Is it bad to go through a bank to get auto insurance? (2025 Buyer’s Guide)
Is it bad to go through a bank to get auto insurance? Buying auto insurance through a bank can lead to higher costs. So, if you want to find the best rates averaging $38/mo, it can be a bad idea to go through your bank. Auto insurance offered by banks often limits options and may not include all available discounts.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
UPDATED: Feb 25, 2025
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Feb 25, 2025
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.
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Is it bad to go through a bank to get auto insurance? Yes, because banks typically have fewer options and may not offer competitive rates compared to traditional insurers. While banks sometimes provide added perks for customers, such as bundled discounts or deductible savings, these benefits may not outweigh the cost difference.
Purchasing insurance directly from companies like Geico or Progressive gives you access to better rates and a wider array of coverage options. For instance, some providers offer rates as low as $38 per month, significantly impacting your overall insurance costs.
Additionally, shopping online allows you to compare quotes from multiple insurers quickly, ensuring you find the best policy tailored to your specific needs and budget. By avoiding banks for auto insurance, you can secure better auto insurance coverage options.
Uncover affordable auto insurance rates from the top providers by entering your ZIP code above.
- Going through a bank to buy auto insurance greatly reduces your coverage options
- Shopping online is a convenient way to find the best insurance company for you
- It is bad to go through a bank to get auto insurance due to limited discounts
Can You Find Cheap Auto Insurance Through a Bank
If you’re looking for an inexpensive auto insurance company, is it bad to go through a bank for auto insurance? It certainly is if you want to find cheap insurance. One vendor may not have access to the insurance companies that fit your needs or your budget.
Now, don’t worry. You can find an insurance company that not only fits your budget but can provide you with great coverage as well online. To get an idea of what you could be paying for insurance, take a look at these average monthly rates offered by some major insurance companies:
Auto Insurance Average Monthly Premiums in Las Vegas, NV by Provider
| Insurance Company | Monthly Premium |
|---|---|
 | $175 |
 | $165 |
 | $180 |
 | $160 |
 | $190 |
 | $170 |
 | $155 |
 | $150 |
 | $180 |
 | $175 |
As you can see, there is quite a range of prices available on the market that can suit just about anyone’s budget. Explore our AAA auto insurance review which shows their competitive rates and comprehensive coverage options, making it an excellent choice for anyone looking for affordable auto insurance solutions.
Benefits of Getting Cheap Auto Insurance Through a Bank
Finding cheap auto insurance through a bank can be a convenient choice, especially for customers who already use the bank’s services. Many banks that offer auto insurance provide competitive rates and unique benefits, such as a Progressive deductible savings account offered by a bank, which helps reduce your deductible over time based on good driving behavior.
Additionally, auto insurance available through a bank may include discounts if you have existing loans or accounts with that institution.
Banks like Security Bank’s auto insurance options offer flexible coverage tailored to individual needs. While auto insurance offered by a bank might not always be the cheapest compared to traditional insurers like Progressive or Geico, the convenience of managing your finances and insurance in one place can be beneficial.
It’s essential to compare policies to find the best deal, but for many, the added advantages of using their bank’s services can make it a suitable option.
Read more: Is it a bad idea to pay all at once on auto insurance?
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Getting Insurance Online vs. Getting Insurance Through a Bank
Shopping for auto insurance online allows you to explore options and research companies without pressure. It offers the convenience of comparing quotes at any time and often lets you finalize your purchase directly on the website.
In contrast, getting insurance through a bank usually requires scheduling appointments and speaking with a representative, which can be less convenient and involve extra steps.
Purchasing auto insurance through a bank typically restricts your options and can result in higher costs compared to getting coverage directly from insurance companies.
Brad Larson Licensed Insurance Agent
So, is it bad to go through a bank to get auto insurance? It’s not necessarily a bad option, but it may be less efficient than shopping online, which typically offers a more streamlined experience.
