How to Buy Auto Insurance in 2025 (Follow These 4 Steps)

If you want to know how to buy auto insurance, the process is generally straightforward. First, you should consider your coverage needs and budget before diving into getting quotes.

Once you’ve gotten quotes to determine who has the cheapest car insurance, either from a quote comparison site or directly from companies, research your top companies to determine which is best. Once you’ve chosen your top provider, you can apply for coverage and pay your premium.

Read on for a detailed explanation of each step. If you are ready to jump right into comparing quotes from companies in your area, you can use our free quote tool.

4 Easy Steps to Buy Auto Insurance

It is important to have auto insurance on your vehicles. Not only is it mandated by states, but it also protects you and your vehicle in the event of damage or injury. We’ve outlined exactly how to get auto insurance coverage below.

Read More: An Insured Story: These 3,000 People Got Auto Insurance Right

Step #1: Determine Coverage Needs

Wondering how to choose auto insurance? Before you get quotes, take a minute to research what auto insurance coverages you want to carry on your vehicle. You will have to buy your state’s required coverage, which is generally liability coverage.

Most drivers will opt to carry full coverage on their vehicles even if they don’t have a leased vehicle, though, as it provides the most protection, especially if they have a luxury vehicle (Learn More: Everything You Need to Know About Luxury and Exotic Car Insurance).

Other coverages are usually optional unless your car is leased, in which case your lender will require you to carry full coverage, even though it is not state-mandated, to protect their asset.

By determining what coverages you want to carry, you shop within your budget and remove any unnecessary coverages that the company may suggest to you. After all, the more add-ons you place on your vehicle, the higher your rates will be.

Step #2: Shop Around for Quotes

Once you’ve determined your coverage needs, it is time to shop for car insurance quotes. There are several ways you can get quotes for auto insurance:

• Company Sites: Most car insurance companies offer free quotes on their website.
• Insurance Agents: You can contact an agent to get an auto insurance quote.
• Quote Comparison Site: Use a free quote comparison site to compare multiple companies’ rates.

When getting quotes, you will need to provide driver and vehicle information, as well as personal details like your address.

Collecting quotes from a few different companies will help you choose a company that fits your car insurance needs and your budget (Read More: Best Tips to Pay Less for Car Insurance).

Step #3: Research Top Companies

Once you’ve gotten quotes and have determined which companies are in your budget, make sure to do some research into your top two or three companies before committing. We recommend checking the following:

• A.M. Best Ratings: A.M. Best rates an auto insurance company’s financial strength.
• Customer Reviews: You can find customer feedback on Reddit, Yelp, Google, and more.
• J.D. Power Ratings: J.D. Power rates companies’ claim satisfaction based on customer surveys.

With so many auto insurance companies to choose from, you may be wondering where to even start. There are several well-known auto insurance companies that offer auto policies across the U.S., such as Geico, Progressive Insurance, and more.

We’ve collected rates for both minimum and full coverage below to give you an idea of what the best car insurance companies charge.

Insurance Company	Minimum Coverage	Full Coverage
	$61	$160
	$43	$117
	$53	$139
	$30	$80
	$68	$174
	$44	$115
	$39	$105
	$33	$86
	$37	$99
	$22	$59

USAA car insurance, State Farm car insurance, or Geico car insurance, for example, will usually always be much cheaper on average than Allstate or Farmers. Of course, the best way to determine who has the cheapest coverage for you is to get car insurance quotes.

Taking the time to research providers can help you determine which to avoid. For example, if speedy claims resolution is important to you, then you may want to avoid companies with extremely poor claim ratings.

Learn More: How to Compare Auto Insurance Companies

Step #4: Buy Auto Insurance

Once you’ve chosen your top auto insurance company, fill out the company’s insurance application. You may have already started this process by getting a quote, and simply need to review, sign, and pay to finalize getting coverage.

When purchasing your auto insurance coverage, make sure that if you are canceling an old policy, the end date is after your new insurance starts. Some companies will require you to purchase your coverage through one of their agents.

Read More: Is it bad to cancel car insurance?

After you pay your premium, your new insurance company will send you proof of insurance. Make sure to keep a copy of your proof of insurance in your vehicle.

Making Sure You Secure the Best Auto Insurance for You

Auto insurance is important to protect your financial well-being. You want a company that is affordable and reliable so that you can rest assured that your claims will be paid (Learn More: How to File an Auto Insurance Claim and Win It Each Time).

Now that you know how to buy auto insurance by determining your coverage needs, comparing quotes, and more, you can find coverage that best fits your budget.

Of course, the only way to know for certain what your auto insurance will cost is to get quotes from these companies. Rates vary based on driving record, age, and location, but can give you an idea of which of the top companies are more affordable.

If you are ready to review options in your area, enter your ZIP code in our free quote tool. It will quickly help you find the cheapest auto insurance companies.