How to Shop for Auto Insurance and Find the Cheapest Rates

Car Insurance Review

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Vanessa and I recently bought a car to replace our 1996 Saturn. In the process, we decided to reconsider our insurance coverage in an attempt to cut our monthly premium.

Most individuals (or couples) obtain auto insurance, and then forget about it. As a result, they often stay with the same insurance provider for many years. But shopping around can be extremely rewarding because auto insurance rates are known to fluctuate over time.

The reason that most people don’t bother shopping around is because of the traditional (and tedious) insurance process:

  1. Apply for one quote at a time, filling in all of your personal information
  2. Get aggravated because the pricing and policy features are hidden
  3. Rinse and repeat for each additional insurance provider

Then, after you exit the quote process, you are bombarded with calls and voicemails from Joe the insurance salesman.

A Better Way to Compare Car Insurance Quotes

A new online service website – The Zebra – allows you to compare quotes from more than 200 auto insurers across all 50 states. They provide quotes from more than 97% of available auto insurers using one simple form, and the entire process is done online.

The Zebra updates your quotes in real time as you input information such as automobile make/model, zip code, age, gender and expected miles driven. It will even include bundle discounts if you are looking to insure your home and car at the same time.

After inputting the basics, The Zebra will ask you to choose a coverage level:

  • State Minimum
  • Basic
  • Better
  • Best

Each includes higher amounts of coverage, and of course, a higher premium.

After selecting your desired amount of coverage, you will see quotes from all the insurers available in your state. You can then click a little arrow beside each insurer to see available features and ratings from JD Power and the Better Business Bureau. For example, below is a screenshot showing Nationwide (learn more) and the associated ratings:compare car auto insurance


At this point the you can go directly to the insurer to finish the process online, or call one of The Zebra’s licensed agents and purchase coverage over the phone.

The Zebra, which launched at the end of 2013, claims that the average user saves $614 a year through the service. In my experience, quotes are very competitive.

How to Choose the Correct Amount of Insurance Coverage

As I mentioned above, all insurance providers require that you select a certain amount of liability coverage. Liability coverage covers the other driver’s personal injury and property damage in a crash where you’re at fault. It does not cover your own injuries or property damage. You must at least purchase the minimum required by your state, but you can choose higher coverage limits if you desire.

For example, in Texas, 30k/60k/25k is the State minimum auto insurance coverage. That means:

You only need the state minimum to legally drive, but many people opt for additional coverage. The reason is that one bad accident can easily surpass the bodily injury or property damage minimums. If that happens, many states allow the injured individual to seek additional compensation through the legal system.

Do You Only Need Liability? What About Additional Coverage?

Buying only liability insurance is always going to result in the cheapest monthly premiums. Beyond basic liability coverage, there are many additional coverage options:

  • Collision: Unlike liability insurance—which covers the other party’s damages—collision insurance covers your damages should you be involved in an accident.
  • Comprehensive: Comprehensive insurance covers loss and damages to your vehicle unrelated to traffic accidents. Covered events usually include theft, vandalism, weather conditions, and natural disasters.
  • Uninsured and Underinsured Motorist (UM/UIM): These types of coverages protect you should you be involved in an accident with a driver who doesn’t have enough—or any—car insurance. In that event, your own insurance will cover the accident. This is now required in some states.
  • Personal Injury Protection (PIP): PIP covers your medical expenses, lost wages, and funeral expenses if the other party’s liability coverage isn’t enough, regardless of who was at fault for the accident. Some states now require PIP coverage by law.

It’s typically wise to choose uninsured and underinsured motorist coverage. The reason is simple – Many drivers are uninsured or underinsured – and many of them are accident prone.

Personal injury protection (PIP) is really useful to cover lost wages and medical expenses for all passengers inside of your vehicle, and some States require PIP by law. There are some who argue that PIP is unnecessary if each person has medical insurance (and an emergency fund).

Collision and/or Comprehensive coverage is much more expensive than liability only. The value of your car is an important consideration when determining whether you need collision and comprehensive coverage. If you car is older and/or low-value, it may not be worth purchasing these coverages, since the insurance company will only pay up to the estimated fair market value of your car. If your car is newer and/or high-value, having these coverages can save you from paying out significant costs to repair or replace your car.

Other, less common coverages are available as well. Some of these include:

  • Roadside Assistance
  • Towing Coverage
  • Rental Car Coverage

These can be convenient, but also costly. If you have family in the area, or access to another vehicle, you might not need to pay a monthly premium for these add-ons.

Choosing the Correct Deductible

A deductible is the amount towards a claim that you are responsible for out of pocket before your insurance pays out. Collision and comprehensive insurance coverage require you to pay a deductible whenever you claim a loss, and the insurance company often allows you to set your own deductible (typically up to $1,000) . An important note about deductibles is that they occur on each claim made for auto insurance, not on an annual basis like health insurance.

All else equal, a higher deductible results in lower monthly premiums.

You should set the deductible as high as possible, given your situation. If you don’t have cash stashed away to pay the higher deductible in case of an accident, raising your deductible isn’t the wisest move. If you have the funds available, raising your deductible will result in significantly lower premiums. Remember, insurance is a risk protection tool that is meant to protect against high severity, low probability events. If you rarely get into an accident, you want to minimize your monthly premium cost.


The Zebra is a great tool for comparing car and auto insurance. You can take it a bit further and compare Zebra quotes to personalized quotes from individual insurers. With that information, you can choose a reliable, low-cost insurer that fits your needs.

After you’ve made your choice, don’t let inertia take hold. Comparison shop for new rates every year because insurers constantly change their policies and rates.

Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.

User Generated Content Disclosure: Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

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Deedee Lewis
Deedee Lewis

This article was so helpful! Our daughter is almost 16 so we will be updating our insurance to get her on there. Your list of different kinds of insurance is really helpful! It will help us know what kind of coverage we will need.

sam d
sam d

Great info!

Max Jones
Max Jones

We’re always looking for ways to save on our auto insurance, and I think that being able to find the right deductible like you said would be helpful. I didn’t know that an auto insurance deductible isn’t annually like a health policy, but is rather a deductible for each claim. I’m going to have to keep that in mind while my wife and I are trying to decide on an auto insurance deductible we’re comfortable with! Thanks for the info!


Do you have any recommendations for someone that does not own a car? That is, if you plan on borrowing a family member’s car once in a while when in town?


Thanks for mentioning that there is a statewide minimum liability level. I forgot.

Zachary Tomlinson
Zachary Tomlinson

I appreciate that you pointed out the differences between insurance types. I think that is important to recognize and take into account when finding the right auto insurance. I’m anxious for my mom because she still drives, and her insurance probably wouldn’t cover anything if she were in an accident.

Burt Silver
Burt Silver

Thanks for mentioning that there is a statewide minimum liability level. That is a good thing to know for anybody shopping for insurance. My wife and I have gotten by with the bare minimum of insurance for years now and we have finally decided to spring for something will a little more coverage. All of this information should help us a lot!

Ben Allen
Ben Allen

I appreciate the information on finding the cheapest auto insurance rates. I agree that it is so easy to shop one time for insurance and then just to forget about it, even though you could save a lot of money by switching. My cousins are looking at getting insurance for their new car, I will be sure to share these tips with them and use them for ourselves.

Dave Anderson
Dave Anderson

I am getting auto insurance, but i want to know how to find the best deal. I did not know that there were websites that can help you compare auto quotes. I thought i was going to have to go into a ton of different insurance companies and sit down with someone to compare rates. But now that i know that i can do it online, it makes it a lot easier.