Most people choose the big names when buying car insurance, thinking they will get the best deals. While you will likely get a good deal from big names, it is not always the case.

An excellent way to find a good deal on your car insurance is by understanding exactly how insurance works. That way, you will always know whether you are having a good or a bad deal and when you need to change your insurer.

Four Tips to Keep in Mind When Looking for the Best Deal

1. Check Out the Average and Cheapest Car Insurance Costs in Your State

The first thing to do when determining if you are getting a good deal is to research the average rates in your state. For example, if you live in Ohio, the average rate will be $1,000 and $336 for full and minimum coverage, respectively. If you are paying more than the average rate, you probably are having a bad deal.

You will also have to consider the lowest rates. However, cheap can be expensive, so you don’t want price to be the only factor you consider when choosing an insurer. Leveraging online comparison tools is best when looking for the cheapest yet reliable insurance providers.

For example, if you are looking for competitive rates in Ohio without compromising on the quality of service you get for your car insurance, online resources like Marketwatch can be of much help.

2. Excess

An excess is an amount you pay an insurer when making a claim, and different insurers will have different approaches to excess. Insurers apply this amount as a way of preventing claims for minor damages.

Some insurance companies have a compulsory excess, which is not up for negotiations. Others have a voluntary excess where you can negotiate the excess in exchange for lower premiums. Irrespective of an insurance approach to excess, a good deal should have reasonable terms, so it is best to compare companies in terms of their policy on excess.

3. Discounts

Most insurance companies offer discounts to lower premiums, but there is no standard regarding the discounts an insurer can offer. Some applicable car insurance discounts include good driver discounts, car safety discounts, carpooling discounts, good student discounts, and defensive driving skills discounts, among others.

Different insurers will have varying discounts, so you may want to check out what insurer offers the best discounts based on what you qualify for. You may get a poor deal if your insurer doesn’t provide most of the abovementioned discounts.

4. The Insurer’s Reputation

An insurer may have the best deal on paper, but their reputation suggests otherwise. So it helps to research a company before settling for one. One way of determining an insurer’s reputation is by asking around. It is unlikely that you will not have a family member, friend, or workmate that has the same insurer whom you can ask about their experiences with the company.

Besides referrals from close acquaintances, you can check their ratings and reviews on credible websites. If they have a review section on their website, which every credible company should, you may want to check out what other claims are saying about the company.

Social media is the other way to check out an insurer’s reputation. If they have many negative comments, you probably will not get a good deal, especially if the negative comments relate to how they handle claims. If there isn’t much you can gather about a company online, avoid them.