More Savvy Shoppers are Looking for the Best Rate on Auto Insurance

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Written by Sarah Sharkey Edited by Quiana Darden Reviewed by Amanda Clear

Updated December 20th, 2022

When it comes to owning a car, the costs can add up quickly. In addition to paying for the vehicle, you’ll be responsible for fuel, registration, and maintenance costs. And, of course, car insurance is another unavoidable expense to consider. 

Not surprisingly, owning a vehicle takes a big bite out of your monthly budget. But the good news is you can find ways to lower that overall cost. For some savvy drivers, this means shopping around for auto insurance. 

Let’s explore the trends associated with car insurance shopping. Plus, how these trends could help lower your costs.

Car Insurance Shopping Trends

According to the J.D. Power Quarterly Shopping List Report, the way drivers approach car insurance is changing. 

Here’s a closer look at the top two trends highlighted by the J.D. Power report. 

More Drivers are Shopping Around for Car Insurance

Although some consumers have been shopping around for car insurance since first getting their license, many others are just starting to discover this money-saving strategy. 

The J.D Power report found quotes for the second quarter of 2022 increased by an average of 11.8% across the country. The increased quote volume means more drivers are scoping out their options. 

Not only are drivers looking at different policies, but also, the number of quarterly switches increased by 3.6%. Presumably, many drivers who switched their insurance provider found a better deal on their policy costs or preferred the new company overall. 

More Drivers are Accepting Telematics for Savings

In some ways, technology can make our lives easier. Beyond that, harnessing the power of technology can sometimes lead to saving money. That’s exactly what the opportunity of telematics is providing some consumers. 

At its most basic level, telematics indicates that devices are communicating wirelessly with each other. But when this concept applies to car insurance, it can lead to significant cost savings for safe drivers or infrequent drivers. 

Essentially, an auto insurance policy that involves telematics includes a way for the auto insurance company to track your driving habits. The data collected usually includes your speed, driving time, mileage, braking habits, and turns. 

Auto insurance companies promote this telematics option in various ways. A few different spins include Progressive Snapshot, Allstate Drivewise, State Farm Drive & Save, and Travelers Intellidrive. In the past, many drivers strayed away from these programs due to privacy concerns and other issues. 

But in the first quarter of 2022, the adoption rates of telematics soared. According to the J.D. Power report, auto telematics adoption soared by 33%. One interesting twist in the study is that drivers with poor credit scores led to the increase in telematics program enrollment.

Ultimately, this means drivers are likely looking for ways to save more on their car insurance costs. With inflation hitting hard for households across the nation, many may have pushed their data privacy concerns aside in the name of potential savings to make ends meet. 

How These Trends Can Help You

As a driver trying to keep your car ownership costs in check, the findings in this report can be encouraging. People shop around, and some find a better option.

Here’s how these trends can help you. 

Take a Look at Insurance Companies Drivers are Leaving

When customers shop around, that might not necessarily mean they are unhappy with their insurance experience. But at the very least, they don’t want to overpay for car insurance with the company. 

Consider J.D. Power’s Loyalty Tracker to understand how different insurance companies stack up. As of the second quarter of 2022, the insurance companies with higher loyalty ratings include Amica, USAA, Erie, NJM, and MAPFRE. On the other end of the spectrum, companies with lower loyalty rankings include GEICO, National General, ACG, Progressive, and Kemper. 

If your current insurance company scored low loyalty points, it’s worth shopping around for a better deal. 

However, if your insurance company has higher loyalty ratings, it’s still a smart move to shop around. But comparing auto insurance quotes might confirm that you’ve already scored the best deal in town. 

Join the Ranks of Comparison Shoppers

Although it will likely only take a few minutes to shop around for this significant expense, many of us let this financial task fall to the bottom of our to-do list. Unfortunately, this could mean you are missing out on major savings opportunities. 

According to this report, thousands of shoppers chose to get multiple quotes – and for good reason. If they can tackle this easy chore of finding savings, then it’s a possibility for everyone. 

Telematics is a Viable Option for Many

Safe drivers have had the opportunity to lock in insurance savings with the help of telematics for years.

But many have avoided making the switch due to a suite of reasons. One of the most commonly cited complaints is the data privacy concerns associated with allowing an insurance company to track your driving movements. 

The significant spike in telematics adoption across the market is a promising sign that many drivers are embracing the potential savings that comes with allowing a device to track their driving habits. Although it’s certainly not the right option for everyone, the rising acceptance might prompt you to take a second look at these potential savings.

How to Get the Best Rate for Car Insurance 

Drivers everywhere are looking for ways to slash their costs. It’s essential for household budgets as the cost of other necessities rises. 

Here are some steps to lock in affordable auto insurance rates. 

Determine What You Need

Before you start shopping, take the time to determine exactly how much auto insurance you need. Much like our vehicles, car insurance isn’t one size fits all. 

A liability-only coverage policy that meets the minimum requirements for your state might be the most affordable option. But it might not be what’s best for your situation. For example, if you are financing or leasing a vehicle, you’ll be required to pay for comprehensive and collision insurance. 

Even if you own the vehicle outright, you could opt for more than bare-bones insurance coverage to protect your car’s value. In addition to the underlying policy, you might opt for add-ons like roadside assistance or glass coverage to protect your investment better.

Don’t Forget About Discounts

Discounts are a valuable way to tap into savings on auto insurance premiums. Although not all insurance companies offer the same options, most offer various opportunities.

A few of the most common discount options to look for include:

• Safe driver discount. You might score a safe driver discount if your driving record doesn’t include accidents, speeding tickets, or DUIs.
• Pay in full discount. Many insurance companies will give you a break on the rate if you can afford to pay for your entire premium upfront. 
• Multi-car discounts. Insuring multiple vehicles on the same insurance policy can lead to savings. 
• Safety feature discount: Some insurance companies may offer a discount if your vehicle has top-notch safety features. 

As you look for an affordable policy, don’t be shy about asking for a potential discount. Although the company might say no, a yes could lead to significant savings. 

Shop Around

With a clear idea of what kind of insurance policy you are looking for, it’s time to join savvy shoppers by getting quotes from multiple insurance companies. 

Each insurance company evaluates your situation a little bit differently. When companies weigh factors like location and driving history differently, they arrive at a unique premium. As the driver, you likely want to lock in a policy with the insurance company offering you the best rate. So, it pays to shop around for the best option. 

The good news is it’s easy to shop around for multiple quotes. For example, you can work with our free car insurance comparison calculator to help you find the best rate in minutes. The process starts by providing some information about your driving background and vehicle. Then the tool gathers available quotes for you. 

With this painless opportunity to shop around, you can lock in a reasonable rate without spending hours procuring quotes from individual auto insurance companies. 

FAQs

Which type of car insurance is the cheapest?

Typically, a minimum liability car insurance policy is the cheapest option. But you’ll need to decide whether or not this basic policy is best for your wallet and your lifestyle. 

Is driving without insurance illegal?

In most states, driving without the state’s minimum liability coverage is illegal. Depending on the state, driving without insurance coverage could lead to significant fines, jail time, or a revoked license. 

The Bottom Line

Auto insurance shoppers are getting more comfortable shopping around for better insurance policies. If you want to lock in savings for your budget, then consider comparing quotes from multiple companies to find the best deal. It’s easy to get started right now.  

Sarah Sharkey Auto Insurance Writer

Sarah Sharkey is a personal finance writer and auto insurance who loves diving into the details to help readers make savvy life choices. She has written for numerous publications, including Business Insider, SmartAsset, and Rocket Mortgage.