How to Get Car Insurance in 5 Easy Steps
Find Cheap Auto Insurance Quotes in Your Area
Buying a new car insurance policy can take between 15 and 60 minutes, depending on how you do it.
You can get car insurance in a few easy steps. You'll need to gather your personal information and figure out how much coverage you need. Then, you can compare quotes by shopping online, calling an insurance company or working with an independent agent.
How to get car insurance
Step 1: Gather your documents
The first step to buying car insurance is gathering all of the information you'll need to compare quotes.
Insurance companies will typically ask you for information about you, details about your car and your insurance and driving history.
Car insurance companies will ask you to provide information for everyone living in your household. That includes your spouse or partner, roommates and children that have a driver's license or permit.
- Full name
- Home address
- Phone number
- Email address
- Whether you own or rent your home
- Birthday
- Gender
- Marital status
- Driver's license
- Year, make, model and body style
- Whether you use your car for personal use or business
- How many miles you drive per year
- The address where the car is typically parked overnight
- Registered owners of the car
- When you bought the car
- Whether you have a car loan or lease
- Who drives the car
Some companies will ask for your car's vehicle identification number, or VIN. They'll use your VIN to determine your car's year, make, model and body style. Companies can also find out if your car has been in an accident by using your VIN.
- Dates and details of any tickets or accidents in the last three years
- Dates and details of any major violations or license suspensions in the last five years
- Whether you need an SR-22 financial responsibility filing
- Name of your current insurance company
- How long you've been with your current company
- When your current policy expires
- Your bodily injury liability limits
- If you've taken a driver education course, you could get a defensive driving discount
- If you belong to a professional organization or alumni association, you could get a discount
- If you're a military member or veteran, you may be eligible for a discount
- If any student drivers on your policy have a GPA of B or better, they may get a good student discount
You may need to provide proof that you qualify for these discounts, like a school transcript or military ID card.
Step 2: Decide how much insurance you need
The right amount of car insurance will get you enough protection in case you ever need to make an insurance claim, without unnecessary extra costs.
Knowing how much coverage you need will also make it simpler to compare prices between different companies.
For most people, it's best to have at least this much:
Bodily injury liability: At least $50,000 per person and $50,000 per accident Property damage liability: At least $25,000 Collision coverage, which pays for damage in a crash Comprehensive coverage, which pays for damage from other causes, such as a fireA basic car insurance policy will typically include liability coverage, which pays for damage you cause to other people. The amount of liability insurance you're required to have is different in every state. Depending on where you live, you may also need to have a few other basic coverages.
Full coverage: Protection for your car
The cheapest insurance policies you can buy don't protect your car. They just cover damage to other people's stuff, and possibly your medical bills. If you want insurance that pays to fix damage to your car in a crash, you need collision and comprehensive coverage, also called full coverage.
- Collision coverage pays to repair damage to your own car if you hit another car or building, regardless of whose fault it is.
- Comprehensive coverage pays to replace your car if it's stolen or repair it if it's damaged by an "act of God." This includes things like hail damage or a broken window.
Both collision and comprehensive have deductibles, which are how much of a repair bill you'll have to pay before your coverage starts paying. For example, if you have a $500 collision deductible and a $750 repair bill, you'll get $250 from your insurance company. But if the repair bill is only $400, you'll have to cover the whole bill yourself.
A lower deductible means a smaller repair bill, but higher monthly insurance costs. A higher deductible will usually save you money over the long run.
Full coverage is more worth it for newer or more expensive cars. A good rule of thumb is that you can drop full coverage when:
- Your car is more than 10 years old or worth less than $5,000
- And you have enough money saved to replace it if you need to
You'll also have to carry full coverage if you have a loan or lease on your car.
Getting insurance for a new car
When you buy a new car, you'll need to show proof of insurance before you can drive off the lot. The amount and type of insurance you need will depend on how you're paying for the car and how much protection you want.
In addition, there are a few coverage add-ons that you may want to consider if you have a brand new car.
