How to Buy Auto Insurance in 2025 (Follow These 4 Steps)
Following the steps of how to buy auto insurance will help the process go quicker. First, determine coverage needs and get quotes. Then, research your favorite companies before applying for insurance. Auto insurance quotes at popular companies start as low as $22 per month for minimum coverage.
Free Auto Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Kristen Gryglik
Licensed Insurance Agent
Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshir...
Licensed Insurance Agent
UPDATED: Mar 26, 2025
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Mar 26, 2025
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes should be easy. This doesn’t influence our content. Our opinions are our own.
On This Page
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.
- Step #1: Determine Coverage Needs – Vary by Driver
- Step #2: Shop Around for Quotes – Get Quotes From Insurers
- Step #3: Research Top Companies – Check Reviews and Ratings
- Step #4: Purchase Auto Insurance – Pay to Activate Insurance
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.
If you aren't using a quote comparison site, make sure that you get quotes for the same coverage and deductible levels from each company so that you have an accurate representation of varying costs.
Daniel Walker Licensed Insurance Producer
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.
Car Insurance Monthly Rates by Provider & Coverage Level| 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.
View this post on Instagram
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.
Enter your zip code below to view companies that have cheap insurance rates.
Secured with SHA-256 Encryption
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.
Frequently Asked Questions
How can I buy auto insurance?
To buy auto insurance, make sure to research what coverages you want on your car, and then get quotes. Once you’ve found companies within your budget, do some research into your top companies to find the best one.
Once you purchase insurance from your chosen company, you will get your proof of insurance in the mail.
What is the best way to buy car insurance?
The best way to buy car insurance is by using a quote comparison tool, as it will allow you to view multiple companies’ rates while only filling out information once.
Is $200 a month for car insurance bad?
It depends greatly on your area, vehicle, and driving record. If your monthly rate is $200, shop around and get quotes to see if this rate is reasonable (Read More: What Should I Do If I Cannot Afford My Auto Insurance?).
Can you buy car insurance directly?
Yes, most auto insurance companies will allow you to purchase auto insurance directly from their website or an agent.
Is it cheaper to buy insurance online or through an agent?
It is usually cheaper to buy online, as the fees may be slightly higher through an agent due to commission fees.
Who normally has the cheapest car insurance?
Geico and USAA usually have the cheapest auto insurance rates on average, with Geico’s rates starting at $120 per month and USAA’s rates starting at $120 per month. Learn more about USAA in our USAA insurance review.
Can I buy insurance without an agent?
Yes, most companies will allow you to buy auto insurance without an agent. However, some companies may require you to buy coverage through one of their agents.
What is the easiest way to shop for car insurance?
The easiest way to shop for car insurance is using a quote comparison tool, as it eliminates the need to fill out multiple quote forms. To find affordable coverage today, check out our free quote tool by entering your ZIP.
Is it OK to shop around for car insurance?
Yes, in fact, it is encouraged. We recommend getting quotes and shopping around every few years to make sure you are getting the best deal. For a quick breakdown of some top companies, read our guide on State Farm vs Farmers, Geico, Progressive, and Allstate.
Does credit score affect car insurance?
Yes, in some states, your credit score will influence your rates. Companies that check credit scores will raise rates slightly for drivers with poor credit scores.
What is a good monthly payment for car insurance?
It depends on several factors, as high-risk drivers will pay more than a good driver. An average rate for a good driver starts at $120 per month. You may be able to get a cheaper rate with driver discounts (Learn More: 17 Car Insurance Discounts You Can’t Miss).
Is it better to go with a local insurance company?
Local insurance companies may be more knowledgeable about local risks and have in-person offices for more personalized assistance. However, it is recommended to still compare rates to make sure a local insurance company offers a good deal.
Enter your zip code below to view companies that have cheap insurance rates.
Secured with SHA-256 Encryption
Kristen Gryglik
Licensed Insurance Agent
Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshir...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.