How to Buy Cheap Auto Insurance Online
Find Cheap Auto Insurance Quotes Online
Buying cheap car insurance online
Buying car insurance online could be a good idea if you have a simple policy. For example, if you're the only driver, you only have one car, and you don't have any tickets or accidents. If you have a complex situation or want more guidance, it's better to talk to an agent.
How to buy car insurance online
The best way to get car insurance online is to use a tool that lets you compare different quotes in one place. ValuePenguin's tool can help you get cheap online car insurance quotes today. Quotes are free, and you can compare rates from different companies.
Find Cheap Auto Insurance Quotes Online
1. Decide how much coverage you need
Your car insurance coverage determines your payout after an accident.
Your coverage is the most important part of your policy. To choose the right coverage, think about the value of your car, your monthly budget and how much money you can afford to pay yourself if you're in an accident.
If your car isn't worth much and you don't have a loan or lease, you can buy a liability-only policy. These policies only cover you for the damage and injuries you cause to someone else. They don't give you any coverage for your car.
If you're looking for the cheapest policy possible, you could consider a minimum coverage policy. This is the lowest amount of coverage you can have to drive legally, so it comes with the cheapest rates.
But minimum coverage isn't usually a good choice, because it doesn't pay for much after an accident.
If you can afford it, buying higher liability limits is a good idea. And if you have a more expensive car or need help paying for repairs after an accident, consider full coverage.
These policies include collision and comprehensive coverage, which cover damage to your own car. If you have a loan or lease on your car, you have to buy full coverage.
If you already have car insurance, you can start by matching your current coverage. You can find that info in the declaration page that comes with your policy.
2. Get your info ready
You'll need some personal info, as well as info about the car you have or are buying.
Having everything available will make getting quotes easier and faster. If you need instant auto insurance, you'll have to have everything ready or you won't be able to buy a policy.
- Name
- Date of birth
- Social Security number
- Address
- Driver's license number
- Info about previous tickets or accidents
- Info for other drivers you need to insure
- Year, make and model of your vehicle
- Vehicle identification number (VIN)
- Date you want your coverage to start
- Your previous insurance company
- Your current policy's end date
If you don't have all this info, you might still be able to get online auto insurance quotes, but you might not be able to buy a policy. The quotes might also change once you can put in the rest of the info.
3. Get multiple online quotes
To find the cheapest car insurance online, compare quotes from at least three insurance companies.
Cost is important to consider when shopping for auto insurance. But you should also compare coverage options and the quality of customer service. Only you can decide what car insurance company is the best for you, but comparing a few different companies helps you find the right fit.
Most car insurance companies who let you get quotes online give you the option to save your quote. But quotes are usually only good for 30 days. If you save the quote and don't come back to it for a month, the price might change.
It can also be helpful to compare discounts for car insurance. Most insurance companies offer savings, including discounts for being accident-free, having safety devices on your car and insuring more than one car. Choosing a company that has several discounts you qualify for can get you a cheaper rate.
Find Cheap Auto Insurance Quotes Online
4. Buy your policy
You need to pay for at least one month to buy a policy and start the coverage.
Make sure you choose the right date to start your coverage. If you need same-day auto insurance, you have to choose today's date as the start date. Otherwise, you might not be able to leave a dealership, since your insurance won't be valid until a future date.
You might not be able to buy car insurance online if your info is incorrect, you have accidents or tickets on your record, or your car insurance situation is complicated for another reason. In these cases, you may be prompted to talk with an agent or go into an office to buy a policy.
What happens if I buy the wrong insurance?
If you aren't happy with the coverage or company you chose, you can always make changes or get new insurance.
If you need coverage immediately, like if you're buying a car and need a policy to drive off the lot, for example, you can get a policy and adjust it or switch to a new company later, when you have time to do more research.
You aren't locked into a policy after you buy it. Cancellation fees are rare, and if you cancel a policy soon after buying it, most companies will give you a refund minus any days that your coverage was in place.
What to know about buying car insurance online
When you buy car insurance online, you won't get guidance from a licensed insurance agent. Before you get a quote online, you should know a few things about car insurance to make sure you get a policy that fits your needs.
