Getting car insurance can be a simple or time-consuming process, depending on the method you choose. You can shop online, call companies directly, or work with an agent or broker. Here are the five steps to get car insurance efficiently:
1. Gather Information
Before you begin, collect essential details:
- Basic personal info (names, addresses, birthdates) for all drivers.
- Driver’s license information for everyone on the policy.
- Vehicle details (make, model, VIN, safety features, odometer reading, annual mileage).
- Driving history (accidents, tickets, violations).
- Current insurance details and coverage limits if applicable.
2. Determine Your Coverage Needs
Be sure to understand your coverage requirements, which may depend on your state’s minimum insurance requirements or personal preferences. Common types of coverage include:
| Coverage Type | What it Covers |
|---|---|
| Bodily Injury & Property Damage Liability | Costs for injuries, deaths, or property damage you caused. |
| Uninsured/Underinsured Motorist Coverage | Medical and property damage costs from an uninsured driver. |
| Collision Coverage | Repairs from traffic-related accidents, regardless of fault. |
| Comprehensive Coverage | Non-collision damage (e.g., theft, weather, vandalism). |
| Medical Payments Coverage | Medical expenses for you and passengers, regardless of fault. |
| Personal Injury Protection (PIP) | Medical expenses, lost wages, and child care after an accident. |
3. Choose How to Shop for Insurance
You can choose from a variety of options when shopping for insurance:
Auto Insurance Direct from the Insurer
Get quotes and purchase policies online or over the phone without an agent. It’s convenient but may lack personalized service.
- Good choice if: You want a pressure-free shopping experience and convenience is a top priority.
- Possible downsides: You may get follow-up calls and emails, and quotes may differ from final prices.
Car Insurance from a Captive Agent
Captive agents represent a single insurance company. They can offer advice but won’t compare quotes from other companies.
- Good choice if: You want someone to guide you through options and help you manage multiple policies.
- Possible downsides: Limited price options and potential commission-based incentives.
Car Insurance from an Independent Agent or Broker
Independent agents and brokers work with multiple insurers, offering more variety in policies and prices.
- Good choice if: You want more price flexibility and need someone to explain complex policy details.
- Possible downsides: They may not offer the lowest prices and can upsell unnecessary features.
Car Insurance from Specialty Agencies
If you have a high-risk profile (e.g., accidents, tickets, DUIs), these agencies can help you find coverage with nonstandard insurers.
- Good choice if: You have a history of accidents or violations and need a nonstandard policy.
- Possible downsides: They may charge higher premiums and fees due to the higher risk involved.
4. Compare Companies
Once you’ve gathered your information and determined your needs, compare policies from different insurers to ensure you get the best rate. Be sure to compare policies with the same coverage limits.
5. Buy Your New Policy (and Cancel the Old One)
After selecting a policy, purchase it and make sure it fits your needs. If you’re switching insurers, cancel your previous policy to avoid double payments.
