When shopping for more affordable insurance, are you overwhelmed by the sheer number of insurance choices available to you? Many other drivers are too. People have so many options that it can easily turn into a real difficult job to find the perfect company for you. If you've ever been there, you know that Palo Alto is an awesome place to live, but paying high insurance rates can make it hard for many residents to make ends meet.

A recent survey discovered that most insurance policyholders kept their coverage with the same insurance company for at least the last four years, and approximately 40% of consumers have never shopped around. With the average insurance premium being $1,390, California drivers can save up to 35% each year, but most undervalue the amount of money they would save if they swap their current policy for a cheaper one.

These tips will instruct you on the best methods to compare rates and how to save the most money. If you are insured now, you will definitely be able to find the best rates using this strategy. But California car owners can benefit from knowing how big insurance companies market on the web and use it to find better rates.

Auto insurance companies offering competitive prices in California

The auto insurance companies shown below can provide free quotes in Palo Alto, CA. If you want to find the cheapest auto insurance in California, we suggest you visit several of them to get the lowest price.

Insurance Rates for Popular Vehicles in Palo Alto
Make, Model, and Trim Level Annual Policy Premium 6-month Policy Premium Monthly Premium
Chevrolet Impala LS $1,680 $840 $140
Chevrolet Silverado LS Crew Cab 2WD $1,200 $600 $100
Dodge Ram Crew Cab TRX 4WD $1,832 $916 $153
Ford Edge Limited 2WD $1,306 $653 $109
Ford Escape Limited 2WD $1,208 $604 $101
Ford F-150 FX2 2WD $1,048 $524 $87
Ford Focus SE 2-Dr Coupe $1,312 $656 $109
Ford Fusion S 4-Dr Sedan $1,168 $584 $97
Honda Accord LX-S 2-Dr Coupe $1,366 $683 $114
Honda CR-V LX 4WD $1,102 $551 $92
Honda Civic LX 4-Dr Sedan $1,562 $781 $130
Jeep Grand Cherokee SRT-8 4WD $1,710 $855 $143
Nissan Altima 3.5 SR 4-Dr Sedan $1,302 $651 $109
Toyota Camry Hybrid $1,800 $900 $150
Toyota Corolla S $1,638 $819 $137
Toyota Prius $1,432 $716 $119
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Above prices assume married male driver age 30, no speeding tickets, no at-fault accidents, $500 deductibles, and California minimum liability limits. Discounts applied include homeowner, multi-vehicle, safe-driver, multi-policy, and claim-free. Rate information does not factor in garaging location in Palo Alto which can alter coverage rates significantly.

Auto insurance deductibles

The illustration below shows how choosing a deductible and can impact Chevrolet Silverado yearly insurance costs for each different age category. The information is based on a single male driver, full coverage, and no discounts are applied.

Chevrolet Silverado rates are for example purposes only. To get rates for your specific vehicle, click here.

Comparison of full coverage and liability-only policies

The illustration below visualizes the comparison of Hyundai Sonata car insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The rates are based on a clean driving record, no claims, $500 deductibles, married female driver, and no discounts are applied.

Hyundai Sonata rates are for example purposes only. To get rates for your specific vehicle, click here.

When to stop buying comprehensive and collision coverage

There is no set rule to exclude full coverage, but there is a broad guideline. If the annual cost of your full coverage insurance is more than 10% of the replacement cost of your vehicle minus the policy deductible, then you might want to think about dropping full coverage.

For example, let's say your Hyundai Sonata replacement value is $6,000 and you have $1,000 deductibles. If your vehicle is totaled in an accident, the most your company would pay you is $5,000 after paying your deductible. If you are currently paying more than $500 a year for full coverage, then it might be time to consider dropping full coverage.

There are some cases where dropping physical damage coverage is not recommended. If you still owe a portion of the original loan, you have to keep full coverage in order to keep the loan. Also, if you don't have enough money to buy a different vehicle if your current one is totaled, you should keep full coverage in place.

