When shopping for car insurance, it’s a matter of looking at various quotes and becoming an expert in the coverage you want.
Here are some car insurance shopping tips to help you get started. Always base your desired auto coverage on how often you drive, vehicle value, and how much you can pay in the event of an accident rather than your budget. Go to various insurance providers and receive multiple cheap car insurance quotes, then compare them.
The Three Best ways to Shop For The Best Car Insurance
This is the opportune time to introduce you to the three “Cs” of shopping for auto insurance. Every intelligent shopper does the following when learning how to buy car insurance:
- Craft - Craft an auto insurance policy that is economical for you with all the proper protection you need.
- Compare - The most important part is doing the shopping itself by getting multiple quotes from multiple insurance providers, both national and local. You always need to find out which one will offer the best deal.
- Commit - At this point, you’ve found a provider with an ideal insurance policy for you as a driver. Nothing is left to do but commit to the purchase and maintain your coverage.
What Are The Different Types of Car Insurance You Can Buy?
A significant part of deciding how much insurance you need for your car is knowing the different car insurance policy types a provider can offer. Some policies cover the vehicle, the driver, property damaged by the car, and other insured and uninsured drivers. Some are required by law, and others are optional policy add-ons.
The different types of car insurance coverage types are:
Liability Insurance coverage
Suppose you are at fault in a car accident. In that case, liability insurance covers the injuries to another driver and damage to their car. This type of coverage is required by at least 90% of the United States. This is usually the type of insurance the dealership will try to sell you after purchasing a car.
Personal injury protection
Personal injury protection covers injuries and medical expenses for yourself (as the car’s driver) and any passengers present in an accident for which you were at fault. This policy covers other lasting expenses like lost wages.
Uninsured motorist insurance coverage
Some drivers may not carry the required liability coverage and, thus, cannot pay for damages and injuries they cause you. Carrying an uninsured or underinsured motorist policy will provide coverage for those unfortunate encounters.
Collision insurance coverage
It is one of the foremost insurance add-ons since liability coverage won’t cover a driver’s car damage in an accident they caused. A collision policy provides coverage for the at-fault driver’s vehicle.
Comprehensive insurance coverage
This is usually bought as a companion piece to collision insurance. Whereas collision covers an at-fault driver’s auto damage, comprehensive coverage covers an at-fault driver’s injuries sustained in an accident.
GAP insurance
Suppose a driver leases or rents the car rather than owns it. In that case, they’ll be on the line for any remaining payments to the leaser if the leased car is totaled or damaged beyond its current value. GAP insurance covers those payments and is ideal for drivers renting their vehicles.
Roadside assistance insurance
Drivers often experience flat tires, dead batteries, or motor issues from natural causes. With roadside assistance, drivers can pull to the shoulder of the road, and their insurance covers whatever tow truck or tire changer comes their way.
New car replacement
Suppose a car is totaled or damaged to an extreme degree. In that case, a new car replacement policy can cover the costs of a replacement car or a rental until it is out of the auto shop.
What Information Do Drivers Need to Buy Car Insurance Online?
The short answer is most of their personal information. Insurance providers use some instances of a driver’s personal information to gauge the cost of their insurance. Something as simple as an address can determine how high or low a driver’s rates will be.
Must-haves before buying car insurance online are listed below.
- Driver’s license
- Birthdate
- Address
- Occupation
- Marital status
- Education level
- Driving history (from your state’s DMV)
- Insurance history (won’t apply to new drivers with no such history)
- Vehicle information (like make and model)
- Vehicle identification number
- Date of purchase or bill of sale
- Registration with the driver or owner’s name
Where Can You Buy Car Insurance Online?
A new driver can take several routes to buy car insurance. Whether it’s for convenience, quick, informative, or budget purposes -there’s a method of purchasing car insurance that suits it.
The result of having insurance is guaranteed for each option; it’s just a question of how involved the driver wants to be in the process. This section identifies the different purchasing methods; the following subsection covers the strings attached.
A new driver can buy car insurance in the following ways:
Buying Car insurance Direct from an auto insurance company
No insurance agent or broker is needed when a new driver uses their company’s website. Many websites offer quotes with a couple of clicks, which makes comparing different providers much more accessible. Purchases can be made in just a day, too.
Buying Car insurance from Captive auto insurance agents
“Captive” agents represent a single insurance provider and act as the policyholder’s liaison for all their insurance needs. Larger national insurance companies usually practice this.
Buying Car insurance from an independent insurance agent
Independent brokers work for or represent multiple insurance companies rather than just one. An agent can represent a national or local provider and earn a commission based on their sales. This is a good choice for shoppers looking for various price options.
Buying Car insurance from specialty insurance companies
There are specialty insurance providers who uniquely offer auto insurance for high-risk drivers. These drivers usually have a DUI conviction, a series of traffic violations, or a license suspension. New drivers may not be considered high-risk drivers by those standards but are still held in near equal regard by insurance companies.
Pros And Cons of Buying Car Insurance Directly From an Insurance Carrier
Being able to get car insurance online directly from an insurance carriers website is the easiest, most pressure-free way to shop for auto coverage. Quotes are a couple of clicks away, and no one has to be an expert in auto insurance to use the online quote calculator. The process is largely automated, so contact with an agent isn’t necessary. Often, new drivers can get insured the same day they get a quote.
Inversely, buying insurance directly from an agency’s website is streamlined so that customers may receive negligible attention to detail with their insurance. In short, customer service may need to be improved.
The prices listed in online estimates need to be guaranteed, too. They’re called estimates for that reason -they aren’t exact. The process is still ongoing and done, too. New or incoming policyholders will have follow-up emails and calls to contend with in the foreseeable future. But, all this may be worth it for the freedom to manage your insurance policy as you see fit.
