Do you know if you're getting a good car insurance rate?  

 

Maybe you got car insurance a few years ago and you have just been paying the bill every year since then, never stopping to think about whether you can get insurance cheaper elsewhere.

 

Or maybe you know you could get it cheaper elsewhere, but you're too lazy to look into it.

 

I get it. Shopping for car insurance is overwhelming. There are a ton of types of coverage, a ton of different amounts for those coverages, and a ton of insurance providers. It feels easier to just stick with your current provider and not question it.

 

BUT! If you just get insurance and pay it for years and years- you could be getting screwed over. Companies love to raise your prices every year because they know most people are too lazy to shop around and get a lower price.

 

Thankfully, you're smarter and less lazy than the average consumer. You're willing to shop around and get a lower price. (riiiight?)

 

I promise, once you get researching, it isn't that hard. I bet it takes you less than 4 hours, from start to finish, to get a new car insurance provider. Here is an easy way to do it!

 

 

1. Learn about coverage types. (1.5 hours)

When I first signed up for my own car insurance policy, I had absolutely ZERO idea what all the coverage types meant. It overwhelmed me for a solid 3 weeks until I finally took the plunge to start researching. And surprise! It really wasn't that bad once I started looking into it.

 

This article by MoneyNing is a pretty good overview of the different types of coverages that you'll encounter when shopping for car insurance.

 

Another good thing to do would be to google "[[your state]] car insurance requirements". This will probably take you to your state's DMV website, and you can learn more about what coverage amounts are required for your state. (not all states require the same things)

 

One important thing I learned in my searches is that some types of coverage may not make sense to purchase if you have an older car.

 

I'm never going to recommend what coverages you should get, but just know that if you have an older car, you should do a little research to decide if you want to pay for things like Collision Insurance... if you have enough saved up to repair or replace your car, it might not make sense to have that insurance.

 

 

2. Find at least 3 car insurance providers in your area. (15 minutes)

Google "car insurance + [your city]" and see which providers pop up. Pick (at least!) 3 companies that you would be comfortable buying insurance through.

 

Or you can use a service like Esurance.com -- you plug your info in once and get a bunch of quotes from different companies. I wasn't a huge fan of that service- I was getting mailed (who mails things anymore?) quotes for WEEKS after I used that site.. ugh. But it is an easy way to see what providers are out there!

 

 

3. Get some quotes. (1.5 hours)

Now go through your list of companies and get a quote for your desired coverage amounts. Most companies will have a quick quote option on their site where you can plug in a few details about yourself, your car, and the amounts of coverage that you want, and you'll get a quote quickly. Or you can call and do it over the phone!

 

 

4. Pick one. (15 minutes)

Compare the quotes that you get and pick one provider to go with.

 

 

5. Repeat as necessary whenever someone tries to jack up your prices!

There are SO many insurance providers out there-- there's no need to stick with one company if they raise your prices after a year or two of being a customer! Now that you know how, you can just shop around and switch providers to get a lower rate :)

 

 

When is the last time you shopped for car insurance?

I got a new provider last year when we moved to New York- it's SO much cheaper to insure a car up here! But it was a bummer because I had to admit that I had gotten a speeding ticket... womp womp.