Is it a bad idea to go through a bank to get auto insurance?

It is bad to go through a bank for auto insurance if you want to find affordable auto insurance that best suits your needs. Shopping through one vendor drastically limits your options, but shopping online can place all of the insurance marketplace at your fingertips. You can also reduce your auto insurance rates by making sure every discount you qualify for is applied to your quotes.

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Chris Tepedino is a feature writer that has written extensively about auto insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and Cinncinati.com. ...

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Reviewed by Rachael Brennan
Licensed Insurance Agent

UPDATED: Aug 26, 2021

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Can't-Miss Facts

  • 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
  • Discounts can help drivers reduce their insurance rates

When looking to obtain affordable auto insurance, is it bad to go through a bank for auto insurance? If you want a wide variety of options and better pricing, then yes, it is. Going through one vendor to purchase insurance greatly limits your options.

Free auto insurance quotes can be found online. You can choose the best insurance company for you from the comfort of your home and compare rates and coverage options at your leisure.

Is it bad to go through a bank for auto insurance? Don’t wait to find an insurance company that best suits your needs. Enter your ZIP code to receive free quotes right now.

Can drivers 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:

Average Monthly Auto Insurance Rates by Company
CompaniesAverage Monthly Rates
Allied$38
Allstate $94
Farmers $80
Liberty Mutual$94
State Farm $90
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As you can see, there is quite a range of prices available on the market that can suit just about anyone’s budget.

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Why should drivers shop for insurance online instead of buying through a bank?

Shopping for auto insurance online provides relief from any pressure you may may feel when you’re face to face with a salesperson. You can take your time when considering your options and conduct more research on different insurance companies.

Online shopping is also incredibly convenient. In today’s world of hustles and side gigs, it can be hard to find the time to connect with an insurance company during regular business hours. When you shop online, though, you can investigate different policies at any time, day or night.

Even better, some companies let you complete the buying process online as well. For example, once you receive a quote that you’re happy with, you can submit your initial payment online to finalize your purchase.

Of course, some companies will require you to call in to get your policy started.

How can drivers lower their auto insurance rates?

If you want to obtain lower rates, see what kinds of discounts you qualify for when you’re shopping for auto insurance online.

Nationwide Insurance, State Farm, and many other companies offer a wide variety of discounts, for everything from having anti-lock brakes to being a good student. Take a look at these discounts offered by other major companies to see how you can lower your auto insurance rates.

