How To Choose Car Insurance: Checklist and Resources

Buying a used or new car means buying auto insurance. Selecting the right insurance coverage for your vehicle can be confusing. But there are ways you can simplify the process and secure adequate, affordable insurance.

Every state legally requires drivers to carry car insurance on their vehicles. Driving without the minimum required insurance can result in fines, driver's license suspension, and even jail time.

Proper insurance coverage is important for several reasons. It can protect you from the costs of an accident, like property damage and medical bills. Some insurance also covers incidents like theft, natural disasters, and damage caused by uninsured drivers. Liability coverage (mandatory in most states) protects your assets if you are at fault in an accident.

This article shares resources and tips for purchasing auto insurance. It also includes a checklist of information to prepare before you request quotes or talk to an agent.

Checklist of Information for Choosing Car Insurance

You'll have to answer many questions when buying insurance. Doing your research and gathering information and documentation ahead of time will streamline the process. It will also help ensure you get the right vehicle insurance coverage and type.

Use the bulleted checklist below to gather the information before you meet with your insurance provider or agent.

Information About You and Other Insureds

• Your name and names of others insured (such as your children or spouse)
• Your phone number and address (some insurance policies offer coverage for the "household" or "family")
• Social Security number (car insurance companies use this for identification)
• Date of birth (this can affect your insurance costs — providers often charge higher premiums for first-time drivers and older adults)
• Your occupation and employer and whether you use your vehicle for business purposes
• Driver's license numbers for all drivers on the policy
• Your claims history

Vehicle Information

• Make, model, and year (insurance premium rates vary depending on the type and age of vehicle insured)
• Mileage (vehicles with higher mileage are typically cheaper to insure)
• Vehicle identification number (VIN) and license plate
• Non-standard vehicle features (these can increase your premiums if the added features increase the vehicle's value)
• The price paid for the car (insurance carriers use this to determine the insurable value of the vehicle)
• The vehicle's purpose and how you plan to use it (for example, you must disclose if you use your vehicle for app-based work like DoorDash, Instacart, or Uber)

Information on Auto Coverage

• What types of coverage you want (like collision, comprehensive, uninsured motorist, or gap insurance)
• The amount of coverage or coverage limits (the most the insurance company will pay out for a claim under a particular coverage)
• Your state's car insurance coverage requirements

Each state requires drivers to carry a minimum amount of insurance on their vehicles. But, minimum coverage may not be enough for your needs. For many drivers, the lowest required insurance doesn't provide enough coverage to truly protect their interests and property.

You can choose to insure your vehicle for higher coverage amounts. Discuss with your provider or agent the amount of coverage and types of insurance you need to protect yourself in an accident. Consider your vehicle's value, personal financial situation, and risk tolerance.

If you have significant assets, you may want higher liability coverage. Higher limits on your liability insurance can protect your assets from lawsuits following an at-fault accident.

For example, comprehensive insurance coverage, which is not legally required, allows you to recover for loss of or damage to your car in situations other than a collision or rollover. For example, if a hailstorm damages your vehicle's roof, comprehensive coverage may cover this.

Auto Insurance Quotes

Your likelihood of filing a claim and desired coverage influence the price of your auto insurance quotes.

Insurance providers consider several factors to determine the risk of insuring a driver or vehicle. Some of the most common determinants they use include:

• Driving record
• Insurance history or gaps in insurance coverage
• Credit score
• Age and driving experience
• Vehicle type
• Location (where you live and park your car can influence your insurance rates)
• How much you drive and how you use the vehicle

The type of coverage and deductibles also influence your quote. For example, higher coverage limits and lower deductibles will generate higher quotes.

When reviewing your car insurance quotes, compare the coverage and limits to the policy price. While you don't want to overpay for insurance, it's important to balance affordability with the level of protection. The cheapest quote might not offer enough coverage.

You can also use customer reviews to help you decide on a provider. Use the Better Business Bureau (BBB) and other online platforms to find feedback. Pay attention to what reviewers say about customer service and the ease of submitting claims.

Tools for Comparison Shopping

Several tools and resources help you compare different insurance companies, policies, and rates. Most insurance carriers provide online auto insurance quotes. Getting a direct quote allows you to compare it with others.

You can also use several independent websites to compare car insurance rates from different providers. These sites allow you to enter your information once and receive car insurance quotes from multiple insurers. Examples include:

• The Zebra
• Compare.com
• Insurify
• QuoteWizard
• Gabi

Websites providing quote comparisons may share or sell your personal information. This is why consumers often get unsolicited calls or emails from insurance providers after doing an online quote comparison. Read the website's privacy policy to understand how they use your information before giving any data about yourself.

Some of these quote comparison platforms (like Insurify) have an option for "Do Not Sell My Data" on their website's home page. This allows you to submit a form requesting that they not sell your information to third parties.

Insurance agents can also be a great resource. A skilled agent can compare quotes and help you shop for policies. They can recommend types of coverage options based on your needs and lifestyle.

An independent agent (also called an insurance broker) gives quotes from multiple companies. Conversely, a captive agent represents a single provider and will only give quotes from that provider.

Ask About Insurance Discounts

Auto insurance can be expensive. This is especially true if you're a new driver, drive a high-value vehicle, or have traffic tickets or violations on your driving record. When budgeting for your insurance costs, you must factor in:

• Out-of-pocket expenses
• Your policy's deductible
• Your policy's premium (most companies allow you to pay monthly, semi-annually, or annually)

Thankfully, many insurance providers offer discounts and other cost-saving opportunities. Discounts vary by provider, but some of the following may save you money on your car insurance policy:

• Good student discount for yourself or any insured driver on your policy (like a child in high school or college)
• Multi-car discount for insuring more than one vehicle with the same provider
• Bundling discount if you also buy renters or homeowners insurance from the same provider
• Vehicle safety discounts (if your car has features like anti-theft protection, automatic emergency braking, or forward collision monitoring)
• Safe driving discounts for drivers with a clean driving history
• Discounts for paying for your premium in full instead of monthly
• Military discount
• Discounts for drivers with certain professions (like federal employees or first responders)
• Loyalty discounts

Not all providers freely offer or advertise the discounts they can apply. Ask specifically about any discounts you think you may be eligible for.

Need More Help With Auto Insurance? Talk To an Attorney

Securing auto insurance doesn't usually need an attorney's help. But legal help is available if you have an issue with an uncooperative insurance carrier or have questions about your state's auto insurance laws.

A local insurance attorney can answer your questions and help protect your interests. They can help you understand your policy, help with a claims issue, and more. Contact an attorney to learn how they can support you.