8 Ways to Find the Most Affordable Insurance Online

1. Compare Quotes With a Car Insurance Comparison Tool

The Insurance Information Institute advises getting quotes from at least three car insurance companies to compare rates. You can get quotes by contacting insurance companies or agents, visiting insurers' websites or using an online comparison tool. For instance, Experian's auto insurance comparison tool lets you answer a few questions and get personalized quotes from dozens of top insurers.

Simply shopping online might save you money too. Some auto insurers offer discounts if you buy coverage online instead of over the phone or in person. Make sure to get quotes for the same type and amount of coverage, the same vehicle and the same drivers from each insurance company. This ensures a direct apples-to-apples comparison.

2. Bundle Multiple Insurance Policies

Many insurers give you a discount if you bundle policies, which means buying at least two types of insurance from the same company. Bundling home and auto insurance is a common choice. Depending on the insurer, you may also be able to bundle auto insurance with renters insurance, condo insurance, life insurance, small business insurance, motorcycle insurance, boat insurance and mobile home or RV insurance.

In addition to saving on premiums, bundling coverage simplifies account management. Working with one insurance company can make it easier to keep track of due dates, reducing the likelihood you'll miss a payment and potentially lose coverage.

3. Look for Discounts

Going online is a quick way to explore the discounts that different auto insurance companies offer. For example, you may find discounts for:

• Going accident-free for a certain period of time
• Going without traffic violations for a certain period of time
• Insuring more than one vehicle
• Completing an approved safe driver or defensive driving course
• Maintaining good grades (for high school or college students)
• Driving a car equipped with safety or anti-theft devices
• Driving significantly fewer miles than average
• Renewing coverage before your current policy expires
• Allowing insurers to electronically monitor your driving habits
• Belonging to certain organizations, being a military service member or working for certain employers
• Owning a home

Learn more: Best Car Insurance Discounts

4. Adjust Your Coverage

Nearly every state requires drivers to have a minimum amount of auto liability coverage. If your car is leased or you have an auto loan, your lender will typically require a minimum amount of comprehensive and collision coverage to protect the vehicle.

Depending on your situation, adjusting your coverage could save you some money. Typically, you can log into your insurance account online to see how changing your coverage might affect your premiums.

For instance, if you've paid off your auto loan, you may save money by dropping comprehensive and collision coverage. This may make sense if your car isn't worth much, but consider it carefully. Without collision and comprehensive insurance, you'll have to pay out of pocket to repair or replace your vehicle if it's damaged, totaled or stolen.

You might also save by eliminating unnecessary extras such as roadside assistance or rental car reimbursement coverage. Before making this decision, weigh the cost of the add-on coverage against the potential cost of going without. For instance, if you only have one car and rely on it to get to work, rental car reimbursement coverage could be worth the extra expense.

Tip: Opting for the minimum required liability coverage might save money in the short run, but could leave you liable for tens of thousands of dollars after a costly accident. Insurance professionals often recommend buying at least $100,000 of coverage per person and $300,000 per accident for bodily injury liability and $100,000 of coverage for property damage liability.

5. Opt for a Higher Deductible

Your deductible is the amount you're responsible for paying before your insurance covers a claim. For example, if your auto insurance coverage has a deductible of $500, you'd have to cover $500 of a claim out of pocket before the insurance company pays out. Car insurance deductibles usually range from $250 to $2,000.

A higher deductible typically results in a lower premium. When you search for car insurance online, you'll generally see a default deductible that you can adjust to see how different deductible amounts might impact your bill. The Insurance Information Institute estimates that raising your deductible from $500 to $1,000 could save an average of 20% to 25% annually.

Just make sure you can afford the higher deductible in case of a claim.

6. Pay Your Premium All at Once

Paying your car insurance premiums monthly can be budget-friendly, but insurers often charge fees for splitting premiums into monthly payments. If you can afford it, paying your car insurance premium all at once can eliminate these fees. Some insurance companies also give you a discount for paying in full, saving you even more.

7. Shop for Coverage Regularly

Shopping for car insurance on a regular basis can help ensure you're always getting the best price for coverage. It's a good idea to compare quotes about six weeks before your car insurance is due to renew (typically every six months or annually).

Even if your policy isn't due for renewal soon, you may want to rate shop if your annual mileage has dropped or you've had a major life change like retiring, moving, buying a house, getting married or divorced, or removing a driver from your policy. Depending on your situation, any of these changes could result in lower premiums.

8. Improve Your Credit Score

In most states, insurance carriers can review your credit-based insurance score when determining your car insurance premiums. You may pay more for car insurance if your credit-based insurance scores are low. Although these scores differ from the consumer credit scores lenders use, they're based on similar factors, such as your payment history and outstanding debt amounts. As a result, the same actions that may help improve your consumer credit score, such as paying bills on time, could boost your credit-based insurance score—and potentially reduce your premiums.

Frequently Asked Questions

The Bottom Line

Shopping online for car insurance can be a fast and easy way to find the most affordable coverage. In addition to comparing rates, be sure to evaluate insurance companies on factors such as customer service ratings and financial stability. After all, when you have a claim, you want to know your insurance company will be there for you.

Make it a habit to get quotes from different providers at least once a year or whenever your auto policy is up for renewal. You can get personalized quotes using Experian's free car insurance comparison tool, which collects car insurance quotes from dozens of top insurance companies in your state.