How to Get Car Insurance

When shopping for car insurance, it is necessary to understand the different types of policies and coverage available. 

There are three main types of auto insurance policies: liability, comprehensive, and collision. Each policy has coverage options, so it’s good to understand what each covers before buying. 

Here are five easy steps to follow when getting car insurance.

Gather Your Driver and Vehicle Information

The first step of getting auto insurance is gathering all the required driver and car information, including relevant documentation. So, what do you need to get car insurance? 

The required information can vary depending on the insurance company, but some common information needed is:

• Your basic information, including your name, address, and date of birth
• The driving history of all drivers on the policy, including traffic violations, at-fault accidents, and completed safety driving courses
• The license information of each driver on the policy
• Vehicle details, including the model, year of manufacture, current odometer reading, and plate identification
• Current insurer (if any) and active coverage limits 

You don’t necessarily have to provide this information to get car insurance quotes, but they likely won’t be accurate quotes if you don’t.

Figure Out The Insurance Cover You Need 

Figure out how much insurance cover you need before buying a policy. A good starting point is to check your state’s minimum required coverage for auto insurance. 

However, you should consider additional coverages depending on your unique situation. This can include coverage for personal injury protection, rental car reimbursement, and roadside assistance. 

It’s also important to consider the value of your car and any assets you may want to protect in the event of an accident. 

Types of Auto Insurance

Here are some of the common types of auto insurance coverage:

Liability Car Insurance 

Liability insurance covers damages and injuries that you, as the policyholder, are responsible for causing to another person or their property. The policy pays for damages such as medical expenses, hospital bills, car repair costs, and legal fees if the case goes to court. 

Most states have set a minimum liability coverage requirement for drivers. For example, the minimum coverage in California is $15,000 for injury/death to one person, $30,000 for injury/death to more than one person, and $5,000 for property damage.

The problem with the minimum liability insurance requirement is that it may not be enough to cover all damages in the event of a severe accident. Therefore, it’s important to consider purchasing higher liability coverage, especially if you have significant assets that could be at risk in a lawsuit.

Uninsured Motorist Coverage

This coverage is insurance that drivers purchase to protect themselves financially in the event that they are involved in an accident with a driver who does not have insurance. 

This type of coverage is necessary because, even though it is against the law to drive without insurance, many drivers on the road still do not have insurance. 

If you are involved in an accident with one of these drivers, your insurance will not cover the costs of the damage to your car or any injuries you sustained. Uninsured motorist coverage will cover these costs for you. 

In some states, uninsured motorist coverage is a legal requirement. However, even if it is not required in your state, purchasing this coverage is a good idea. It is inexpensive and could save you a lot of money if you are ever involved in an accident with an uninsured driver.

Collision and Comprehensive Insurance

Collision insurance covers damage to your car in the event of a collision with another vehicle or object. Comprehensive insurance covers non-collision damages such as vandalism, theft, or natural disasters.

It is important to note that these coverages often have a deductible, meaning you will be responsible for paying a certain amount out of pocket before the insurance kicks in. 

In determining your collision and comprehensive insurance coverage limits, consider your car’s value and any assets you would like to protect in the event of an accident.

Personal Injury Protection (PIP)

PIP insurance covers medical expenses and lost wages for you and any passengers in your car if you are in an accident, even if the other driver is at fault. In some states, PIP insurance is a legal requirement.

Here’s a summary of the costs that PIP covers:

• Medical expenses 
• Rehabilitation costs
• Lost wages 
• Replacement services if the accident renders you dependent
• Funeral costs 

It is important to note that PIP insurance does not cover damage to your car or any property damage. It only covers personal injury expenses for you and any passengers in your vehicle at the time of the accident. 

Compare Auto Insurance Quotes

Before purchasing an auto insurance policy, compare quotes from multiple insurance companies to ensure you get the best deal. 

Different insurers may offer different coverage options and discounts, so it is worth shopping around and comparing quotes before making a decision. 

Additionally, your rates may vary based on factors such as your driving record, the type of car you drive, and the area in which you live. 

Where To Get Quotes

Online. Online auto insurance quotes are a great way to compare rates and find the best deal on your coverage. You can get quotes from multiple insurers at once, which makes it easy to find the best price.

Independent agent. If you want to work with an independent agent, they can help you find the right policy and compare rates from several insurers. An independent agent is an excellent option if you want someone to help you navigate the options and ensure you get the best deal.

Direct insurer. If you’re comfortable working with a direct insurer, you can often get quotes online or over the phone. 

