Is it bad to go through a bank to get auto insurance? (2024 Buyer’s Guide)

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.

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:

Average Monthly Auto Insurance Rates by Company

Insurance Company	Average Monthly Rates
	$38
	$94
	$80
	$94
	$90

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?

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.

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.