How to Shop for Car Insurance in 5 Easy Steps

Car insurance buyer's guide

Whether you've just purchased a new car, or are on the hunt for the cheapest car insurance policy, the process of getting insured is typically the same. While the car insurance industry has made a lot of technological progress in recent years, getting auto insurance can be a taxing process.

J.D. Power's 2019 U.S. Insurance Shopping Study shows a notable trend: a 35% increase in existing customers switching their insurance policies, signaling a growing readiness to seek better options^[1]. Our guide shows you the best way to buy auto coverage, with a few handy tricks to ensure you find the best possible insurance rate for your vehicle. Let’s get started.

How to shop for car insurance in 5 easy steps

Shopping around for a new auto insurance policy doesn't have to be difficult. In fact, you can buy car insurance in five quick steps.

Read our in-depth guide to understand exactly what you need to buy a car insurance policy and find the best value.

Step 2: Determine your coverage needs

It’s important to compare apples to apples when shopping for auto insurance. When comparing quotes from several auto insurance companies, make sure your quotes reflect the same limits and you can get the best value. The best place to start is by matching your previous insurance coverages.

If you’re starting from scratch, Use this guide to determine which additional coverage options you should consider.

Everyone's situation is different. The level of insurance coverage that you choose depends on a number of factors, including what you drive and how much you drive. In general, it's recommended that everyone increase their liability limits to the highest amount they can reasonably afford. In addition to state-required auto insurance coverages, there may be other coverage types that suit your driving needs and financial situation.

Step 3: Choose your shopping method 

There are a few ways to acquire car insurance coverage for your new vehicle. Your personal preferences may determine which car insurance shopping method works best for you. You can get an auto insurance policy through a variety of methods: 

Option A: From an insurer’s agent

These agents are known as “captive,” meaning they work for one insurance company exclusively, selling only that company’s policies.

Option B: From an independent agent

Unlike a captive agent who only sells products from their insurer, an independent agent can sell other companies' insurance products (as long as they have a relationship/partnership with them).

Option C: Directly from an insurer’s website

A common way to buy car insurance is to purchase a policy directly through an insurance company's website.

Option D: Use an online comparison platform

The best way to shop — regardless of the product — is to find the cheapest price. Comparison tools (like The Zebra) show auto insurance premiums from different companies to help you find the best rate. 

Step 4: Compare insurers and ask about car insurance discounts

Once you’ve chosen your method for shopping, gather quotes from at least three carriers that you’re interested in. Each insurance company will have its own customer satisfaction ratings and available discounts, though most insurers offer the same basic options.

In addition to qualifying for discounts, there are a few methods to lowering your car insurance costs:

• Raise your deductible — The math on this one is pretty simple: a higher deductible means lower payments. The reasoning for this is that you are assuming more of the risk (i.e. paying more out of pocket) in the event of a claim.
• Install an anti-theft device — A car security system is a great way to put your car insurance company at ease and to lower your chances of your vehicle being stolen. 
• Keep your credit score high — Car insurance companies see a strong credit history as a sign of responsibility, which can lead to savings.
• Bundle your insurance policies — Many companies allow you to bundle your auto policy with your renters or homeowners insurance. 
• Take a defensive driving course — Insurers love drivers who can keep a clean driving record. Taking a safe driving course could get you an instant discount and help you become a better driver, which saves you more money in the long run.
• Drive less — By driving fewer miles, you reduce your chances of getting into an accident. Those who only need a car for short drives may look into usage-based insurance programs, also known as telematics, which determine your premium by measuring your driving habits.
• Pay your premium at one time — You can save money by paying your full premium upfront.
• Compare quotes — Because each company has a slightly different method of determining rates, you can save money by regularly shopping for insurance quotes. 
• Don't let your coverage lapse — Aside from the high costs associated with restarting coverage after a lapse, some companies may offer discounts for "continuous coverage."

Step 5: Purchase your new insurance policy

Upon choosing a new insurance provider and policy, it’s time to buy! You may secure your new policy by paying the down payment and setting up a monthly payment plan or paying the premium in full. Don’t forget to cancel your old policy after you’ve signed the documents for your new policy. Make sure to set the cancelation date of your old policy for after the start date of your new one to avoid a lapse in coverage. Your old insurer should issue your refund for any unused premium if you paid in advance for months you will not use.

In summary

Now that you have a step by step guide for buying car insurance online, you will be able to repeat the process regularly. We recommend shopping for a new policy at the end of each policy term to see if you qualify for any new discounts or if another provider might offer a lower rate for the same coverage.