- Roadside assistance, which can help you out if your car breaks down on the side of the road. Your insurance company will coordinate and pay for things like a tire change or fuel delivery if you run out of gas.
- Rental car reimbursement, which pays for a rental car while your car is being repaired after an accident.
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New car replacement coverage will pay to replace your car with a brand new model if it's totaled within the first year or two after you buy it.
This coverage typically costs around $300 per year. But it could be worth it if driving a brand new car is important to you.
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Gap insurance can be helpful if you have a loan or lease on your car.
This coverage will pay the difference between your car's value and the amount you owe if it's totaled in an accident. It usually costs between $50 and $250 per year.
Step 3: Shop for car insurance quotes
Once you know how much coverage you need, you can start comparing quotes. You can shop for car insurance online, call the insurance company or work with an independent agent. It's important to ask for discounts to make sure you're getting the best rate.
Before you make a decision, you should compare rates and customer service reviews to make sure you choose a company you can count on if you get in an accident.
There are a few different ways to compare auto insurance rates.
Best places to shop for car insurance
Shop with an online comparison tool
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See quotes from multiple companies at once (though not every company)
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Usually takes under five minutes
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Only enter your information one time
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No direct contact with a person until later
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Your information is shared with multiple companies at once
The quickest way to compare multiple car insurance quotes is by using an online comparison tool, like on ValuePenguin.
You'll enter some basic information about yourself and your car. Then, you'll get quotes from a handful of insurance companies.
Even if you prefer to buy car insurance from an agent, using an online quote tool is a great place to start. It will give you an idea of how much you can expect to pay for car insurance from multiple companies.
Find Cheap Auto Insurance Quotes in Your Area
Look for car insurance rates on an insurance company's website
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Only get quotes from companies you're interested in
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Some companies offer discounts for shopping online
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Don't have to speak to a person
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To compare quotes from multiple companies, you'll have to do more work on your own for each quote
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Some companies don't offer quotes online
You can compare quotes by visiting each car insurance company's website and filling out their quote form. This process takes more time than using a quote comparison tool.
But it's a good idea if you already know which company you might want to choose or want to get a quote from a company that didn't offer you coverage through a quote tool.
Speak with an agent at the insurance company
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You can get help choosing the right coverage
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Agents who work at an insurance company are very familiar with its policies
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You can only get one quote at a time, so comparing rates will take much longer
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Insurance company employees might give biased advice
You can get auto insurance over the phone by visiting the local office of an insurance company like State Farm or Allstate. If the company doesn't have an office near you, you can call the main customer service line.
Getting quotes over the phone typically takes much more time than comparing rates online.
It could be a good option for you if you're not sure how much coverage you need or you have questions about the policy.
But agents who work directly for an insurance company can only sell you coverage from that company, and they will likely be biased towards recommending that insurance company over a competitor.
Shop for car insurance quotes with an independent agent
Pros and cons
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You can compare quotes from multiple companies at the same time
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Independent agents can help match you with the company that offers the coverage you need
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Many of the best insurance companies are only available through independent agents
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Independent agents often don't work with larger companies, like State Farm or Geico
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Agents are paid a commission, so they may try to sell you more protection than you need
Independent insurance agents can help you compare quotes from multiple companies at the same time, just like an online quote tool.
Independent agents don't work for one specific car insurance company; instead, they will shop around for you to find the best price.
Independent agents can typically help you compare quotes from smaller companies that don't offer online quotes or that you might not have heard of. And some of the best insurers in the country, like Auto-Owners and Erie Insurance, are only available through independent agents. An independent agent can also help you decide which coverage options are right for you and how much protection you need.
However, independent agents don't usually work with large national insurance companies like State Farm and Geico.
So it's a good idea to also get some quotes on your own to make sure you can't find cheaper coverage elsewhere. In addition, independent agents are paid by insurance companies based on the amount you pay for car insurance. So be wary of agents that are recommending coverage that you may not need.
Don't forget to ask about discounts when you're comparing car insurance rates. Most companies offer common options like a discount for bundling your auto and home insurance. But there are lots of other discounts you may miss out on if you don't know what's available.
