Key Takeaways
- You’ll need to get information about your vehicle, you as a driver, what coverage you need and average costs for you before comparing quotes.
- You have the option to compare car insurance online, with a captive agent, an independent agent/broker, and specialty agencies.
- Make sure when comparing companies that quotes are apples to apples in terms of coverage so you can know which is the best cheap option.
Learn more about our methodology and editorial guidelines.
Getting Car Insurance in 6 Simple Steps
Buying a car insurance policy is simpler than you might think, and involves these six core steps:
- Collect Your Vehicle and Driver Information
- Choose the Coverage You Need
- Find Out Average Costs for You
- Decide How To Compare Car Insurance
- Compare Quotes From Providers
- Buy Your Car Insurance Policy
#1 Collect Your Vehicle and Driver Information
First, you’ll need to have all relevant information about you and your vehicle available.
Have the following vehicle information on hand before you begin shopping for auto insurance coverage:
- Make, model and year
- Odometer reading
- Vehicle identification number (VIN)
- Any safety features or anti-theft devices
You can find your VIN on your previous car insurance slip or on the bottom right side of your windshield on the driver’s side. All safety features included in your vehicle can be found in your car’s manual.
You’ll also need to provide the following information for all drivers you want to include on the policy:
- Driver’s name and date of birth
- Address
- Driver’s license number
- Social Security number
- Driving history
If anyone else drives your car — such as your spouse, children or roommates -– you’ll need to have their information as well.
#2 Choose the Coverage You Need
Next, you’ll choose your coverage options to ensure both you and your vehicle are properly protected. How much car insurance coverage you need depends on a number of things, including:
- The kind of car you drive: If it’s a brand-new car or you paid a lot for it, make sure you have enough coverage to repair or even replace it. If your car is leased or financed, your finance company will likely require a minimum amount of comprehensive and collision insurance to protect the asset it still owns.
- Where you live: The minimum amount of car insurance you have to purchase depends on the state you live in. Most states require at least liability insurance, but some require you to carry more. And if you live in a more populated urban area, you may want to increase your limits on some coverages.
- Your financial situation: While you have the option of only buying the minimum amount of coverage required in your state, you may want to consider full-coverage car insurance to make sure you’re protected financially. These policies generally include comprehensive, collision and liability coverage.
Most companies offer standard options for car insurance, but you should also consider any non-standard types to save money and make sure you have the coverage you need. All types of car insurance you should consider are detailed below.
Below you can review non-standard car insurance options
| Non-Standard Type of Car Insurance | Coverage Details |
| Pay-per-mile car insurance | This type of coverage allows you to choose the same standard coverages, but charges a small base rate plus a cost per mile driven. |
| Non-owner car insurance | Covers you when you’re driving a vehicle that you don’t own. |
| Classic car insurance | You can have specialized coverage for classic and antique cars based on an agreed-upon value. |
| Commercial auto insurance | If you own a business and have vehicles used for commercial activities, this allows you to cover your employees, vehicles, cargo and equipment. |
Below are optional add-on coverages that you can use to customize your policy:
| Car Insurance Add-on | What It Covers |
| Roadside assistance | Allows you to have towing, gas services, jumpstarts, lockout services and more covered if you break down |
| Mechanical breakdown insurance (MBI) | Similar to an extended warranty, this is an insurer’s version that covers your vehicle if specific parts break down within a given time period. |
| Gap insurance | This coverage pays out the difference if you owe more than the vehicle’s worth in the event that your loaned or leased car is totaled or stolen. |
| Rental car reimbursement | When your car is broken down, you’ll be covered up to a certain amount per day to rent a vehicle while it’s in the shop. |
| Trip interruption | If your car breaks down, you’ll have coverage for rentals, lodging and food while your car is getting repaired or replaced. |
| New car replacement | This add-on allows you to have your car replaced with a newer model if it’s totaled in an accident. |
| Original parts replacement (OEM) | This ensures that any parts used in repairs are from the car manufacturer and not aftermarket. |
| Rideshare insurance | Covers you for rideshare activities for services like Uber or Lyft. |
| Auto glass coverage | This covers glass repairs and replacements due to accidents. |
| Custom parts replacement | If you have custom or modified parts in your car, you can get this coverage and be covered for any repairs and replacements specific to them. |
#3 Find Out Average Costs for You
Before beginning any journey to compare car insurance, we recommend researching what car insurance will likely cost for you based on your driving profile and other factors. Once you have an average in hand and some idea of which companies are affordable, you’ll be armed to get a good deal.
