The smart way to shop for car insurance

Step 1: Pick a shopping method 

Request quotes directly from insurance companies: You can call or go to an insurance company’s website for custom quotes. You’ll get accurate estimates and the chance to adjust your coverage levels—but this method is time consuming and it’s easy to overpay. 
Talk to a local agent: A trusted insurance agent can help you find the best deals on car insurance. But all agents work on commission. Captive agents—i.e. agents that work for a specific company—are likely to upsell, and even independent agents might guide you toward pricier coverage in order to maximize their earnings. 
Use an online quote comparison service: Most car insurance comparison websites will either redirect you to an insurance carrier’s site, where you’ll have to call an agent or fill out extra paperwork for a single quote, or sell your information to marketers who will bombard you with calls and offers. 
Turn to a trusted independent broker like Jerry: Unlike agents, insurance brokers are transparent sources for insurance policy shopping. Jerry, the AllCar™ app, helps drivers compare customized real-time auto insurance quotes from over 55 of the best car insurance companies in under a minute. And with Jerry’s DataLock Guarantee™, all your personal information is protected by bank-level security measures—which means no spam calls! 

Step 2: Figure out your coverage needs 

Liability coverage: Every state except New Hampshire requires drivers to carry
liability insurance
, including bodily injury and property damage liability coverage. This coverage pays for other drivers’ expenses if you’re fully or partially at fault in an accident. Buy at least $10,000/$50,000/$10,000 of liability coverage—though 100/300/100 is better.
Collision coverage:
Collision insurance
covers physical damage to your vehicle caused by any kind of collision, whether it’s a fender-bender, a multi-car pileup, or a guardrail crash. If your vehicle is financed and/or worth at least $4,000, you need to buy collision insurance. 
Comprehensive coverage: Usually paired with collision insurance,
comprehensive coverage
deals with physical losses caused by something other than an accident—things like vandalism, theft, or severe weather. Like collision insurance, lenders require it for financed or leased vehicles and it’s worth investing in if your car is worth $4,000 or more. 
Uninsured/underinsured motorist coverage: Required by law in some states,
uninsured motorist coverage
simplifies the process of getting insurance coverage for medical bills after a car accident—especially if the other driver is uninsured. A 2021 study by the
Insurance Information Institute
showed that 12.6% of U.S. drivers are uninsured. 
Personal injury protection (PIP): If you live in a no-fault state, you must purchase
personal injury protection
to cover medical expenses, rehabilitation costs, lost wages, and even funeral expenses for you and your passengers. 
Medical payments (MedPay): Like PIP,
MedPay
covers health-related expenses stemming from a car accident, with slightly less comprehensive benefits. MedPay is only required in Maine. 
Roadside assistance: You can pay for a separate membership with a roadside assistance service like AAA, or you can get
roadside assistance
directly through your insurance company for a low rate. Typically, you must carry collision and comprehensive coverage to add roadside assistance to your policy. 

If you have a teenage driver in your family

Choose a high liability limit (100/300/100 or more). Young drivers have the highest rate of violations and accidents, so it’s best to cover yourself against expensive accidents.

If you have an older used car

Dropping full coverage and sticking to state minimum coverage is worth it if your vehicle’s actual cash value is less than about $4,000.

If you have an SR-22 filing requirement

Make sure your policy meets the minimum requirements for SR-22 insurance in your state. If one or more auto insurance companies deny your application, you may need to look into non-standard insurance companies.

Step 3: Gather all the necessary documents

Identifying information: In addition to the main policyholder’s name and birthdate, you’ll need to provide the full name, birthdate, driver’s license number, Social Security number, and driving history of any driver listed on the policy. 
Vehicle information: Be ready to list the make, model, year, trim, and vehicle identification number (VIN) for each vehicle on your policy. 
Prior policy information: If you’re currently insured, have all your policy information on hand, along with any information about claims you filed in the past five years. 
Driving information: Insurance companies will ask about your annual mileage, vehicle usage (pleasure vs. commute), and driving record, including any violations from the previous five years. 
Special information: If you need to file an SR-22, have your case number handy when requesting quotes. 

Step 4: Compare insurance providers—and don’t just look at costs 

Customer satisfaction: Look up the insurer’s National Association of Insurance Commissioners (NAIC) number to find their NAIC complaint index—i.e., how many customer complaints they receive relative to the industry average. Numbers higher than 1 are worse; anything under 1 is a great sign. 
Insurance discounts:
Farmers Insurance
has more available discounts than any other insurance company, followed by American Family, GEICO, and Travelers. 
Coverage options: You’ll be able to get all your coverage basics (liability, collision, and comprehensive) from any decent insurance company—but some companies have unique coverage for high-risk drivers, classic cars, or brand-new cars. 
Usage-based car insurance programs:
Allstate
and
Nationwide
have two of the leading usage-based insurance programs, with options for safe driving discounts or mileage-based discounts for drivers who agree to let their insurer track their driving. 
Company reputation: Check out Better Business Bureau (BBB) ratings and reviews for your chosen insurer before purchasing coverage. 
Bundling opportunities: If you need a
homeowners
or
renters insurance
policy in addition to car insurance coverage, take any possible multi-policy insurance discounts into account. 

Expert Tip Never pay for car insurance quotes—ever. Anyone asking you to pay for quotes is a scammer. 

Step 5: Buy a policy

Check your agreement before signing: As with any legal contract, read your insurance agreement before you finalize the policy. Make sure you’re happy with your coverage and final rate—which will sometimes be higher or lower than your initial quote. 
Schedule your new policy to activate before your old coverage ends: An
insurance lapse
of even one day can cause your auto insurance rates to increase. 
Keep your insurance ID card with you: When you purchase a policy, you’ll receive an insurance ID card, which acts as
proof of insurance
for traffic stops, DMV transactions, and more. Keep it in your vehicle—or, if you live outside of New Mexico, know how to locate a digital version on your phone. 
Be ready to shop again: Car insurance isn’t one-and-done. Comparing quotes every six months or after major changes (e.g. moving to a new ZIP code or purchasing a new vehicle) can help you find lower rates.