How to Find the Best Auto Insurance Policy

Basil Mahadeo
4 min readApr 2, 2022

Anyone who has just bought a car is most likely patting themselves on the back for their purchase. They can’t wait to get out on the road and show off their new wheels to their friends and family members.

However, the new car isn’t the only thing they need to think about. They also need to think about taking out a car insurance policy to protect themselves and others on the go.

Anyone in this position should make sure they know how to get the best auto insurance rates possible. Here are a few tips and tricks to do so.

Compare Auto Insurance Quotes

The first step to taking out a car insurance policy is to make sure to shop around for a plan. While it’s tempting to sign the first offer that arises for the sake of convenience, this can lead to higher rates and lower coverage.

Anyone wanting to take out an auto insurance plan needs to compare several different policies. That means looking into not only large, national companies but also checking out state and local plans to ensure you’re getting the best deal.

Know What Affects Insurance Premiums

Another pro tip for getting the best insurance premiums is to know what factors will cause them to increase or decrease. Knowing these factors can help you figure out what credits you can get to lower your rates.

A few examples of factors that affect car insurance rates include:

  • Location
  • Age
  • Marital status
  • Driving record
  • Credit history
  • Make and model of the vehicle

When shopping for car insurance, it’s important to keep all these factors in mind. Make sure to be upfront about this information in order to get the best possible rates and discover any discounts for good driving, great credit, or other factors.

Consider Coverage Limits

When many people look for insurance, they don’t understand that auto insurance consists of two types of liability coverage: property damage liability coverage and bodily injury liability coverage. Each state has its own minimum coverage, but you’re always welcome to choose higher amounts of coverage.

For shoppers on a budget, knowing the required minimums can help them make better choices about which plans to take out. Think about what assets and investments are available to cover any damages to help settle on an ideal coverage amount.

Choose a Bigger Deductible

In an auto insurance policy, the deductible is the out-of-pocket amount owed before insurance coverage kicks in. The higher the deductible is, the lower your rates will be because your insurance won’t need to pay as much to cover damages.

Individuals who want to get lower insurance premiums can choose a higher deductible. However, it’s important to be aware that in the event of an accident, there will be more money to shell out before the insurance takes over.

Think About the Age of the Vehicle

Many owners of older vehicles make the mistake of choosing comprehensive and collision coverage for their cars. That protects the vehicle from theft, natural disaster, car accidents, and more.

However, if the car is an older model, it might not be worth a whole lot. In fact, individuals may end up paying more in insurance premiums throughout the years than the car is actually worth.

Before signing up for an insurance policy that includes these addendums, think about the age of the vehicle. Older cars may not be worth covering with additional insurance, thus providing savings on the policy.

Look for Discounts

Just like certain factors affect the overall cost of insurance, some factors affect the overall discounts a person can receive. And, there are tons of different discounts that drivers can get on their insurance policies.

A few common discounts to look out for include:

  • Military and veteran discounts
  • Full-time student and alumni discounts
  • Good driver
  • Driver’s education credits
  • Federal employees
  • Multiple policy discounts
  • Multiple vehicle discounts
  • Annual premium discounts
  • Autopay discounts

In order to get the best rates on car insurance, ask about these discounts upfront. Many discounts can be mixed and matched to make for some fantastic savings on auto insurance.

Think About Third Party Ratings

While the cheapest insurance quote might be the most appealing, it’s not the only factor that matters when looking for insurance for a car. The company itself is also important for getting a great policy.

When looking for a car insurance policy, do some research on the company itself. Read what customers say about its responsiveness, payouts, and client support to get the best possible deal.

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Basil Mahadeo

Basil Dahana Ram Mahadeo is a Director of GBTI for the past twenty-two (22) years.