Who hasn’t looked for the cheapest auto insurance company when searching for a new policy? Americans all over the country hope to stumble across the insurer that is going to provide great insurance at the absolute least inexpensive price possible. So the popular question is what is the cheapest auto insurance company? Unfortunately for all of those drivers who have been dedicated in their search, there is no one auto insurer that has been deemed the cheapest and we’ll explain why. But don’t despair! You can still get a great policy at an inexpensive price. It will just take some know-how and a few minutes.

The first step is to use the tool that we provide. It’s a great tool, and no one should search for a new car insurance policy without using it. “What is it? What does this great tool accomplish?” Glad you asked. Our tool will give you the ability to compare a number of quotes provided by different carriers by filling out one easy survey. The survey really is easy and quick because all of it revolves around you, the driver, and the car you wish to insure.

It starts when you enter in your local zip code in the appropriate box on our page. From there, you will need to provide accurate information as we ask things like age, gender, driving history, home residence, and details about your vehicle such as the year, make, model, and estimated miles driven. All of this information will help determine the rates you will pay and the quotes that will be given to you. The tool we provide is operated by a third party company that has developed a good standing relationship with insurers. They are able to make sure each customer gets the lowest price possible to insure their vehicle.

When you have finished entering in your information on our survey, you will then be provided with a list of at least four quotes from reputable companies. The companies are all local, and if you haven’t heard of them before we suggest doing some research on all of the companies that have provided you with quotes. We have more information within our site on how to research these companies, but we’ll go over it quickly here.

Knowing what you want from your insurer is important. If you don’t know what you want, you could wind up with something you don’t like, even though you’re using the cheapest insurance company. Think about things like customer service and how the company allows their agents to perform. Are they understaffed? Do you wait on the phone forever while trying to get information? Do the representatives have manners and treat you with respect? Also, the ability a company has to pay out claims should be considered. How long will they be around? How many days will it take them to pay for the accident? Are they having financial problems? These are only a few ideas to contemplate when choosing your company.

There are a few third party, non-biased companies who evaluate the performance of car insurance companies. They all have Websites that are easily accessed where consumers can find out more about the company in questions. JP Power reviews the insurer’s policy offerings, pricing, billing and payment, the ease of contacting the insurer, and other consumer’s overall experience in working with the company. Each category can receive up to five marks (five being the best). AM Best is another company that evaluates insurance companies, but they focus more on the financial status of the company. They give out grades — much like schools do — to each company. Any company with a rating of a “B+” or higher is considered “Secure” while anything lower deems it to be “Vulnerable.” This research can help when choosing between two or more companies who are offering the same (or close to) prices for a policy.

You might wonder why insurers charge different rates for the same policy. There are a few explanations that we will share with you. You must understand first that insurers only make a profit when they have more money coming into the company than going out. They pay all of their bills, claims, and their employees and then must have something remaining to be considered profitable. If a company begins to pay out more claims than usual and the amount they are paying has increased, they need to offset this by charging their customers more to increase the money coming in. This helps them continue to make a profit despite the higher number of claims filed and paid. The opposite is true as well; when companies aren’t paying out a high number of claims they can afford to keep their rates low for their customers.

Insurance providers also change the rates of their customers individually depending on their most recent policy period. If the driver has demonstrated a lack in safe driving by receiving tickets, accidents, or points on their record, their insurance premium will increase. Any time a driver files a claim, their insurance will definitely increase because the amount of profit the insurer has made has decreased compared to if the driver had not filed a claim. Remember, the company needs to have more money coming in than going out. A customer’s rates will stay the same or slightly decrease when they have demonstrated safe driving within the previous policy periods by not filing any claims or gaining any points on their record.

Also keep in mind that the price of your policy is determined by how much coverage you purchase. Automobile insurance companies will usually offer a variety of choices, but make sure you are getting the exact coverage you want. Compare the policy you desire among a number of companies to find the cheapest insurance company that will suit you best and don’t rely only on the cheapest policy price you find. You’ll want to make sure that in the time of an accident you have the best coverage possible that you can afford.

Again, we offer our comparison tool to everyone at no charge, and there is no obligation to purchase any of the policies either. However, if you find the policy that’s perfect for you, we do invite you to purchase it instantly online. We make finding cheap auto insurance companies easy so anyone can find them and make the most of their savings.