Purchase the New Policy and Cancel Your Old Policy

Once you have found the best policy for your needs, the next step is to purchase it and cancel your old policy. 

First, confirm with your new insurer that they offer coverage starting on the date your old policy ends to avoid any gaps in coverage. 

Then, contact your old insurer to cancel the policy and request any applicable refunds. It is crucial to have insurance at all times to protect yourself and comply with state laws, so make sure you have a new policy in place before canceling your old one.

Also, inform your old insurer of your new policy information in case they need to contact you for any reason. Doing so will ensure a smooth transition and avoid any potential issues with coverage.

Helpful Tips When Shopping For Car Insurance 

Here are some helpful tips to keep in mind when shopping for auto insurance:

• Bundle the insurance. This method, also called a multi-policy discount, involves purchasing multiple policies in one package from one insurance company. Most insurance companies offer discounts for bundling multiple policies, such as auto and homeowners insurance. 
• Ask about discounts. Inquire with your insurer about potential discounts, such as a good driver discount or a discount for completing an approved driving course. 
• Review your coverage regularly. Review your coverage periodically, especially if there have been changes in your circumstances or policy terms. Doing so will ensure that you have the appropriate coverage for your needs and are not paying for unnecessary coverage. 
• Maintain a good driving record. Keeping a clean driving record can help you qualify for lower rates because insurers consider you a lower risk. Additionally, avoid making any traffic violations or getting into accidents, as these incidents can result in higher rates and potentially even the cancellation of your policy. 

The right car insurance policy for you today may not be the right policy for you six months from now, so make sure to review quotes from multiple companies regularly.

Case Studies: Getting Car Insurance

Case Study 1: John’s Liability Coverage Dilemma

John, a responsible driver from California, decided to review his auto insurance policy to ensure adequate coverage. He discovered that his current liability insurance only met the state’s minimum requirements of $15,000 for injury/death to one person, $30,000 for injury/death to multiple people, and $5,000 for property damage.

Concerned about potential lawsuits and the possibility of his assets being at risk in the event of a severe accident, John sought advice from an insurance agent. The agent explained the importance of purchasing higher liability coverage to provide better financial protection.

After careful consideration, John decided to increase his liability coverage limits to ensure adequate protection for himself and his assets. This highlights the significance of reviewing your liability coverage and considering higher limits based on your individual circumstances.

Case Study 2: Sarah’s Encounter With an Uninsured Motorist

Sarah, a responsible driver from Texas, was involved in a car accident with an uninsured motorist. Although Sarah had comprehensive coverage, it did not include uninsured motorist coverage.

Realizing the potential financial burden of paying for the damages and injuries caused by the uninsured motorist, Sarah regretted not having purchased this additional coverage.

She learned that uninsured motorist coverage could have protected her in such situations, covering the costs of damage to her car and any injuries sustained.

This emphasizes the importance of uninsured motorist coverage, even in states where it is not legally required. It serves as a reminder to consider the potential risks of accidents involving uninsured drivers.

Case Study 3: Lisa’s Comprehensive Coverage for Natural Disasters

Lisa, a resident of Florida, lived in an area prone to hurricanes. Understanding the risks associated with natural disasters, she wanted to ensure her car would be protected.

Lisa decided to add comprehensive coverage to her auto insurance policy to safeguard against potential damages caused by hurricanes, flooding, or other natural events.

When Hurricane Katrina struck her region, Lisa’s car suffered significant damage due to the storm. Thanks to her comprehensive coverage, her insurance company covered the cost of repairing her vehicle, easing the financial burden during a challenging time.

This highlights the importance of comprehensive coverage, especially for individuals living in areas susceptible to natural disasters. It demonstrates how having the right coverage can provide financial protection in unforeseen circumstances.

Case Study 4: Tom’s Personal Injury Protection in an Accident

Tom, a resident of Michigan, was involved in a car accident where he sustained injuries. Fortunately, Tom had personal injury protection (PIP) coverage as part of his auto insurance policy.

As a result, Tom’s medical expenses and lost wages were covered by his PIP insurance, even though the accident was caused by another driver. The coverage provided financial support during his recovery process and ensured he received the necessary medical treatment without incurring significant out-of-pocket expenses.

How to get car insurance: Bottom Line

Car insurance is a necessary expense for all drivers, but it can be overwhelming to navigate the options and find the best policy for your needs. 

By gathering all the required information, selecting the coverage you want, and getting quotes from multiple companies, you can confidently choose the best auto insurance. 

Always remember to ask any questions that come up during this process to ensure a smooth transition to your new policy.