How can i make sure i am getting the best deal on my car insurance policy?

Here are eight things you can do to make sure you get good coverage at the lowest possible price. Don't assume that no company is the cheapest. Don't ignore local and regional insurers. Avoid comprehensive and collision coverage for an older car.

Prices vary from company to company, so it's worth comparing prices. Get at least three price quotes. You can call companies directly or access information on the Internet. Your state's insurance department can also provide price comparisons for major insurers.

The same dynamic is playing out across the country. Only California, Hawaii and Massachusetts prohibit insurers from using drivers' credit ratings to set premiums. Anywhere else, a low credit score will likely increase the price of your car insurance, and your zip code could multiply the damage. Insurers use a special “credit-based” insurance rating to set prices, but it's calculated much like the normal credit rating.

For example, you might want to remove property damage insurance for uninsured drivers from your policy if you already have collision insurance. However, if your car is leased or financed, you may also need to purchase collision insurance and comprehensive insurance. Other ways to get cheaper car insurance include taking advantage of discounts, improving your driving record and increasing your credit score. For example, the cheapest car insurance company when you were a teenager might not be the cheapest option for you 10 years later.

Insurance companies say they should be allowed to use credit ratings and zip codes to set the price of insurance, since these factors help them estimate the risk posed by insuring a driver. The best way to get cheap car insurance on your own at age 18 is to compare the quotes of several insurance companies and research the possible discounts you might be eligible for with each of them. That's cheap compared to other auto insurance companies in the country, which rank fourth among the 46 insurers compared by WalletHub. Increasing your deductible generally reduces your premium, so it's a good idea to choose the highest deductible you can comfortably afford if you want very affordable insurance.

The cheapest car insurance for new drivers under 21 years old is that of Travelers, USAA and Progressive, according to WalletHub's quote analysis. Nearly every state requires a certain amount of car insurance coverage, which you must purchase in order to drive legally. As an insurance buyer, you should check with your insurance company, agent or broker about possible discounts that may apply to you, such as those offered to the elderly, shared vehicles, low annual miles and the “good student” discount offered to young operators who meet certain academic requirements. And if your premiums are prohibitively expensive now, consider swapping your vehicle for a car that's cheap to insure.

The best way to get cheap car insurance at 18 years old is to add it to the parents' car insurance policy. These disparities were discovered in a study of nearly 100,000 insurance quotes from 10 of New York's top auto insurance companies. Large auto insurance companies spend billions on advertising every year, but smaller insurers may offer the cheapest premiums in some cases. No, you can't negotiate car insurance rates because the industry and prices are strictly regulated by each state.

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