{"id":323786,"date":"2025-11-07T22:52:11","date_gmt":"2025-11-08T03:52:11","guid":{"rendered":"https:\/\/www.reviews.com\/?page_id=130249"},"modified":"2025-11-07T22:52:11","modified_gmt":"2025-11-08T03:52:11","slug":"how-to-buy-car","status":"publish","type":"page","link":"https:\/\/www.reviews.com\/insurance\/car\/how-to-buy-car\/","title":{"rendered":"How to Buy Car Insurance"},"content":{"rendered":"\n

Learning to be a smart driver was one thing, but becoming a smart insurance shopper? That\u2019s a whole different learning curve. With motor vehicle insurance prices up roughly 19% year over year<\/a> and typical full\u2011coverage premiums clustering from the low\u2011$2,300s (J.D. Power<\/a>) to about $2,5xx (Bankrate<\/a>) in 2025\u2014and some high\u2011cost states averaging $3,000+ (Insurify<\/a>)\u2014it pays to approach the market with a data\u2011driven plan. Below are concrete steps to find the coverage you need at a fair price, grounded in current consumer research and official state rules.<\/p>\n\n\n\n

Decide whether to buy through an agent or DIY<\/h2>\n\n\n\n

You can purchase car insurance through an independent agent, who will compare coverage and quotes on your behalf, or compare quotes and buy direct from the provider on your own. DIY auto insurance shopping is often most convenient since most companies let you compare rates online<\/a>. If you\u2019re a low\u2011mileage or safe driver, many carriers now let you enroll in usage\u2011based\/telematics programs at quote or bind; per NAIC<\/a>, typical safe\u2011driving telematics savings fall in about the 5%\u201330% range, and some programs offer an initial sign\u2011up credit before adjusting based on driving. Be aware that certain programs may also apply surcharges for persistently risky driving, depending on state rules and the carrier.<\/p>\n\n\n\n

An independent agent can be helpful if you\u2019re not feeling confident about choosing the right coverage or are having trouble finding affordable insurance on your own (for example, if you have a poor driving record or filed multiple claims in the past). An independent agent can also help you combine multiple policies and find the best auto and home insurance bundling<\/a> deal. Bundling is one of the largest and most widely available savings levers across major carriers\u2014eligibility and savings vary by state and company; review discount pages from State Farm<\/a>, Progressive<\/a>, Allstate<\/a>, GEICO<\/a>, Liberty Mutual<\/a>, and Travelers<\/a> to see which multi\u2011policy, multi\u2011vehicle, pay\u2011in\u2011full, and paperless discounts you can stack in your state.<\/p>\n\n\n\n

\u201cAdditionally,\u201d says Bill Hebert, Regional Director at Mercury Insurance, \u201cindependent agents can identify discounts for you, and they often work with smaller, regional auto insurance companies who provide great service and may have lower rates.\u201d This is a good option for people who prefer hands-on, personalized assistance. Major carrier pages confirm that multi\u2011policy, multi\u2011car, telematics, good\u2011driver, and billing\u2011related discounts are commonly available (with state\u2011specific rules)\u2014see examples from Progressive<\/a> and Travelers<\/a>.<\/p>\n\n\n\n

Figure out how much coverage you need<\/h2>\n\n\n\n

Each state has unique auto insurance requirements<\/a>. Notable 2025 updates include California\u2019s minimum liability increase to 30\/60\/15 (California DMV<\/a>) and Virginia\u2019s move to 50\/100\/25 (Va. Code \u00a7 46.2\u2011472<\/a>). Florida remains a no\u2011fault state requiring $10,000 PIP and $10,000 property damage liability, with no general BI requirement (FLHSMV<\/a>). Michigan continues its no\u2011fault system with PIP choice levels, Property Protection Insurance up to $1 million, and residual liability minimums generally 50\/100\/10 (Michigan DIFS<\/a>). New York requires 25\/50\/10 liability, $50,000 PIP, and UM for BI (NY DMV<\/a>). New Hampshire remains the exception to compulsory insurance, but if you buy a policy or must show financial responsibility, minimums (e.g., 25\/50\/25 liability, $1,000 MedPay, and UM at least equal to BI) apply (NH DMV<\/a>). In no\u2011fault jurisdictions, PIP is mandatory (Insurance Information Institute<\/a>).<\/p>\n\n\n\n

