How to Shop for Car Insurance in 7 Easy Steps
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Car insurance is a legal requirement in every state except New Hampshire, but not all car insurance policies are the same. The average cost of car insurance in the U.S. is $100 per month for liability coverage and $177 per month for full coverage, according to Insurify data. But you might pay more or less than the average depending on factors like your location, age, and the type of car you drive.
When shopping for car insurance, it’s a good idea to compare quotes from several insurers so you can find the best coverage and most affordable rates for your situation. Learn how to shop for car insurance in seven steps, as well as what to consider before choosing a policy.
Quick Facts
Online quote-comparison tools make it easy to find the cheapest car insurance for your situation.
Compare real-time quotes with Insurify from top insurers and purchase your new policy in minutes.
If you’re switching policies, make sure your new policy has started before canceling your old one to avoid a lapse in coverage.
1. Collect your information
On a standard car insurance application, you’ll find a variety of questions about yourself and your vehicle. Most of the information is readily available, like your ZIP code and make and model of your vehicle. But you’ll likely need to contact your state’s department of motor vehicles to get a copy of your driving record. Providing this basic information will help you get the most accurate quote.
Here’s some of the general information you’ll need to submit:
Name
Driver’s license number
Age
Gender
Driving record
ZIP code
Make and model of your vehicle
Vehicle identification number (VIN)
2. Decide how much coverage you need
Before you purchase a car insurance policy, you’ll need to choose the amount of coverage and types of coverage you want. This will be different for every driver. Here are some of the most common types of car insurance that you should consider.
Liability-only coverage
Nearly every state, including Washington, D.C., requires drivers to carry a minimum amount of liability insurance in order to drive legally.[?] This is called a minimum-coverage policy. The national average cost of liability-only coverage is $100 per month.
Liability-only insurance covers your financial responsibilities when you cause an accident that results in someone else’s bodily injuries or property damage. It’s the cheapest car insurance you can get, but it doesn’t provide any coverage for your injuries or your vehicle.
Full coverage
A full-coverage policy includes liability insurance, collision insurance, and comprehensive insurance. Collision insurance covers your vehicle repairs after an at-fault accident. Comprehensive insurance covers non-collision incidents, such as theft, vandalism, natural disasters, and falling objects.
Full-coverage insurance is optional for most drivers, but your lender will probably require it if you lease or finance your vehicle. Full-coverage insurance in the U.S. averages $177 per month.
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Optional coverages
Many insurance companies offer endorsements, or optional coverages, that fill gaps in your basic policy and provide more customized protection. Here are some of the most common car insurance endorsements available.
3. Research car insurance companies
The next step is to start researching car insurance companies. Keep in mind that the best option is different for every driver. For example, the best car insurance company for you might have the cheapest auto insurance rates. For someone else, the best insurer might offer the most endorsements or have the best customer service.
When comparing insurers, you should consider a few factors, including coverage options, discounts, customer service, claim handling, and third-party ratings. You can check AM Best for financial strength ratings and review J.D. Power’s Auto Insurance Study to get a better sense of a company’s overall customer satisfaction.
In addition, you can see the number of complaints an insurer has by consulting the National Association of Insurance Commissioners (NAIC) Complaint Index. Companies that have a complaint index below 1.0 have fewer complaints than expected for their size.
Here’s a closer look at some of the best insurers to consider:
Insurance Company  | IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | Best For |
|---|---|---|
| State Farm | 9.3 | Overall |
| American Family | 9.3 | Discount seekers |
| Nationwide | 9.0 | Low-mileage drivers |
| GEICO | 9.2 | Drivers with an incident |
| Travelers | 8.5 | Young drivers |
| USAA | 9.1 | Military members |
| NJM | 9.0 | Mid-Atlantic region drivers |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.
We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.
- Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
- Customer satisfaction: To calculate this score, Insurify analyzed more than 55,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
- Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
- Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
- Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.
4. Compare car insurance quotes
Comparing car insurance quotes is one of the most important steps in shopping for insurance. Because it can be time-consuming to get quotes from individual insurer websites, using an online quote-comparison tool can simplify the process.
When you use a quote-comparison site, you provide information about yourself and your vehicle and get matched with quotes from multiple different companies. Each company has different rating criteria, so the quotes will vary. Because of this, even the same driver can be quoted a wide range for rates from different insurers, as you can see in the table below.
Comparison shopping makes it easy to see which insurer is the cheapest for your unique driver profile.
The below rates are estimated rates current as of: Friday, October 31 at 5:00 PM PDT.