- Driver safety discounts, like discounts for taking a defensive driver course or being accident-free for a period of time. Many companies also offer a discount for safe driving if you allow them to track your driving habits with an app or plug-in device.
- Policy discounts, like discounts for signing up for a new policy before your old one expires, paying your bill in full or signing up for electronic payments.
- Vehicle discounts, like discounts for installing an anti-theft device or having anti-lock brakes.
Many companies also offer discounts for good students, military members, seniors and people who belong to certain professional organizations.
Step 4: Compare car insurance companies
Choosing a company with cheap rates is important, but you should also consider customer service reviews.
It's not worth saving a few dollars per month if you can't count on your insurance company in an emergency.
Smaller companies are usually worth a look. Regional companies such as Erie, Farm Bureau and NJM have great prices, highly rated service and local expertise.
The best national insurance company for most people is State Farm. It offers a good mix of cheap rates and useful coverage, and customers are typically happy with the customer service.
Best cheap car insurance companies
Full coverage
Minimum coverage
Company | Monthly rate | |
|---|---|---|
| Erie | $115 |
| State Farm | $134 |
| Auto-Owners | $145 |
| Travelers | $151 |
| Farm Bureau | $159 |
Full coverage
Company | Monthly rate | |
|---|---|---|
|
| Erie | $115 |
|
| State Farm | $134 |
|
| Auto-Owners | $145 |
|
| Travelers | $151 |
|
| Farm Bureau | $159 |
Minimum coverage
Company | Monthly rate | |
|---|---|---|
|
| Erie | $43 |
|
| Auto-Owners | $53 |
|
| Farm Bureau | $53 |
|
| State Farm | $55 |
| American Family | $63 |
Find Cheap Auto Insurance Quotes in Your Area
You want to pick a company that you can count on to get you back on the road quickly after an accident.
That may mean you have to pay a little more for car insurance. But it will be worth it knowing your car insurance company will take good care of you in an emergency.
Step 5: Purchase car insurance and cancel your old policy
After you find the best car insurance company for you, it's time to purchase a policy. Most companies give you the option to pay in full or make monthly payments. You can usually get a discount for paying your entire bill up front or making automatic payments.
Once you've signed up for your new policy and paid your bill, you can cancel your old policy.
To avoid a break in coverage , make sure you choose a cancellation date that's after the start date of your new policy.
Your old insurance company should send you a refund if you paid in advance for the months you won't use. But some companies charge a cancellation fee if you switch in the middle of your policy term. Make sure to ask about any fees when you call to cancel your policy so you're prepared.
If you have a loan or lease on your car, you'll need to tell your lender that you changed car insurance companies. That way they can make sure you're still meeting any insurance requirements included in your contract.
Frequently asked questions
What do you need to get car insurance?
To buy a car insurance policy, you'll need your full name and address, your car's make and model and your driving history, including any tickets.
Should you call or shop online for car insurance?
If you already know how much coverage you need, shopping for car insurance online is much faster, and some companies will give you a discount.
But if you aren't sure what you need, have questions about your coverage or want to compare quotes from smaller companies, it's best to contact a local, independent insurance agent.
What should you consider when choosing a car insurance company?
When you're shopping for insurance, customer service reviews and coverage options are just as important as finding the cheapest price. If you're in an accident, you'll have peace of mind knowing that your insurance company will work hard to get you back on the road quickly.
Methodology
To find the best cheap car insurance companies, ValuePenguin gathered car insurance quotes across all 50 states and Washington, D.C. Rates are for a 30-year-old single man with a clean driving record and good credit score who owns a 2015 Honda Civic EX.
Full coverage rates include comprehensive and collision coverage, along with higher liability limits than required in each state.
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $25,000 per accident
- Uninsured and underinsured motorist coverage: $50,000 per person and $100,000 per accident
- Comprehensive and collision deductible: $500
Liability-only coverage limits are based on each state's legal minimum.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only. Your own quotes may be different.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
