Get Auto Insurance: Steps To Insure Your Vehicle

Getting car insurance involves gathering information about yourself and your vehicle, choosing the coverage you need, comparing companies, and buying a policy. You can get car insurance online, over the phone, or in person with an insurance agent. The best way to shop for car insurance is to compare quotes from different insurance companies online so that you can quickly find the lowest price for the coverage you need.

Research and compare quotes from different insurance companies

Comparing quotes from different insurance companies is an essential step in getting your own auto insurance. Here are some detailed tips on how to research and make comparisons:

Determine your budget and coverage needs

Before you start comparing quotes, it's crucial to establish your budget and the type of insurance coverage you require. This initial step will help you quickly identify insurance companies that are within your budget and offer the necessary coverage. The average monthly cost of car insurance in the US is $135, so you can use this as a starting point.

Gather relevant information

Make sure you have the necessary details on hand, such as your Social Security number, driver's license number, Vehicle Identification Number (VIN), and current insurance coverage details if you have an existing policy. Having this information readily available will streamline the process of obtaining quotes.

Use insurance comparison websites

Insurance comparison websites are incredibly useful as they allow you to input your information once and then compare prices and coverage options from multiple insurance providers simultaneously. Look for reputable comparison sites like Compare.com, Insurify, and Jerry, which provide real-time quotes and partner directly with insurance companies.

Research companies with the best quotes

Don't solely focus on the price; it's also essential to research the insurance companies themselves. Utilize third-party websites like J.D. Power and AM Best, which provide valuable insights based on customer feedback and experiences related to website performance, the shopping experience, claims processing, and the financial strength of the insurance company.

Select the best quote for your needs

After researching and narrowing down your options, it's time to choose the insurance company that best suits your coverage requirements and budget. Review the quotes once more and make your selection. Then, proceed to complete the application for your new policy.

Compare quotes at renewal

Remember to compare quotes again when your policy is up for renewal. You will usually receive a renewal notice about 30 days before the renewal date. Comparing quotes at this time will help you ensure that your current insurer still offers the most competitive rates and coverage for your needs.

By following these steps, you'll be well-equipped to research and compare quotes from different insurance companies, enabling you to make an informed decision about your auto insurance.

Choose how to shop for car insurance

There are several ways to shop for car insurance, each with its own pros and cons. Here are some of the main routes you can take:

Auto Insurance Direct from the Insurer

With direct auto insurance, you don't need an agent or broker. Online car insurance quotes from insurers' websites and third-party comparison sites are popular, and you can also get direct insurance quotes over the phone. This option allows you to see all your policy options and complete the process at your own pace. It's a good choice if you want a pressure-free shopping experience and convenience is a priority. However, online quotes are estimates and may differ from the final price. You'll also need to share personal information, and you may receive 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. Large insurance companies like Allstate, Geico, and State Farm have exclusive agents in most states. This option is good if you want guidance in choosing your coverage and managing multiple policies. However, captive agents are limited in the prices and policy features they can offer, and they won't help you compare with other companies. They are also paid on commission, which may incentivize them to offer pricier policies.

Car Insurance from an Independent Agent or Broker

Independent agents and brokers work with multiple insurance companies and can offer a variety of policies and quotes. They can explain complex parts of your policy and provide more objective advice than captive agents. They are knowledgeable about the companies they work with and can help you find the best coverage for your situation. However, they might try to sell you more coverage than you need, as they work on commission, and their premiums may include a broker's fee.

Car Insurance from Specialty Agencies

If you have a history of accidents, DUIs, tickets, or lapses in coverage, consider getting quotes from high-risk car insurance companies and agencies that specialize in nonstandard policies. These agencies can help you find coverage even if you have a spotty driving record or no driving record at all.

Gather driver and vehicle information

Gathering driver and vehicle information is the first step to getting auto insurance. This information is necessary to get a quote from a car insurance company. Here is the information you will need:

Driver Information

• Name and date of birth for every driver on the policy.
• Driving history for all drivers on the policy, including at-fault accidents, traffic violations, and any completed safe-driving courses.
• Driver's license information, including the issuing state, for every driver on the policy.

