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Are you in the market for car insurance? Navigating the myriad of options can be overwhelming and confusing. Whether you are a seasoned insurance shopper or a first-time buyer, this guide will walk you through everything you need to know about shopping for car insurance.
It’s more important than ever to shop around for car insurance, as rates and down payments to start your policy continue to rise.
From our data, the average initial quote for someone looking for basic, "liability only" coverage increased by 46% from $746 in January to $1087 in August 2023.
What’s more, we'll clearly demonstrate why our offerings at OCHO are so outstanding, if we do say so ourselves.
It’s important to know that OCHO is a marketplace that offers benefits that other marketplaces simply don’t.
At OCHO, we understand the challenges faced by the average American in affording insurance. To address this, we have introduced OCHO Pay - a solution that helps lower your down payment and make insurance more affordable. With OCHO Pay, 50% of our customers qualify for $0 down payment, while the remaining 50% benefit from reduced down payments, making it easier for you to protect yourself and your loved ones.
OCHO Pay spreads your down payment over twelve equal installments, tied to your paycheck cycle. This allows you to budget easily and build your credit score with each payment. We believe in making insurance accessible to everyone, and OCHO Pay is just one of the ways we're working towards a fairer system.
One of the most important reasons to compare car insurance quotes is to save money. Insurance rates can vary significantly from one provider to another, so by obtaining quotes from multiple insurers, you can identify the most affordable option for your unique needs. Additionally, comparing quotes allows you to assess the coverage options and benefits offered by different insurers, ensuring that you choose a policy that provides adequate protection.
Car insurance is not just a legal requirement in most states, it's also essential for protecting yourself, your loved ones, and your assets. Accidents can happen at any time, and having the right insurance coverage can provide financial protection and peace of mind. Whether it's covering medical expenses, repairing your vehicle, or compensating others for damages, car insurance plays a crucial role in safeguarding your financial well-being.
Obtaining car insurance quotes is a simple and free process that can be done online or by contacting insurance agents directly.
Online:
Individual insurance company, eg: Progressive, Nationwide, Geico
Many insurance companies offer free online quote tools on their websites. However, you will only be able to see that particular company, meaning to compare quotes, you will have to enter your information many times.
Websites that provide quotes from multiple companies can help you save time by allowing you to compare rates in one place. At OCHO, you can do all the comparisons, as well as:
Mobile App:
You can check out our app on the AppStore or Google Play (coming soon!). We've worked hard to make the process as pain free as possible, and you get the same benefits as if you applied on the website.
By Phone or In-Person:
Another option is to speak with a local insurance agent who can provide you with personalized quotes based on your specific needs. There are agents who work for a single insurance company, while independent agents work with multiple insurers, allowing you to compare quotes from different providers.
Some agents or brokers may prioritize selling policies that earn them bonuses, rather than offering the best policy for you. That's why it's crucial to work with an insurance comparison website or an agent who is transparent about the available policies.
Many insurance companies, agents, or brokers charge fees for their services. These fees can significantly impact the total amount you pay for your policy. It's important to understand and compare the fees charged by different insurance providers to ensure you're getting the best value for your money. At OCHO, we believe in transparency, and our small broker fee is spread out over 12 installments, making it more affordable for you.
Does Shopping for Car Insurance Hurt Your Credit Score?
Shopping for car insurance typically involves getting quotes from multiple insurance companies to compare prices and coverage options. When you request quotes, insurance companies may perform what's called a "soft inquiry" or "soft pull" on your credit report. Soft inquiries do not affect your credit score and are not visible to other lenders. These inquiries are used to provide you with accurate quotes and assess your risk level as a potential customer.
Soft inquiries for insurance quotes do not have a negative impact on your credit score. They are different from "hard inquiries," which occur when you apply for credit, such as a loan or credit card. Hard inquiries can affect your credit score, albeit usually by a small amount.
To read more about credit scores, check out our in depth blog here.
Saving money on car insurance is possible by employing various strategies. Here are some tips to help you get cheaper car insurance quotes:
Comparing auto insurance rates is crucial to finding the best deal. Insurance companies use different criteria to calculate rates, so obtaining quotes from multiple insurers ensures that you have a comprehensive overview of the market. By comparing rates, you can identify the insurer that offers the most affordable coverage for your specific circumstances.
Car insurance companies offer various discounts that can significantly reduce your premiums. Some common discounts include:
By taking advantage of these discounts, you can significantly reduce your car insurance premiums.
Adjusting your deductible amount can impact your car insurance rates. A deductible is the amount you pay out of pocket before your insurance coverage kicks in. By increasing your deductible, you assume more risk, which can result in lower premiums. However, it's essential to ensure that you can comfortably afford the deductible amount in the event of an accident or claim.
To obtain accurate car insurance quotes, you will need to provide certain information to insurers. Here is the information typically required:
Additionally, insurance companies may collect additional information, such as your driving history, past insurance claims, and credit score (in most states).
Comparing car insurance rates is essential to finding the best coverage at the most affordable price. Here is an overview of car insurance rates based on different factors:
Car insurance rates can vary significantly among different insurance companies. It is important to compare rates from multiple providers to ensure you are getting the best deal.
Car insurance rates can vary drastically by state due to factors such as local laws, accident rates, and population density. Premiums increased by a massive 88% in Florida from 2022 - 2023, due to hurricane-related damage to vehicles, but rates fell by -24% in Georgia.1
The type of vehicle you drive can also impact your car insurance rates. Insurance companies consider factors such as the vehicle's value, safety features, and likelihood of theft.
Age and gender can also influence car insurance rates. Younger and inexperienced drivers tend to pay more for insurance, while older drivers with a clean driving record may enjoy lower rates. Here is a comparison of average car insurance rates by age:
It is important to note that these rates are averages and can vary based on individual circumstances.
When comparing car insurance quotes, it is important to consider the following factors:
By considering these factors and comparing quotes, you can make an informed decision and choose the car insurance policy that best fits your needs and budget.
Shopping for car insurance doesn't have to be scary! By comparing quotes, maximizing discounts, and understanding your coverage needs, you can find the best car insurance rates that provide you with the protection you need.
Remember to review your policy periodically to ensure it still meets your needs and remains competitive in the market.
With the right information and a proactive approach, you can secure affordable car insurance that gives you peace of mind on the road.
We've shed light on why OCHO stands out among other marketplaces, offering benefits that go above and beyond the norm. Our commitment to lowering down payments, simplifying the quote process, safeguarding your data, and providing flexible payment options sets us apart. Apply today with us!
1 https://www.washingtonpost.com/business/2023/09/05/auto-insurance-claims-disasters/
2 https://www.bankrate.com/insurance/car/auto-insurance-rates-by-age/#age