Shopping for car insurance comes down to one move: get the same coverage priced by more than one company. Insurers weigh your car, your record and your ZIP code differently, so the same driver can get very different prices for the same policy.
The countrywide average auto insurance expenditure was $1,282 in 2023, up 14% in a year, according to the National Association of Insurance Commissioners. That is real money, and most people renew without checking what anyone else would charge.
Three questions sort your options. What coverage do you need? Do you want an agent or a quote you can finish online? Do you have a home or rental policy you could bundle? Answer those, then start with the quick picks below and use the step-by-step guide to compare the quotes you get back.
Car Insurance Companies Worth a Quote First
Both are large national insurers that let you start a quote with your ZIP code. Every fact here was checked against the company’s own site as of this update. Availability, coverages and discounts vary by state.
FarmersBest for stacking discounts and bundling home and auto20+ discounts · agent or online2
Liberty MutualBest for clean records and newer carsonline, phone or agent1. Farmers
Best for stacking discounts and bundling home and auto
A strong first quote, especially if you can bundle.
Farmers has been insuring drivers since 1928. You can quote online from your ZIP code or work with an agent, then build the policy with options like accident forgiveness, new car replacement and rideshare coverage.
Enter your ZIP code to start a quote
Match the limits and deductibles to your current policy
Ask which of the 20+ discounts you qualify for
Want the fine print? Discounts, coverage options and the savings footnote
More than 20 discounts you can combine. Availability, coverages and discounts vary by state.
2. Liberty Mutual
Best for clean records and newer cars
A large, established insurer with customizable auto coverage.
Liberty Mutual sells auto insurance online, by phone and through agents, with optional add-ons such as Better Car Replacement, New Car Replacement and 24-Hour Roadside Assistance.
Enter your ZIP code to start a quote
Have your license number, VIN and mileage ready
Compare it at the same limits and deductibles
Want the fine print? Discounts, coverage options and state limits
Quote online, by phone or with an agent. Discounts and optional coverages vary by state.
How to Shop for Car Insurance, Step by Step
A quote is only useful if you can compare it to another one. These six steps get you there, and they work whether you buy online or through an agent.
Step 1: Decide what coverage you need
Pick your coverage before you look at a single price. If you let the quote form choose for you, every company will hand you a different policy and the prices will not mean anything.
- Liability pays for injuries and damage you cause to other people. Most states require a minimum amount, and the minimum is often too low to cover a serious crash.
- Collision pays to fix your car after a crash, no matter who is at fault.
- Comprehensive pays for theft, vandalism, weather and other damage that is not a collision.
- Uninsured and underinsured motorist protects you when the other driver has little or no insurance.
- Medical payments or personal injury protection (PIP) covers medical bills for you and your passengers. PIP is required in some states.
- Extras such as gap coverage, rental reimbursement and roadside assistance cost more and are optional.
If you have a loan or lease, your lender will usually require collision and comprehensive. If your car is paid off and older, run the math. The Insurance Information Institute says that if your car is worth less than 10 times the premium for that coverage, buying it may not be cost effective.
Renting a car soon? Your own policy may already cover it. Check our guide on whether you need rental car insurance before you pay for it at the counter.
Step 2: Gather what the quote will ask for
Have these ready and each quote takes a few minutes: your ZIP code, your driver’s license number, the make, model and year of your car, the vehicle identification number (VIN), and roughly how many miles are on it. Pull up your current policy too. You need its limits and deductibles for the next step.
Step 3: Get at least three quotes for the same coverage
The Insurance Information Institute recommends getting at least three price quotes. The catch is that they have to match. Use the same liability limits, the same deductibles, the same drivers and the same add-ons on every quote. If one company comes back much lower, check that it did not quietly drop a coverage or raise a deductible.
Start with one of the companies above. Get a Farmers auto quote, then run the same coverage past Liberty Mutual and one more insurer, such as a regional company or the one you have now. Availability, coverages and discounts vary by state, so the right fit can change with your ZIP code.
