How to Get Car Insurance

On February 16, 2025 By newsroom Topic: Insurance Basics

Shopping for car insurance can be simple and straightforward with the right approach. Follow these five steps to secure the best policy for your needs:

1. Gather Information

Collect the following details for each driver and vehicle on the policy:
- Driver information: Name, address, birthdate, and driver’s license number.
- Vehicle details: Make, model, VIN, safety features, and annual mileage.
- Driving history: Accidents, tickets, or violations for all drivers.
- Current insurance details: Coverage limits and policy details, if applicable.

Tip: Keeping all this information handy makes the shopping process faster and smoother.

2. Determine Your Coverage Needs

Understand the types of coverage you need:
- Liability insurance (required in most states): Covers injuries or property damage you cause.
- Collision coverage: Pays for repairs to your car from an accident.
- Comprehensive coverage: Covers non-collision incidents, such as theft or natural disasters.
- Uninsured/Underinsured motorist coverage: Protects against drivers with insufficient insurance.
- Medical payments or personal injury protection: Covers medical expenses for you and your passengers.

Tip: Choose coverage levels based on your state requirements and personal needs.

3. Choose How to Shop for Insurance

Decide where to shop:
- Direct from insurers: Get quotes online or over the phone directly from companies.
- Captive agents: Agents who represent a single company, like State Farm or Allstate.
- Independent agents or brokers: Offer policies from multiple insurers for comparison.
- High-risk specialty agencies: Ideal for drivers with accidents, tickets, or lapses in coverage.

Tip: Online tools and comparison sites can simplify the process.

4. Compare Companies

Shop around by obtaining quotes from at least three different companies.
- Compare coverage limits, deductibles, and premium costs.
- Check customer reviews and company ratings for service quality.
- Use resources like the National Association of Insurance Commissioners to review complaint records.

Tip: Paying slightly more for a company with better customer service can be worth it.

5. Buy Your New Policy and Cancel the Old One

Purchase your new policy online, over the phone, or through an agent.
Pay upfront if possible to access discounts.
Cancel your old policy after the new one is active to avoid coverage gaps.
Ensure unused premiums from the old policy are refunded.

Tip: Schedule the start of the new policy and the end of the old one to overlap slightly to prevent lapses.

Additional Tips

For young drivers: Adding to a parent’s policy is often cheaper.
Shop annually: Compare rates every year to ensure you’re getting the best deal.
Be prepared for follow-ups: Create a separate email or phone number to manage inquiries if shopping online.

By following these steps, you can confidently navigate the car insurance process and secure a policy that fits your needs and budget.