Get quotes from multiple insurers before you buy
The first step is to gather quotes from at least three different insurance companies. You can do this by visiting their websites directly, calling their phone numbers, or using comparison tools that pull quotes from multiple carriers at once. Each quote will show you the same coverage options priced differently, so comparing them side by side tells you where you'll pay less for the same protection.
When you request a quote, you'll need to provide your driver's license number, driving history, the vehicle identification number (VIN) of the car you want to insure, and information about how you'll use the car — commuting, occasional driving, or business use. The quote is not a binding offer; it's an estimate based on the information you give. Insurers may adjust the price once you actually purchase the policy if any details change.
Comparing quotes takes 30 minutes to an hour if you do it yourself, or you can use online comparison sites like The Zebra, Insurify, or NerdWallet that gather multiple quotes at once. These sites don't charge you; they make money when you click through to an insurer's site.
Key Takeaways
- Get quotes from at least three insurers so you can see the real price differences for the same coverage.
- You'll need your driver's license, driving history, vehicle VIN, and information about how you'll use the car to get an accurate quote.
- Choose a deductible (usually $500 or $1,000) that you can actually pay out of pocket if you have a claim.
- Once you've picked an insurer and coverage, you can buy the policy online, by phone, or through an agent, and coverage typically starts the same day.
- Keep your proof of insurance in your car and review your policy once a year to make sure the coverage still fits your situation.
Decide what coverage types you actually need
Car insurance policies combine several types of coverage, and not all of them are required. Liability coverage — which pays for damage or injury you cause to someone else — is required by law in every state, though the minimum amount varies. Collision coverage pays to repair your own car if you hit something. Comprehensive coverage pays for damage from theft, weather, or hitting an animal. Uninsured motorist coverage protects you if someone without insurance hits you.
If you own your car outright, you can legally choose to buy only liability. If you have a loan or lease, your lender will require you to carry collision and comprehensive as well. If your car is older and worth less than $5,000, the cost of collision and comprehensive might exceed what you'd get paid in a claim, so many owners skip them. If your car is newer or you couldn't afford to replace it, those coverages are worth the cost.
The coverage type that confuses most people is the deductible — the amount you pay out of pocket before insurance kicks in. A $500 deductible means you pay the first $500 of any claim; the insurer pays the rest. A $1,000 deductible costs less per month but means you pay more when something happens. Pick a deductible you can actually afford to pay if you need to file a claim.
Choose coverage limits that match your assets
Liability coverage comes in limits — typically written as 25/50/25, meaning $25,000 per person injured, $50,000 per accident, and $25,000 for property damage. These are the minimum in many states, but they're often too low. If you cause a serious accident and injure multiple people, medical bills and legal judgments can easily exceed $25,000 per person.
A better starting point is 100/300/100 ($100,000 per person, $300,000 per accident, $100,000 property damage). If you have significant assets — a house, savings, investments — consider 250/500/250 or higher. The reason is that if you cause an accident and the damages exceed your liability limit, the injured person can sue you personally for the difference. Higher limits cost only $10 to $30 more per month but protect your paycheck and assets.
For collision and comprehensive, you set the deductible but the insurer sets the maximum payout — usually the car's current market value. If your car is worth $8,000 and you have a $1,000 deductible, the insurer will pay up to $7,000 toward repairs or replacement.
Complete the purchase and activate your policy
Once you've chosen an insurer and coverage, you can buy the policy through their website, by phone, or through an agent. You'll review the quote one more time, confirm all the information is correct, and pay the first month's premium or first installment. Most insurers let you set up automatic payments so your premium is charged monthly, every six months, or annually — whichever you choose.
Your coverage typically starts the same day you buy the policy, sometimes within hours. The insurer will email you a proof of insurance document (sometimes called a declarations page or ID card) that you must carry in your car. This is the document you show a police officer if you're pulled over or give to another driver after an accident. Take a photo of it and keep it on your phone as a backup.
If you need to drive before your policy is active, check with your current insurer — some will extend your existing coverage for a day or two while you switch. Do not drive uninsured; it's illegal in every state and you're personally liable for any damage or injury you cause.
Understand what happens after you buy
After you purchase a policy, the insurer may contact you within a few days to verify information or ask follow-up questions about your driving history or the vehicle. This is normal and doesn't mean anything is wrong. Answer honestly; if you misrepresent facts on your application, the insurer can deny a claim later.
You'll receive your full policy documents in the mail within one to two weeks. These are longer and more detailed than the quote or declarations page. Read through them so you know exactly what's covered, what's not, and what you need to do if you have an accident or claim.
Set a reminder to review your policy once a year. If your driving situation changes — you retire and drive less, you move to a different state, you pay off your car loan — your coverage needs may change too. Bundling home and auto insurance with the same company often saves 15% to 25%, so if you buy homeowners insurance later, ask about that discount.
What to do if you can't afford the quote
If the quotes you're getting are higher than you expected, there are a few options. First, increase your deductible to $1,000 or $1,500 — this lowers your monthly premium. Second, reduce your coverage limits on collision and comprehensive if your car is older and worth less than $10,000. Third, ask about discounts: most insurers offer 5% to 15% off for bundling, paying in full upfront, maintaining a clean driving record, completing a defensive driving course, or having safety features in your car.
Some states also run low-income car insurance programs that cap premiums for drivers who meet income thresholds. These programs are run by your state's insurance commissioner's office, not by individual insurers. You can find yours by searching "[your state] low-income auto insurance" or calling your state's Department of Insurance.
If you're switching from one insurer to another, ask about a loyalty discount or new customer discount. Some insurers will also waive the first month's premium if you switch to them. These offers are not advertised widely, so it's worth asking.
Frequently Asked Questions
Can I buy car insurance without a driver's license?
No. Insurers require a valid driver's license to issue a policy because they need to check your driving record. If you have a learner's permit, you can be added to someone else's policy as a driver, but you cannot buy your own policy until you have a full license.
What if I buy a car and need insurance before the dealership closes?
Call an insurer directly and buy a policy over the phone. Most major insurers can issue a policy within an hour and email you proof of insurance immediately. You can drive home with that proof on your phone. Do not leave the dealership without proof of insurance in hand.
Do I have to buy insurance from the same company as my home insurance?
No, but bundling usually saves money. You can shop for auto insurance separately and buy from a different company if their quote is better. Just compare the total cost of both policies bundled versus buying them separately before you decide.
What happens to my policy if I don't drive for several months?
Your policy stays active and you keep paying the premium. If you know you won't be driving for an extended period, call your insurer and ask about suspending or canceling the policy. Some insurers offer a "parked car" discount if the vehicle is stored and not driven, but you have to request it.
Can I change my coverage after I buy the policy?
Yes. You can call your insurer anytime to change your deductible, add or remove coverage types, or adjust your liability limits. Changes usually take effect immediately or on your next billing date. Some changes may lower your premium; others will raise it, and you'll owe the difference or receive a credit.