How to Compare Car Insurance Quotes

• Ask every company for the same coverages, limits and deductibles, and give each the same information. The NAIC calls this crucial for a fair comparison.
• Each insurer uses its own rating system, so prices for the same driver and car can differ between companies.
• State minimum liability limits are a floor. The NAIC says they are too low to fully cover you if you cause a serious accident.
• Get each quote in writing, ask which discounts apply, and ask how the price changes with different deductibles.
• Before you buy, confirm the company and agent are licensed with your state insurance department, and check complaint data and financial strength ratings.

Table: What to hold constant when collecting car insurance quotes, based on the NAIC's consumer guide.

Step 1: Decide which coverages and limits you want#

Choose the coverage first, so every quote prices the same policy. The NAIC lists the main parts of an auto policy as liability (bodily injury and property damage), collision, comprehensive, uninsured and underinsured motorist, and medical payments or personal injury protection (PIP).

• Required by law: state law sets the minimum liability coverage.
• Required by a lender: if you have a car loan, the Texas Department of Insurance says your lender will require collision and comprehensive coverage.
• Fault system: the NAIC says each state uses either a tort or a no-fault system, which shapes the coverage available. PIP is available in no-fault states.

Table: Two examples of state minimum liability limits, from the Texas and California insurance departments, October 2026. Other states set their own minimums.

The NAIC says these minimums are too low to fully cover you if you cause a serious accident, and that most insurers let you buy higher limits, often without much increase in your premium.

Step 2: Gather the same information for every quote#

Have the details ready before you ask, and give every company the same answers. The NAIC says an agent will usually ask for:

1. A description of your vehicle and how you use it.
2. Your driver's license number.
3. The number of drivers in your household.
4. The coverages and limits you want.

Check your records first. The NAIC says most insurers report auto claims to databases such as the Comprehensive Loss Underwriting Exchange (CLUE), that you have a right to a free copy of your CLUE report, and that you should correct any errors in it and in your credit report before you apply.

Step 3: Get quotes from more than one kind of seller#

Ask several sellers, because the NAIC says insurers sell in three ways:

• Independent agents represent several companies and can give you several quotes.
• Exclusive agents sell the products of one insurance company.
• Direct sales happen online, by mail or by phone.

The California Department of Insurance says you should always get several quotes. The NAIC also suggests asking your state insurance department whether it publishes premium comparison guides, and asking friends and family about the claim service they received.

Step 4: Get every quote in writing and line them up#

Ask for each quote and its coverage details in writing, then compare them side by side. The NAIC warns that if information you gave is wrong, such as claiming a clean driving record you don't have, the final premium will be higher than the quote.

Table: A side-by-side checklist for written car insurance quotes, drawn from NAIC and California Department of Insurance guidance.

Questions the NAIC suggests asking each agent or company:

• Are the agent and the company licensed by my state insurance department?
• What limits are available, and what coverage does state law require?
• What coverage will a lender require if I have a car loan?
• Should I buy comprehensive or collision coverage, and which deductibles can I choose?
• What doesn't my policy cover?
• How will my credit history and my driving record affect my premium?

Step 5: Ask about discounts and deductibles#

Ask every company the same discount and deductible questions. The Texas Department of Insurance says each company decides which discounts to offer and how much they are worth, and the NAIC says not all states offer all discounts.

• Discounts to ask about (NAIC): insuring your car and home with the same company, insuring more than one vehicle, safety and anti-theft devices such as airbags and anti-lock brakes, a defensive driving course (particularly if you are 55 or older), and membership of certain organizations or employers.
• Deductibles: the NAIC says a higher deductible means a lower premium; its example is that a policy with a $1,000 deductible costs less than the same policy with a $500 deductible. Choose a deductible you can afford to pay after a loss.
• California Good Driver rule: the California Department of Insurance says every insurer must offer Good Driver coverage, and a Good Driver's rates must be at least 20% lower than a non-Good Driver's at the same company.
• Usage-based programs: the NAIC says telematics programs track things such as miles driven, time of day, location and hard braking. Ask how the program can change your premium before you enroll.

Step 6: Understand what changes the price#

Your profile moves the price, and each insurer weighs it differently. The NAIC lists these factors:

• Your driving record, and that of other drivers on the policy, over the last three to five years.
• Your credit-based insurance score, where your state allows it. Some states restrict how insurers use it and several ban it.
• Your age, gender and marital status, and all insured drivers in your household.
• The type of vehicle, where you live, how you use the vehicle and your annual mileage.
• Your prior coverage. The NAIC says most companies charge more if you have no auto insurance when you apply.
• Your past claims, as reported to databases such as CLUE.

State rules differ. The Texas Department of Insurance says a company cannot turn you down or charge you more only because of your credit score.

Step 7: Check the company before you buy#

Confirm the company is licensed, has a reasonable complaint record and is financially sound.

1. License: the NAIC says it is illegal for unlicensed companies or agents to sell insurance, and business cards and websites are not proof of a license. Your state insurance department can confirm it; the NAIC lists every department.
2. Complaints: many state insurance departments publish a complaint index, which the NAIC says measures complaints relative to the size of the company. California publishes a consumer complaint study. The NAIC Consumer Insurance Search also shows company information.
3. Financial strength: the NAIC suggests checking ratings from independent agencies such as Standard & Poor's, A.M. Best and Moody's.

FAQ#

How many car insurance quotes should I get?#

Get several. The California Department of Insurance says you should always get several quotes and compare them before you buy, and the NAIC says different insurance companies charge different rates for the same coverage.

Why are my car insurance quotes so different?#

Each insurer prices risk its own way. The NAIC says each company adopts its own rating system and different companies charge different premiums for similar coverage. Quotes also differ if the coverages, limits, deductibles or details you gave are not the same.

What information do I need for a car insurance quote?#

The NAIC says an agent will usually ask for a description of your vehicle and how you use it, your driver's license number, the number of drivers in your household, and the coverages and limits you want. Give the same details to every company.

Is my state's minimum coverage enough?#

Often not. The NAIC says state minimum liability limits are too low to fully cover you if you cause a serious accident, and most insurers let you buy higher limits, often without much increase in your premium.

Does my credit affect my car insurance quote?#

It can. The NAIC says most insurers use a credit-based insurance score, some states restrict how insurers use it, and several states ban it. In Texas, the Department of Insurance says a company cannot turn you down or charge you more only because of your credit score.

How do I check that an insurance company or agent is licensed?#

Ask your state insurance department; the NAIC lists every department's contact details. The NAIC says business cards and websites are not proof that an agent is licensed, and an unlicensed company may not pay your claims.

Compare further#

• GEICO vs State Farm
• Allstate vs GEICO

Sources#

• NAIC: Auto insurance (consumer guide)
• NAIC: A Consumer's Guide to Auto Insurance (PDF, 2022)
• NAIC: Insurance Departments
• NAIC: Consumer Insurance Search
• Texas Department of Insurance: Auto insurance guide
• California Department of Insurance: Automobile Insurance