How to Get Car Insurance

To get car insurance for the first time, drivers need to decide what coverage they need, gather their personal and vehicle information, and shop around for the best policy at the lowest price. A first-time driver should expect to pay up to 300% more for coverage than someone with more experience. But with research and a little bit of searching, first-time drivers can still find a policy that fits their budget.

How To Get Car Insurance for the First Time: 5 Tips

       1. Determine what type of coverage you want to purchase.

Almost every state requires drivers to carry liability insurance, which covers property damage and injuries to other drivers in accidents that you cause. Some states also require other types of coverage, like uninsured motorist and personal injury protection. Plus, you should consider purchasing extra coverage to protect yourself in more situations.

       2. Gather your personal and vehicle information.

To get car insurance quotes and ultimately purchase a policy, you will need to provide personal information such as your driver's license number, date of birth, address, occupation, driving history and insurance history. You will also need to have your vehicle registration number and vehicle identification number (VIN). 

       3. Get at least three quotes from different insurance companies.

Every insurance company has its own way of calculating premiums, so getting multiple quotes increases your chances of finding the best deal possible.  

       4. Pick a company

While price will be an important factor when choosing an insurance company, you'll also want to consider the insurer's coverage options, available discounts, ease of doing business and overall reputation.

       5. Get insured

Once you choose an insurance company, it's time to buy your policy. You'll get a physical or digital copy of your policy, and you'll need to look over it to make sure you understand the fine print before you sign. The policy will usually take effect once you make your first payment.

Mistakes to Avoid When Getting Car Insurance for the First Time

One of the most common mistakes that drivers make when getting car insurance for the first time is only purchasing the minimum amount of insurance coverage. Although this is a great way to save money on your premium, it can cost you a lot more later on if you get into an accident.

You should also avoid lying about your driving history when getting quotes. Insurance companies will always check your driving record before selling you a policy, which means that you could end up paying more than your original quote if you're not honest.

Finally, make sure you know exactly what you're signing up for. Car insurance can be complicated, but reading the fine print and understanding your policy will make your experience much smoother if you ever need to file a claim.  

First-Time Car Insurance Premiums

As a first-time driver, your insurance costs are going to be high because of your lack of experience, but that doesn't mean savings opportunities are nonexistent. Be sure to ask about every available discount that you qualify for, and check to see if your insurance company gives a discount for paying for the whole year in full.

As time goes on and you gain more experience driving, you'll qualify for better prices, so take the time to occasionally shop around for quotes or revisit your current rate with your insurer to find out if you can get it lowered.

To get car insurance, you need your driver's license, vehicle registration, and Social Security number. You will also need to provide information about your car in order to get insurance for it, including the purchase date, current mileage, and vehicle identification number. In addition, car insurance coverage requires at least partial payment in advance, so you will need to have a credit card or banking information ready.

What You Need to Get Car Insurance

• Driver's license
• Vehicle registration
• Social Security number
• Vehicle Identification Number (VIN)
• Vehicle purchase date
• Vehicle's current mileage
• Your average annual mileage
• Declaration page for your most recent car insurance policy, if applicable
• Credit card, debit card or bank information for premium payments

Your personal information is important because it allows car insurance companies to check your driving and insurance history to determine your premium. For example, they will use your driver's license info to check your record and find out about any moving violations from the past 3-5 years. And if your vehicle has a high annual mileage, an insurer will likely charge you a higher rate than someone who drives less frequently.

To learn more about purchasing a car insurance policy, check out WalletHub's guide on how to get car insurance coverage.

To get car insurance online, you need to find an insurance company that lets you buy a policy without having to talk to an agent on the phone or in person. Companies like Geico, Progressive, Nationwide, and Esurance are known for streamlining online purchases. Other companies prefer to emphasize agent/customer relationships and strongly encourage (or require) purchasing a policy with the help of an agent – State Farm, USAA, American Family, and Allstate, for example.

5 Steps For How To Get Car Insurance Online

1. Find a company that allows you to purchase a policy online. Not every company offering online quotes will allow you to purchase a policy without speaking to an agent.
2. Gather the information you'll need to get car insurance quotes. You will have to provide information about all the drivers and cars you want to include on the policy.
3. Research the coverage levels that are right for your needs. Pay attention to the coverage types, amounts, and deductibles.
4. Compare quotes from at least three different insurance companies. Then, formally apply for insurance online. Remember, your quoted rate isn't a guarantee and may be a little different than your final rate.
5. Pay your premium. You should be able to get approved the day you apply, and you're covered as soon as you pay your premium.

Buying car insurance online requires detailed information about yourself, your car, and other drivers in your household. You'll need names, dates of birth, and driver's license numbers for yourself and all other drivers, along with any relevant driving history, such as moving violations, accidents, or claims filed in the past five years.

