How to Get Car Insurance: A Step-by-Step Guide

What you need to do to get car insurance

Getting car insurance means contacting insurance companies directly, comparing their quotes, and choosing a policy that fits your situation and budget. You will need your driver's license, vehicle identification number (VIN), and driving history. Most insurers let you get a quote online in minutes, and you can buy a policy the same day if you want to.

The process is straightforward: decide what type of coverage you need based on your state's requirements and your car's value, gather your information, request quotes from multiple insurers, and pick the one that works for you. You do not need a broker or agent unless you want personalized help — you can do this entirely on your own.

Key Takeaways

• You will need your driver's license number, vehicle identification number (VIN), and a summary of your driving history before you contact any insurer.
• Most states require at least liability coverage, but lenders require comprehensive and collision coverage if you have a car loan or lease.
• Getting quotes from at least three insurers takes about 15 minutes per company and can save you hundreds of dollars per year.
• You can buy a policy online and have coverage start the same day, though some insurers require a phone call to finalize.
• Your rate depends on your age, driving record, location, the car you drive, and the coverage limits you choose.

Gather your information before you contact insurers

Have these documents ready before you call or go online: your driver's license, the vehicle identification number (VIN) from your car's dashboard or registration, and the current mileage. The VIN is a 17-character code that tells the insurer exactly what car you own — its make, model, year, and safety features.

You will also need to know your driving history. Most insurers pull this automatically from your state's motor vehicle department, but you should know whether you have had accidents, traffic violations, or insurance claims in the past three to five years. If you are unsure, you can request your own driving record from your state's DMV before you explore.

If you are financing or leasing the car, have your loan or lease paperwork nearby — the insurer will ask for the lender's name and loan number so they can add them to the policy.

Decide what coverage types you actually need

Liability coverage is required by law in every state except New Hampshire. It pays for damage or injury you cause to someone else. Your state sets a minimum amount — typically $25,000 per person and $50,000 per accident for bodily injury, and $25,000 for property damage — but you can buy more.

Comprehensive and collision coverage pay for damage to your own car. Collision covers accidents; comprehensive covers theft, weather, vandalism, and hitting an animal. If you have a car loan or lease, your lender will require both. If you own the car outright, you can skip them to save money, but you will pay out of pocket for repairs.

Uninsured motorist coverage protects you if someone without insurance hits you. It is required in most states and is usually cheap to add. Medical payments coverage pays your medical bills after an accident, regardless of who was at fault. It is optional but useful if you do not have good health insurance.

Get quotes from at least three insurers

Contact insurers directly through their websites or by phone. Major national insurers include State Farm, Geico, Progressive, Allstate, and USAA (if you are military or a veteran). Regional insurers often offer lower rates in specific states — your state's insurance commissioner's office publishes a list of all licensed insurers in your state.

When you request a quote, you will enter the same information for each company: your personal details, driving history, vehicle information, and the coverage limits you want. Most online quotes take 10 to 15 minutes. Write down or screenshot each quote so you can compare them side by side.

Do not just pick the cheapest quote. Compare what coverage each policy includes, what the deductible is (the amount you pay out of pocket before insurance kicks in), and whether the company offers discounts you may have access to for. A $50 difference per month adds up to $600 per year.

Understand discounts that can lower your rate

Most insurers offer discounts for bundling home and auto insurance, paying your premium in full upfront instead of monthly, completing a defensive driving course, having safety features in your car, and maintaining a clean driving record. Some offer discounts for low mileage, good grades (if you are under 25), or being a good customer with another company.

Ask each insurer what discounts you may have access to for before you buy. Some discounts are automatic; others require you to take action, like signing up for a usage-based program that tracks your driving habits. A discount that saves you $100 per year might not be worth the hassle, but one that saves $300 is worth considering.

Buy your policy and set up payment

Once you have chosen an insurer, you can complete the purchase online or by phone. You will need to choose your coverage limits, your deductible, and your payment method. Most insurers let you pay monthly, quarterly, or annually — paying in full usually costs less overall.

You can usually start your coverage the same day you buy the policy, though some insurers require a phone call to finalize. Your insurer will email you a proof of insurance document when ready — this is what you show a police officer if you are pulled over. Keep a copy in your car and on your phone.

Your insurance card will arrive by mail within a week or two. Until it does, the proof of insurance email is valid proof that you have coverage.

What happens after you buy your policy

Your insurer will send you a bill each month (or on whatever schedule you chose) and a renewal notice 30 to 60 days before your policy expires. When you renew, your rate may go up or down depending on your driving record, claims history, and changes in your personal situation.

If you get a ticket, have an accident, or move to a different state, tell your insurer right away. These changes affect your rate. If your car is paid off or you pay off your loan, you can drop comprehensive and collision coverage if you want to save money — just make sure you have enough savings to cover repairs if something happens.

Frequently Asked Questions

Can I get insurance if I have a bad driving record?

Yes. Insurers in every state will cover drivers with accidents, tickets, or claims on their record — they just charge higher rates. If you cannot find coverage through standard insurers, your state has an insurer of last resort (sometimes called an assigned risk pool) that must cover you, though the rate will be significantly higher.

What is the difference between a deductible and a premium?

Your premium is what you pay the insurance company each month or year for coverage. Your deductible is what you pay out of pocket when you file a claim — for example, if you have a $500 deductible and $3,000 in damage, you pay $500 and insurance pays $2,500. A higher deductible lowers your premium.

Do I need insurance before I buy a car?

You need insurance before you drive the car off the lot. Most dealerships will not let you leave without proof of coverage. You can buy a policy online in minutes, so get a quote and purchase before you go to the dealership, or do it there while you are signing paperwork.

How often should I shop around for a better rate?

It is worth getting new quotes every year or two, especially if your driving record has improved or you have moved. Rates change based on competition and your personal situation. Switching insurers takes 15 minutes and can save you hundreds of dollars annually.

What if I cannot afford the monthly payment?

Ask your insurer about payment plans — some offer weekly or bi-weekly payments instead of monthly. You can also raise your deductible to lower your premium, drop optional coverage like comprehensive and collision if you own the car outright, or look for insurers that specialize in lower-income drivers. Your state insurance commissioner's office can point you toward options.