Additionally, knowing whether a bank is safe is crucial, as a bank’s financial stability can impact the reliability of its insurance products. While banks can provide auto insurance, exploring online options might lead to better results and savings.
Read more: Allstate vs. Farmers: Best Auto Insurance
Reasons to Consider Getting Auto Insurance Through a Bank
When considering getting insurance online vs. getting insurance through a bank, many drivers look for auto insurance that is ready to go. Banks can often provide the best type of insurance coverage for a car available through a bank, ensuring that drivers have quick access to necessary protection.
Understanding the importance of having auto insurance is crucial, as it protects against financial losses from accidents and liabilities.
There are several reasons people buy auto insurance from banks. Banks usually offer competitive rates and valuable perks, making them appealing choices for insurance.
Moreover, it is advisable to purchase insurance from a bank if you already have accounts there, as this can result in discounts or bundled services. Ultimately, whether you choose to get insurance online or through a bank, it’s important to evaluate your options to find the best coverage for your needs.
Check out our comparison of Geico vs. Nationwide: Best Auto Insurance, where we break down coverage options and rates to help you choose the right auto insurance for your needs.
How Can Drivers Lower Auto Insurance Rates by Using a Bank
To lower your auto insurance rates, explore the discounts available to you. Many insurers, including Nationwide Insurance and State Farm, offer discounts for factors like having anti-lock brakes or being a good student.
If you’re considering using a bank for insurance, check the discounts they provide as well. Comparing these to those offered by major insurance companies can help you find the best options for reducing your rates.
Auto Insurance Discounts Available by Company and Discount Amount
| Discount Name |  |  |  | | | | | | |  |
|---|---|---|---|---|---|---|---|---|---|---|
| Adaptive Cruise Control | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Adaptive Headlights | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Anti-lock Brakes | 10% | ✓ | ✓ | 5% | 5% | 5% | ✓ | 5% | ||
| Anti-Theft | 10% | ✓ | 23% | 20% | 25% | ✓ | 15% | |||
| Claim Free | 35% | ✓ | ✓ | 26% | ✓ | 10% | ✓ | 15% | 23% | 12% |
| Continuous Coverage | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 15% | ✓ | ||
| Daytime Running Lights | 2% | ✓ | 3% | 5% | 5% | ✓ | ✓ | |||
| Defensive Driver | 10% | 10% | ✓ | ✓ | 10% | 5% | 10% | 5% | 10% | 3% |
| Distant Student | 35% | ✓ | ✓ | ✓ | ✓ | 10% | ✓ | 7% | ||
| Driver's Ed | 10% | ✓ | ✓ | ✓ | 10% | ✓ | 10% | 15% | 8% | 3% |
| Driving Device/App | 20% | 40% | ✓ | ✓ | 30% | 40% | 20% | 50% | 30% | 5% |
| Early Signing | 10% | ✓ | ✓ | ✓ | ✓ | 8% | ✓ | ✓ | 10% | 12% |
| Electronic Stability Control | 2% | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | |
| Emergency Deployment | ✓ | ✓ | ✓ | 25% | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Engaged Couple | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Family Legacy | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 10% |
| Family Plan | ✓ | ✓ | ✓ | ✓ | ✓ | 25% | ✓ | ✓ | ✓ | ✓ |
| Farm Vehicle | 10% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||
| Fast 5 | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Federal Employee | ✓ | ✓ | 12% | 10% | ✓ | ✓ | ✓ | ✓ | ||
| Forward Collision Warning | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | |
| Full Payment | 10% | ✓ | ✓ | $50 | ✓ | ✓ | ✓ | 8% | ✓ | |
| Further Education | ✓ | ✓ | 10% | 15% | ✓ | ✓ | ||||
| Garaging/Storing | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 90% | ||
| Good Credit | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||||
| Good Student | 20% | ✓ | 15% | 23% | 10% | ✓ | 25% | 8% | 3% | |
| Green Vehicle | 10% | ✓ | 5% | ✓ | 10% | ✓ | ✓ | ✓ | 10% | ✓ |
| Homeowner | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | 3% | 5% | ✓ | |
