There’s no shortage of ways to purchase car insurance. You can buy it online, call, or even find a local agent and apply in person. The way you choose to get car insurance depends on your specific insurance needs and the time you want to spend shopping for coverage. No matter which method you pick, the process of getting car insurance comes down to these five steps:
Easily compare personalized rates to see how much switching car insurance could save you.
1. Gather information
Before you start shopping for car insurance, gather the following details about yourself, your vehicle and any additional drivers you’d like included on the policy:
Basic details, such as the name, address and birthdate of all licensed drivers.
Driver’s license information for all drivers.
Facts about the car, including the make, model, vehicle identification number, safety features, current odometer reading and annual mileage.
Driving history for all drivers, including accidents, tickets and any other violations.
Your current insurer, if you have one, and your current coverage limits.
Having this information on hand will speed up the time it takes to shop. Because it affects your final policy premium, every agent or broker will require this information before you can get a quote.
2. Determine your coverage needs
When getting quotes from multiple insurers, try to ensure the quotes are based on the same amount of coverage so that you’re able to make an apples-to-apples comparison.
Each state has its own minimum car insurance requirements, but you may want broader coverage for your vehicle. Minimum requirements are often very low. If you were at fault for a serious accident, a policy with your state’s minimum insurance requirements could easily leave you on the hook for thousands of dollars of expenses.
The table below includes some of the most common types of coverage:
Other peoples’ injuries, deaths or property damage costs stemming from an accident you caused
Medical and property damage costs after an accident with a driver who doesn’t have insurance, or doesn’t have enough insurance to cover the damage they caused
Repair expenses for damage to your vehicle caused by traffic-related accidents, regardless of who’s at fault
Repair costs for damage to your vehicle caused by events outside your control — including weather events, hitting an animal while driving, theft and vandalism
Medical expenses for you and your passengers after an accident, regardless of fault
Medical expenses, as well as lost wages, child care, funeral costs and other losses due to an accident, regardless of fault
3. Choose how to shop for car insurance
You can shop for insurance through a single company or through an agent or broker who offers policies from several different insurers. While you may find it’s faster to apply directly through a specific insurer, an agent or broker may be better if timing isn’t a concern and you’re interested in finding a better deal, or if your coverage needs are more complicated.
Here are the most common ways to buy car insurance:
Directly from the insurer
From an independent agent or broker
Car insurance direct from the insurer
If you know which insurer you want to work with and you want to shop at your own pace, you could get insurance directly from that company without reaching out to an agent or broker. You can get quotes directly from an insurer’s website or over the phone, or by using a third-party comparison site to explore coverage options.
When it’s a good choice:
You’re interested in a pressure-free shopping experience.
You’d like to get car insurance as quickly as possible.
You have a basic understanding of how auto insurance works and don’t need a personal relationship with an agent.
You want to set up and manage your policy on your own.
Possible downsides:
While all insurance companies have representatives to field questions, you may not get the detailed responses you would from an agent.
Online car insurance quotes are estimates and may be different from your final price.
You’ll need to share personal information to get an accurate quote, and you may get follow-up calls and emails.
Car insurance from a captive agent
Captive agents work exclusively for a single insurance company and act as your main point of contact from the day you buy your policy. Large insurance companies, most notably State Farm, have exclusive agents in just about every state.
When it’s a good choice:
You’re interested in getting car insurance with a particular company.
You already have multiple policies from the captive agent’s company.
You value familiarity and a long-lasting relationship with your insurer.
Possible downsides:
Captive agents only offer coverage from one insurer, which means you may miss out on lower prices or better coverage from a different company.
Agents are paid a percentage of your premium as commission, which could incentivize some to offer pricier policies.
Car insurance from an independent agent or broker
Unlike captive agents, independent agents and brokers can help you find coverage from multiple companies. Both agents and brokers earn commissions, but brokers may also charge a service fee.
Dozens of insurers contract agents to sell their policies, including Travelers, Progressive and many smaller companies. Agents can only sell policies from the companies they’re under contact with, which might limit what they can offer.
That said, independent agents and brokers deal with many insurance companies and may have a good sense of how certain regulations and contract details vary from one company or state to the next.
