Do Car Insurance Companies Price Match?

Last Updated on August 28, 2020

When you’re comparing car insurance quotes online, you might find one quote significantly lower than the competition. You may wonder: will other insurance companies price match?

Maybe you’re comparing car insurance quotes online. You’re happy with your current car insurance company, but you decide to explore what other options are available. You find a cheaper quote, but you don’t want to go through the hassle of making the switch. Will your current car insurance company match the price offered by the other insurance company? Do insurance companies match quotes?

Today, we’re going to answer these questions and explain how to get the cheapest rates on car insurance from any insurance company.

Car Insurance Is Typically Too Complicated to Price Match

Do Car Insurance Companies Price Match?First, it’s important to remember that buying a car insurance policy isn’t like buying a TV at Best Buy.

If you’re buying a TV, you’re buying a standard product. That TV is the same TV you can buy at Walmart, Costco, Best Buy, Amazon, and other major retailers. It has the same size, model number, and manufacturer. It’s the exact same TV. In this situation, you might find retailers willing to price match.

With car insurance, however, things are different. Insurance companies use advanced algorithms to calculate insurance prices. That means each insurance company charges different prices for different coverage.

Sure, your policy might be mostly the same between insurance companies. But small differences prevent it from being a perfect comparison. Companies use different risk algorithms, for example, to calculate your likelihood of making a claim.

To complicate matters further, car insurance companies don’t share information. They keep their rate-calculation algorithms highly confidential. That makes it even more difficult to compare car insurance prices.

Car Insurance Quotes are Highly Personalized

The other important thing to remember is that car insurance quotes are highly personalized. The car insurance company uses detailed personal information about you to calculate quotes.

The insurer will look at crime rates in your ZIP code, for example, to determine the risk of your car being stolen or vandalized. They’ll look at factors related to your lifestyle, driving history, and other personal qualities.

Maybe you’re comparing your own insurance information between companies. How much could your rates change? Why can’t a car insurance company price match for the same driver? Well, different insurance companies place a different emphasis on different things. Some car insurance companies punish younger, inexperienced drivers, for example, while rewarding older drivers with lower rates.

For all of these reasons, your car insurance quote is personalized to each unique insurance company. The policy you’re comparing at one insurance company is not the same as the car insurance policy you’re getting at another company.

You’re Asking a Car Insurance Company to Trust Their Risk Algorithm Over a Competitor’s Algorithm

Here’s what the heart of the argument boils down to – when you ask a car insurance company to price match, you’re asking that company to trust a competitor’s risk algorithm over its own risk algorithm.

Your insurance company’s risk algorithm considers all of your personal factors and then determines the likelihood that you’ll make a claim. If a competitor offers you a cheaper price on car insurance, then it’s likely that the competitor’s risk algorithm finds you to be a less risky driver. That competitor’s algorithm may be right – but your own insurance company is unlikely to trust it over its own risk algorithm.

Compare Car Insurance Quotes to Get the Best Rate

You’re not typically able to price match car insurance policies. However, that doesn’t mean you can’t get the best prices on car insurance.

Compare car insurance quotes today to get the best rate. The more quotes you compare, the more likely you’re going to get the best price on car insurance.

Various discounts are available even without price matching. You may be able to bundle insurance policies with a specific company, for example. Or, another insurance company might offer you a low mileage discount.

For all of these reasons and more, it’s crucial that you compare as many car insurance quotes as possible when shopping for car insurance.

Final Word – Do Car Insurance Companies Match Quotes?

Car insurance companies are unlikely to price match. Car insurance policies are too complicated and too personalized to make it a black-and-white comparison.

Nevertheless, it never hurts to ask your insurance agent about getting a discount on your car insurance policy when you find a lower rate from a competitor. However, don’t be surprised if your request is denied.

James Shaffer
James Shaffer James Shaffer is a writer for and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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