How to Buy Auto Insurance
A Concise Overview
- Most states require drivers to have a certain level of car insurance
- You can buy auto insurance online, through an agent, or with an independent broker
- You may be able to save money when buying car insurance by shopping online and comparing quotes from multiple companies
Most states in the U.S. require car owners to have a minimum level of insurance coverage on their vehicles. Therefore, whether you own a car, truck, or SUV, you must meet the minimum auto insurance required by your state. In addition, if you are leasing or financing a vehicle, you will likely have additional requirements.
There are several ways to purchase car insurance coverage, but choosing the best way for you could help you save time and money. You must carry proper insurance on your vehicle before you take it out on the road.
- Shopping for Auto Insurance
- Getting Auto Insurance
- Buying Rental Car Insurance: What You Need To Know in 2023
- Can I buy auto insurance without having a license?
- How far back do auto insurance companies look?
- Buying Rebuilt-Title Auto Insurance: What You Need To Know in 2023
- Why are the make and model of a car important to insurance companies?
- Old vs. Classic: How to Know if Your Old Car Is Considered Classic
- Buy Cheap Auto Insurance for Foreigners in 2023
- How fast can you get auto insurance coverage?
What type of auto insurance coverage do I need to buy?
The first step in purchasing insurance is understanding how much car insurance coverage you need on your vehicle.
The table below shows the types and amounts of coverage each state requires. While some states only require bodily injury and property damage liability car insurance, others also require personal injury protection (PIP) insurance, medical payments (MedPay), and uninsured/underinsured motorist coverage.
States Insurance Coverage Required Minimum Liability Limits
Alabama Bodily injury and property damage liability 25/50/25
Alaska Bodily injury and property damage liability 50/100/25
Arizona Bodily injury and property damage liability 15/30/10
Arkansas Bodily injury and property damage liability, Personal injury protection (PIP) 25/50/25
California Bodily injury and property damage liability 15/30/5
Colorado Bodily injury and property damage liability 25/50/15
Connecticut Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/20
Delaware Bodily injury and property damage liability, Personal injury protection (PIP) 25/50/10
Washington, D.C. Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/10
Florida Bodily injury and property damage liability, Personal injury protection (PIP) 10/20/10
Georgia Bodily injury and property damage liability 25/50/25
Hawaii Bodily injury and property damage liability, Personal injury protection (PIP) 20/40/10
Idaho Bodily injury and property damage liability 25/50/15
Illinois Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/20
Indiana Bodily injury and property damage liability 25/50/25
Iowa Bodily injury and property damage liability 20/40/15
Kansas Bodily injury and property damage liability, Personal injury protection (PIP) 25/50/25
Kentucky Bodily injury and property damage liability, Personal injury protection (PIP), uninsured motorist, underinsured motorist 25/50/25
Louisiana Bodily injury and property damage liability 15/30/25
Maine Bodily injury and property damage liability, uninsured motorist, underinsured motorist, medical payments (MedPay) 50/100/25
Maryland Bodily injury and property damage liability, Personal injury protection (PIP), uninsured motorist, underinsured motorist 30/60/15
Massachusetts Bodily injury and property damage liability, Personal injury protection (PIP) 20/40/5
Michigan Bodily injury and property damage liability, Personal injury protection (PIP) 20/40/10
Minnesota Bodily injury and property damage liability, Personal injury protection (PIP), uninsured motorist, underinsured motorist 30/60/10
Mississippi Bodily injury and property damage liability 25/50/25
Missouri Bodily injury and property damage liability, uninsured motorist 25/50/25
Montana Bodily injury and property damage liability 25/50/20
Nebraska Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/25
Nevada Bodily injury and property damage liability 25/50/20
New Hampshire Financial responsibility only 25/50/25
New Jersey Bodily injury and property damage liability, Personal injury protection (PIP), uninsured motorist, underinsured motorist 15/30/5
New Mexico Bodily injury and property damage liability, 25/50/10
New York Bodily injury and property damage liability, Personal injury protection (PIP), uninsured motorist, underinsured motorist 25/50/10
North Carolina Bodily injury and property damage liability, uninsured motorist, underinsured motorist 30/60/25
North Dakota Bodily injury and property damage liability, Personal injury protection (PIP), uninsured motorist, underinsured motorist 25/50/25
Ohio Bodily injury and property damage liability 25/50/25
Oklahoma Bodily injury and property damage liability 25/50/25
Oregon Bodily injury and property damage liability, Personal injury protection (PIP), uninsured motorist, underinsured motorist 25/50/20
Pennsylvania Bodily injury and property damage liability, Personal injury protection (PIP) 15/30/5
Rhode Island Bodily injury and property damage liability, Personal injury protection (PIP) 25/50/25
South Carolina Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/25
South Dakota Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/25
Tennessee Bodily injury and property damage liability 25/50/15
Texas Bodily injury and property damage liability, Personal injury protection (PIP) 30/60/25
Utah Bodily injury and property damage liability, Personal injury protection (PIP) 25/65/15
Vermont Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/10
Virginia Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/20
Washington Bodily injury and property damage liability 25/50/10
West Virginia Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/25
Wisconsin Bodily injury and property damage liability, uninsured motorist, medical payments (MedPay) 25/50/10
Wyoming Bodily injury and property damage liability 25/50/20
As you can see, requirements for mandatory car insurance can be highly different from one state to the next. For this reason, you must know what you’re required to carry on your vehicle before buying car insurance.