Vehicle Information

• Vehicle Information Number (VIN).
• Current mileage on your car.
• Address where the vehicle is registered.
• Name of the registered owner.
• Make, model, and year of the vehicle.
• Vehicle's date of purchase.
• Purpose of the vehicle (work or leisure).

This information will allow the insurance company to check your driving record, including speeding tickets and vehicular accidents, which will factor into your insurance costs. Your car factors into your premium, too. A newer car is more expensive to insure than an older car with high mileage. Additionally, if you use your vehicle for a long commute to work, you’ll pay more than a customer with a short commute.

Decide on the level of coverage

Deciding on the level of auto insurance coverage you need is a critical step in the process of purchasing car insurance. While the minimum coverage mandated by your state is a good starting point, it's important to consider your personal circumstances and financial situation to ensure you have adequate protection. Here are some factors to help you decide on the appropriate level of coverage:

Understanding Coverage Types:

Before deciding on the level of coverage, it's essential to understand the different types of auto insurance available. The main types include:

• Liability Coverage: This is required in almost every state and covers the expenses of others in an accident, including medical bills, lost wages, and property damage. It typically has three components: bodily injury liability per person, bodily injury liability per accident, and property damage liability per accident.
• Collision Coverage: This covers the cost of repairing or replacing your car if you're at fault in an accident.
• Comprehensive Coverage: This covers damage to your car from incidents other than collisions, such as theft, vandalism, or natural disasters.
• Uninsured/Underinsured Motorist Coverage: This protects you if you're hit by a driver without insurance or with insufficient coverage.
• Personal Injury Protection (PIP): This covers your medical expenses and lost wages, regardless of who is at fault, and is required in some states.
• Medical Payments Coverage (MedPay): This covers your medical bills after an accident, regardless of fault, and is optional in most states.

Assessing Your Financial Situation:

When deciding on the level of coverage, consider your financial assets, including your savings, home, car value, and retirement funds. You want to ensure that your coverage limits are sufficient to protect these assets in the event of an accident. Calculate your net worth by adding up your assets and subtracting any debts. This will give you a target amount of liability coverage to aim for.

Evaluating Risk Factors:

Consider your driving habits, the value of your car, and the likelihood of accidents. If you drive infrequently or in low-traffic areas, you may opt for lower coverage. On the other hand, if you have a new or expensive car, full coverage (including collision and comprehensive) may be advisable to protect your investment. Additionally, if you live in an area with a high percentage of uninsured drivers, consider adding uninsured motorist coverage for extra protection.

Complying with State Requirements:

While deciding on the level of coverage, ensure that you meet the minimum requirements mandated by your state. Each state sets its own minimum liability coverage limits, and some states also require additional coverages like PIP or MedPay. You can find your state's specific requirements online or by consulting with a local insurance agent.

Considering Optional Coverages:

In addition to the mandatory coverages, consider optional add-ons like roadside assistance, rental reimbursement, or custom equipment coverage, depending on your needs and budget. These optional coverages can provide extra peace of mind and protection in specific scenarios.

Shopping Around:

Finally, don't hesitate to shop around and compare quotes from multiple insurance providers. This will help you find the best rates and coverage options that fit your budget and needs. You can use online tools or work with an independent insurance broker to gather quotes and make an informed decision.

Buy the policy and cancel the old one

Once you've chosen a new auto insurance company, you can proceed to buy the policy. You can usually pay all at once or in regular instalments. You may even get a discount if you pay in full upfront.

After buying the new policy, contact your former company to cancel the old one. It is important to avoid a lapse in coverage by ensuring that the cancellation date for your old policy is after the start date of the new one. You will receive a refund for any unused premium you paid your former insurer, minus any cancellation fee.

If you are switching car insurance companies, your new insurance company can provide proof of insurance to your old company. However, they are generally not authorised to cancel a policy with another insurer on your behalf.

Frequently asked questions