includes comprehensive and collision coverage for more protection, costs an average of $2,910 annually or $243 per month nationwide.

Your car insurance costs may differ from these averages depending on a variety of factors, including your state's insurance requirements, the type and amount of coverage you buy, your vehicle and your driving record.

Learn more: Liability vs. Full Coverage Car Insurance: Which Is Better?

How to Compare Car Insurance Rates

Follow these steps to compare car insurance rate quotes.

1. Determine the Type and Amount of Coverage You Need

Depending on your state laws and whether your car is financed or leased, you might need some or all of the following:

• Liability coverage: Most states require carrying a minimum level of liability coverage, which helps cover costs if you're liable for an accident resulting in damage or injuries to others.
• Comprehensive and collision coverage: Comprehensive coverage pays for damages to your vehicle from causes other than collisions, such as severe weather or theft. Collision coverage pays for collision-related damages. Both may be required by lenders if your car is leased or financed.

• Uninsured and underinsured motorist protection: Required in most states, uninsured and underinsured motorist (UM/UIM) coverage pays for your damages when the other driver lacks auto insurance or doesn't have enough insurance.
• Personal injury protection: Mandated in some states, personal injury protection (PIP) typically covers medical care, lost wages and other accident-related expenses for you and your passengers.
• Medical payments coverage: Usually available as add-on coverage, medical payments coverage (MedPay) can help pay your and your passengers' medical bills after an accident. It may also cover your medical expenses if you're injured while a passenger or are hit by a car.

The minimum liability insurance your state requires may not be enough to cover the cost of accidents. If you're found liable for bills your policy can't cover, courts could order you to tap your savings or sell your possessions to make up the difference.

Purchasing coverage equal to the value of your assets, including your car, home, savings and business, can protect you in a worst-case scenario. If the value of your assets exceeds your car insurance maximums, you can purchase umbrella insurance for extra liability protection.

Learn more: What Does Car Insurance Cover?

2. Choose Your Deductible

Your car insurance deductible is the amount you pay out of pocket on a covered claim before your insurance kicks in to pay the rest. There are typically deductibles on claims for damage to your own vehicle, such as comprehensive and collision claims, but not on liability claims.

Raising your deductible usually lowers your insurance premiums because you're shouldering more of the financial risk of a covered claim. Before increasing your deductible, carefully consider whether you could afford the higher deductible amount in the event of a claim.

Learn more: What Is a Car Insurance Deductible?

3. Look for Discounts

Check with different car insurance companies to see if you're eligible for any of these common car insurance discounts:

• Vehicle-based discounts for alternative fuel or electric vehicles, anti-theft devices or safety devices
• Payment discounts for setting up autopay, going paperless or paying your full premium upfront
• Policy-related discounts for insuring multiple cars or bundling more than one type of coverage, such as buying home and auto insurance from the same insurance carrier
• Safe driver discount for driving a specific number of years with no accidents or moving violations or for completing a safe driving course
• Low mileage discounts for driving less than 10,000 or 12,000 miles annually
• Discounts available through your employer or membership organizations you belong to
• Student discounts for high school or college students who get good grades or attend school far away from home

4. Compare Quotes From Multiple Auto Insurers

Prices vary from insurer to insurer, so getting multiple quotes is an effective way to ensure you get the best deal. You can get quotes at insurance company websites, by working with an insurance agent or broker who represents several companies, or by using an online comparison tool to gather quotes from multiple insurers.

To get an insurance quote, you'll generally need the following:

• Your vehicle's make, model, year and vehicle identification number (VIN)
• Your vehicle's odometer reading and your expected annual mileage
• Driver's license numbers for anyone who will be driving the car
• Declaration pages from your current or previous car insurance policy

Be sure to use the same deductible and coverage amounts with each provider to ensure an apples-to-apples comparison. It's also important to provide complete, accurate information; without it, the rate for your actual policy may differ from your initial premium quote.

Tip: In addition to comparing prices, research each insurer's financial stability and customer service. You can check online reviews for customer satisfaction levels, and use ratings by companies like AM Best and Standard & Poor's for information about an insurer's financial health.

Learn more: Best Car Insurance Companies

Factors That Affect Car Insurance Rates

The factors auto insurance companies consider when setting your premiums may include:

• Your location: Required minimum coverages vary from state to state, and risk levels can vary from one city to the next. Living in an area with higher crime rates or a greater likelihood of natural disasters could mean paying more for car insurance.
• Your demographics: Statistically, your age, gender, marital status and other characteristics can make you more or less risky to insure.
• Your vehicle: You may pay more if you drive a car that is costly to repair or replace, or less if your vehicle has safety features that reduce risk.
• Your driving record: Generally, the cleaner your driving record, the lower your premiums. New drivers without an insurance track record may pay more for coverage.
• Your mileage: Since a long commute can increase your odds of accidents, high annual mileage could mean higher premiums.
• Your coverage: Purchasing more coverage—such as a full coverage policy compared to minimum coverage—costs more.
• Your deductible: A lower deductible means the insurer covers more of the cost of a claim, which generally translates to higher premiums.

Learn more: Why Is My Car Insurance So High?

How to Save on Car Insurance

In addition to looking for the discounts mentioned above, you may be able to save money on car insurance by:

• Driving safely: Safe driving means a clean record without at-fault accidents or moving violations that can raise your car insurance rates.
• Dropping unneeded coverage: Eliminating extras such as rental car reimbursement coverage or roadside assistance may lower your car insurance rates.
• Improving your credit score: Most states allow insurance companies to check your credit-based insurance score when setting your premiums. These scores differ from the ones lenders use but are based on many of the same factors. A lower credit-based insurance score could mean higher rates. Working to improve your consumer credit score could also boost your credit-based insurance score, which may save you money on auto insurance.

Learn more: Do Auto Insurance Companies Consider Your Credit Score?

The Bottom Line

Comparing auto insurance rates is an easy way to make sure you get the best value for your money. To conveniently compare car insurance rates online, try Experian's auto insurance comparison tool. You'll get quotes from top insurers, be notified when rates drop and get insights into what affects your premiums and how to lower them.