It is tempting to open two quotes and pick the lower number. But quotes can differ in limits, deductibles, add-ons, term length and fees, and a lower price often means less protection. A fair comparison takes a few extra minutes and can spare you an unpleasant surprise when you file a claim.
Start with identical information
Every insurer or agent should price the same situation. Give each of them the same details:
- All drivers in the household, with dates of birth and license numbers
- Each vehicle's year, make, model and VIN
- Where the cars are kept overnight and how they are used, such as commuting, pleasure or business
- Estimated yearly mileage for each car
- Accidents, tickets and claims for the past several years
- The same start date and the same policy term
If one quote is based on different facts, the price difference may disappear once the insurer checks your records. The Rate Checklist lists everything to have ready.
Line up the coverage, line by line
Put the quotes next to each other and check each coverage in turn. This table shows what to match and what to watch for.
| Coverage | Match this | Watch for |
|---|---|---|
| Bodily injury liability | Per-person and per-accident limits | Limits lower than your current policy |
| Property damage liability | Per-accident limit | A low third number on a split limit |
| Uninsured and underinsured motorist | Limits, and whether damage to your car is included where your state allows it | Coverage left off or set well below your liability limits |
| PIP or medical payments | Amount per person and any deductible | Different options chosen in a no-fault state |
| Collision | Deductible | A higher deductible hiding behind a lower price |
| Comprehensive | Deductible and how glass damage is handled | A separate or higher deductible for glass |
| Rental reimbursement | Daily amount and maximum number of days | Limits too low for a real rental |
| Roadside assistance | What services are included | Towing distance limits |
| Gap or loan payoff | Whether it is included, if you finance or lease | Missing on a car worth less than the loan |
| Term and price | Policy length, total premium and fees | A 6-month price compared with a 12-month price |
Not sure what a coverage does? Insurance Types Explained covers each one, and the Coverage Levels Guide explains how to read limits.
Put prices on the same footing
Some insurers write six-month policies and others write twelve-month policies. Convert both prices to the same period before comparing, and remember that a six-month price can change at the next renewal. If you plan to pay monthly, add any installment or service fees. If you plan to pay in full, check whether either insurer offers a discount for it. Then compare the total cost for the same period.
Read the exclusions and conditions
Two policies with the same limits can still behave differently. Ask for a sample policy or the policy form, and look at:
- Who is covered: whether household members and occasional drivers are included, and whether any driver is excluded by name.
- How the car is used: many personal policies exclude or limit coverage while you drive for a rideshare or delivery app. See Rideshare Insurance if that applies to you.
- Repair parts: whether repairs use original manufacturer parts or allow aftermarket parts.
- Custom equipment: limits on added wheels, audio systems and other accessories.
- Where coverage applies: how the policy treats rental cars and driving outside the United States.
Research the company, not just the quote
The real test of a policy comes when you file a claim. Before you choose, spend a few minutes on the company behind the price:
- Complaint records: many state departments of insurance publish complaint information about insurers, and the National Association of Insurance Commissioners (NAIC) offers a consumer lookup with complaint data. Compare complaints relative to each company's size rather than raw counts.
- Licensing: confirm the insurer and agent are licensed in your state with your state department of insurance.
- Financial strength: independent rating agencies grade insurers on their ability to pay claims.
- Claims process: ask how you report a claim, whether you can choose your repair shop and how you will be kept updated.
Why the cheapest quote is not always the best value
Here is an illustration of two quotes that look similar at a glance:
| Item | Quote A | Quote B |
|---|---|---|
| Liability limits | 50/100/50 | 100/300/100 |
| Uninsured motorist | 25/50 | 100/300 |
| Collision deductible | $1,000 | $500 |
| Rental reimbursement | Not included | Included |
If Quote A costs less, it may simply be buying less. To compare fairly, ask both insurers to price the same limits and deductibles. If one still costs more, you are paying for something else, such as the company's service or extra features. That can be worth it, but it should be a choice you make on purpose.
Before you switch: set the new policy to start on the day the old one ends, so you are never without coverage, and cancel the old policy only after the new one is in force.
Your next step
Use Compare Quotes to line up your offers side by side. If you are not sure which limits to match, the Coverage Calculator estimates them from your own numbers. Plans on Start Your Coverage include quote comparisons prepared with our tools.