When it’s a good choice:
You have complicated insurance needs, like if you need to insure multiple vehicles or you run a small business.
You want to be able to compare policies for the same amount of coverage from multiple companies.
You need help understanding the complex parts of your policy.
You have some understanding of how much coverage you need and can resist unnecessary add-ons or upsells.
Possible downsides:
Agents and brokers might not be authorized to sell all types of policies from an insurer, nor are they obligated to sign you up for the cheapest policy.
They don’t have access to quotes from companies that use captive agents. If you want to compare quotes from some of the largest insurers, you’d still have to get those separately.
Because they work on commission, they might try to sell you on policy features you don’t need.
Brokers often charge a fee to supplement their commission.
Car insurance from specialty agencies
A specialty insurance agency is an agency that helps shoppers find policies to fit an unconventional insurance need. One reason you may want to work with a specialty agency is if you’ve had recent accidents, DUIs, tickets or lapses in coverage and you need to get quotes from high-risk car insurance companies, which specialize in offering coverage to people with spotty records (or no driving records at all).
When it’s a good choice:
You have specialized or unique insurance needs, like a driving record that makes it hard for you to find coverage.
You need someone to walk you through your coverage options.
Some companies that specialize in nonstandard auto insurance for high-risk drivers may receive more complaints because of poor claims service than other insurers.
See what you could save on car insurance
Easily compare personalized rates to see how much switching car insurance could save you.
4. Compare companies
We recommend getting quotes from at least three different companies before you buy a policy. Doing this can help you find the coverage you need at the best value. Be sure the quotes you’re comparing are for the same amount of coverage and deductible amounts.
While you may be tempted to choose the cheapest option, this isn’t always the best idea. For example, the insurance company with the absolute cheapest rates may have shaky financials or might be notorious for offering poor customer service. A higher premium might be worth it if you need to make an insurance claim later on.
How to choose an insurance company
Choosing the best insurance company is about finding an insurer that offers the coverage you need at an affordable price. Before you start shopping, have a budget in mind. Then, after you compare quotes, do some basic research on the insurers that fit within your budget. Make sure that the insurer you choose has solid financials and doesn’t receive a ton of complaints from its policyholders.
5. Buy your new policy (and cancel your old one)
Once you choose a company and policy, you can usually elect to pay all at once or on a regular schedule, such as monthly. (You may get a discount on your policy by paying in full upfront.) If you’re buying a new car, make sure you have insurance coverage in place before you drive the car off the lot.
If you’re simply changing policies on an existing vehicle, reach out to your former company to cancel the old policy once the new one is in place and avoid a lapse in coverage. You should receive a refund of any unused premium you paid your former insurer, minus any applicable cancellation fees.
Frequently asked questions
Can you get car insurance instantly?
Yes. Many companies allow you to get an online car insurance quote and buy your policy immediately. You may also be able to get a policy over the phone.
How do I get car insurance for the first time?
For young drivers, being added to a parent’s insurance policy is often the most affordable option. But if you’re striking out on your own, you may have to shop around with multiple companies to find affordable coverage, as car insurance for young drivers tends to be a lot more expensive than it is for people with more experience on the road.
Is it good to shop around for car insurance?
Yes, it’s best toshop around for car insurance about once a year to make sure you’re getting the lowest available rates. To do so, you can look for quotes online, call a few different companies or ask an independent agent to shop around on your behalf.
Can you get car insurance instantly?
Yes. Many companies allow you to get an online car insurance quote and buy your policy immediately. You may also be able to get a policy over the phone.
How do I get car insurance for the first time?
For young drivers, being added to a parent’s insurance policy is often the most affordable option. But if you’re striking out on your own, you may have to shop around with multiple companies to find affordable coverage, as
car insurance for young drivers
tends to be a lot more expensive than it is for people with more experience on the road.
Is it good to shop around for car insurance?
Yes, it’s best to
shop around for car insurance
about once a year to make sure you’re getting the lowest available rates. To do so, you can look for quotes online, call a few different companies or ask an independent agent to shop around on your behalf.
