Buying Car Insurance Online | Bankrate (2024)

Buying car insurance online is becoming increasingly common. You can search companies, request quotes and purchase a policy all from the comfort of your home. While buying a policy online is convenient, you might want to research the type of insurance you’re looking for and the level of coverage you need before you begin. Otherwise, you might get an inaccurate quote or lose out on ways to save money. Fortunately, Bankrate’s insurance editorial team is here to help you prepare for buying car insurance online.

What to know before purchasing car insurance online

It’s easy to get overwhelmed if you jump online and start skimming through car insurance websites. Most companies have web pages devoted to specific types of coverage, discounts, perks and more. If you don’t know what you’re looking for, you might have difficulty selecting a policy that suits your needs.

To simplify shopping, you might want to gather personal information that an insurance provider might ask for. For instance, you’ll need contact information for each driver who will be listed on the policy, information about the vehicle and details about how you plan to use the car (pleasure, commuting, etc.). With this information, you can request a quote that will be more accurate than a quick, anonymous car insurance quote. These tend to be inaccurate.

Typically, a licensed insurance agent would ask detailed questions and walk you through the application process. If you’re buying a policy online, here are some of the questions you should ask yourself:

• If you have a loan or lease on your car, does your financial institution require you to have certain minimum limits and deductibles? You’ll want to know if you need a full coverage policy before choosing an option.
• If you do not have a loan or lease, do you want full coverage, or are you comfortable with liability-only coverage? Although most states require at least a minimum amount of liability coverage, you may want to consider purchasing above the minimum limit if possible to avoid leaving yourself financially vulnerable. If you were to get in a car accident without sufficient coverage, you’d likely have to pay for damages and medical bills out of pocket.
• Do you want a company that provides a mobile app? If you prefer to manage your auto insurance online, you may want to choose a provider that offers an easy-to-use mobile app. Many major carriers also offer digital claims filing that allows you to submit claims and photos of your accident in the app.
• Do you want a bundling discount for future policies? Many auto insurance providers offer bundling discounts, which allow you to save money by holding multiple insurance policies from the same carrier.
• How important is it for your company to have a support phone number in case you have questions? If that’s important to you, make sure the company you choose has reliable customer service. While some companies offer 24/7 hotlines, others have shifted away from the 24/7 model post-pandemic. If you work a non-standard shift, customer service availability might be something to keep in mind.
• What is the claims process, and do you feel comfortable with it? Some claims can be processed through a mobile app, while other companies may require you to file them on a computer or over the phone. Find out what you prefer and what your potential carriers offer.

What coverage types are right for you?

Everyone’s insurance needs and preferences are different. Some drivers might want the minimum required coverage if their vehicle is paid off and isn’t worth much, while a driver financing a new car would need to take out full coverage. Remember that insurance providers must offer legally required coverage when generating quotes, but you still have many options when purchasing insurance.

There’s typically a considerable gray area between the two previous examples, which is why you might want to decide what type of insurance product you need. This will help you narrow down policies and ensure you don’t pay for unnecessary coverage. These are the most common types of products you’ll most likely see offered:

• Bodily injury liability: Bodily injury liability coverage is included in almost every state’s insurance requirements because it pays for injuries in an at-fault accident in which you are the driver. Without this coverage, you are considered an uninsured driver.
• Property damage liability: Like bodily injury liability, property damage liability coverage is almost always required. This coverage type pays for the damage you cause to other people’s property if you are at fault in an accident (up to your policy limit). This property could be the other driver’s vehicle or a stationary object such as a house or light pole.
• Uninsured/underinsured motorist coverage: If you’re involved in an accident with someone who doesn’t carry any insurance or doesn’t have enough coverage to cover costs associated with the crash, your policy may kick in to pay for medical bills and property damage. Depending on your state, uninsured and underinsured motorist coverage may or may not be required. Underinsured motorist coverage is also not available in every state.
• Collision coverage: If you cause an accident, you’ll pay a deductible, and your collision policy will pay for damage to your vehicle. It’s typically considered part of full coverage (along with comprehensive insurance) and optional unless you’re financing or leasing a car.
• Comprehensive coverage: Comprehensive pays to repair the damage to your vehicle caused by acts of nature (such as flooding, wind or hail), fire, theft, vandalism and hitting an animal. Comprehensive also provides financial protection for your glass. Like collision, comprehensive carries a deductible, as it is optional if you own the vehicle outright. Depending on your state, you may have a $0 deductible for glass coverage.
• Medical payments coverage: If you get into an accident, whether you caused it or not, this optional coverage will pay for your medical bills if you’re injured. It also covers any of your passengers injured in the accident.
• Personal injury protection insurance: PIP pays out regardless of fault and covers losses due to an accident, including costs such as medical expenses, funeral expenses and even lost wages. This coverage may be required in no-fault states, but is sometimes available in other states as well, including at-fault states.
• Gap insurance: If you’re still financing a car, you can add gap insurance to your policy. If your car is stolen or totaled while you still owe money, the policy pays the difference between what you owe and the car’s depreciated value.
• New car replacement: If you purchased a new car within the past few years, you can add this coverage, which typically costs 5 percent of your total coverage. If your car is totaled, the insurance company will pay you the current value of a new version of your make and model.
• Roadside assistance: This is a common endorsem*nt that covers inconvenient situations like running out of gas, needing a battery jump, getting a flat tire, needing a tow or getting stranded after your vehicle has been damaged. Before you add roadside assistance, consider if you already have it as a credit card or club membership.
• Rental car coverage: If you have comprehensive and collision coverage, you may also be able to add rental car coverage. Rental reimbursem*nt pays up to a certain dollar amount or percentage on a rental car while your car is being repaired after a covered loss. There is typically a time attached to rental reimbursem*nt, as well. For instance, you might carry rental reimbursem*nt that will pay $30 a day for your rental car for up to 30 days, leading to a maximum payout of up to $900.
• Accident forgiveness: This additional coverage can sometimes be purchased or given as a loyalty perk. It prevents your insurance rates from increasing after a driver’s first at-fault accident.

