How to Buy Auto Insurance in 2025

If you want to know how to buy auto insurance, the first step in how to shop for car insurance is to consider coverages before diving into how to get a quote on car insurance.

Once you’ve gotten quotes to determine who has the cheapest car insurance, either from a quote comparison site or directly from companies, research your top companies to determine which is best.

Read on for a detailed explanation of how to shop for auto insurance. If you are ready to jump right into comparing quotes from companies in your area, you can use our free quote tool.

4 Easy Steps to Buy Auto Insurance

How will buying auto insurance help you? It is important to have auto insurance on your vehicles.

Not only is it mandated by states, but it also protects you and your vehicle in the event of damage or injury (Read More: An Insured Story: These 3,000 People Got Auto Insurance Right).

4 Steps to Buy Auto Insurance

We go over each of the four steps you need to follow to get auto insurance coverage, from selecting your coverage to comparing top providers.

Once you’ve chosen your top provider, you can apply for coverage and pay your premium to secure your policy.

Step #1: Determine Coverage Needs

The first step in how to shop for car insurance is to take a minute to research what auto insurance coverages you want to carry on your vehicle.

You will have to buy your state’s required coverage, which is generally liability coverage. Your state may also require uninsured or underinsured motorist coverage, MedPay, or PIP insurance.

Most drivers will opt to carry full coverage on their vehicles even if they don’t have a leased vehicle, though, as it provides the most protection. Full coverage is especially important if you are getting luxury auto insurance quotes for an expensive vehicle (Learn More: Best Auto Insurance for Luxury and Exotic Vehicles).

Other coverages are usually optional unless your car is leased, in which case your lender will require you to carry full coverage, even though it is not state-mandated, to protect their asset.

Auto Insurance Coverage Options: Pros & Cons

By determining what coverages you want to carry, you shop within your budget and remove any unnecessary coverages that the company may suggest to you. For example, if you need full coverage, you can get a full coverage insurance quote while making sure that your full coverage insurance quotes don’t include optional add-ons like roadside assistance.

After all, the more add-ons you place on your vehicle, the higher your rates will be. So make sure to thoroughly evaluate the coverage suggested to you, whether getting full coverage car insurance quotes or minimum quotes.

Step #2: Shop Around for Quotes

The second step in how to shop for insurance is to shop for car insurance quotes from different companies after you’ve determined your coverage needs.

Not sure how to get a car insurance quote before buying? There are several ways you can get quotes for auto insurance, such as directly from insurance company websites, agents, or comparison sites.

Some of the options available when digging into how to get an auto insurance quote include:

• Company Sites: Most car insurance companies offer free quotes on their website and then the option to buy auto insurance online.
• Insurance Agents: You can contact an agent to get an auto insurance quote.
• Quote Comparison Site: Use a free quote comparison site to compare multiple quotes for car insurance online.

When going through the process of how to get an insurance quote, you will need to provide driver and vehicle information, as well as personal details like your address.

Make sure to fill out this information correctly, as even small details like your address will affect the cost of auto insurance.

Collecting quotes from a few different companies will help you choose a company that fits your car insurance needs and your budget (Read More: 17 Tips to Pay Less for Car Insurance).

Curious when to shop for auto insurance? We recommend shopping around for quotes every year or so to ensure you get the best deal on auto insurance.

Step #3: Research Top Companies

With so many auto insurance companies to choose from, you may be wondering where to even start and what to look for when shopping for car insurance quotes. There are several well-known auto insurance companies that offer auto policies across the U.S., such as Geico, Progressive Insurance, and more.

Once you’ve gotten quotes and have determined which companies are in your budget, make sure to do some research into your top two or three companies before committing. There are a few important things you should look into.

Key Factors for Comparing Auto Insurance Companies

We recommend checking financial strength, such as A.M. Best ratings, and customer reviews on sites like Yelp or Google (Learn More: How to Compare Auto Insurance Companies).

Poor financial strength could indicate problems with claim payouts, and negative customer reviews could indicate poor customer service. You should also check J.D. Power ratings to see customer claim satisfaction ratings.

Step #4: Buy Auto Insurance

The last step in how to purchase auto insurance is to buy your coverage. Once you’ve chosen your top auto insurance company, fill out the company’s insurance application.