Auto Insurance Discounts Available by Company and Discount Amount
Discounts21st Century Discount AmountAAA Discount AmountAllstate Discount AmountAmerican Family Discount AmountAmeriprise Discount AmountAmica Discount AmountCountry Financial Discount AmountEsurance Discount AmountFarmers Discount AmountGeico Discount AmountLiberty Mutual Discount AmountMetLife Discount AmountNationwide Discount AmountProgressive Discount AmountSafe Auto Discount AmountSafeco Discount AmountState Farm Discount AmountThe General Discount AmountThe Hanover Discount AmountThe Hartford Discount AmountTravelers Discount AmountUSAA Discount Amount
Adaptive Cruise Control and/or Headlights----------5%--------3%--
Anti-lock Brakes--10%-3%5%-5%-5%5%5%5%-5%-5%8%5%3%--
Anti-Theft--10%-3%25%10%25%-25%20% off of comprehensive portion of policy.10% -- this discount factors in features such as VIN etching and vehicle recovery;
one anti-theft discount applies.
25%; combined with vehicle recovery discount.---15% discount off of comprehensive coverage; higher discount with "engine cut-off."8%; one total anti-theft discount applies; if vehicle recovery, a higher discount applies.5%3%--
Claim Free--35%----25%-26% for going five years without an accident.Awarded "accident free" on account for lower rating.20% if claim/violation free:
"Superior Driver"
3+ yrs=12%
"MetRewards"
5+ yrs 20%
AND
save $50 each claim-free year up to $250 (off deductible).
10%-10% if you go six months without filing a claim;
one safe driver/claim free discount applies.
20% "Safeco Safety Rewards" if you have no at-fault accidents in the last 36 months,
no more than 1 point on your license, and
no DUI in the last ten years; one safe driver/claim free discount applies.
15%; must have State Farm for at least three consecutive years without an accident.-15%-23%; must be accident and violation free to get the "Safe Driver" discount listed below;
must be accident and violation free to qualify:
23% - 5 years
10% - 3 years;
one safe driver/claim free discount applies.
12%; "Premier Driver Discount"
4%-12%, depending on driving record;
12% is for being accident and violation free for five years; one safe driver/claim free discount applies.
Not available in HI.
Continuous Coverage-----3%-------No gaps or cancellations;
discount depends on how long you have been consistently insured.
10% for going six or more months with no more than a 30-day coverage gap.7% if you have been with Safeco or previous provider for one year or longer; five or more years gets you the highest discount.--10%; discount applies at each renewal.-15%-
Daytime Running Lights--2%------1%5%5%5%-5%---5%3%--
Defensive Driver5%-10%10%-5%5%10%--10%7%5%10%10%5%5%8%5%10%10%3%
Distant Student--35%---------10%--15%--5%3%7%-
Driver's Ed--10%--5%10%---10%10%-10%10%5%15%8%5%3%8%3%
Driving Device/App--20%40%---25%--30%15%40%20%-30%50%--10%30%5%
Early Signing--10%---10%10%---15%8%--8%----10%12%
Electronic Stability Control--2%--5%----5%-----------
Emergency Deployment---------25%------------
Engaged Couple------10%---------------
Family Legacy-----5%---------------10%
Family Plan------25%-----25%------5%--
Farm Vehicle--10%-------------------
Fast 5-------5%--------------
Federal Employee---------8%10%-----------
Forward Collision Warning-----8%----5%--------3%--
Full Payment--10%--4%-10%--$5---5%15%-8%15%20%7.5%-
Further Education-------15%--10%-15%---------
Garaging/Storing---------------------90%
Good Credit------------"Financial Stability"
gets you a lower rate. You must also have stable residence.
-------
Good Student--20%--10%25%10%-15%22.5%15%10%-10%15%25%8%5%3%8%3%
Green Vehicle--10%-----5%-10%--------3%10%-
Homeowner-----5%12%----2%5%-10%10%3%5%5%-5%-
Lane Departure Warning-------------Safety features get automatic discounts applied when VIN entered in system. --------
Low Mileage-----10%-15%-------20%30%-----
Loyalty-----5%------5%--7%---5%--
Married--------------5%-------
Membership/Group-7%--15%-----10%-7%------20%--
Military-------25%-15%4%15%--25%-------
Military Garaging---------------------15%
Multiple Drivers-------------------5%--
Multiple Policies--10%--15%25%--10%20%10%10%12%-15%17%15%10%20%13%-
Multiple Vehicles-----15%15%--25%10%-20%10%15%15%20%15%5%5%8%-
New Address----------5%-----------
New Customer/New Plan-----------10%--10%-------
New Graduate----------5%-----------
Newer Vehicle--30%---10%---------40%--3%10%12%
Newly Licensed----------5%-----------
Newlyweds----------5%-----------
Occasional Operator---------------------Discount based on operator's individual driving record.
Occupation------10%---10%-15%------10%--
On Time Payments--5%-----------------15%-
Online Shopper-------11%-----7%--------
Paperless Documents- -10%--2%------5%$50-`-------
Paperless/Auto Billing-5%--2%-----25%$30-$410%$28%2%$53%3%
Passive Restraint--30%30%3%30%-33%-40%-5%20%-5%2%40%8%5%3%--
Recent Retiree----------4%--------3%--
Renter-----2%-30%--------------
Roadside Assistance-------5%--------------
Safe Driver--45%--15%-40%15%-12%35%31%10%20%15%---23%12%
Seat Belt Use---------15%------------
Senior Driver--10%--------10%-----5%5%---
Stable Residence-------------------5%--
Students and Alumni-------15%--10%-7%---------
Switching Provider-------5%--10%10%--10%--5%5%---
Utility Vehicle--15%-------------------
Vehicle Recovery--10%-5%10%-25%-25%35%10%25%---5%8%-3%--
VIN Etching----------5%10%----------
Young Driver------10%--------------$75

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Buying Auto Insurance Through a Bank: What You Need to Know

If you’re looking for affordable 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.

Now that you know more about if it is bad to go through a bank for auto insurance, enter your ZIP code into our free tool to review multiple quotes from insurance companies in your area.

Free Auto Insurance Comparison

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