How to Get Auto Insurance (2023)

If you are looking into how to get auto insurance policies, there are some steps you should follow to ensure you get the best deal and coverage. From collecting the relevant information to comparing the best auto insurance companies, being prepared beforehand will help the process of getting auto insurance go smoothly.

Read on to learn more about each step in the process of finding the right auto insurance plan for you. We’ve outlined each step of how to get car insurance below.

Collect Auto Insurance Application Information

The very first step you should take when looking to get auto insurance is to collect all the information you’ll need when applying for car insurance. You will need information about every car and driver that you are signing up for the insurance policy.

This information includes the following: 

• Each driver’s personal information. This includes name, birthday, and license number.
• Each driver’s driving history. This includes past tickets, accidents, and similar incidents.
• Each vehicle’s information. This includes the vehicle information number (VIN), make and model, current mileage, address of vehicle registration, and similar information.

The insurance company will also ask for information like your annual mileage and whether you use your car for work or pleasure. A representative will also ask other relevant questions to help calculate your rates.

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Choose Auto Insurance Coverage

After collecting all of your driver and vehicle information, you need to decide what coverages you want to purchase for your vehicle. We’ve outlined the main coverages that drivers typically purchase and common add-on insurances.

Not all coverages are required, but you may wish to consider additional coverages to avoid financial issues after an accident.

Liability Auto Insurance

Liability auto insurance is required in almost every state. The few states that allow drivers to forgo carrying liability insurance require drivers to post bonds or show proof of financial ability to pay for an accident.

However, the vast majority of drivers are legally required to carry liability insurance to drive.

For example, in New York, all drivers must carry minimum liability limits of 25/50/10, which means:

• $25,000 for bodily injury of one person ($50,000 for death)
• $50,000 for bodily injury for two or more people ($100,000 for death)
• $10,000 for property damage

Liability insurance consists of two parts — bodily injury liability insurance and property damage liability insurance. If you cause an accident, liability insurance will take care of the other parties’ property damage and medical bills.

How much of the bill liability insurance will cover depends on your liability limit. You are required to carry the state minimum amount, but we recommend carrying a higher limit if you are financially able.

Keep in mind that the state minimum amounts are often not enough to pay for accident costs.

Uninsured/Underinsured Motorist Auto Insurance

According to the Insurance Information Institute (III), only twenty states and the District of Columbia have mandatory requirements for uninsured motorist coverage and underinsured motorist coverage. However, it protects you if the driver who hits you doesn’t have enough insurance to cover your bills or has no insurance.

Uninsured/underinsured motorist coverage will pay for your accident bills. Therefore, you may want to consider this coverage, even if it is not required, if you live in a state with a high number of uninsured drivers.

Read more:

• Uninsured Motorist (UM) Coverage
• Best Underinsured Motorist (UIM) Coverage Auto Insurance Companies.

Personal Injury Protection Auto Insurance

A handful of states require personal injury protection (PIP) insurance. It will cover you and your passenger’s medical expenses, regardless of who caused the accident.

In addition to medical bills, PIP will usually cover lost wages due to injuries, rehabilitation, unexpected expenses due to injuries (such as childcare), and funeral costs.

Medical Payments Auto Insurance

Medical payments (MedPay) is similar to PIP coverage, but it doesn’t have all the extras that PIP has. MedPay only covers the medical bills of you and your passengers in an accident, regardless of who is at fault.

MedPay is not available in every state, so you’ll have to check if insurance companies in your area sell it if you want to add MedPay to your coverage.

Collision Auto Insurance

Collision auto insurance is a great coverage to have, even though it’s usually not required for the majority of drivers. However, if you have a lease or loan on your car, your lender will require you to carry collision insurance.If you crash into another vehicle or object, such as a fence or mailbox, collision insurance will pay for your repair bills or the value of your car if it is totaled.

Without collision insurance, if you cause an accident, you will have to pay out of pocket for repairs or a new car if yours is totaled.

Comprehensive Auto Insurance

Comprehensive auto insurance is often sold in conjunction with collision insurance. Like collision insurance, it is not required by the state, although your lender will require it if you have a lease or loan on your vehicle.

Comprehensive insurance will cover damage from the following:

• Animal collisions
• Weather conditions
• Vandalism
• Theft
• Falling objects

In some states, you may have to purchase fire and flood insurance separately to be fully covered against weather conditions.

Other Optional Auto Insurance Coverages

Insurance companies often offer a number of optional auto insurance coverages that aren’t required by states.

Some of the common add-on auto insurance coverages include the following: 

• Classic car insurance. If your car is at least 20 years old and you rarely use it, you may need to purchase classic car insurance instead of regular car insurance (learn more: choosing insurance for a classic car).
• GAP insurance. GAP insurance pays the difference between the depreciated value of your car and what is left on your loan if your car is totaled in a covered claim.
• Modified car insurance. Suppose you’ve made modifications to your car, such as a custom paint job. In that case, modified car insurance will cover the higher cost of repairs or the replacement of the modifications in a covered accident.
• New car replacement. If you have a car that is less than two years old, new car replacement coverage will pay for a new car of the same make and model if you total yours.
• Rental car reimbursement coverage. If your car is in the shop after a covered accident, rental car reimbursement will pay for a rental car until yours is repaired.
• Roadside assistance. Roadside assistance will generally help if you run out of gas, your battery dies, you get a flat tire, you get locked out of your car, or you need a tow.