You should also have detailed information about the cars you want to add to the policy. You'll need the make, model, year, and Vehicle Identification Number (VIN) for all cars, as well as current mileage. In addition, you'll probably be asked to disclose whether you drive your car for work or personal use and to estimate the number of miles you drive each year, including how many of those miles are driven commuting to work.

In addition, you'll want to do some research on what insurance coverage is right for you. You can't effectively compare prices or policies until you have some sense of what car insurance you need. Consider:

All states have financial responsibility laws, which require you to prove you have enough money to pay for damages in a car accident. Most states expect you to meet that requirement with minimum liability insurance. Liability coverage protects the other driver and their property if you cause an accident.

You'll want to know your state's laws on minimum car insurance coverage, but extra coverage is usually very affordable and a good value. The Insurance Information Institute (iii) suggests liability coverage of $100,000 per person, $300,000 per accident.

Comprehensive and collision are the most common coverage types added to policies. Comprehensive protects against unexpected events like hail, flood damage, vandalism, and theft. Collision covers the cost of repairs to your car after an accident. Some people also add uninsured motorist coverage, personal injury protection, medical payments to others (Med Pay), or gap insurance.

Your deductible is how much you'll pay out of pocket before insurance kicks in after an accident. A higher deductible might make sense if you don't mind paying more out of pocket if something happens. A lower deductible will cost more upfront, but you won't have to spend as much if you wreck your car.

With your personal information organized and a sense of what coverage you need, you're ready to shop! The Insurance Information Institute recommends pricing at least three insurers for comparison. Just make sure each quote has the same coverage types, limits, and deductibles, and remember that the quoted rate isn't necessarily guaranteed. Once you formally apply, the chosen insurance company will confirm information you provided by pulling your credit, driving, and insurance claims histories, which can affect your final rate.

Yes, you can get car insurance instantly by purchasing a policy through the insurance company's website or with a local agent. In order to get instant car insurance, you need to have all of your information ready, including your driver's license number and your car's vehicle identification number (VIN). If you specify that the policy needs to go into effect the same day, it will be active as soon as you make your first payment. 

What You Need to Get Instant Car Insurance

• Your name and date of birth
• Driver's license number
• The car's vehicle information number (VIN)
• The car's current mileage
• Your billing information, including a credit card or bank routing number
• Information for your prior insurance policy, if you had one

Purchasing a car insurance policy only takes 20 to 60 minutes for most drivers, so you'll be able to get coverage relatively quickly. If you're about to purchase a new car and you already have the VIN, you can set up the insurance policy ahead of time. Keep in mind that your policy will not go into effect until you've made a payment.

To learn more, check out WalletHub's guide on how to get car insurance.

The best way to get cheaper car insurance is to compare quotes from multiple companies and then switch to whichever insurer offers the coverage you want at the cheapest rate. Other ways to get cheaper car insurance include taking advantage of discounts, improving your driving record, and raising your credit score.

10 Ways to Get Cheaper Car Insurance

1. Compare quotes every 6-12 months.

Every car insurance company calculates premiums slightly differently, so the quote you get from one company can easily be hundreds of dollars more expensive than another company's quote. Getting quotes from multiple insurers every time you need to renew your policy can help you realize if you're overpaying for the same amount of coverage. 

2. Take advantage of discounts.

All major car insurance companies offer a variety of discounts, which can save drivers as much as 35% in some cases. For instance, many insurers offer multi-policy and multi-car discounts, as well as good student and good driver discounts, and more.

3. Increase your deductible.

Raising your deductible will lower your premium, though it's important to choose a deductible amount that you can afford in an emergency. A car insurance deductible is an amount that you have to pay out of pocket before your insurer will cover the rest. Deductibles apply to several types of coverage, including collision and comprehensive insurance.

4. Improve your credit score.

Insurance companies use credit-based insurance scores, where allowed by state law since studies have shown that these scores effectively indicate a driver's likelihood of filing a claim. Given that insurance scores are based on credit report information, raising your credit score can help reduce your rate over time.

5. Consider usage-based insurance.

Usage-based insurance is a type of car insurance that calculates your premium based on your driving habits. Each company's usage-based program varies, but most consider your total mileage, braking, acceleration, and speed. These programs are ideal for safe drivers, especially those who do not use their cars for long commutes or frequent trips. 

6. Choose a car that is inexpensive to insure.

Cars that are particularly fast, powerful, and/or costly to repair are among the most expensive to insure. Insurers also charge higher premiums for cars that are more likely to be stolen. The next time you go car shopping, compare insurance quotes for different models in advance with this in mind. And if your premiums are prohibitively expensive now, consider trading in your vehicle for a car that is cheap to insure.

