It pays to shop around for a cheap auto insurance policy. Whether your getting car insurance for the first time or looking for ways to save money on an existing car policy, take this advice from a veteran auto insurance agent.

Ways to Buy Car Insurance

There are many ways to buy car insurance. Choose the one that works best for your lifestyle. Here’s a look at the different options.

Online comparison tools

Online comparison sites work well for those who like the convenience of doing business online. You can quickly change coverage limits and other items to see how it will change your premium. If you’re a first-time car insurance buyer, you may not be able to get answers to your questions from a comparison site.

Direct insurers

You can get a premium quote online or by phone from many of the largest direct insurers. Additionally, you get the additional conveniences of apps and online tools to manage your account. This option is preferable for buyers who are familiar with car insurance, know what coverage limits they need and want, and need to get immediate coverage started.

Agents

Car insurance agents come in two types: captive agents and independent agents.

Captive agents work exclusively for a single insurance company in a local field office close to your location. When you need multiline coverage for your home and auto, a captive agent can help find valuable discounts for bundling your policies.

Independent agents represent multiple insurers. They can shop for the best rates from among several insurers. Many independent agents can also offer multiline coverage discounts. Choose an independent agent when you want personalized service and communication without the add-on features that may be of no value to you.

How to Find the Best Rate on Car Insurance

Here are some tips to help you find an auto policy premium at a price that fits your budget.

1. Consider local and regional insurers. In the U.S. the four largest insurers account for half of the auto insurance market. However, many highly rated regional insurers provide excellent coverage at good prices. You may even be able to find a specialty insurer with competitive rates if you need high-risk insurance.
2. No insurance company has the lowest rates overall. Rates vary between companies. You’ll find that one company has the lowest rates for policyholders with clean driving records while another may be the low-price leader for high-risk drivers.
3. Adjust your coverage limits and deductibles. If you have an older car, consider a minimum coverage policy and save money on the collision and comprehensive coverage. You can also reduce your premium by raising your deductible limit.
4. Shop for discounts. Most people are familiar with discounts for bundling home and auto policies, insuring multiple vehicles, remaining accident-free, having a clean driving record, and paying your premium annually or every six months. But there are also discounts for paperless billing, receiving electronic or online documents, owning a vehicle with specific anti-theft and safety features, and for memberships and affiliations.

Stay Informed About Auto Insurance

To have the right coverage with good rates is to stay informed about changes in the auto insurance landscape. As your needs change, always research the factors that affect auto policy costs before you renew your existing policy or purchase a new one.