| Lane Departure Warning | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Life Insurance | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Low Mileage | ✓ | ✓ | ✓ | 30% | ||||||
| Loyalty | ✓ | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | |
| Married | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||||
| Membership/Group | ✓ | ✓ | ✓ | 10% | 7% | ✓ | ✓ | |||
| Military | ✓ | ✓ | 15% | 4% | ✓ | ✓ | ||||
| Military Garaging | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 15% |
| Multiple Drivers | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Multiple Policies | 10% | 29% | ✓ | 10% | 20% | 10% | 12% | 17% | 13% | |
| Multiple Vehicles | ✓ | ✓ | 25% | 10% | 20% | 10% | 20% | 8% | ||
| New Address | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| New Customer/New Plan | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| New Graduate | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| New Vehicle | 30% | ✓ | ✓ | 15% | ✓ | 40% | 10% | 12% | ||
| Newly Licensed | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Newlyweds | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Non-Smoker/Non-Drinker | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Occasional Operator | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Occupation | ✓ | 10% | 15% | ✓ | ✓ | ✓ | ||||
| On-Time Payments | 5% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 15% | ✓ | |
| Online Shopper | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | 7% | ✓ | ✓ | ✓ |
| Paperless Documents | 10% | ✓ | ✓ | ✓ | 5% | $50 | ✓ | ✓ | ✓ | |
| Paperless/Auto Billing | 5% | ✓ | ✓ | ✓ | $30 | ✓ | $20 | 3% | 3% | |
| Passive Restraint | 30% | 30% | 40% | 20% | ✓ | 40% | ||||
| Recent Retirees | ✓ | ✓ | ✓ | ✓ | 4% | ✓ | ✓ | ✓ | ✓ | ✓ |
| Renter | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Roadside Assistance | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Safe Driver | 45% | ✓ | 15% | ✓ | 35% | 31% | 15% | 23% | 12% | |
| Seat Belt Use | ✓ | ✓ | ✓ | 15% | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Senior Driver | 10% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||
| Stable Residence | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Students & Alumni | ✓ | ✓ | ✓ | 10% | 7% | ✓ | ✓ | ✓ | ||
| Switching Provider | ✓ | ✓ | 10% | ✓ | ✓ | ✓ | ✓ | |||
| Utility Vehicle | 15% | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||
| Vehicle Recovery | 10% | ✓ | ✓ | 15% | 35% | 25% | ✓ | 5% | ||
| VIN Etching | ✓ | ✓ | ✓ | ✓ | 5% | ✓ | ✓ | |||
| Volunteer | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Young Driver | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | $75 |
Furthermore, to lower auto insurance rates by using a bank, drivers should consider options offered through banks and their insurance partners. For instance, Geico Gap insurance coverage protects against financial loss in the event of a total vehicle loss, while the USAA premier driver discount program provides savings for qualified drivers.
Additionally, various discounts can help reduce rates further, such as the Liberty Mutual defensive driving course discount offer, which rewards safer driving. Comparing options like Nationwide vs Amica allows drivers to find the best coverage and discounts. By leveraging these resources, drivers can effectively lower their auto insurance rates while ensuring adequate coverage.
Read more: MetLife Auto Insurance Review
Is it Bad to go Through a Bank to Get Auto Insurance: What You Need to Know
If you’re looking for cheap auto insurance that also provides great coverage, you should avoid purchasing insurance through a bank. Shopping online allows you to peruse the entire insurance market.
You can also relax when you shop online because you won’t face any pressure from a salesperson to make a hasty decision. Take your insurance coverage into your hands by choosing the insurance company that works best for you.
GTBank customers can now get their third-party Auto Insurance by dialing the USSD code. It’s that simple! Dial *737*50*Amount*427# to get insured today.