7. Take a defensive driving course.

In some states, insurance companies are required to give you a discount for completing a defensive driving course. Even where it isn't mandatory, insurers will sometimes provide a discount to encourage customers to improve their driving techniques.

If your insurer does not lower your premium just for taking a course, working on your driving skills will still pay off in the long run and help you keep your record clean. On that note, certain states also allow you to take a course in order to prevent driver's license points from affecting your car insurance rates.

8. Consider your coverage types and amounts.

All the different types of car insurance can make it difficult to determine what exactly is worth paying for. At a minimum, you need to fulfill your state's requirements and also purchase any coverage your lender or lessor requires. But beyond that, you can weigh whether each add-on coverage option is worth the price.

For instance, maybe you should drop uninsured motorist property damage insurance from your policy if you already have collision insurance. Or maybe you don't need rental reimbursement coverage anymore because you could borrow a family member's car if needed.

9. Practice good driving habits.

Moving violations like speeding tickets signal to your insurer that you are a risky driver, as do serious convictions like reckless driving. By driving safely, you can keep yourself safe and your premium low. If you have tickets or at-fault accidents on your driving record already, work on driving carefully from now on, since they will only affect your rate for a few years.

10. Check out local and regional companies.

Large car insurance companies spend billions on advertising every year, but smaller insurers may be able to provide the cheapest premiums in some cases. So, when you're shopping around, make sure to compare quotes from companies of all sizes. You can use WalletHub's cheap car insurance guide as a starting point. Just click on your state to compare the cheapest insurers.

Car insurance premiums are based on drivers' individual risk factors as well as the coverage types and limits they choose. Check out WalletHub's full guide on the factors that affect car insurance rates for more information.

The best ways to get cheap full coverage car insurance are to compare quotes from at least three companies every 6-12 months, choose the highest deductible you can comfortably afford, and take advantage of discounts. For instance, many insurers offer discounts for paying your premium in full up front and taking an approved defensive driving course. You can get full coverage for cheap from Esurance, Geico, and Mercury.

How to Get Cheap Full Coverage Car Insurance 

1. Compare quotes from multiple companies in order to find the best deal.
2. Pick the highest deductible you can afford.
3. Make sure you're getting every discount you qualify for.
4. Cut any unnecessary coverage types and consider lowering your liability

Things to Consider When Getting Full Coverage Car Insurance

Although raising your deductible and lowering your liability limits can help you save money in the short-term, be sure to weigh the pros and cons. For instance, it's not worth raising your deductible to an amount that's unreasonable for your financial situation. Similarly, if your liability limits are too low, you could be held personally responsible for damages if you cause a severe accident.

In the long run, the best way to get cheap full coverage car insurance is to make yourself as low-risk as possible for insurers. That means maintaining a clean driving record, raising your insurance score, and choosing a vehicle that's inexpensive to insure.                                       

For more information, check out WalletHub's guide to the cheapest full coverage car insurance.

Yes, you can get car insurance without a car. You can buy non-owner car insurance which will provide your state minimum car insurance coverage as long as you have a valid driver's license, do not have a vehicle registered in your name, and do not have access to a household vehicle.

How to Get Car Insurance Without a Car

• Present a valid driver's license
• Make sure you don't own a vehicle in your name
• Ensure that no one in your household owns a vehicle that you might have access to (sometimes required)

Non-owner car insurance is liability-only coverage, which only covers injuries or property damage that you cause to other drivers. It does not provide coverage for you, your passengers, or the car you are driving.

When to Consider Getting Car Insurance Without a Car

Your friends' insurance policies might allow them to list other drivers for permissive use, which would cover accidents that occur while you're borrowing their car. But any damages that go beyond the limits of their policy would be your financial responsibility. By obtaining non-owner insurance, you provide yourself with additional protection in such cases.

Non-owner car insurance policies vary in cost, but they're typically cheaper than car insurance coverage for a vehicle you own. Your age, driving history, where you live, and how often you drive all factor into the rates you may be offered.

If you are interested in obtaining non-owner car insurance coverage, we recommend seeking quotes from several insurance companies before making a final decision.

You can get car insurance without a license from some small local insurers. To get car insurance without a license you need to exclude yourself as a driver on the policy and list a licensed family member, friend, or caretaker as the primary driver. It's possible, with some effort, to insure your car so someone else can drive it.

How to Get Car Insurance Without a License

1. Contact regional insurance companies or a local independent agent.

Focusing on smaller companies will give you the best chance of finding coverage as an unlicensed driver. Most national companies will not insure you without a license. The risk is too high, in their eyes, that you will drive the car yourself.

