How to Buy Car Insurance

Purchasing car insurance is a process that requires shopping around and choosing among liability, collision, and comprehensive coverage. Read this guide to learn how to buy car insurance.
Written by Brady Klopfer
Reviewed by Carrie Adkins
Ask for quotes from multiple insurers to buy car insurance. You'll need to have a plan for how much insurance you need, and how much you're willing to pay for that coverage.
Car insurance is a must-have for any driver. It’s
required in every state
except New Hampshire, and even there, it's incredibly important.
Car insurance helps protect you in the event that you’re in an accident by helping to pay for car repairs or replacement in the event that a vehicle is totaled. Car insurance can not only protect your car, but also the cars of drivers that you collide with so that you’re not financially responsible for the damage.
The actual act of buying the insurance is straightforward, but you’ll need to figure out a few variables before making your purchase. Here's how to find and buy the right
car insurance
for you, compiled by
Jerry
.
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Determine what type of car insurance you need

There are three basic types of auto insurance:
liability
,
collision
, and
comprehensive
. Liability coverage is the basic form of car insurance, and all types of insurance feature liability. With liability coverage, your insurance company will cover the repair or replacement costs of the vehicle that you hit in an accident.
With collision coverage, your vehicle is protected as well, whether you’re in a multi-car accident or a single-car collision. Comprehensive coverage protects your vehicle in the event of a non-collision, such as storm damage or vandalization (hitting a deer also counts as a non-collision).
There are other add-ons that you can purchase to supplement your insurance package, but these are the three main plans. If you have a car that would cost too much for you to repair in the event of a collision or major damage, you should get all three types of car insurance.
If your car isn't worth that much, you can consider getting only liability insurance.
Keep in mind that you may have more car insurance requirements if you used a
loan
to buy your car. Lienholders have ownership of your car until it's fully paid off, so they're allowed to require additional coverage. Check with your lender to see what coverage they require.

Choose your financial plan

There are two aspects of budgeting for auto insurance that are important. First, you want to know ahead of time how much you’re willing to spend. Second, you want to determine what you’d like your deductible to be. In general, the higher your
deductible
, the lower your premiums, and vice versa.
Everyone has different financial plans and is comfortable with different levels of risk, so you’ll have to determine whether a high deductible/low premium plan is best for you, or if a low deductible/high premium alternative is preferable.

Shop around for the best car insurance rates

Now it’s time to start shopping. The important part of shopping around is to try lots of options. Check multiple different insurance companies (you can get a quote online) to see what they can offer you for the type of coverage that you’re looking for.
Don’t get satisfied once you find a good plan for a good price; keep checking around, as you may find something even better.
Once you’ve found the ideal plan, it’s time to purchase it, which you can do online (you can also do this over the phone, if you prefer). In order to purchase an insurance plan, you’ll need the information of the vehicle you’re getting insured (year, make, model, license plate, and vehicle identification number), as well as all of the drivers who will be on the plan (full name, address, date of birth, and driver’s license). After you’ve input all of your information and made your first payment, you’ll be all good to go with your car insurance plan.
Purchasing car insurance doesn’t need to be a big deal, though you should always be thorough. The most important thing is to make sure that you get a plan that covers what you need, so that you can have security and peace of mind anytime you drive.

Shop with a broker

Brokers are companies that will search for quotes across multiple carriers for you. Using your information, they can estimate quotes for you from car insurance companies, so you can find the right prices for you a lot faster.
You don't need to worry about paying the broker, either—most brokers make money off of commission when a customer finds an insurer.
That's where
Jerry
comes in. With Jerry, you can find quotes from over 50 different insurers. You will get quotes in seconds, can make changes at any time, and if you ever have any questions, agents are just a text away! Jerry will even help cancel your old policy and switch you over.
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