How to Get Car Insurance

Getting car insurance is a no-brainer. In fact, the law says you’ve got to have it. (Unless you live in Virginia or New Hampshire, that is.) But figuring out how to get car insurance? Yeah, that takes a little more brain power. From deciding on where you’ll get your car insurance, to what type of coverage you need, and then comparing quotes—well, it’s a headache. Fortunately, we’re going to break down every step so you know exactly how to get car insurance. No aspirin required!

You’re just five simple steps away from getting car insurance. Here’s what that looks like:

1. Gather all your personal and auto-related information.
2. Determine what kind of coverage you need.
3. Choose how to shop for car insurance.
4. Compare companies and prices.
5. Pay for your new policy and cancel your old one.

Before you do anything else, round up the information every car insurance company will request before they can quote you a rate. Here’s what you’ll need:

Personal Information

• Name and birthdate
• Driver’s license number and issuing state
• The above information for any other drivers in your household

Vehicle-Related Information

• Vehicle Identification Number (VIN)
• Year, make, model, specs, and any customizations
• Name of registered owner
• Address where the vehicle is registered
• Current mileage and estimated annual mileage
• Date of purchase
• Previous or current insurance provider, coverage details, and policy expiration date
• What you use the vehicle for (in most cases, this will be personal use as opposed to business)

Once you have all this information handy, next up is figuring out what kind of coverage you need.

Determining what kind of coverage you need is usually the trickiest part of the process. Keep in mind that there are different types of coverage, and different levels of each type. And be aware that some policies require you to select a level or amount of coverage for certain coverage types. For example, you can’t just purchase liability coverage and assume you’re covered for whatever happens in that department—you’ll need to specify coverage amounts for both bodily injury and property liability.

Most states require a minimum level of coverage for all drivers—this keeps you and other drivers somewhat protected—and then from there it’s up to you based on what you can afford (unless you have a car loan or lease, and then you’ll have a few other requirements too). And don’t assume your state minimums on coverage will be enough to replace your totaled vehicle when the other driver’s at fault. In some cases, settling for the cheapest coverage isn’t always the smartest choice.

Let’s look at the different types of auto insurance coverage so you can get an idea of what’s available.

The Basic Auto Coverages

So, once you’ve figured out what kind of coverage you need, it’s time to compare car insurance quotes. Make sure to use the same limits and deductibles (how much you owe first before insurance kicks in) for each type of coverage you’re considering. But how do you know what to get? And can you get great coverage without breaking the bank? That’s where step three comes in: choosing how to get car insurance.

Don't let car insurance costs get you down! Download our checklist for easy ways to save.

Now that you know what you need to get a quote and what the possibilities are for coverage, you need to decide how to get car insurance. You’ve got three options. You can get insurance:

1. Directly from an insurer

This avenue gets you insured quickly but is usually best for folks who feel comfortable with the car insurance–buying process. Because you’re going directly through the insurer’s website or through a third-party site that provides multiple quotes from different companies, you’re basically giving up personalized customer service. And when it comes to car insurance, that’s a pretty big deal.

Think about it: If you’ve just been in a serious car accident, do you want to call Doug, your neighborhood car insurance agent, or text with a chatbot to discuss what you need to do next? Without an agent, you’re potentially putting your money and vehicle in the hands of someone who isn’t deeply invested in helping you. Something else to consider? When you request quotes directly from insurers, they’re going to immediately start calling, emailing and texting you. Multiply that by 10 insurers and you might end up throwing your phone out the window!

2. From a captive agent

The name is a little scary, but we promise you won’t be held ransom while buying car insurance! Remember Doug from above? Doug is a captive agent. That means he works for an insurance company and sells policies to customers like you who are wondering how to get car insurance. He remains your point of contact whenever you need to file a claim or change your policy. If you have multiple or complicated policies, you have a dedicated person to help you navigate them. And most of all, a captive agent is going to walk you through all the coverage options and help you to understand what’s best for your vehicle and budget.

The downside of a captive agent? They work for one company, so as far as quotes go, what you see is what you get. They’re not able or going to show you their competitors’ rates. Plus, most agents work on commission, so make sure you’re not buying something you don’t need.

3. From an independent agent or broker

Finally, you’ve got independent agents or brokers. These folks will do all the work you’d be doing on your own if you bought directly from an insurer. They’re the go-between that saves you the hassle of shopping around. Plus, they can help you understand how much coverage you need with the budget you have. Independent agents contract with multiple companies to get you the best rates. Independent agents represent the different insurance companies they work with while independent brokers represent you.
 

A drawback to independent agents and brokers is that they don’t represent the full range of possible coverage. You’ll still get access to multiple quotes but may not get quotes from some of the bigger names in insurance that have captive agents on staff. Both agents and brokers work on commission, so they’re motivated to sell you something. Just make sure it’s something you actually need.

If you go with an independent insurance agent (and we think you should), we have some folks in that line of work you should meet: our RamseyTrusted insurance pros. They’ve helped tons of people find coverage to meet their needs and budget. How do they do it? It’s called independence. Because they aren’t dedicated to one insurance company, they can shop around to get you the best rate.