Pros And Cons of Buying Car Insurance From a Captive Agent
Drivers who get their car insurance from captive agents often do so because it’s good to have an insurance expert whenever they need them. Those unfamiliar with insurance can quickly become experts with an agent guiding them through their policy options.
They could even help their policyholders manage multiple insurance coverages beyond auto insurance. The agent-customer relationship is designed to last long, so new drivers can gradually lower their premiums by practicing safe driving.
A captive agent, however, offers fewer options than an insurer’s website or location. Often, captive agents have a set list of offers they will show to each of their incoming customers.
At the same time, the agents earn a commission based on their customer’s premiums to prioritize pricier options instead of the best options. Lastly, there needs to be more comparison when shopping with captive agents.
Pros And Cons of Buying Car Insurance From an Independent Agent
Independent agents generally have more knowledge and more to offer than captive agents. Because they work with multiple insurance providers, independent agents can make even the most complex parts of an insurance policy seem elementary to those customers who are unfamiliar.
Prices and coverage are always flexible, with independent agents with a more personalized purchasing process. If a new driver has an idea of the kind of insurance they want, they could get it free of add-ons.
A notable limit independent insurance agents have is that they cannot get quotes from certain insurance companies -usually ones that use captive agents. These are typically the more prominent national providers.
Another limitation is that they may be unable to sell specific insurance policies. But the most glaring con of buying insurance from an independent agent is that they need to prioritize the most economical option not just because they work on commission but also because they may need help to sell the most economical choice in the first place. Despite this, independent agents are more flexible with their prices than captive agents.
Pros And Cons of Buying Car Insurance From a Specialty Provider
Specialty insurance agencies' customers usually aren’t first-time or new drivers. These agencies deal in auto insurance policies for high-risk drivers with a driver history of recent accidents, DUIs, traffic violations, or driving without insurance.
Although insurance companies label new drivers as high-risk, it’s not due to any past violations or license suspensions. Rather, it’s the fact that they lack a driving history, so they’re not sure what to expect from them.
The agencies that offer such policies tend to be local rather than national. A new driver can get insurance from a specialty provider. They can also help compare rates from different high-risk policies from other providers. The only con when considering such insurance is whether or not it’s truly suitable for the driver or if they’ll be paying too much.
How to Get Car Insurance For New Drivers
By now, in the reading, you have more than adequate surface and some deep knowledge of insurance coverage. All that is missing is a step-by-step guide on buying and choosing the car insurance that fits you as a new driver.
Steps on How to Buy Car Insurance for New Drivers
- Determine how much auto coverage you need - The third section details the types of auto coverage you can choose from as add-ons. The first step is always ruling out anything that may be an unnecessary expense.
- Fill out an application for car insurance quotes - With all your previously mentioned personal information, fill out applications for quotes with all the insurers that offer the coverage you’re looking for. You’ll never be penalized for filling out more than one.
- Receive and compare car insurance quotes - After receiving your quotes, it’s time to do some comparing. Insurance premiums are one of many costs that should be looked at. Things like claim satisfaction and deductibles should also be heeded as well. Also, remember to look for any unnecessary coverages the insurance company may have listed in the quote. Several websites specialize in insurance comparison rather than sales.
- Select provider and get insured - Once you’ve selected a car insurance provider with the best policy options, the next step is signing up. You’ll be able to do so with whoever gave you your quote. Note that some insurance companies offer discounts for customers who take out more than one policy with them. This is often how new drivers save.
- Maintain car insurance coverage - All left to do is maintain your auto coverage by paying your monthly rates on time and practicing safe driving. Driving safely is the best way to make an impression with an insurance provider. Eventually, they’ll see that you are not a high-risk driver and lower your premiums. But this process is for more than just first-time drivers looking to be insured. Drivers with an existing policy they wish to cancel can shop for insurance similarly.
How Much Does Insurance Cost For New Drivers?
Finding cheap car insurance for new or student drivers is nearly impossible. A lack of driving history indicates high risk for most insurance companies.
So How Much Does Car Insurance Cost? The average a new driver will pay for car insurance is $397 a month or $4,762 annually. Some insurance providers even charge their new drivers up to $11,000 annually.
Many new drivers take advantage of discounts when bundling their auto insurance with home or renter’s coverage with the same insurance company, participating in safe driver programs, and driving a car with notable safety features. That is all the secrets; you can now smartly shop for auto insurance.
Frequently Asked Questions
Do you need a credit card to buy car insurance online?
Not necessarily. Most insurance providers let you pay online with a credit or debit card. Still, many also accept other methods—like electronic checks, PayPal, or direct bank transfers. To make sure you choose a payment method that works for you, check your chosen insurer’s list of accepted payment options.
How quickly can you get coverage when you buy online?
As soon as your payment is confirmed, your car insurance coverage is active immediately. That means you can drive legally without delay. Some platforms even let you choose a specific future date for your coverage to start.
Do you need a vehicle inspection to buy car insurance online?
Not always. Some insurers might ask you to send photos of your vehicle if you purchase full coverage. That depends on the insurer’s policy, the type of coverage you’re buying, and the age or condition of your car.
How do I switch from my current insurer to a new policy online?
To avoid a coverage gap, ensure the start date of your new policy matches the end date of your existing coverage. A little overlap is usually a good idea to keep you covered during the transition.
Can you cancel your car insurance policy online?
Many insurance companies let you cancel your car insurance policy through their website. However, some may require you to contact their customer service or submit a cancellation request in writing.
Can you bundle your car insurance and other types of insurance online?
Yes, You can bundle other types of insurance coverage with your car insurance online. This can be a cost-effective way to get comprehensive coverage. Bundling car insurance with homeowners, renters, or other insurance policies is pretty common, and it can give customers significant discounts.