\u201cChances are that you will need more liability insurance than the state requires because accidents cost more than the minimum limits. If you\u2019re found legally responsible for bills that are more than your insurance covers, you will have to pay the difference out of your own pocket.\u201d<\/p>
The Insurance Information Institute<\/a> <\/cite><\/blockquote>\n\n\n\n

Of course, it\u2019s important to keep the value of your car and assets in mind when setting coverage limits. If you drive for a rideshare platform, know the \u201cperiods\u201d and gaps: when the app is on and you\u2019re waiting (Period 1), platforms typically provide contingent liability of 50\/100\/25; when matched and on a trip (Periods 2\u20133), third\u2011party liability is at least $1,000,000, and contingent comprehensive\/collision applies only if you carry those on your personal policy\u2014often with a $2,500 deductible (Uber<\/a>; Lyft<\/a>). Personal policies usually exclude livery without an endorsement, so consider a rideshare endorsement or hybrid\/commercial policy and carry strong UM\/UIM and PIP\/MedPay as required or appropriate (III<\/a>; NCSL<\/a>).<\/p>\n\n\n\n

\u201cCar insurance shoppers should have a good idea of what their needs will be when using the vehicle. For example, if the shopper has an older vehicle that isn\u2019t worth more than the deductible on a comprehensive policy, they should determine if this is worth the additional premium. Or, if they\u2019re going to be using the vehicle for a gig economy job like driving for Uber or Lyft, then they\u2019ll want to look into coverage options to supplement the personal auto policy.\u201d<\/p>
Bill Hebert Regional Director at Mercury Insurance<\/a><\/cite><\/blockquote>\n\n\n\n

Be sure to research coverage options and decide what you need before comparing companies or quotes. Confirm your desired liability limits, UM\/UIM, PIP\/MedPay, physical damage deductibles, and whether you\u2019ll opt into a telematics program or bundle with home\/renters\u2014changing these later will change the price.<\/p>\n\n\n\n

For more information about coverage, see our complete guide to auto insurance<\/a>.<\/strong><\/p>\n\n\n\n

Research the best auto insurers for you<\/h2>\n\n\n\n

Next, find providers that offer the coverage you need, strong financial backing, and reliable claims service. Recent research shows claims satisfaction hinges on cycle time, proactive\/transparent updates, and effective digital tools for FNOL, documentation, status tracking, and fast payments (J.D. Power Auto Claims Satisfaction Study<\/a>). Also review current premium context and discount availability (telematics, bundling, student, vehicle safety) and consider both established carriers and newer digital or telematics\u2011first options where they fit your profile; industry outlooks note stabilized insurtech funding and a maturing set of MGAs\/carriers focused on profitable growth and embedded distribution (Deloitte 2025 insurance outlook<\/a>; Gallagher Re Global InsurTech Report<\/a>). We evaluated fourteen top\u2011notch auto insurance companies in our review of the best auto insurance<\/a>; these are a good place to start when requesting quotes.<\/p>\n\n\n\n

Compare quotes and choose the lowest bidder<\/h2>\n\n\n\n

Once you\u2019ve gathered a list of promising insurers, do a head\u2011to\u2011head price comparison. Quotes can vary widely, so we recommend compare rates online<\/a> from as many companies as possible. Include at least one bundled quote (auto + home or renters) and consider a telematics option if you\u2019re a safe or low\u2011mileage driver. The NAIC<\/a> notes typical safe\u2011driving program savings of about 5%\u201330% (some offer an upfront enrollment credit) and cautions that certain programs allow surcharges for high\u2011risk driving. J.D. Power also reports that customers who receive telematics discounts tend to be more satisfied even amid higher market prices (2024 study insights<\/a>).<\/p>\n\n\n\n