You may have already started this process by getting a quote, and simply need to review, sign, and pay to finalize getting coverage.

When purchasing your auto insurance coverage, make sure that if you are canceling an old policy, the end date is after your new insurance starts (Read More: What Happens If You Cancel Auto Insurance).

You will need to pay your first car insurance premium before your auto insurance policy will activate.

Once you’ve paid your car insurance premium, your new insurance company will send you proof of insurance. Make sure to keep a copy of your proof of insurance in your vehicle.

If you are pulled over by law enforcement or are in an accident, you will need a copy of your proof of insurance.

Factors Affecting Auto Insurance Rates

Now that you know how to get a quote for car insurance and buy a policy, we want to cover some of the factors affecting your rates. When buying auto insurance, there are several factors that insurance companies will consider when setting your rates, from coverage choices to your credit score.

How Coverage Options Impact Cost

We’ve collected rates for both minimum and full coverage below to give you an idea of what the best car insurance companies charge for different coverage options.

A USAA auto insurance quote, for example, will usually always be much cheaper on average than Allstate or Farmers.

Auto Insurance Monthly Rates by Coverage Level

The best way to determine who has the cheapest coverage for you is to get car insurance quotes.

Taking the time to research providers can help you determine which to avoid. For example, if speedy claims resolution is important to you, then you may want to avoid companies with extremely poor claim ratings.

How Age & Gender Affect Premiums

Age and gender both play a role in how much drivers pay for auto insurance. Young drivers, such as drivers in their teens, will pay more for auto insurance.

This is because statistically, young drivers are more likely to be in accidents due to driving inexperience and file claims.

If you are an older driver, it will be easier to secure the best rates for auto insurance coverage, especially if you have a clean driving record (Learn More: Cheap Auto Insurance for Seniors).

Gender may also impact rates at some providers, though not as much as age. For instance, a provider may charge male drivers slightly more if records show that males have filed more claims at the company.

How Your Driving Record Impacts Your Rates

Drivers with clean driving records —no accidents, tickets, or DUIs— will find it easier to secure extremely cheap auto insurance when getting quotes.

This is because statistically, they pose less of a risk to insurance companies, as their safe driving makes them less likely to file a claim.

Auto Insurance Monthly Rates by Driving Record

Drivers with poorer driving records, however, are charged more by auto insurance companies.

The higher rates are meant to offset the greater risk an auto insurance company is taking on by providing insurance coverage. Because of this, it is harder to find cheap auto insurance for high-risk drivers.

How Location Affects Auto Insurance Cost

One of the reasons insurance companies ask for your address when you are purchasing auto insurance is that your location may come with certain risks.

Local crime, traffic, crash reports, and even the weather can make an area more dangerous to insure a vehicle in.

For instance, if you live in an area prone to crime and vandalism, with a high number of stolen vehicles, you will find that your comprehensive insurance costs will be higher.

State requirements also vary, and some states will have higher rates simply because they require drivers to carry more auto insurance coverages (Learn More: Auto Insurance Requirements by State).

Why Credit Score Matters to Insurance Providers

The last factor that affects your auto insurance quotes when buying auto insurance online is your credit score.

An excellent credit score of 800 or higher could reduce your rates with your auto insurance company each month.

Auto Insurance Monthly Rates by Credit Score

For example, the average rate for an excellent credit score is $65 per month at Allstate, but rises to $98 per month for a poor credit score.

If you are getting high car insurance quotes before buying insurance, you may want to check your credit score to see if you can improve your score and lower your rates (Read More: Hacks to Save Money on Auto Insurance).

Where to Find the Best Auto Insurance for You

Knowing how to shop for car insurance online is important, as it protects your financial well-being in the event of an accident.

You want a company that is affordable and reliable so that you can rest assured that your claims will be paid (Learn More: How to File an Auto Insurance Claim).

Before purchasing car insurance, determine your coverage needs and follow the steps to get a car insurance quote to find coverage that best fits your budget. Rates vary based on driving record, age, and location.

If you are ready to review options in your area, enter your ZIP code in our free quote tool. It will quickly help you find the cheapest auto insurance companies.