How to Shop for Car Insurance

When you're shopping for a new car insurance policy, understanding the process can help you choose the right coverage and maximize your savings.

Elliot Rieth | 

Jul 30, 2024 | 4 min read

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Whether you're purchasing your first car insurance policy or just looking for a change in coverage, there are a few factors to consider when shopping for a provider and plan that fits your needs.

It can be a challenge to compare quotes if you're unsure about what policy, coverage, savings, and protection you want.

Shop Smart for Car Insurance

Before you start the process of looking for a new car insurance policy, consider whether there's a shopping method you prefer, as each will have its own advantages and disadvantages. Car insurance shopping typically happens in one of four ways: directly from the insurance provider, through an affiliated captive agent, with an independent agent, or using a third-party online tool.

Shopping directly from an insurance provider, typically online, can cut out the need for any agent interactions and offer you quick quotes along with potential online discounts. This makes it an efficient option for shoppers who already know exactly what they need.

However, if you compare quotes, you will likely have to fill out an application with personal and vehicle information on every provider's website to get the full picture of your options. This could be repetitive and subject you to promotional emails and calls.

Third-party comparison tools like The Zebra offer you the benefits of the online experience, while streamlining the comparison process. The risk of using these tools is that they may not specify what coverage you need, such as required minimums and policy types, and could lead to your data being shared with insurance companies.

Contacting a captive agent, one who works directly for a provider, can help you get a full understanding of a certain company's options. Meanwhile, an independent agent may be able to give you a clearer picture of multiple companies' offerings and potentially have more flexibility in terms of price.

An agent-driven experience can provide you with a better understanding of what coverage options and savings are available, which can be especially helpful if you're unfamiliar with car insurance. However, agents work on commission, which means they may be incentivized to upsell you on coverage you don't need.

Gather Your Personal Information and Documentation

Once you know how to shop for car insurance, you can gather all the information you'll need to generate an accurate quote. To fill out a car insurance application, you will likely need to provide some or all of the following information:

• Your name, address, birthday, and driver's license number

• Your car's vehicle identification number, year, make, model, features, and mileage

• Your driving and insurance history

Determine Your Car Insurance Coverage Needs

There are a few factors you may need to consider when shopping for your policy. Your state will likely have unique insurance limits or required coverage that you'll have to keep in mind if you're shopping online, but these factors may be explained by an agent.

When determining what coverage, limits, and deductibles fit your needs, it may be easier to work with an agent rather than shopping online. If you would prefer to buy your policy online, understanding common auto insurance terms could help you navigate your choices and ensure you get the exact coverage you need.

Request and Compare Car Insurance Quotes

A key step in shopping for car insurance is comparing quotes. Requesting multiple quotes, or using an online tool to compare, can be essential to making sure you are getting the right deal for you. You can use the same policy choices for each quote to see how your policy premiums vary from provider to provider and what discounts are available to you with each company.

Purchase Your Policy

Once you've gathered all the necessary information and are confident in your coverage choice, thoroughly review your payment options before signing. Choosing to pay for your car insurance annually or monthly could determine your overall premium savings. Some companies offer discounts for automatic monthly payments, while others offer reduced rates for paying the full amount upfront each year.

If you're switching policies, you may want to cancel your existing policy before it expires. You may even be eligible to receive a refund for any prepaid coverage you didn't use.

Elliot Rieth

Born and raised in Michigan — the center of the American automotive industry — Elliot's fate of becoming a writer in the automotive space was seemingly predetermined. In addition to covering cars and personal finance for Capital One, he's worked directly with dealers and OEMs to create digital content meant to educate consumers. He's also passionate about music and has written for outlets like In Review Online. When he isn't writing about the latest financial, automotive, and insurance trends, he can be found enjoying a new book or record alongside his two greyhounds.