2. List yourself as an excluded driver on the policy.

This is a legal statement that, as an unlicensed driver, you are not going to drive the car. Note that if you do drive illegally and get into an accident, the insurance company will not cover any claims. If you get or regain your license while the car is insured, you must notify your insurance company and provide your new license number before you are legally insured on the policy.

3. List the person who will operate the vehicle the most as the primary driver on the policy.

This can be a spouse, family member, roommate, caretaker or friend. They may live with you or not. They must, of course, have a valid driver's license.

4. List the primary driver on your registration as part-owner.

Try this step if you can't find any company that will insure the car for you without a license. There should be no trouble insuring the car with a licensed driver listed as co-owner.

Why You Might Need Car Insurance Without a License

• Your license is suspended and you need to file an SR-22 or FR-44 to reinstate it
• You only have a learner's permit
• You are insuring a collectible vehicle that you won't drive
• You own a car that is driven by a caregiver or chauffeur
• You need to co-sign a policy for an underage driver

If no one is going to drive the car, but you want to protect it against accidental damage while it's stored, you have the option of purchasing comprehensive-only or parked-car coverage. You will have to cancel your registration and turn in your plates to do this, but it is cheaper than buying a policy that also offers liability coverage. This type of insurance is offered by many national firms such as Allstate and State Farm.

To get insurance before buying a car, you will need to figure out the exact car you are hoping to purchase. You will need information about the vehicle (it's make, model, vehicle identification number, etc.) in order to shop around for insurance quotes with different companies and then select and purchase a policy.

However, if you already have an insurance policy for a different car, you don't need to get new insurance before buying a new car. You will simply need to notify your insurance provider, within a timeframe specified in your policy, that you have purchased a new car and wish to update your coverage. The steps below assume you don't already have insurance coverage on another vehicle, though.

How to Get Insurance Before Buying a Car: 4 Steps

1. Decide on a car and contact the dealership

You'll want to make an agreement with the dealer, specifying the car you wish to purchase and when. They will then be able to provide you with information about the car that you'll need to purchase insurance.

2. Obtain information about the car that will be necessary to get an insurance quote

In order to get an insurance quote, you will need to know the car's Vehicle Identification Number, current mileage, make, model, trim level and history.

3. Get an insurance quote

At this stage, you will need to provide your personal information and vehicle information to the company.

4. Select a quote and pay for coverage

Once you determine which insurance company will be able to provide you the best coverage, you will need to select and pay for that policy. Once you've paid, the insurance company will provide you with confirmation that you now have a policy. You can bring that confirmation with you to the dealership when you decide to officially purchase your car, or review and select your quote online, right from the dealership.

At this point, you will have obtained the necessary insurance coverage to legally drive your new vehicle.

You can insure a car that is not in your name in some states but not everywhere. Insuring a car that is not in your name depends on two things: state laws and insurable interest. Some require the names on a car's insurance policy and registration to match. If they do not, then you won't be able to insure that car. Other states, such as California and Florida, do not have that rule, making it possible to insure a car that is not in your name.

In order to insure a car that you don't own on paper in states that allow mismatching names on a car's insurance policy and registration, you will need to show that you have an “insurable interest” in the vehicle. That basically means you have a reason to insure that particular car.

If you own a car, it is viewed as your investment, which you have reason to protect with insurance coverage. If you do not own a car, then it becomes trickier to prove insurable interest. However, if you are able to demonstrate that the car is pertinent to your daily life or your work, you might be able to find a policy.

When You Can and Can't Insure a Car That Is Not In Your Name

• You can insure a car that is not in your name if you live in a state that does not have the matching-name requirement, and if you can demonstrate insurable interest in the car.
• You cannot insure a car that is not in your name if you live in a state that requires the names on a car's insurance and registration to match, such as New York, and you are unable to demonstrate insurable interest in the car.

If you still need to insure a car that is not listed in your name, especially in a state that requires insurance and registration to match, you can consider some of the following alternatives:

Co-Title - You should consider being added as an owner on the car's registration, if possible. A car can have more than one owner, and they do not have to live together.

Additional Interest - You can consider adding the car's nominal owner to your insurance policy under what is known as an additional interest. An additional interest simply states that someone else has an insurable interest in the vehicle. If you've ever financed a car using a bank loan, the bank was listed as having additional interest in your car, even if it didn't actively use the car.

Additional Driver - If possible, the owner of the car can add you to their insurance policy as an additional driver. This is recommended in situations where you live with the owner of the car you wish to drive.

Non-Owner Insurance - A non-owner insurance policy is a liability-only policy that provides coverage if you are driving a car you do not own. This policy supplements the primary policy of the car.

If you do not live with the owner of the car you plan to drive, pursuing a non-owner insurance policy might be the easiest approach to ensuring you are covered in case of an accident.