All of these coverages are optional, but they may be worth looking into if you want more complete coverage or specialty add-ons for convenience.

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Remember, most lenders require GAP insurance if you have a loan or lease. While GAP coverage may be optional for some drivers, it may be required if you don’t own your car.

Get Auto Insurance Quotes

After you’ve decided what coverages you want on your policy and collected your relevant information, the next step is to start getting quotes from different insurance companies. Learn how to get multiple auto insurance quotes.

There are several ways to get quotes:

• Captive agent. You can get quotes from an insurance company’s agent, also known as a captive agent, because they only sell for that company.
• Independent agent. You can reach out to an independent agent or broker who sells for multiple companies and, therefore, can compare multiple different quotes for you.
• Online. You can get quotes from individual companies online or use a free quote comparison website to see quotes from multiple companies.

Getting auto insurance quotes is the best way to find reasonable pricing for the coverages you want, as auto insurance can vary dramatically in price depending on the company.

Below is a table showing the cheapest auto insurance company rates in each state.

Cheapest Auto Insurance Providers by State

States	Insurance Companies	Average Monthly Rates
Alabama	Travelers	$81
Alaska	State Farm	$76
Arizona	Geico	$57
Arkansas	State Farm	$100
California	Geico	$109
Colorado	Geico	$83
Connecticut	Geico	$66
Delaware	Travelers	$92
Washington DC	Geico	$72
Florida	Geico	$101
Georgia	Geico	$112
Hawaii	Geico	$64
Idaho	Travelers	$63
Illinois	Geico	$66
Indiana	Geico	$66
Iowa	Geico	$79
Kansas	Geico	$95
Kentucky	Geico	$91
Louisiana	Geico	$120
Maine	Geico	$51
Maryland	Travelers	$112
Massachusetts	Geico	$78
Michigan	Geico	$99
Minnesota	State Farm	$62
Mississippi	Geico	$80
Missouri	Geico	$79
Montana	Liberty Mutual	$66
Nebraska	State Farm	$84
Nevada	Geico	$95
New Hampshire	State Farm	$74
New Jersey	Geico	$90
New Mexico	State Farm	$83
New York	Geico	$82
North Carolina	Progressive	$38
North Dakota	Geico	$82
Ohio	Geico	$58
Oklahoma	Geico	$94
Oregon	Geico	$91
Pennsylvania	Geico	$70
Rhode Island	State Farm	$97
South Carolina	Geico	$99
South Dakota	Geico	$79
Tennessee	Geico	$84
Texas	State Farm	$98
Utah	Geico	$63
Vermont	Geico	$52
Virginia	Progressive	$80
Washington	Progressive	$80
West Virginia	State Farm	$72
Wisconsin	Geico	$55
Wyoming	Liberty Mutual	$86

We have put together a list of the top 10 insurance companies and rates for minimum coverage versus full coverage compared with the national average.

Auto Insurance Monthly Rates by Coverage Level and Provider

Insurance Company	Minimum Coverage	Full Coverage
Allstate	$61	$160
American Family	$44	$117
Farmers	$53	$139
Geico	$30	$80
Liberty Mutual	$68	$174
Nationwide	$44	$115
Progressive	$39	$105
State Farm	$33	$86
Travelers	$37	$99
U.S. Average	$45	$119

The table above should give you an idea of what to expect, but it is always recommended to get your own individual quotes from at least three insurers to make sure you’re getting the best deal for your unique needs.

Compare Auto Insurance Companies

Once you’ve collected quotes from a few different companies, you should compare factors beyond price. Going with the cheapest option isn’t always the best choice, as the company may have a reputation for not paying out claims or for poor customer service.

So, in addition to price, check the companies’ reviews and ratings, including customer reviews to financial reviews. A poorly rated company should probably be scratched from your list, even if it has the cheapest rates.

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Purchase Auto Insurance Coverage

Wondering how to buy car insurance? Once you’ve chosen your auto insurance company, it is time to purchase your policy.

It is essential to make sure that your new auto insurance policy starts before your cancellation date for your old insurance policy. Otherwise, you may end up with an illegal lapse in insurance.

Lapses in insurance can raise your auto insurance rates, so be careful to avoid an insurance lapse, even if the lapse is only for a few days. If you do have a lapse, take a look at the best auto insurance companies that don’t penalize for a lapse in coverage.

Once you’ve arranged your policy start date, you can choose to pay in full for your new insurance policy, which may earn you a discount, or you can set up monthly payments. Once you’ve paid and your policy becomes active, you are good to drive.

The Final Word on Getting Auto Insurance Coverage

Getting auto insurance coverage requires a bit of research and preparation. Still, it is necessary to take these steps when purchasing auto insurance to ensure you get the right coverage and affordable rates. Make sure you consider rates in addition to company reviews and ratings when buying auto insurance.

The best way to compare company rates is through rate comparison websites. Now that you know how to get auto insurance, use our free rate comparison tool to find the best rates in your area.

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