Do I need to buy more than liability auto insurance?
Once you’ve learned the coverage you must carry, you should consider purchasing additional coverage on your vehicle for protection.
Liability only covers other individuals and their vehicles in the event of an accident. Therefore, you must purchase collision car insurance coverage if you want coverage for yourself and your car. Collision coverage will help if you’ve been in an accident and your vehicle has incurred damage.
Similarly, comprehensive auto insurance will help you if your vehicle is damaged in a non-accident-related incident, such as inclement weather or theft.
You may think a liability policy sounds ideal for your vehicle, but you will have to pay for any damages to your car out of pocket. If you lease or finance a vehicle, you will likely be required to carry a full coverage auto insurance policy on your car that includes both comprehensive and collision coverage.
Should I get an insurance agent to help me buy auto insurance?
You can purchase a car insurance policy in a few different ways: online, with a captive insurance agent, or with an independent insurance broker.
More and more people are choosing to buy car insurance online. When you buy car insurance online, you may be able to receive insurance quotes, purchase your coverage, and print ID cards all at once. In this scenario, you do not need an insurance agent to buy a policy.
However, buying online may make it challenging to ask specific questions about car insurance discounts, coverage options, and more.
Buying car insurance with a captive agent allows you to have assistance from start to finish, allowing you to get answers to your questions more easily. But captive agents only work for one company, so you may not be getting the best deal on coverage for your vehicle.
If you choose to purchase insurance with the help of an independent broker, you should be able to find and compare quotes from multiple companies. But brokers often charge fees that could make this a less ideal option.
How can I buy car insurance online?
If you’re interested in buying car insurance online, you should use an online quote tool to find and compare multiple car insurance quotes from many companies at once. While there aren’t any specific search engines for car insurance, online quote tools are a great way to find the best deal on coverage.
Once you’ve narrowed your search and decided on a few companies, you can see if any of them can offer you an even lower monthly or annual rate with car insurance discounts on coverage. Many insurance companies use a variety of discounts to help policyholders save money, and you could save as much as 20% on your coverage if you qualify for a discount.
After you’ve decided on an insurance company, you will need to get some information ready, like:
- Your driver’s license number
- Your social security number
- Your car’s make and model
- Your home address
- An estimate of how many miles you drive per week
- Information on your lease or loan, if applicable
- Names and social security numbers of anyone else who will be on the policy
The company you’ve chosen as your insurance provider may not ask for all the information listed above, but it’s a good idea to have it ready just in case.
Once you purchase your insurance policy, you should print your insurance ID cards and put them with your vehicle’s registration or in another safe location in your car.
Which companies offer the cheapest auto insurance policies?
Whether you purchase car insurance through an agent or online, you want to know you’ve gotten the best deal.
The companies listed below often offer affordable insurance coverage:
- USAA auto insurance
- Geico auto insurance
- State Farm auto insurance
- Nationwide auto insurance
- Travelers auto insurance
- American Family auto insurance
- Progressive auto insurance
- Farmers auto insurance
- Allstate auto insurance
Before choosing an insurance provider, shop online and compare quotes from multiple companies to ensure you get the best coverage deal.
The Bottom Line for Buying Auto Insurance
If you own a car, you need insurance. At the very least, you must meet your state’s requirements in terms of liability coverage, but it’s good to purchase additional coverage if you can.
You can buy car insurance online or with an agent, but be sure to compare quotes from multiple companies so you know you’re not paying too much for coverage.
- Shopping for Auto Insurance
- Getting Auto Insurance
- Buying Rental Car Insurance: What You Need To Know in 2023
- Can I buy auto insurance without having a license?
- How far back do auto insurance companies look?
- Buying Rebuilt-Title Auto Insurance: What You Need To Know in 2023
- Why are the make and model of a car important to insurance companies?
- Old vs. Classic: How to Know if Your Old Car Is Considered Classic
- Buy Cheap Auto Insurance for Foreigners in 2023
- How fast can you get auto insurance coverage?