Insurance Company | Average Quote: Full Coverage | Average Quote: Liability Only |
|---|---|---|
| COUNTRY Financial | $72 | $40 |
| Auto-Owners | $78 | $45 |
| NJM | $94 | $63 |
| USAA | $99 | $52 |
| State Farm | $109 | $56 |
| Mile Auto | $110 | $68 |
| Erie | $121 | $80 |
| Allstate | $139 | $74 |
| GEICO | $139 | $91 |
| Safeco | $142 | $88 |
| American Family | $148 | $79 |
| Root | $151 | $90 |
| CSAA | $156 | $125 |
| Direct Auto | $163 | $95 |
| Mercury | $163 | $95 |
| Anchor | $169 | $112 |
| Elephant | $172 | $118 |
| Progressive | $173 | $101 |
| National General | $177 | $95 |
| Nationwide | $180 | $96 |
| The General | $180 | $94 |
| Travelers | $186 | $99 |
| Clearcover | $196 | $143 |
| Bristol West | $207 | $101 |
| Commonwealth Casualty | $208 | $86 |
| Farmers | $213 | $110 |
| Chubb | $215 | $119 |
| GAINSCO | $218 | $103 |
| Liberty Mutual | $218 | $161 |
| Shelter | $229 | $148 |
| 21st Century | $233 | $131 |
| AssuranceAmerica | $238 | $127 |
| The Hartford | $243 | $161 |
| State Auto | $253 | $148 |
| Dairyland | $273 | $91 |
| Amica | $432 | $287 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Important Information
Be aware that some quote-comparison tools are actually lead-generation websites. When you submit your contact information to get a quote, the website may sell your information to other companies that use your details to spam you with calls or emails for other non-insurance services. Choose a tool that doesn’t share your data and has good reviews.
5. Ask about discounts you’re eligible for
Car insurance discounts are a great way to save money and lower your insurance premium.[?] Insurance companies offer a wide variety of discounts, so you should find out what discounts are available when comparing insurers. Some of the most common discounts include savings for safe drivers, getting good grades in school, and bundling multiple insurance products.
Below, you can see how much certain car insurance discounts can help you save:
Discount | Potential Savings |
|---|---|
| Defensive driving course | 5% |
| Bundling | 7%–25% |
| Multi-vehicle | 7%–25% |
| Good student | 10%–15% |
| Telematics | 10%–30% |
| Military | 15%–25% |
| Safe driver | 22% |
| Passive restraint | 40% |
6. Take out a new policy
Once you’ve chosen the right insurance company for you, it’s time to purchase the policy. You’ll probably need to submit some additional personal information to take out a policy, including your car’s vehicle identification number (VIN) and your Social Security number. You can also choose the policy’s start date.
Most car insurance policies are in effect for six or 12 months, and there are pros and cons to each. A six-month policy will have a lower premium, but your insurer has more opportunities to evaluate your rate and potentially increase the premium. With a 12-month policy, the premium will be higher, but your rate will remain the same for at least one year.
Good to Know
You can also choose how often you pay the premium. Many car insurance companies provide a small discount if you pay the entire premium up front and in full. You can also pay in monthly or quarterly installments.
7. Cancel your existing policy
If you already have car insurance coverage, now is the time to cancel your old policy. Make sure your new policy has already started before you cancel the old one. If you cancel the old policy before the new one starts, you’ll have a lapse in coverage.
Contact your insurance company to cancel your current policy. Depending on the company, you may be able to cancel online. But many insurers require you to call and speak to a customer service representative or talk to your agent.
If your insurance lapses, this will appear on your insurance history, and you aren’t protected in case of an accident. Having a lapse in coverage contributes to your risk profile, so it can cause your premiums to increase in the future.
Shopping for car insurance FAQs
Here’s some more information about shopping for car insurance that can be helpful when comparing quotes and reviewing your options.
What’s the best way to shop for car insurance?
The best way to shop for car insurance is to use an online quote-comparison tool. This makes it easy to compare quotes from multiple insurance companies using a single application. It’ll also help you find the best price.
Before you purchase a policy, you should review your top options based on important factors, like coverage options, discounts, customer service, and financial strength.
How much does car insurance cost?
The average cost of car insurance in the U.S. is $100 per month for liability coverage and $177 per month for full coverage, according to Insurify data.
But car insurance rates are personalized to every driver. Some rating factors that affect your car insurance premium are your ZIP code, age, driving record, vehicle type, coverage limits, and deductible amount.
When should you shop for car insurance?
You should shop for car insurance before you purchase a new vehicle. It’s also a good idea to shop for car insurance after a major event, such as getting married, adding a teen driver to your policy, or getting into an at-fault accident.
Getting new auto insurance quotes will ensure you’re always paying the best rates for your situation. If you find a lower rate, you can change insurers at any time, often without paying a cancellation fee.
Does shopping for car insurance hurt your credit?
No. Shopping for an auto policy doesn’t affect your credit. But in most states, insurance companies can use credit-based insurance scores when determining your premium. If you have excellent credit, you may qualify for the most favorable rates. On the other hand, people with poor credit often pay much higher rates.
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