Car insurance pays for damages and injuries when you're in an accident. You have to have a car insurance policy to drive legally, but it's more than just a legal requirement. Car insurance can help protect you from financial trouble if you hit someone or something.
For example, if you rear-end someone and you don't have car insurance, you have to pay for the damage to their car and for their injuries yourself. You also have to pay for the damage to your own car and for your medical bills and those of any passengers you had.
If you have full coverage car insurance, your policy will pay for all those costs up to your coverage limit. That can keep you from having to scramble to figure out how to pay for large bills, and it can help avoid lawsuits if you can't pay.
Usually, an online car insurance quote tool will ask questions and automatically apply the discounts that you're eligible for. But online quotes usually only show you the most common discounts. If you think you're eligible for more savings, it might be better to talk with an agent.
Most companies offer discounts. Some common ones include:
- Online discounts: Some car insurance companies will give you a discount for getting a quote online and another discount for buying a policy online.
- Bundling: This just means buying more than one policy from the same company. If you already have a home or renters insurance policy with a company, get a quote for auto insurance too. Bundling discounts are some of the biggest savings that companies offer.
- Usage-based: These programs track your driving with a plug-in device or phone app. They give you a discount based on how you drive.
- Safe driver: If you don't have any accidents or tickets in the past three to five years, many companies automatically give you this discount.
- Good student: If you're a student or you insure a student who had a B or better letter grade average, you can probably get this discount by showing a recent report card.
- Multi-car: Most car insurance companies will give you a discount for insuring more than one car with them.
All car insurance policies have the same basic coverage types, although you don't always have to buy them all.
- Bodily injury liability (BI) pays for injuries that you cause to someone else in an at-fault accident.
- Property damage liability (PD) pays for damage you cause to someone else's car or other property.
- Medical payments (MedPay) pays your medical bills in an accident, even if you weren't at fault.
- Personal injury protection (PIP) is similar to MedPay, but also pays for things like lost wages and home services if you are injured. It's also sometimes called "no-fault insurance," because it is required in so-called "no-fault states."
- Collision pays for damage to your car if you collide with something, like another car, a tree, a pole or a building.
- Comprehensive pays for your car's damage from non-collision things, like hail storms, water damage, fires and hitting an animal.
If you buy a minimum coverage or liability-only policy, you will only have bodily injury and property damage coverage. Your policy will also have PIP if you live in a no-fault state. Full coverage policies include comprehensive and collision coverage. In most states, medical payments coverage is optional, but most policies include it.
When to talk to an agent
Buying car insurance online is usually only a good idea for people with simple policies, like just one driver and one car. Just make sure you feel confident that you're choosing the right coverage.
If you have a more complex situation, you should probably talk with an agent to buy a policy. For example, if you have teen drivers, multiple tickets or accidents, a DUI, or a luxury or modified car, you should probably get the opinion of an insurance professional. Online quoting systems might not even let you finish the process if the info you put in is too complex.
Best place to buy car insurance online
Geico is the cheapest place for most drivers to buy car insurance online.
But Progressive might give you the best deal for online car insurance. That's because on top of its low rates, Progressive has a 7% discount for getting an online quote and a 9% discount for buying a policy online.
Full coverage
Minimum coverage
Full coverage
Minimum coverage
Find Cheap Auto Insurance Quotes Online
Best online car insurance quotes
Full coverage
Minimum coverage
Company | Monthly rate | |
|---|---|---|
| Geico | $161 |
| Progressive | $169 |
| Nationwide | $185 |
| Allstate | $217 |
| Farmers | $258 |
*USAA is only available to current and former military members and their families.
Full coverage
Company | Monthly rate | |
|---|---|---|
|
| Geico | $161 |
|
| Progressive | $169 |
|
| Nationwide | $185 |
|
| Allstate | $217 |
|
| Farmers | $258 |
*USAA is only available to current and former military members and their families.
Minimum coverage
Company | Monthly rate | |
|---|---|---|
|
| Geico | $61 |
|
| Progressive | $66 |
|
| Nationwide | $80 |
|
| Allstate | $96 |
|
| Farmers | $99 |
*USAA is only available to current and former military members and their families.
You can get an online car insurance quote from American Family, State Farm and Travelers. But you'll have to talk to an agent to finalize your policy.