Below are some resources to help you along this process:
#4 Decide How To Compare Car Insurance
Overall, there are four different ways to compare car insurance prices. Below, we will detail what each entails and the pros and cons that come with them.
This option allows you to get sample rates fast online without the hassle of speaking to an agent on the phone or in person. Keep in mind that most insurers still require you to buy over the phone, so the process after the initial quote will be similar to working with an independent agent or broker. There may also be a disconnect with your information between the online tool and the agent you speak to.
Using captive agents, or single-company agents, is typically the slowest way to get car insurance quotes. They’re often more focused on making a profit by selling you high-cost coverage. However, they’ll know more about the company at hand than an independent agent or anyone you’ll speak to in an online portal.
Independent agents are typically a good option if you want the cheapest option upfront without pressure to buy the highest level of coverage. Agents and brokers get paid on commission for a variety of companies and are more incentivized to help you find the best coverage for a low price and guide you through the process.
If you have poor credit or are otherwise considered a high-risk driver, or someone with accidents, speeding tickets or a DUI on your record, you’ll likely have trouble getting approved for car insurance. However, there are many companies that specifically tailor their services to you.
You can click the following link to see some of our picks for high risk insurers: Best High-Risk Car Insurance Companies
If all else fails, you also opt for your state’s assigned risk car insurance program to get coverage.
#5 Compare Quotes From Providers
When shopping for anything, it’s important to compare like to like to make sure you’re getting the best value. The same can be said about comparing auto insurance quotes. You can’t compare a full-coverage policy from one carrier to a minimum-coverage policy from another because while the prices will be different, so will the amounts and types of insurance you get.
When you’re shopping for auto insurance, check the following factors to make sure they’re the same for each policy you’re comparing:
- Coverages: Do you have the same coverages and policy limits selected?
- Deductibles: Have you selected the same deductible amounts?
- Discounts: Have you included all relevant information to ensure you’re getting every discount available to you? Discounts vary from carrier to carrier, so as you’re comparing, keep an eye on which discounts each insurer is offering you.
#6 Buy Your Car Insurance Policy
In general, you’ll have to complete your policy purchase with an agent once you’ve reached an agreement on pricing, coverage and the time your coverage will start. Ensure that your policy is active before your current policy ends to ensure there lapse in car insurance coverage. Also, make sure to cancel your previous policy once the new one begins to get a refund for the unused part of the plan.
The process may differ if you’re insuring a new car or are getting car insurance for the first time. In either scenario, make sure you have car insurance before leasing, financing or buying a vehicle.
Read more: How To Switch Car Insurance
How To Buy Car Insurance: The Bottom Line
To get good car insurance at the best price, you should provide all of the relevant information about you and your car, ensure you have the right coverage, shop around with providers, compare rates and get every discount you qualify for.
How To Get Insurance on Your Car: FAQ
Below are some frequently asked questions about getting car insurance:
According to the Insurance Information Institute, car insurance rates are rising in 2023, partially due to market factors including inflation, supply chain issues, rising repair costs and the number and severity of claims. Car insurance also tends to be expensive for people with high coverage limits or risk factors such as traffic tickets or at-fault accidents.
The short answer is yes, it’s illegal to drive without insurance. Car insurance is required by law in all states except New Hampshire. But even in New Hampshire, to drive legally, you’re required to provide proof of financial responsibility. This means having proof you could pay for a certain amount of damages if you’re at fault for a car accident.
Yes, your credit score can be used to determine your car insurance rate in most states, except for California, Massachusetts, Michigan and Hawaii. Insurance companies associate lower credit scores with a higher risk for filing claims. So in a nutshell, the better your credit score, the better your car insurance rate.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Cost and Discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities are both taken into consideration.
- Industry Standing (20% of total score): Our research team considers market share, ratings from industry experts and years in business when giving this score.
- Customer Experience (15% of total score): This score is based on volume of complaints reported by the National Association of Insurance Commissioners (NAIC) and customer satisfaction ratings reported by J.D. Power. We also consider the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements score highest in this category.
Our credentials:
- 800 hours researched
- 130+ companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
link