Compare the full policy term, not just the monthly payment. Some insurers quote six months and some quote twelve, and some charge a fee to pay monthly.
Step 4: Ask for every discount you qualify for
Discounts do not always show up on their own. Ask about each of these by name:
- Multi-policy and multi-car. Insuring your home or a second car with the same company.
- Clean record. Safe driver, accident free, claims free and violation free discounts.
- Good student and student away at school. For households with young drivers.
- Homeowner. Some insurers discount your auto policy just because you own a home.
- How you pay. Paying in full, autopay and paperless billing.
- Safe-driving apps. Programs that track how you drive can lower your price. Read the terms first, because with some programs riskier driving can raise your premium at renewal.
- Shopping early. Some insurers discount a quote you start before your current policy expires.
- Group and military. Ask about your employer, your alumni group and military service.
We go deeper on each of these in 19 ways to save money on car insurance and how to get lower car insurance premiums.
Step 5: Set your deductible on purpose
Your deductible is what you pay before the insurer pays. A higher one lowers your premium. The Insurance Information Institute says raising a deductible from $200 to $500 could reduce your collision and comprehensive cost by 15 to 30 percent, and going to $1,000 can save 40 percent or more.
Only raise it to an amount you could pay tomorrow. If a $1,000 repair bill would go on a credit card, build your emergency fund first.
Step 6: Check the company, then switch without a gap
Price matters, but so does getting paid when you file a claim. Look at the insurer’s financial strength rating from AM Best, how you file a claim (app, online or phone), and whether you can reach an agent if you want one.
When you pick a winner, start the new policy first. Then cancel the old one effective the same day and ask for a refund of any premium you prepaid. Do not let even one day go uncovered. A lapse can raise your price the next time you shop.
When to Bundle Home and Auto Insurance
If you own a home, get the bundled price every time you shop. The Insurance Information Institute notes that many insurers give you a break when you buy two or more types of insurance from them. Farmers, for example, says you can save 10% or more by bundling home and auto policies, depending on where you live.
Bundling is not automatically the better deal. Add up the two bundled policies, then add up the best auto quote and the best home quote from separate companies. Take whichever total is lower for the same coverage. Homeowners can Get a Farmers home quote alongside the auto quote to see the bundled number.
Shopping for the house too? See our picks for the best homeowners insurance companies, and if you just bought, read the homeowner expenses that surprise first-time buyers so the premium is not one of them. Renters can usually bundle as well.
When to Switch Car Insurance
You can switch any time, not only at renewal. These are the moments when a fresh round of quotes is most likely to pay off:
- Your renewal notice shows a higher price and nothing about you changed.
- You moved. Where you live changes your rate, so your old price may no longer be the right one.
- You bought a home. You can now bundle, and some insurers give homeowners a discount on auto.
- You bought a different car. Get insurance quotes before you sign, because the car you pick changes the premium. Our guides on avoiding car dealer tricks and comparing auto loans cover the rest of that purchase.
- You added or removed a driver, such as a teen getting a license or a child moving out.
- Your record cleared up. An old ticket or accident aged off.
- Your credit improved. Most insurers use credit information to price auto policies where state law allows it, according to the Insurance Information Institute. Here is how to improve your credit score.
- You started driving for a delivery or rideshare app. A personal policy may not cover you while you work, so ask about rideshare coverage if you use driving apps to make money.
Stay put if the lower quote only wins by cutting coverage you need, or if switching would cost you a discount that is worth more than the difference.
Mistakes to Avoid When You Shop for Car Insurance
- Comparing quotes that do not match. Different limits or deductibles make the lower price meaningless.
- Buying only the state minimum when you have savings, a home or income to protect.
- Picking on the monthly payment alone. Look at the total for the term and any installment fees.
- Leaving details off the quote. A missing driver, ticket or accident can change the price after you buy.
- Canceling the old policy first. Start the new one, then cancel.
- Never asking about discounts. You often have to ask.
