How to Get Car Insurance
In this step-by-step guide, we break down everything you need to know about how to buy car insurance, from the different types of coverage to finding the cheapest rates.
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Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
UPDATED: Feb 23, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Feb 23, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Shop around for car insurance to get the best rates
- You will need to provide personal information, such as your name and social security number, to get a car insurance policy
- Cancel your old policy before you purchase a new one to avoid overlap
When shopping for car insurance, it is necessary to understand the different types of policies and coverage available.
There are three main types of auto insurance policies: liability, comprehensive, and collision. Each policy has coverage options, so it’s good to understand what each covers before buying.
Here are five easy steps to follow when getting car insurance.
Gather Your Driver and Vehicle Information
The first step of getting auto insurance is gathering all the required driver and car information, including relevant documentation. So, what do you need to get car insurance?
The required information can vary depending on the insurance company, but some common information needed is:
- Your basic information, including your name, address, and date of birth
- The driving history of all drivers on the policy, including traffic violations, at-fault accidents, and completed safety driving courses
- The license information of each driver on the policy
- Vehicle details, including the model, year of manufacture, current odometer reading, and plate identification
- Current insurer (if any) and active coverage limits
You don’t necessarily have to provide this information to get car insurance quotes, but they likely won’t be accurate quotes if you don’t.
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Figure Out The Insurance Cover You Need
Figure out how much insurance cover you need before buying a policy. A good starting point is to check your state’s minimum required coverage for auto insurance.
However, you should consider additional coverages depending on your unique situation. This can include coverage for personal injury protection, rental car reimbursement, and roadside assistance.
It’s also important to consider the value of your car and any assets you may want to protect in the event of an accident.
Types of Auto Insurance
Here are some of the common types of auto insurance coverage:
Liability Car Insurance
Liability insurance covers damages and injuries that you, as the policyholder, are responsible for causing to another person or their property. The policy pays for damages such as medical expenses, hospital bills, car repair costs, and legal fees if the case goes to court.
Most states have set a minimum liability coverage requirement for drivers. For example, the minimum coverage in California is $15,000 for injury/death to one person, $30,000 for injury/death to more than one person, and $5,000 for property damage.
The problem with the minimum liability insurance requirement is that it may not be enough to cover all damages in the event of a severe accident. Therefore, it’s important to consider purchasing higher liability coverage, especially if you have significant assets that could be at risk in a lawsuit.
Uninsured Motorist Coverage
This coverage is insurance that drivers purchase to protect themselves financially in the event that they are involved in an accident with a driver who does not have insurance.
This type of coverage is necessary because, even though it is against the law to drive without insurance, many drivers on the road still do not have insurance.
If you are involved in an accident with one of these drivers, your insurance will not cover the costs of the damage to your car or any injuries you sustained. Uninsured motorist coverage will cover these costs for you.
In some states, uninsured motorist coverage is a legal requirement. However, even if it is not required in your state, purchasing this coverage is a good idea. It is inexpensive and could save you a lot of money if you are ever involved in an accident with an uninsured driver.
Collision and Comprehensive Insurance
Collision insurance covers damage to your car in the event of a collision with another vehicle or object. Comprehensive insurance covers non-collision damages such as vandalism, theft, or natural disasters.
It is important to note that these coverages often have a deductible, meaning you will be responsible for paying a certain amount out of pocket before the insurance kicks in.
In determining your collision and comprehensive insurance coverage limits, consider your car’s value and any assets you would like to protect in the event of an accident.
Personal Injury Protection (PIP)
PIP insurance covers medical expenses and lost wages for you and any passengers in your car if you are in an accident, even if the other driver is at fault. In some states, PIP insurance is a legal requirement.
Here’s a summary of the costs that PIP covers:
- Medical expenses
- Rehabilitation costs
- Lost wages
- Replacement services if the accident renders you dependent
- Funeral costs
It is important to note that PIP insurance does not cover damage to your car or any property damage. It only covers personal injury expenses for you and any passengers in your vehicle at the time of the accident.
Compare Auto Insurance Quotes
Before purchasing an auto insurance policy, compare quotes from multiple insurance companies to ensure you get the best deal.
Different insurers may offer different coverage options and discounts, so it is worth shopping around and comparing quotes before making a decision.