And remember, price isn\u2019t all that matters. The \u201cbest\u201d auto insurer is one that gives you an affordable rate and<\/em> peace of mind that your claim will be settled fairly after an accident. Claims experiences are driven by speed to inspection\/repair\/payment and clear, proactive communication, so factor in recent claims performance and digital capabilities (J.D. Power claims study<\/a>) as you shop.<\/p>\n\n\n\n

\u201cThe most important factors to consider are not just price, but the actual coverages being sold. Certain carriers offer really cheap insurance and people first realize how truly limited their coverage is only when they have an accident. Like with most things in life, you get what you pay for.\u201d<\/p>
Christopher Earley Auto accident attorney<\/a> in Boston, MA<\/cite><\/blockquote>\n\n\n\n

Shopping pro tip: Auto insurance rates depend on coverage, among other things. Use the same liability limits, deductibles, drivers\/vehicles, bundling choice, and telematics participation each time you request a quote to get an accurate, apples\u2011to\u2011apples comparison (NAIC<\/a>).<\/p>\n\n\n\n

Learn how to save without sacrificing coverage in our guide to cheap auto insurance<\/a>.<\/strong><\/p>\n\n\n\n

Purchase your new auto insurance policy<\/h2>\n\n\n\n

The hard part\u2019s over. You\u2019ve found an auto insurance company that meets your coverage needs and price point. The last thing to do is simply hit \u201cbuy.\u201d Some companies will let you buy directly online, while others will offer you an online quote but finish the sales process through an agent. Either way, follow the steps your insurer lays out for you.<\/p>\n\n\n\n

Shopping pro tip: Many companies offer billing\u2011related savings for paying premiums as a lump sum and for choosing paperless\/autopay. Compare an annual or six\u2011month pay\u2011in\u2011full option to monthly billing to see how much you could save (availability varies by state\u2014see carrier discount pages like Progressive<\/a>, Allstate<\/a>, and Travelers<\/a>).<\/p>\n\n\n\n

Cancel your current policy<\/h2>\n\n\n\n

You can cancel an auto insurance policy at any time. If you move, get a second car, or add a new driver, you don\u2019t have to wait until your current coverage ends to shop for better rates.<\/p>\n\n\n\n

That said, you should only cancel your current auto insurance after securing a new policy. Avoid any lapse in coverage\u2014states enforce financial responsibility and may impose fines or suspend your license\/registration after a gap, and some situations require filings such as SR\u201122\/FR\u201144 depending on state law (CA DMV<\/a>; Virginia<\/a>; FLHSMV<\/a>; NY DMV<\/a>). When you\u2019re ready to cancel, most companies will have you sign a notice of cancellation; call your insurer or check its website for the exact steps.<\/p>\n\n\n\n

Insurers typically refund any unearned premium if you end coverage early. Depending on your policy and state filings, a short\u2011rate or administrative fee may apply\u2014review your policy terms before you cancel.<\/p>\n\n\n\n

What\u2019s next?<\/h2>\n\n\n\n

Review of the best auto insurance companies<\/a> <\/p>\n\n\n\n

How to switch car insurance companies<\/a> <\/p>\n\n\n\n

Why 40% of drivers don\u2019t shop for auto insurance as often as they should<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Learning to be a smart driver was one thing, but becoming a smart insurance shopper? That\u2019s a whole different learning curve. With motor vehicle insurance prices up roughly 19% year over year and typical full\u2011coverage premiums clustering from the low\u2011$2,300s (J.D. Power) to about $2,5xx (Bankrate) in 2025\u2014and some high\u2011cost states averaging $3,000+ (Insurify)\u2014it pays […]<\/p>\n","protected":false},"author":345,"featured_media":0,"parent":1760,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"page-templates\/template-reviews.php","meta":[],"categories":[1266],"tags":[],"post_author":[],"yoast_head":"\nHow to Buy Car Insurance - Reviews.com<\/title>\n<meta name=\"description\" content=\"Learning to be a smart driver was one thing, but becoming a smart insurance shopper? That\u2019s a whole different learning curve. 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