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Why You Should Shop Around for Car Insurance (and How to Do It)

car insurancePeople who try to keep their finances balanced know that vehicle expenditures are one of the most wildly variable budgetary categories. From loan payments to gas purchases to repair fees, cars are fraught with potential spending black holes. You have probably spent time brainstorming ways to cut these expenses in the past, but you may not realize one way you can decrease your driving-related spending is to alter your car insurance. Here are some good reasons to shop around for car insurance and some pointers for saving big.

Different Discounts

Most car insurance companies offer the same basic packages, so it is important to find out if the areas where they differ can affect you. Start by listing your specific circumstances that may have an impact on your insurance rates. If you are a single parent in graduate school with two teenagers, then your teenagers could cause your insurance rates to spike. However, if all three of you are talented students, then you could qualify for a triple good student discount. Not all insurance companies offer this incentive, though, so it may benefit you to find one that does.

Different Coverage

In addition to the discounts available to you, you should also become familiar with exactly what types of coverage you get for your money. In most places, liability insurance is mandatory, but other types are not. However, you should not forgo additional coverage just because it is not required. The point of insurance is to protect you in the unlikely, but possible, event of an accident. Ask companies about their collision, medical payment, and comprehensive insurance rates to make sure you are protected.

Dare to Compare

Now that you understand why shopping for car insurance is worthwhile, it is time to start comparing rates. There are several major insurance companies, all of whom claim to provide the best protection to their customers. You could go to each of these companies’ websites and hunt down the fine print about their policies, or you could take a shortcut and save a bunch of time. Comparison tools like the one on can help you get an idea of what each company offers. This background knowledge will serve as an excellent starting point for the rest of your search.

State of Affairs

One critical point to keep in mind when shopping for car insurance is that insurance regulations, and therefore prices, vary by state. Be sure to become familiar with your state’s requirements and incorporate your findings into your analysis of different companies. Doing this research could make the difference between wasting your money and saving a bundle. Your aunt might rave about her experiences with a certain agency, but if she lives in Boston and you live in Walla Walla, her experience is not necessarily relevant to your needs.

Fortunately, state insurance information is readily available, and taking the time to learn more about how these regulations affect you can help you save money now and down the road. And we all want to be a little smarter and a little richer, right?

Make a Deal

Perhaps you are already happy with your coverage and do not want to go through the hassle of changing companies. One money-saving tactic is simply to call your insurance provider and ask for a lower rate. Say you have loved their services, but are considering switching to a more affordable company. Insurance companies are fiercely competitive, so many agencies will either lower your rates or improve your coverage to keep you as a customer. (Hint: you can also try to use this trick to get lower cable and internet rates!)

Save Money Now and Later

If you want to pay down your debts and enjoy financial freedom, then never lose sight of the fact that finding ways to cut expenses now will help you live a more fulfilling life in the future. Getting the best possible coverage and rates on your car insurance is not just about enjoying the short-term savings. It is also about being adequately protected should unwelcome circumstances arise.

Likewise, the benefits of saving money are not limited to the immediate reward of having more money on hand. You will also have more freedom down the road to spend money on donations, gifts, and rewarding experiences without sweating every penny. Educate yourself, compare service providers, and do everything in your power to get great protection at a great price.



My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

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