Watch the video for full details and send a dm for more inquiries.#LACxGTB #AutoInsurance #CarInsurance pic.twitter.com/HWte3JMreu— Leadway Assurance (@LeadwayInsure) March 23, 2021
When seeking car insurance provided by a bank, it’s essential to assess the bank’s safety by reviewing its ratings and customer feedback. Understanding the types of bank accounts that are not insured can also impact your decision. Additionally, be aware of the minimum income required to get car insurance in the U.S., as this varies by provider.
Timing matters, so knowing the best month to purchase car insurance from a bank can help you save money. Certainly, a car insurance review offers valuable insights into policy options and customer experiences. By considering these factors, you can make informed choices for better coverage and savings.
Start saving on your auto insurance by entering your ZIP code below and comparing quotes.
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Frequently Asked Questions
Is it possible to obtain car insurance through your bank?
Yes, it is possible to obtain car insurance through your bank. Many banks offer auto insurance products as part of their financial services, allowing customers to manage their banking and insurance needs in one place. However, comparing rates and coverage options with other providers is essential to ensure you get the best deal.
Is it advisable to purchase car insurance online?
Many drivers recommend purchasing car insurance online. Online platforms often provide a more streamlined experience, allowing you to quickly compare multiple quotes, coverage options, and discounts. This method can help you find better rates and tailor your policy to your needs. Get fast and cheap auto insurance coverage today with our quote comparison tool below.
Do banks provide options for auto insurance?
Yes, many banks offer auto insurance options. They may partner with insurance companies to offer various policies, including coverage types, discounts, and bundling options. However, it’s wise to shop around and compare these offerings with those from dedicated insurance providers.
Read more: Is it a bad idea to have an auto insurance driver monitor?
Why do banks require car insurance, and does this affect getting insurance through a bank?
Banks require car insurance to protect their financial interests, especially when you take out a loan for a vehicle. This requirement can affect getting insurance through a bank since they may have specific policies or providers they work with, ensuring that you meet their lending criteria.
Is it okay not to pay for car insurance when considering options from a bank?
No, it is not okay not to pay for car insurance, regardless of whether you are considering options from a bank. Car insurance is a legal requirement in most states, and failing to pay can result in penalties, including fines and suspension of your driving privileges.
Is car insurance required for a car loan, and how does this relate to banks?
Yes, car insurance is typically required for a car loan. Banks want to protect their investment, so they mandate borrowers to have insurance coverage. This requirement helps safeguard the borrower and the bank in case of accidents or damage. Discover our analysis of Liberty Mutual vs. Travelers auto insurance, which outlines essential features and benefits to help you choose the perfect coverage for your needs.
What happens if I stop paying my insurance, particularly through a bank?
If you stop paying your insurance, particularly through a bank, your coverage may be canceled, and you could face penalties. The bank may also take steps to protect its interests, including purchasing forced-placed insurance, usually at a higher cost, to cover the vehicle.
How long do I have to cancel insurance after renewal if it’s from a bank?
Typically, you have a grace period to cancel insurance after renewal if it’s from a bank. This period can vary by provider, but it usually ranges from 10 to 30 days. It’s crucial to check your policy terms to understand the exact timeframe and potential cancellation fees.
What happens if the insured person dies during the grace period, especially with bank insurance?
If the insured person dies during the grace period, especially with bank insurance, the policy may still pay out, depending on the specific terms and conditions of the policy. Typically, the insurer will honor the claim, but reviewing the policy details is essential to understand how it applies in such situations.
Read more: Is it bad to send accident photos to insurance companies?
What are the three benefits of having insurance when purchased through a bank?
Three benefits of having insurance purchased through a bank include:
- Convenience: You can manage both banking and insurance needs in one location.
- Bundling Discounts: Some banks offer discounts for bundling services like auto insurance with other products.
- Financial Stability: Working with a bank can provide peace of mind regarding the insurer’s financial stability.
Enter your ZIP code below to compare auto insurance rates.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.