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Best 5 Car Insurance Companies in Rhode Island 2020
Insurers calculate their rates based on a number of factors, including your age, your driving record, your ZIP code, and the make and model of your vehicle. And each company weighs these factors a little differently. The only way to know which one is going to offer you the best deal is to get a handful of quotes and to compare the coverage options and rates.
No one wants to pay more for car insurance than is necessary. The best way to determine whether your premium is fair is to shop around. Comparison shopping takes time, but can save you money and is the best way to find the best insurance company for you and your family.
Our Top 5 Picks for the Best Cheap Car Insurance in Rhode Island
These companies are chosen based on their high ratings for financial solvency from A.M. Best and their scores from J.D. Power’s recent customer satisfaction surveys. A.M. Best is a top financial-strength rating agency that measures a company’s long-term stability, and J.D. Power is a leading name in customer satisfaction reporting. These things should factor into your decision just as much as a low premium, if not more. No one wants an insurance company that drags its feet when it’s time to pay a claim or a rude claims representative.
The price differences among these companies is big. Progressive is easily the cheapest option at $1,656 a year, and Geico is $458 more. The latter ended up being more expensive because it requires you to buy coverage for medical payments and uninsured motorists. But even that is significantly cheaper than the $3,528 Allstate wants for minimum coverage. For that price, you could purchase significantly more coverage from Progressive.
Rhode Island’s Minimum Coverage Requirements for 2020
Rhode Island’s minimum coverage is pretty average compared with the rest of the nation. Residents are required to carry at least $25,000 of bodily injury coverage per person and $50,000 per accident, along with $25,000 of property damage liability coverage. You’ll often see this written as 25/50/25.
Shop Around: You Might Be Surprised to Find Something Better
Your risk of getting into an accident isn’t all that insurers care about; they also worry about you leaving them for another company. They have special algorithms designed to measure the likelihood of this by looking at your credit score, shopping habits and even your social media pages. This data tells them how likely you are to shop for a better rate. If they determine you’re unlikely to shop around, they raise your rates just enough not to alarm you — a strategy called “price optimization.”
You would think staying loyal would earn you a discount, but it may cost you instead. If insurers believe you’re complacent, they’ll raise your rates, expecting you won’t realize you’re paying more than you have to. On the other hand, people who frequently shop around are likely to get more competitive rates because their current insurer wants to hang onto their business. That’s why it’s best to shop around at least every year or two. The more you hunt for quotes, the harder your company has to try to keep you.
Rhode Island is one of the few states that has taken a stand against price optimization. In 2015, the insurance commissioner issued a bulletin stating that any insurer doing business in Rhode Island must remove non-risk-related factors from its premium algorithms within 60 days because this is in violation of state law that requires rates to not be “excessive, inadequate or unfairly discriminatory.” If you last purchased a policy before November 2015, you may want to take some time to look for a new policy to make sure your rates accurately reflect you as a driver and not your shopping habits.
If you are looking for new insurance, your circumstances could affect your policy. For example, if you or someone else on your policy is a new driver, you’re going to face higher-than-usual insurance rates simply because that driver’s ability and track record is unknown. Of course, over time, those rates will likely begin to drop, especially if you are a good driver. Many insurance agencies offer good driver discounts, so it pays to keep your record clean.
If you have a low credit score in the 580 to 669 range, you may have trouble getting a low insurance rate. This is because studies have shown that drivers in this demographic file larger claims, making them riskier to insure. However, like with new drivers, if you keep your record clean, you may qualify for a good driver discount despite your low credit score.