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

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.

Minimum Liability Auto Insurance Coverage Requirements by State

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

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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:

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.