Shopping for and purchasing auto insurance online can be a quick and easy process, if you have an understanding of how auto insurance works. The Internet has allowed consumers to look for auto insurance quotes online and fill out applications with any insurance company online. In a few hours, you could have a batch of auto insurance quotes you could choose from. The following steps will help you decide how to find the auto insurance coverage you need.

1. Figure out how much coverage you need. Know what type of coverage your state requires you to have and buy your state’s minimum. Look at the different types of coverage listed above and decide for yourself whether you want or need that coverage. Do you have a lot of assets? If you do, you may want to purchase enough liability insurance to cover those assets. Are you prone to car accidents or fender benders, or do you a long commute along a hazardous route? If so, you should consider purchasing more comprehensive coverage. If you have an old vehicle, but you have a good driving record, and your car has a low likelihood of being in an accident but a high likelihood of it getting stolen, you could buy comprehensive coverage but you wouldn’t need to buy collision coverage.
2. Know your driving history and review the status of your driving record. Know how many tickets you’ve had recently. Wait for your driving record to improve; wait for those points to disappear off your driving record, then get quotes.
3. Find quotes online. Get quotes from different types of insurance companies online through search engines. There are websites out there that allow you to comparison shop. Make sure you keep the coverage limits the same to make your comparison shopping much easier. Find out the insurance company's payment policy When is your payment due? What happens if you're late in making a payment?
4. Once you’ve exhausted your options online, get quotes by phone from those companies you couldn’t get online quotes from. Some companies sell through their own agents. Some sell through independent agents who offer policies from several insurance companies. Others do not use agents. They sell directly to consumers over the phone or via the Internet.
5. Find the most reliable company. You can find a company’s reputation through organizations such as the Better Business Bureau (BBB). The BBB collects and reports information to help consumers make informed decisions. You can also visit your state's department of insurance and check consumer complaint ratios and basic rate comparison surveys. Also, get in touch with local body shops or dealerships you trust and ask which insurance companies they recommend. Consider contacting an insurance agent for additional information about a particular company. Check out the financial strength ratings for an insurance company by referring to the A.M. Best and Standard & Poor's ratings. Look over J.D. Power and Associates' consumer satisfaction surveys reviewing auto insurance companies.
6. Look for discounts. Tips for obtaining discounts are listed below in the “Maximizing Auto Discounts” section.
7. Review the policy of the auto insurance company you choose to purchase from. Find out if you are giving up your right to go to court and will be forced into arbitration if there is a disagreement [between you and the insurance company. Don’t give up this right; retain your right to sue. Avoid aftermarket parts requirements. If an insurance company has written in the policy that "new factory," "like kind and quality" or "aftermarket parts" may be used for body shop repairs, go to another company.
8. Cancel your old policy.

Tip: Ask friends and relatives for their recommendations. Contact your state insurance department to find out whether they provide information on consumer complaints by company. Pick an agent or company representative that takes the time to answer your questions.

Tip: If you're shopping for an agent, ask about experience. In many places, agents need only a week of training before they can sell insurance. Seek out a pro who has gone back to school to earn industry credentials. Designations to look for include: CPCU (Chartered Property Casualty Underwriters), which requires about 1,000 hours of extra classes; CIC (Certified Insurance Counselor), which requires about 100 extra hours; and the AAI (Accredited Adviser in Insurance), which also requires about 100 hours of study.

Tip: Every insurer uses some of your insurance premium to cover business costs. But when you work with an agent, a portion of what you pay (usually 10 percent) goes directly to the agent in commission. If your agent is your brother-in-law and you want him to have the commission, go ahead, but the agent only serves as a middleman between you and the insurance company.

Tip: Another option is going with a direct-writer. These organizations don't use agents and you deal directly with the insurance company. The majority of your premium goes directly to handling your coverage. When you move, your coverage stays with you. All you have to do is call your insurance company with your new address.