How to Shop for Car Insurance with an Easy-to-Follow Checklist

Whether you own, finance, or lease a car, all drivers share a common expense: car insurance. While it’s mandatory in the United States for driving, auto insurance shopping can feel confusing, overwhelming, and time-consuming. That’s because there are numerous insurance companies, terms you need to know, and an entire process to get your first insurance or to switch car insurance companies. Because car insurance is not one-size-fits-all, rates and discounts offered by insurance companies change for each person. You should complete your own research and compare rates with multiple insurance providers to find your best rate .

This guide will cover the basics of buying car insurance, including an easy-to-follow checklist to keep you on track. To start, let’s better understand what car insurance covers.

The following information is meant to provide helpful tips. Reviewing a policy with the respective insurance provider thoroughly before purchasing.

Understanding What Car Insurance Covers

Car insurance is required in almost every state, and driving without it in your state could carry significant consequences. However, there are various types of auto insurance based on your selected coverages. Most auto insurance policies will have the following coverage options:

• Liability Insurance: If you are at fault in a car accident, auto liability coverage pays for bodily injuries to other drivers and their passengers, damage to other vehicles, property damage, and legal fees if you are sued because of the accident.

• Collision Coverage: If your vehicle is damaged in a crash, auto collision coverage pays for repairs. This includes damage from hitting other vehicles or objects.

• Comprehensive Coverage: This coverage protects against damage caused by events beyond your control, including falling trees, vandalism, and theft.

• Uninsured Motorist and Underinsured Motorist Coverage: This coverage helps pay for damages and injuries resulting from accidents caused by a driver with little or no insurance.

• Medical payments and personal injury protection (PIP): Medical payments coverage is available in most states, while personal injury protection is only offered in states that mandate it. Both cover medical bills if you or a passenger are injured.

There are a few additional types of optional coverages that can give drivers peace of mind. These coverages include rental car reimbursement, roadside assistance, and loan or lease payoff coverage.

The amount of insurance you need depends on state laws and your situation. Insurance companies typically offer plans that meet minimum coverage standards in your state. However, your situation may dictate more coverage. For instance, if you lease a vehicle, the lessor may require you to have comprehensive and collision coverage in addition to liability coverage.

Get Ready to Compare Quotes

Now that you have a better understanding of the types of auto coverage, you’ll want to get your quote. Auto insurance quotes can vary by provider and by coverage level. For instance, a plan with only liability coverage is often cheaper than one that includes comprehensive coverage.

To compare car insurance coverage quotes and get the most accurate quote possible, you’ll need to gather some information. When shopping for auto insurance, the more information you can provide, the more detailed many quotes can often be. Here’s what you’ll need to have on hand:

• Vehicle Details: Including the make, model, year, vehicle identification number (VIN), and any additional safety features

• Driver Details: Including driver’s license number, driving history, and contact information

• Current Insurance Information: Including current coverages, insurance premiums, and discounts

Choose the Right Coverage for Your Situation

As you prepare to enter your information to get quotes, choosing the right coverage for your situation is crucial. You’ll want to decide how much coverage you need, what you’re willing to pay as a deductible, what your liability limits are, and what your car’s worth. Like other forms of insurance, auto insurance coverage gets more expensive the more it covers and the higher the value of the item being insured. Therefore, weighing all of these factors before getting quotes is crucial to ensuring you get a quote that matches your insurance needs.

