How to Get Auto Insurance in 2024 (Follow These 5 Simple Steps)

How you get auto insurance is by determining your coverage needs, collecting personal and vehicle information, obtaining and comparing auto insurance quotes from multiple companies, and then selecting and purchasing the best coverage based on rates, reviews, and stability.

Before you start, ensure you have a clear understanding of your state’s minimum insurance requirements. Knowing your driving habits and financial situation will also help you choose coverage that fits your needs.

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.

Buy Car Insurance Coverage in 5 Fast Steps

Step #1 – 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.

Read More: What documents do you need to get auto insurance?

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.

Step #2 – 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. Start by checking your state’s minimum insurance requirements to ensure you’re meeting legal obligations. We’ve outlined the main coverages that drivers typically purchase and common add-on insurances.

Common Auto Insurance Coverage Options

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. Discover the best New York auto insurance in our guide.

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: 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. Learn more about MedPay in our article “Do you need medical payment coverage on auto insurance?”

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 can be added and 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.

Step #3 – 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 in our simple guide.

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

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.

Step #4 – 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.

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 Provider & Coverage Level

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.

Step #5 – 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.

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.

Buying Auto Insurance Online vs. Through an Agent

Is it cheaper to buy insurance online or through an agent?

Buying auto insurance online is cheaper than purchasing through an agent. Online insurance providers often have lower operating costs and pass those savings on to customers. However, the difference in cost can vary depending on the insurer and the complexity of your insurance needs.

For straightforward policies, online platforms offer the best rates. However, if you require more personalized assistance or have complex insurance needs, the added value of an auto insurance broker or agent could justify the potentially higher cost.

In the end, the choice between buying auto insurance online and through an agent depends on your preferences for convenience versus personalized service. Consider what factors are most important to you—whether it’s saving money, receiving expert advice, or having ongoing support—and choose the method that best aligns with your needs.

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How to Get Auto Insurance Without a Drivers License

Securing auto insurance without a driver’s license is possible by first understanding your specific insurance needs and researching state regulations, as requirements can vary. You may need to provide documentation such as proof of vehicle ownership and registration to insurers willing to offer coverage without a license.

Always contact multiple insurance providers to find one that can accommodate your situation.

In some cases, you might consider purchasing a policy with a named driver who will operate the vehicle. Additionally, specialized insurers may offer solutions tailored for non-traditional scenarios. Comparing different policies will help you find the most appropriate and cost-effective coverage, ensuring you don’t break any auto insurance laws.

Getting Auto Insurance Coverage Has Never Been Easier

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. To help you make an informed decision, explore our guide on auto insurance companies with the best customer service.

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. Enter your ZIP code into our free quote tool below to find the best auto insurance providers for your needs and budget.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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