- Setting a deductible you cannot afford. The savings are not worth it if a claim puts you in debt.
- Renewing on autopilot. Get new quotes at least once a year and after any big life change.
Insurance is one line in what your car costs you. For the rest, see how to save money on car expenses. If your loan is the expensive part, compare the best auto refinance companies.
Car Insurance Terms You Will See on Every Quote
Premium. What you pay for the policy, monthly or for the full six or twelve month term. Many insurers discount it when you pay the whole term up front.
Deductible. What you pay before your insurer pays. If a fender bender causes $1,500 in damage and your deductible is $1,000, you pay $1,000 and the insurer pays the other $500.
Coverage limit. The most your insurer will pay for a covered loss. Damage above the limit is yours to cover.
Claim. Your request for payment after an accident or loss. The insurer assigns an adjuster who reviews it and tells you what is covered. If you have been in a crash, read how to get the most money after a car accident.
What Affects Your Car Insurance Premium?
Knowing what goes into the price tells you which levers you can pull:
- Driving record. Accidents and tickets raise the price. A clean record lowers it.
- Your car. Cars that are cheaper to repair and have strong safety ratings cost less to insure. Luxury and sports cars cost more.
- Coverage and limits. Higher limits and add-ons raise the premium.
- Deductible. A higher deductible lowers the premium and raises what you pay in a claim.
- Where you live. Areas with more traffic, theft and claims cost more.
- Miles driven. Some companies discount drivers who drive fewer miles than average.
- Credit. Used by most insurers where state law allows it.
- Discounts. Bundling, safe driving and payment discounts all bring the price down.
Car Insurance Shopping FAQs
Start with Farmers. You can quote online from your ZIP code or through an agent, it offers more than 20 discounts that can be combined, and Farmers says you can save 10% or more by bundling home and auto, depending on where you live. Then run the same coverage past Liberty Mutual and at least one more insurer so you have three prices to compare. Availability, coverages and discounts vary by state.
At least three. That is the number the Insurance Information Institute recommends. Make sure every quote uses the same liability limits, deductibles, drivers and add-ons, or the prices are not comparable.
Your ZIP code, your driver’s license number, the make, model and year of your car, the VIN, and roughly how many miles are on it. Keep your current policy next to you so you can match its limits and deductibles.
Often, yes. Many insurers discount both policies when you buy them together. Check it both ways: add up the bundled price, then add up the best separate auto and home quotes, and take the lower total for the same coverage. Our guide to the best homeowners insurance companies covers the home side.
A few weeks before your renewal date, and any time something changes: you move, buy a home, buy a different car, add or remove a driver, or an old ticket drops off your record. You can switch in the middle of a policy term. Start the new policy before you cancel the old one so you never have a gap.
Maybe. The Insurance Information Institute says that if your car is worth less than 10 times the premium for that coverage, buying it may not be cost effective. If you still have a loan or lease, your lender will usually require both. More ways to trim the bill are in our guide to lower car insurance premiums.
Get Three Quotes, Then Decide
You do not need to become an insurance expert. Decide your coverage, get at least three matching quotes, ask for every discount, and check the bundled price if you own a home. Then pick the best price for the coverage you chose, and do it again next year.
Ready to start? Get a Farmers auto quote first, then use it as the number every other quote has to beat.
Both at a glance
| Company | Financial strength | Ways to buy | Standout options | Best for | Get started |
|---|---|---|---|---|---|
| A (Excellent), AM Best | Online, phone or agent | Accident forgiveness, new car replacement, rideshare coverage | Stacking discounts and bundling home and auto | |
| A (Excellent), AM Best | Online, phone or agent | Better Car Replacement, New Car Replacement, 24-Hour Roadside | Clean records and newer cars |
| Company | Strength | Buy | Best for | Go |
|---|---|---|---|---|
| A, AM Best | Online or agent | Discounts and bundling | |
| A, AM Best | Online or agent | Clean records, newer cars |
