Online auto insurance quotes: How it works

Your deductible and liability limits greatly affect your rates, and you can’t make an accurate price comparison unless you get a quote for identical coverage.

If you simply want to find the cheapest policy possible, you would look for liability coverage only, and in the smallest amount your state will accept. (The legally required minimum liability coverage amounts vary from state to state; you can choose “Legally Required Minimum” from among the options in CarInsurance.com’s online tool.) Bear in mind that some states require so little coverage that an accident might leave any other assets you have, such as a home or savings, vulnerable to lawsuits.

If you’ve moved or are a new driver, you can get an idea of what people in your area are paying by visiting CarInsurance.com’s Premium Index page.

Read more: How do I know what coverage to buy?

Insurers will verify your personal data if you decide to buy a policy, but getting an accurate comparison-shopping quote means you should be as complete and thorough as possible. Omitting an accident or ticket as you shop doesn’t mean the insurer won’t find out, and it will make your quote much less reliable. Here’s what they’ll ask about:

• The dates and circumstances of any accidents or speeding tickets in the last five years. Narrow it down to the correct year; the age of an accident or citation matters.
• You should have a general idea of your credit score and the number of miles you drive in a year.
• You'll also need to answer questions about your education, your job, your home and your marital status. Each of these is considered a risk factor and affects how much you pay.

Read more: How long do points stay on your license?

Once you’ve input your information and seen your comparison-shopping quotes (CarInsurance.com will e-mail you a copy), you can either buy a policy or experiment with changes that can improve your protection or save you more money. You can change the information used to calculate your quote by clicking on each of the tabs, seeing how your rate would change if you:

• add or drop a driver
• change jobs or schools and now drive fewer miles
• drop towing or rental coverage
• raise your deductibles on your comprehensive and collision coverages
• drop full coverage altogether

Read more: What can I do to lower my insurance?

When you’re ready to buy, conduct some due diligence on the insurer who’s offered you the lowest rate. Often more than 100 insurers do business in a state, but it’s likely you’ve heard of only a handful. That doesn’t mean you shouldn’t buy, but it does mean you should confirm the company’s financial strength.

The stronger the company, the more likely it is to be around to pay your claim in a timely manner and deal with any customer service issues that might arise.

Lastly, look for any pitfalls in the company’s payment plans. Some add large fees for monthly payments, or for those who choose not to allow direct withdrawal from a checking account.

Read more: What do financial strength ratings mean?