Best online car insurance shopping experience
Progressive and Farmers have the easiest online quote tools.
Getting a quote from these companies is fast and easy, and help is available if you get stuck. American Family has the worst online quoting tool among major companies. It's slow and you can't buy a policy online at the end.
Company |
Online experience
| Get quotes online | Buy online |
|---|---|---|---|
| Progressive | |||
| Farmers | |||
| Allstate | |||
| Geico | |||
| Nationwide |
Just because a company says you can buy a policy online doesn't mean that you will be able to. You'll usually only be able to buy an online car insurance policy if your needs are simple. If you have accidents, tickets, a DUI or your situation is otherwise complex, you'll probably be prompted to call an agent. You may still be able to get a quote, but you'll probably have to talk to an agent to buy coverage.
Buying online vs. with an agent
Buying online can be good if you're in a hurry, but it's not always the best way to get coverage. If you want to work with an agent in person, you can choose between an agent who only sells policies from one insurance company, called a captive agent, or an agent who can get quotes from multiple companies, called an independent agent.
Buying car insurance online
Pros and cons
-
Convenient
-
Might get extra online discounts
Less guidance when choosing coverage
-
Still have to call an agent sometimes
Online options vary by company
Purchasing insurance online is convenient. You can save time by getting quotes and buying a policy when it's convenient for you, and you can even get discounts for buying online.
The downside is that you get less guidance when choosing a car insurance policy. That might mean you aren't getting the right coverage and you are missing out on discounts.
When buying online, you should understand how car insurance works and what coverage you need. Compare quotes with the same level of coverage from multiple insurance companies online to ensure you're getting the best price.
Buying car insurance from a captive agent
Pros and cons
-
Lots of knowledge of one company's policy options
-
Only offers policies from one company
Captive agents only sell policies from one insurance company. For example, a State Farm agent can only give you quotes for State Farm insurance. Captive agents can give you in-depth knowledge of that company's insurance and give you an in-person option for support.
But you can't get quotes from more than one company with a captive agent, so they can't help you compare rates or coverage options across companies.
Captive agents can be good if you know you want insurance from a specific company. But if you want to shop around, you'll spend more time getting quotes yourself.
Buying car insurance from an independent agent or broker
Pros and cons
-
Offers rates from multiple companies
-
Can only get quotes from companies they're licensed with
-
Don't have access to some companies
Independent agents, also known as insurance brokers, offer rates from multiple companies for auto insurance. They can shop around for you, which saves you time.
But independent agents can still only give you quotes from certain companies. They won't be able to help you get a quote from a company they don't work with, and they can't give you quotes for companies that use captive agents.
Frequently asked questions
Where can I get cheap online car insurance?
Geico has the cheapest online car insurance quotes for most people. But Progressive might be cheaper overall because it has two discounts that you can get for getting a quote and buying a policy online.
Is it cheaper to buy insurance online?
It can be. Some insurance companies give you a discount for buying car insurance online. But even if it's cheaper, it's not always the best option. If you aren't sure what coverage you need or how car insurance works, it's better to work with an agent. Getting a cheap rate with bad coverage isn't worth it.
Is it better to buy insurance from an agent or online?
It depends on your needs. If you need a policy immediately, getting a policy online is probably faster. But if you want more guidance to make sure you get the right coverage, an agent is a better choice.
Methodology
ValuePenguin collected quotes from the biggest insurance companies across all 50 states to find rates for full and minimum coverage policies. Quotes are for a 30-year-old male who drives a 2015 Honda Civic EX.
Full coverage rates include the following coverage:
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $25,000 per person
- Uninsured and underinsured motorist coverage: $50,000 per person and $100,000 per accident
- Personal injury protection: minimum required by state
- Comprehensive and collision deductible: $500
Minimum coverage rates are for each state's minimum limits.
Our analysis used insurance rate data from Quadrant Information Services. These quotes were publicly sourced from insurer filings and should be used only for comparative purposes. Your quotes might differ from our rates.
ValuePenguin's editor ratings are based on each company's average rates, coverage options discounts, customer service and unique features.
Our experts determined an online experience score by reviewing the time it took to get an online quote, how easy the quoting tool was to use, if help was available and if you could buy a policy at the end of the quote.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.