Annual premiums for males versus females

The chart below illustrates the difference between insurance costs for male and female drivers in Palo Alto. The premiums are based on no tickets, no at-fault accidents, comp and collision included, $1,000 deductibles, single marital status, and no discounts are applied to the premium on a Nissan Altima 2.5 S.

Nissan Altima rates are for example purposes only. To get rate quotes for your specific vehicle, click here.

Quote cheaper auto insurance with these tips

Many things are used when pricing auto insurance. Some are pretty understandable like an MVR report, although others are more obscure such as whether you are married and annual miles driven. It's important that you understand the different types of things that come into play when calculating auto insurance rates. When consumers understand what determines base rates, this helps enable you to make changes that may result in better auto insurance rates.

Lower-cost Palo Alto car insurance rates with discounts

Not too many consumers would say car insurance is affordable, but companies offer discounts that could help you make your next renewal payment. Many discounts should be triggered at the time of quoting, but occasionally some discounts must be manually applied prior to getting the savings.Cheaper car insurance with discounts

While discounts sound great, it's important to understand that most discounts do not apply to the entire cost. Some only apply to the price of certain insurance coverages like physical damage coverage or medical payments. So when it seems like you would end up receiving a 100% discount, that's just not realistic. Any qualifying discounts will help lower the cost of your policy.

For a list of insurers that can offer you the previously mentioned discounts in California, click this link.

Local Palo Alto auto insurance agents and auto insurance

A lot of people would prefer to sit down and talk to an agent and doing that can be a smart decision A good thing about getting online price quotes is you can get the lowest rates and still have a local agent. Buying from and supporting neighborhood agents is important especially in Palo Alto.

Find insurance agent in Palo AltoAfter completing this form (opens in new window), the coverage information is submitted to agents in your area that provide free Palo Alto auto insurance quotes for your auto insurance coverage. You won't even need to search for an agent since rate quotes are delivered to you. It's the lowest rates without the usual hassles of price shopping. If you need to get a rate quote from a particular provider, you would need to go to their quote page and complete a quote there.

Two different types of car insurance agents

If you need to find a good insurance agency, it's important to understand the different agency structures and how they differ in how they quote coverages. Insurance agencies in Palo Alto are considered either exclusive or independent (non-exclusive).

Independent Agents

These type of agents are appointed with more than one company and that enables them to quote your coverage through many companies and find you the best rates. To transfer your coverage to a different company, an independent agent can move your coverage and that require little work on your part. If you are comparing rate quotes, you need to get insurance quotes from a couple of independent agencies so that you can do a thorough price comparison. Most have the option of insuring with lesser-known insurance companies which may have better rates.

Exclusive Auto Insurance Agencies

Exclusive insurance agents can only quote rates from one company and examples are AAA, Allstate, State Farm, or Farmers Insurance. These agents are unable to provide rate quotes from other companies so keep that in mind. These agents are usually well trained on their company's products and that can be a competitive advantage. A lot of people use the same exclusive agent mainly due to the prominence of the brand and the convenience of having a single billing for all their coverages.

Finding the right insurance agency should depend on more than just the premium amount. The questions below may impact your decision as well.

Upon getting good responses to any questions you may have and a good coverage price, you have narrowed it down to an auto insurance agent that can be trusted to insure your vehicles.

A conclusion for your car insurance search

We just showed you a lot of tips how to compare car insurance auto insurance rates in Palo Alto. The key thing to remember is the more providers you compare, the more likely it is that you will get a better rate. Consumers could even find that the biggest savings come from a company that doesn't do a lot of advertising.

Cheap car insurance in Palo Alto is definitely available online and with local Palo Alto insurance agents, and you should compare price quotes from both to get a complete price analysis. Some car insurance companies do not provide internet price quotes and most of the time these small, regional companies provide coverage only through independent insurance agents.

As you prepare to switch companies, don't be tempted to buy lower coverage limits just to save a few bucks. In many instances, consumers will sacrifice liability coverage limits only to regret that they should have had better coverage. Your objective should be to purchase plenty of coverage at the lowest possible cost, but don't skip important coverages to save money.

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