Best online car insurance companies

Now that you may be ready to shop online for car insurance, you are probably wondering where to start. There are dozens of popular auto insurers, but not all may be the best car insurance company for you.

We reviewed numerous auto insurance companies, examining factors like customer satisfaction, ease of the online application process, available discounts, mobile app availability and claims satisfaction to help you find a company that might be right for you. We also analyzed results from J.D. Power, a leading third-party source for insurance industry research.

Out of the companies we reviewed, these were the standout features we identified for each one:

Geico

Geico is a company that offers quick and easy quotes and generally cheap rates. In fact, Geico tied for the Bankrate Awards’ Best Auto Insurance Company Overall award for 2024, tied for the Best Budget Auto Insurance Company and won the Bankrate Award for Best Auto Insurance for Young Drivers. This major carrier utilizes a user-friendly quoting system and makes it simple to file a claim. Geico’s mobile app is a standout in the industry. Policyholders can do everything from making policy changes to paying a bill and filing a claim within the app. You can even download your proof of insurance ID cards for easy access. Plus, Geico’s website allows you to complete certain tasks without logging in, which is great for anyone who easily forgets their password. Although the company scored high for shopping in J.D. Power’s Digital Insurance Study, it ranked below average for service.

Learn more: Geico Insurance review

Allstate

Allstate offers users a multi-functional website, making it simple to get direct customer support if handling your policy yourself becomes overwhelming. You can even reach Allstate via email or through a digital chat. Allstate offers a variety of discounts and plenty of agents nationwide if you need to talk to someone face-to-face after you have purchased your online policy. The company scored high in J.D. Power’s Digital Insurance Study for service and shopping.

Learn more: Allstate Insurance review

Amica

If you want an easy and hassle-free option, you might appreciate Amica’s online application process. You begin by entering your address and answering just a few simple questions that will help determine if you are eligible for a quote. The application is then broken down into simple sections — your information, vehicles, drivers, driving history, discounts, and quote summary. If you need to step away from your computer, you can save a quote and return to it later. Amica also tied for Bankrate’s Best Auto Insurance Company Overall and ranked slightly above average in the 2024 J.D. Power U.S. Insurance Digital Experience Study for service and shopping. You can learn more about Amica and get a personalized quote at amica.com or by calling 1-800-242-6422.

Learn more: Amica Insurance review

State Farm

State Farm offers a convenient and well-designed claims management system that is easy to navigate. Choose the type of incident you are dealing with, and the website will break the claims process down into five steps. Even third parties involved in an incident with a State Farm driver but not insured with State Farm themselves can create an account to track a claim. Additionally, every claims page has a digital chat button so you can easily chat with a representative if you have a question. J.D. Power ranked State Farm above average for customer service, suggesting the company is doing something right.

Learn more: State Farm Insurance review

Lemonade

Lemonade features a user-friendly digital auto insurance experience. It’s also an attractive option due to its AI-driven claims processing capabilities, and roadside assistance is available free of charge if all drivers on the policy have the app installed and location services enabled. Even better, policyholders can submit claims through the digital app and possibly receive immediate payment following approval. The insurance provider currently writes policies in Arizona, Illinois, Tennessee, Texas, Ohio, Oregon and Washington, and plans to expand car insurance coverage to drivers in other states in the near future.

