When To Start Shopping For Auto Insurance

Getting car insurance can be a quick and straightforward process, taking as little as 10 to 20 minutes if you have all the necessary information to hand. Most insurance companies offer same-day coverage, and it takes about 10 to 15 minutes to fill out an application form. The time it takes to get insured depends on several factors, including the insurance company, the method of application, and the availability of your personal information.

The application process

Gather Your Personal Information:

This step should only take a few minutes. You'll need to have the necessary personal information for all drivers on the policy. This includes:

• Full legal name
• Date of birth
• Address
• Occupation
• Contact information
• Social Security Number
• Marital status
• Driver's license number
• Driving history, including past tickets and accidents
• Vehicle Information, such as the make, model, Vehicle Identification Number (VIN), year, and mileage
• Information about your current auto insurance policy, if applicable

Decide on the Coverage Amount:

This step can take a few minutes to several hours, depending on your familiarity with auto insurance. You'll need to consider your state's minimum insurance requirements, as well as any additional coverage options you may want, such as comprehensive, collision, or uninsured motorist coverage. It's worth comparing different policies to make an informed decision.

Compare Quotes from Different Companies:

Comparing quotes can take around 15 minutes to an hour. It's recommended to get quotes from at least three to five potential insurers, as prices can vary significantly. Many companies offer online quote tools or mobile apps that allow you to get instant quotes.

Make Your First Payment:

Once you've chosen a policy and provider, it's time to make your first payment. This step usually takes just a few minutes. Your coverage will typically kick in as soon as your payment is approved, and you can choose the start date of your policy.

Receive Your Insurance Card:

After purchasing your policy, you'll receive a physical insurance card in the mail within 7-14 business days. Many insurers also offer digital insurance cards that you can access immediately through their website or mobile app.

It's important to note that the entire process can be completed online or over the phone. However, visiting an agent in person may take longer, and it might be more challenging to price shop multiple quotes. Additionally, having all the required information readily available will help speed up the application process.

Choosing your coverage

• State Requirements: Each state has its own minimum requirements for car insurance. For example, most states mandate liability insurance, which covers damage and injuries you cause to others in an accident. Make sure to familiarize yourself with the specific requirements of your state.
• Additional Coverage Options: In addition to the state-mandated minimum coverage, consider whether you want to add extra protection. Options may include comprehensive coverage, collision coverage, uninsured/underinsured motorist coverage, personal injury protection (PIP), and medical payments coverage. Evaluate your personal situation and the level of risk you are comfortable with to determine if additional coverage is right for you.
• Coverage Limits: Decide on the coverage limits for each type of insurance you choose. For example, for liability insurance, common minimum limits are $25,000 per person and $50,000 per accident for bodily injury, and $25,000 for property damage. However, you may want to increase these limits to provide more comprehensive protection.
• Cost Considerations: The cost of car insurance varies depending on the coverage options and limits you choose. Compare quotes from multiple insurance companies to find the best value for your needs. Consider factors such as your budget, the value of your vehicle, and your driving history when making your decision.
• Personal Situation: Take into account your personal circumstances, such as your driving history, the age and condition of your car, and whether you lease or own your vehicle. These factors can impact the type and amount of coverage that is most appropriate for you.
• Research and Comparison: It is essential to research different insurance companies and their coverage options. Compare quotes, coverage limits, and additional benefits offered by each insurer to make an informed decision. This step may take some time, but it can help you find the best value and ensure you have the protection you need.

Getting a quote

Choose your coverage:

This step can take a few minutes to several hours, depending on your level of knowledge about insurance policies. In addition to your state's minimum insurance requirements, consider whether you want to add any additional coverage options, such as comprehensive and collision insurance, to protect yourself financially. It's worth comparing different policies and insurance providers to make an informed decision.