“My husband and I just shopped our home, auto and umbrella insurance[s] with a (Ramsey)Trusted pro,” Katie B. explained in the Ramsey Baby Steps Facebook Community. “Our agent was absolutely amazing and gave us such great advice, we are saving hundreds! [She’s] also handling all of the setup of the new policy and cancellation of the old policies.”

Saving on car insurance and your other coverages is easy, and having a RamseyTrusted pro help you take care of the switcheroos and setup is a huge plus.

Buying Car Insurance Locally

Independent agents and brokers also have local offices, unlike the big guys at the 800 numbers, so they’re going to be very familiar with your local and state insurance laws.

You’re in the homestretch! It’s time to gather all your quotes. Don’t forget to compare apples to apples—that means you need to get quotes for the same coverage limits and deductibles for each option.

Cheaper is not always better, and customer service and satisfaction can’t be overlooked. Remember, we get insurance to cover us if trouble comes up. So, who do you want on your team when there’s trouble?

Differences in Rates Among Insurers

An independent agent is on your side. That means they’re in the best position to find the best priced coverage among a range of insurers that’s tailored for what you need (and nothing you don’t). They have experience working with insurance companies and can recommend the best policy for the carriers they have the best experience with.

All that’s left to do is pay for your new policy and cancel your old one. The insurance company you go with will let you know their payment options. This next part is important. Don’t cancel your old or existing policy until the new one is active. Accidents do happen, and you don’t want to be without coverage for even one second.

What to Look for When Buying Car Insurance

Car Insurance Savings

Here is the simplest, easiest thing you can do to get cheaper car insurance. You ready? Here it is: Ask for a discount. That’s right, call up your insurance agent or company and say, “What discounts am I eligible for?”

Clean driving record? Discount. Bundle a homeowners or renters insurance policy? Discount. Multiple car insurance policies? Discount. An insurance company’s job is to keep your policy with them. They’ll want to help you look for reasons to stay.

Want even cheaper car insurance? Think about the last time you shopped for car insurance rates. If it’s been a year or more, it’s time to take a spin through the steps we just outlined above. Shopping for quotes is a very effective way to get cheaper car insurance. Maybe you’ve got a new car, a paid-off car, an old beat-up car that would be totaled if you bumped into a mailbox—any changes to your car situation mean it’s a good time to shop around. Or, at the very least, it’s a good time to check in with your current provider to see about making some coverage edits.

Personalized Auto Coverages

Some coverage types are universal for all drivers. But don’t forget the policies and laws that apply to your specific area or situation. Car insurance is not a one-size-fits-all kind of protection.

Liability coverage is legally required for just about everyone on the road. It covers damages or injuries to other people or their stuff when you’re found at fault in an accident. You’ll for sure need this kind of coverage. But keep in mind . . .there are other policy types that aren’t strictly required, but are still a great idea to consider. Depending on your state’s laws, you might be legally required to have one or more of the coverage types above and beyond liability. For example, 12 U.S. states currently require personal injury protection (which we described in detail a little earlier). And even if your state doesn’t require it, it can be a great extra layer of protection for you.

Mistakes to Avoid When Buying Car Insurance

Don’t freak out. Buying car insurance doesn’t have to be expensive, scary or stressful at all! But we do want to mention a couple of common pitfalls you should avoid when you’re shopping.

New Driver Car Insurance Cost

New drivers tend to pay more for their car insurance. That’s understandable since they don’t have much of a driving record yet. But even if you’re a rookie, don’t assume you have to go broke to get coverage. There are things you can do that could get you a discount:

• Completing a driver’s ed course
• Getting good grades (because academic responsibility ties with good driving)
• Driving a used car (they’re cheaper to insure)

Buying at the Wrong Time

How can there be a wrong time to get an essential protection like car insurance? You’d be surprised! We don’t recommend shopping rates right after:

• You’ve had an accident
• You’ve been cited for a traffic violation

That kind of thing will definitely bring higher prices for a while.

On the other hand, there are certain life events that make it easier to get a better car insurance rate, like getting married. Are we serious? It’s true! Insurance companies now view you and your spouse as more stable and responsible, and they’ll probably give both of you lovebirds a break on your premiums.

Still can’t get car insurance?

Are you still having trouble getting insured? Whether it’s those youthful fender-benders (hey, we’ve all been there) or your oh-so-stealable Kia, sometimes finding the right auto policy is a challenge.

Don’t give up! Talk to one of our RamseyTrusted auto insurance pros to see what your options are. No matter how many no’s you’ve heard, you might be able to get yourself car insurance by bundling it with other coverages. (And you could save money while you’re at it!)

Get the Right Car Insurance Policy for You

Getting good car insurance can be a hassle—and that’s before you throw in worries about your agent or insurance company being reliable. But it shouldn’t be that way! Whether you need car insurance for the first time or just want to shop new rates, you want to work with someone you can trust.