Know What Affects Your Car Insurance Rates

As we mentioned briefly, insurance rates are not a one-size-fits-all product. That’s because every policy is written based on a variety of factors. For example, someone who drives a higher-end luxury car who wants full coverage but is prone to accidents may have a much higher rate than a driver with a clean record and a more economical vehicle. Because car insurance rates are not an exact science, it’s so important to shop around. Here are some factors that can affect the price your car insurance premium:

• Vehicle Factors: Including the cost of vehicle repairs, safety ratings, and theft risks

• Personal Factors: Including driving record, credit score , and age

• Location: Including ZIP code, traffic patterns, and weather conditions

• Policy Factors: Including the amount of coverage, coverage limits, discounts, and deductibles

Find Discounts and Savings Opportunities

Once you understand how your insurance rates may fluctuate, you can look for ways to save. Many providers offer discounts based on different factors. Common discounts include bundling, such as insuring multiple vehicles with one company (multi-vehicle discount) or insuring your home and car through the same provider (multi-policy discount). You might also qualify for discounts by showing good driving habits (safe driver discount), or even discounts based on school performance (good student discounts). Additionally, having safety or anti-theft features on your vehicle can make you eligible for discounts from some car insurance companies. Finally, some insurers may provide discounts for professional associations, military service, or memberships.

How to Compare Car Insurance Quotes the Right Way

You have all of your information, you understand how quotes can differ, and you know about the discounts and savings opportunities available to you. Now what? It’s time to get quotes and compare them to see where you may be able to save money. There are a few ways to get quotes. You can go directly to insurance carriers such as Allstate, Geico, State Farm, and Progressive; use independent insurance agents or brokers to gather your information and shop around for the best deals; or use a comparison tool like  Protect.com . 

Once you’ve received the quotes, be sure to evaluate them on more than just the best rate. You’ll want to look at a company’s claims reputation, customer service reviews, and company ratings. As you can imagine, doing all of this legwork yourself or waiting for an independent agent or insurance broker to do the work for you can take a lot of time. That’s why getting quotes from the best car insurance companies in one place, like  Protect.com , can save you both time and money.

Check the Company Behind the Quote

Once you’ve evaluated your recommended quotes, be sure to assess insurers' reliability and service quality. Sure, saving money with a lower premium is important, but so too is having a dependable, accessible, and trustworthy insurer. Cheap car insurance doesn’t help if the company is slow to pay insurance claims or lacks customer support. Therefore, checking multiple sources to review the insurer can help you gain peace of mind.  Protect.com works with top-rated insurance providers to make sure you’re in good hands.  

When and How to Switch Car Insurance

So, when’s the best time to switch your car insurance? It’s essential to shop around frequently, we recommend every six months, because often loyalty is not rewarded in the car insurance business. Some common times to look to switch carriers include around policy renewal dates or rate increase notices, major life events, or when you need to add or drop a vehicle to your coverage.

Once you have a quote, you’re satisfied with the auto insurance rating, and you’re ready to make the switch, you’ll want to ensure you don’t have a lapse in coverage. Double-check the end date of your current coverage, as well as the start date of your new coverage. Once your new policy begins, you can notify your old insurer that you’ve switched carriers and no longer need coverage from them.

Review the Policy Before You Buy

Before you sign on the dotted line, be sure to carefully review your new policy. You’ll want to double-check exclusions, limits, and coverage details, and verify who is covered under your plan. It’s also vital to understand how a claim could affect your future coverage rates, as claims can sometimes cause your premiums to skyrocket.

Car Insurance Shopping Checklist

In this guide, we’ve covered a lot of information on how to successfully shop for auto insurance. Here’s a checklist you can use as you begin your search:

• Gather pertinent documents, including driver’s license, registration/VIN, current policy, and loan or lease info.

• Know the details, including your annual mileage, deductible preference, and driving history.

• Understand your desired coverage, including your deductible and the level of coverage you would like.

• Follow the following steps:

  • Review at least 3–5 quotes from different providers

  • Use identical coverage options

  • Review insurer reputation and discounts

  • Choose the best balance of coverage, cost, and reliability

As you’ve seen, auto insurance can be stressful – but it doesn’t have to be. Utilizing a comparison tool like  Protect.com can remove a lot of the legwork to help you spend less time shopping and more time saving. 

Ready to work with a comparison tool that can help you save?

Protect.com shops the top insurance providers for you with just a few clicks. Our tool helps you quickly compare rates for car insurance, health insurance, and home insurance – all in one place. Get started to see how much you can save today!