Additionally, your rates may vary based on factors such as your driving record, the type of car you drive, and the area in which you live.
Where To Get Quotes
Online. Online auto insurance quotes are a great way to compare rates and find the best deal on your coverage. You can get quotes from multiple insurers at once, which makes it easy to find the best price.
Independent agent. If you want to work with an independent agent, they can help you find the right policy and compare rates from several insurers. An independent agent is an excellent option if you want someone to help you navigate the options and ensure you get the best deal.
Direct insurer. If you’re comfortable working with a direct insurer, you can often get quotes online or over the phone.
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Purchase the New Policy and Cancel Your Old Policy
Once you have found the best policy for your needs, the next step is to purchase it and cancel your old policy.
First, confirm with your new insurer that they offer coverage starting on the date your old policy ends to avoid any gaps in coverage.
Then, contact your old insurer to cancel the policy and request any applicable refunds. It is crucial to have insurance at all times to protect yourself and comply with state laws, so make sure you have a new policy in place before canceling your old one.
Also, inform your old insurer of your new policy information in case they need to contact you for any reason. Doing so will ensure a smooth transition and avoid any potential issues with coverage.
Helpful Tips When Shopping For Car Insurance
Here are some helpful tips to keep in mind when shopping for auto insurance:
- Bundle the insurance. This method, also called a multi-policy discount, involves purchasing multiple policies in one package from one insurance company. Most insurance companies offer discounts for bundling multiple policies, such as auto and homeowners insurance.
- Ask about discounts. Inquire with your insurer about potential discounts, such as a good driver discount or a discount for completing an approved driving course.
- Review your coverage regularly. Review your coverage periodically, especially if there have been changes in your circumstances or policy terms. Doing so will ensure that you have the appropriate coverage for your needs and are not paying for unnecessary coverage.
- Maintain a good driving record. Keeping a clean driving record can help you qualify for lower rates because insurers consider you a lower risk. Additionally, avoid making any traffic violations or getting into accidents, as these incidents can result in higher rates and potentially even the cancellation of your policy.
The right car insurance policy for you today may not be the right policy for you six months from now, so make sure to review quotes from multiple companies regularly.
How to get car insurance: Bottom Line
Car insurance is a necessary expense for all drivers, but it can be overwhelming to navigate the options and find the best policy for your needs.
By gathering all the required information, selecting the coverage you want, and getting quotes from multiple companies, you can confidently choose the best auto insurance.
Always remember to ask any questions that come up during this process to ensure a smooth transition to your new policy.
Frequently Asked Questions
Can you get car insurance instantly?
Yes, some insurers offer instant auto insurance policies that you can purchase online or over the phone and obtain immediate coverage. However, the process may vary depending on the insurer and your circumstances.
Is it good to shop around for car insurance?
Shopping around and comparing rates from multiple insurers before purchasing a policy is always a good idea. It can help ensure you get the best deal and coverage that meets your needs.
When does your new car insurance policy become active?
As long as there is no waiting period specified in the policy terms, your new car insurance policy will take effect on the date you purchase it. Confirm this information with your insurer before canceling any existing policies to avoid gaps in coverage.
What information do you need to get car insurance?
When applying for car insurance, you will typically need to provide personal information such as your name, date of birth, and address. You will also need to provide information about your car, including the make, model, and year. Your driving history may also be required.
Can I get car insurance without a license?
This may vary depending on the insurer and the state in which you live. Some insurers may require a valid driver’s license to provide coverage, while others may offer non-driver policies for individuals without a license. Check with your insurer to confirm their requirements.
Can I add a driver to my auto insurance policy?
Most insurers will allow you to add a driver to your policy. However, there may be some restrictions. For example, the driver may need to be a member of your household, or they may need to have a certain amount of driving experience.
The driver may also need to meet the insurer’s requirements for having a clean driving record. If you are unsure whether you can add a driver to your policy, it’s best to contact your insurer directly. They will be able to give you specific information about who you can add to your policy and any conditions they need to meet.
What is the best way to shop for car insurance?
The best way to shop for car insurance is to:
- Gather all the necessary information
- Compare rates and coverage options from multiple insurers
- Select a policy that meets your needs and budget
It can also be helpful to ask for recommendations from friends or family members or consult a professional insurance broker for additional guidance.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.