Gather your personal information:

Before requesting a quote, ensure you have all the necessary personal and vehicle information ready. This includes:

• Driver's license number
• Social Security number
• Vehicle Information Number (VIN)
• Address where the vehicle is kept
• Driving records of all drivers, including any tickets or accidents
• Information about your current insurance policy, coverage limits, and expiration (if applicable)

Having this information readily available will streamline the quote process.

Use an online quote tool:

Using an online auto quote comparison tool is the fastest way to get a car insurance quote. Experian's car insurance tool, for example, provides rate estimates within a few minutes of entering your information. You can also use the instant quote forms on insurance company websites or comparison quote forms, which allow you to get multiple quotes at once.

Compare quotes from different companies:

It's important to compare quotes from at least three to five insurance providers to ensure you're getting the best deal. Prices can vary significantly between companies due to their different formulas for generating quotes.

Contact an agent or broker (optional):

If you prefer a more personalized experience, you can work with an insurance agent or broker to shop around for quotes. However, this process may take longer, as you may need to visit their office or provide information over the phone. Not all agents work with multiple insurers, so comparing quotes may require multiple appointments or calls.

Remember, a car insurance quote is just an estimate, and the final cost of your insurance policy may vary. By following these steps, you can efficiently obtain a quote for auto insurance and be well on your way to securing the coverage you need.

Making your first payment

Once you've decided on the right auto insurance policy for you, it's time to make your first payment. This is a crucial step, as your coverage will not begin until you've paid at least the first month's premium. The good news is that this process is usually quick and easy, and can often be done online or over the phone.

Payment Methods

There are several ways to make your first auto insurance payment:

• Full payment: You can pay the total amount of your premium for a six-month or 12-month period upfront. Some companies offer a discount for paying in full.
• Monthly payments: Most companies allow you to divide your premium into monthly payments, which can be more convenient and affordable. However, insurance companies usually charge a small premium for this option.
• Electronic Funds Transfer (EFT): This is an authorized automatic payment that comes directly from your checking account or debit card.
• Quarterly payments: Some companies offer the option to pay every three months, which may be a more manageable interval for some people.

Factors Affecting Down Payment

It's important to note that the amount of your down payment may vary. While it is typically the first month's payment, some companies may charge more or require a percentage of the total premium upfront. Additionally, drivers with a bad credit history or those needing an SR-22 filing may be required to make a larger down payment or even pay for the term in full.

Tips for a Smooth Payment Process

To ensure a smooth payment process, it's recommended to have the following information ready:

• Personal information: This includes your full legal name, date of birth, address, occupation, contact information, and marital status.
• Driver's license number: Your insurer will need this to verify your driving record.
• Vehicle information: Details such as the Vehicle Identification Number (VIN), year, make, model, and mileage of your car are important for accurate quoting.
• Current insurance policy details: If you have existing auto insurance, provide the name of the carrier, coverage details, and policy expiration date.

By having all the necessary information readily available and choosing a payment method that suits your needs and budget, you can efficiently make your first auto insurance payment and start your coverage without delay.

When your coverage starts

This is a very important question to ask, as driving without insurance can result in a fine, license suspension, or even jail time.

The good news is that, in most cases, your car insurance coverage starts the moment you pay for your policy and print your temporary insurance cards. If you don't already have coverage or are dissatisfied with your current insurer, it is easy to switch.

Most car insurance companies can start your coverage the same day you apply for car insurance. You can even purchase car insurance the same day as an accident, but it won't cover any damage that happened before your purchase.

When you sign up for a new policy, your car insurance coverage usually starts immediately after your first payment is processed. You will receive a temporary binder letter as proof of insurance during the underwriting process.

With most insurers, you can set your plan to take effect as soon as you purchase it. You can also wait until your existing policy expires. You can even set your new car insurance to engage retroactively with some insurers, so your damages are covered even if your vehicle wasn't insured when they occurred.

The exact date and time your insurance policy will officially become active is known as the "effective date", "commencement date", or "policy start date". You can typically find this on the declarations page in your policy, usually located on the first or second page.

Frequently asked questions