How to Get Car Insurance in 7 Steps

October 14, 2022

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You can get auto insurance online, over the phone, or in person with an insurance agent. The best way to shop for auto insurance is to compare quotes from different insurance companies online so you can quickly find the lowest price for the coverage you need.

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how to take out car insurance in 7 steps

1. collect driver and vehicle information

To obtain a quote from an auto insurance company, you must provide the following information about the driver(s) and vehicle(s) you wish to include on the policy:

Reading: How to get insurance car

driver’s name and date of birth
driver’s license number and issuing state
vehicle information number (vin)
current mileage on your car
address where vehicle is registered
name of registered owner
previous insurance company and expiration date
vehicle purchase date
what you use the vehicle for (work or leisure)

This information allows the insurance company to check your driving history for speeding tickets and vehicular accidents, which increase your insurance costs. Your car also factors into your premium: A newer car is more expensive to insure than an older car with high mileage. And if you use your vehicle for a long trip to work, you will pay more than a customer with a short trip.

2. decide between buying insurance directly or through a third party

You have three main options when it comes to buying auto insurance. you can buy it outright, use a captive agent, or work with an independent agent/broker.

comparing different ways to buy car insurance

3. familiarize yourself with the auto insurance laws in your state

Nearly all states require drivers to carry a certain amount of bodily injury and property damage liability insurance. together, they pay other people’s expenses up to your policy limits after accidents you cause. But the minimum amount of liability coverage isn’t always enough to cover the expenses of others after an accident, so you should buy as much insurance as you can comfortably afford.

Several states also require uninsured and underinsured motorist coverage, which pays your costs if you’re hit by a driver who doesn’t have insurance or doesn’t have enough insurance to cover your costs. Plus, if you live in a no-fault state, you’ll likely have to purchase personal injury protection (PIP), which pays your medical bills regardless of who’s at fault in an accident.

4. consider supplemental coverage options

In addition to the liability protection required by your state, there is a wide range of optional auto insurance coverage that drivers should at least consider. You can get comprehensive coverage for multiple types of car damage: vandalism, theft, flood, hail, or roadside wildlife, for example. or you can get collision coverage for damage to your own vehicle caused by an accident.

Also, if your state doesn’t require it, you can purchase PIP or Medical Payments coverage and Uninsured/Underinsured Motorist coverage.

5. compare prices

Compare quotes from multiple companies, even if you’ve done your research in the past. you can get online quotes from different companies to easily compare prices from home.

6. look for discounts

Insurance companies offer a selection of discounts to attract customers from all stages of life. For example, homeowners can get discounts if they bundle auto insurance with their home insurance policy. and a clean driving record could pay off with a company that offers a safe driver discount. When comparing your options, don’t be afraid to ask insurance companies what kind of discounts they can offer you.

7. choose a premium and deductible, then pay for your policy

If you’re willing to pay more in the event of an accident, you can opt for a high deductible to lower your premium. a low deductible, on the other hand, means a higher premium. therefore, you’ll need to weigh the odds to determine if it’s better to pay more out of pocket now or possibly later.

then, when you’ve chosen a premium and deductible, you’re ready to pay for your policy. most major insurance companies accept money orders, checks, credit cards, debit cards, or transfers directly from your bank account.

Some companies offer a small discount if you pay in full at the beginning of your policy. otherwise, you can pay in installments. Depending on the insurance company, these plans can range from two payments to monthly payments over the life of your policy. plus, you can set up automatic payments online or by phone, or you can choose to receive bill reminders from the company of your choice.

If you have any questions about the payment process or your billing cycle, don’t be afraid to ask your insurance company; they can help you find a payment plan that works for you.