Learn more: Lemonade Insurance review

How to compare multiple car insurance quotes at the same time

Online insurance comparison websites can help you purchase auto insurance online. These sites typically use algorithms to match you with multiple companies and give you quotes. However, once you provide all your personal and vehicle information to your chosen insurance company, these initial quotes may not be accurate.

For an accurate comparison, get car insurance quotes with the same coverage limits, types and deductibles from each carrier. Ask about available discounts and which ones you qualify for, which can help you get the cheapest rate. Also, review each carrier’s coverage options to see if they have standout coverages that another may not.

Pros and cons of buying auto insurance online

Purchasing car insurance online might work well for some people but not others. To determine if buying insurance online is right for you, consider weighing the pros and cons.

Ultimately, the choice to buy insurance online comes down to you. While it’s not right for everyone, you might decide that you know what coverage you want, have the information the insurance company needs, and are ready to purchase a policy without leaving home.

On the other hand, if you still have questions or want a deeper explanation, you can speak with a licensed insurance agent. Although purchasing insurance in person or over the phone might take more effort, it might be better if you want help and advice choosing your coverage.

The average cost of full coverage car insurance in the U.S. is $2,278 per year as of July 2024; you could pay significantly less. However, it’s a misconception that buying car insurance online is always cheaper than purchasing it from an agent or over the phone. For instance, an agent could tell you about discounts you didn’t know you qualified for, or they could advise you that you’re purchasing coverage you might not need.

That being said, you can find affordable coverage by shopping and purchasing a policy online since comparing policies is easier than ever. You can directly check individual insurance websites or use a comparison website that pulls quotes for you, which could save you a little time. Here are a few strategies you could try when purchasing your online auto insurance:

• Shop around: Many companies allow you to request quotes online, but it’s also simple to request a quote in person or over the phone. Use the same coverage types and amounts to make it easier to compare your options. This can be especially helpful if you’re hunting for the cheapest quote. Try to be as detailed as possible with the information you provide so you get the most accurate quote possible.
• Bundle your policies: You might qualify for a multi-policy discount if you insure more than one policy with the same insurance company. If you already have a homeowners or renters policy elsewhere, you can quote it alongside your car insurance policy to see how significant the discount is.
• Explore every discount: Insurance providers usually offer a handful of common discounts like loyalty discounts, safe driver discounts, bundling policy discounts and good student discounts. There are also unique discounts that could vary by provider, like telematics discounts, homeowner discounts and married discounts. You might even earn one for purchasing your policy online. Providers usually allow you to combine discounts to save even more on your policy.

Remember that the cheapest price is not always the best option when shopping around. Ensure you get quotes for the coverage you need and not just the cheapest available. If you are unsure how much coverage to purchase, it may be best to start your auto insurance search by talking to a licensed agent. You can always decide to finalize the purchase online.

Frequently asked questions

• There’s no single best car insurance company since car insurance is highly personalized, so it might be better to ask what you’re looking for from an insurance provider. For example, do you want strong digital tools, local agents, the cheapest rates or extensive discounts? Once you know your insurance priorities, you can request quotes from several providers and compare your options.
  

• You might be able to get same-day car insurance, but it depends on the company and the circ*mstances around your quote. For instance, some companies may only provide same-day car insurance if you purchase a new vehicle and need immediate coverage to leave the dealership. Car insurance generally goes into effect at 12:01 a.m. the day after you bind it. Regardless of the effective date, most companies should be able to email you proof of insurance (like an ID card) immediately after you purchase your policy.
  

• Unless the company provides a discount for purchasing a policy online, a quoted premium generated online should be the same as a quote generated over the phone or in person. All information between the two quotes needs to be identical for this to be the case, however. If you don’t know what kind of coverage you need or how to answer a question on the application, your online quote may be higher than one done by an agent. Purchasing a policy with an agent isn’t inherently cheaper, though. This higher rate could be due to a missing discount opportunity or accidentally adding extra coverage. If you are unsure about what coverage you need to protect yourself financially, you may want to consult with an insurance professional before finalizing your online purchase.
  

• Buying a car insurance policy is generally considered safe if you shop directly on the company’s website. Suppose you’re hesitant about entering personal information. In that case, you might want to know that if you work with an agent in person or over the phone, they will typically enter your personal information online. Either way, your personal information should be encrypted to protect you.
  

• Since this is a highly personal decision, it depends on your feelings. If you feel confident that you know what type of insurance you need and what coverage amounts you want, you might enjoy purchasing car insurance online. But, if you’re hesitant or want a little help from an agent, shopping in person or over the phone might be the option for you.