How Long Does It Take to Get Car Insurance?

If you’re on the verge of buying car insurance, or right after purchasing it you might be wondering, how long does it take to get car insurance? Well, unlike health insurance and other types of insurance, car insurance usually doesn’t take much time to process and activate.

So, it can take from a few minutes to several days or weeks. Depending on your auto insurance application, the information you’ve provided and it’s legitimacy, the insurer will inform you whether it’s acceptable and if any further steps are necessary from either side.

Time Analysis: How Long Does It Take to Get Car Insurance?

Applying for car insurance itself has many steps, which can take a bit of time or so. The processing begins after you submit the application. Here’s a time analysis breakdown to give you a proper time estimate of how long it may take to get car insurance as follows.

Determining Your Auto Insurance Needs (5 minutes)

It’s crucial for you to determine why you need auto insurance. Whether you need minimum coverage, full coverage or a combination of different types of car insurance coverage.

Here in Michigan, it is mandatory for you to purchase liability auto insurance, along with PIP (personal injury protection) insurance.

Apart from the mandatory types of auto insurance, you should also consider acquiring the following optional car insurance coverage which are very essential for adequate financial protection which includes collision auto insurance, comprehensive auto insurance, uninsured/underinsured motorist coverage, and more.

Setting a Budget (5 Minutes)

Before purchasing any product, it is essential to set a budget. Based on your budget, you can determine how much car insurance coverage you should purchase for adequate financial protection.

To help you determine an estimated budget, the average cost of auto insurance is $828 per year for minimum coverage, and $2,100 per year for full coverage auto insurance.

So, after setting a budget, it will be easier for you to estimate how much you should spend on each auto insurance coverage limit. Plus, budgeting beforehand is also necessary to ensure that you don’t underspend and get insufficient coverage, or overspend on premiums beyond your requirements.

Gathering Personal and Vehicle Information (10 minutes)

It is necessary to provide your personal and vehicle information to your insurer while filling in the car insurance form. Once you submit them, your insurer will verify the information, and the documents to determine whether you’re eligible for purchasing car insurance, and your car insurance rate for each coverage. So, it’s very important to ensure that you submit both your personal and vehicle information accurately.

Here is the required personal information for getting car insurance.  

• Your Full Name
• Date of Birth
• Current Residential Address
• Your Social Security Number
• Your Driver’s License Number

Here is the required vehicle information for getting car insurance.

• VIN (Vehicle Identification Number)
• Make, Model and Manufacturing Year
• Annual Mileage

Finding Suitable Car Insurance Companies (10 minutes)

Insurance coverage and rates can significantly vary from one insurer to another. If you’re located in Michigan, there are tons of insurance companies that offer car insurance. However, it is essential to find a reliable insurer that provides the best car insurance coverage at the most affordable rates.

So, here’s what you should do. For instance, you can search for something like cheap car insurance in Michigan, affordable car insurance in Michigan, best car insurance in Michigan, or simply car insurance near me.

While searching for insurance companies, prioritize finding a reliable auto insurance agency based on your location. Similarly, if you’re located in other states such as Arizona, Colorado, Florida, Texas, Georgia, and Nevada, you should search and find insurance companies there in the same way.

Getting Quotes and Comparing Insurers (5 minutes)

Now it’s time for you to contact the insurance companies that you have shortlisted to get quotes. Once you have quotes from 3 to 5 insurance companies, you can compare them to determine which one’s providing the best rates for each car insurance coverage within your budget.

The most effective way to compare insurers and identify their credibility is by referring to customer reviews on their website Google Business Profile and other third-party sites. So, based on the quote and reviews, you can determine the car insurance companies that seem most reliable to you.

Negotiating Auto Insurance Rates (10 minutes)

After shortlisting a few auto insurance companies, and getting their quotes, you precisely know how much they are offering for each coverage. You can contact these few auto insurance companies and negotiate a rate that fits more closely to your budget.  

If another insurer is offering you a cheaper rate for the same coverage, you can say you have cheaper offers on the table and bid for a lower premium. In this way, it will boost your chances of getting a cheaper rate from one of the insurance companies on your list.

Purchasing the Car Insurance (2 minutes)

Once you have reached an agreement with an insurer, now it’s time to purchase the car insurance. However, before doing so, make sure to carefully read the agreement to make sure that you’re okay with their terms and conditions.

If you don’t agree to certain conditions, make sure to ask the insurance agent, or ask them whether it will be possible to change it. Once you’re confirmed that you are okay with the agreement, provide the required information, submit the application, and make the payment.

Generally, it takes about 30 minutes to verify the information and activate your insurance. But it may take longer if there’s an issue, or if there’s any need for further verification, which can take a few days to several weeks.

Is it Possible to Get Car Insurance Within the Same Day?

Yes, it’s possible to get car insurance within the same day, as it usually takes about 30 minutes to process and activate car insurance. So, yes you can get your car insurance within the same day.  

Once your car insurance gets activated, you will immediately get the electronic car insurance card. You will get the physical car insurance card within 7 to 14 business days.

How to Get Car Insurance Within the Same Day?

The process of getting car insurance within the same day is quick, easy, and straightforward unless there is some issue that requires further verification. So, if you want to get car insurance at a cheaper rate within the same day, make sure you follow the steps suggested below.

• Contact the insurance company of your choice
• Get a quote  
• Fill up the form with all the required information, including your full name, current address, driving license, social security number, VIN, and other necessary information
• Submit the car insurance application form
• Pay your car insurance premium as per the agreement  
• Wait until you get the confirmation of your purchase

Once you submit the form, the car insurance company will inspect your application and do a quick audit. If everything checks out, then your car insurance will get activated in about 30 minutes or so.

Typically, most car insurance companies provide same-day auto insurance, so here’s a guide for getting same day car insurance at a cheaper rate.

Reasons for Delays in Getting Car Insurance

Getting your car insurance is usually a quick process, but certain factors can cause unexpected delays. Here are some common reasons why your car insurance application may get delayed.

• Issues with documentation: If you have either missed filling out the required information, or if it’s inaccurate then your car insurance application will go on hold, and you will be notified afterward.
• Insurer Verification: Sometimes the insurance company can put your application on hold for further verification. It may be due to certain information that you’ve provided or for any legal penalty such as license suspension, and fines for traffic violations and involvement in accidents.
• High Risk Driver: If you have a poor driving record then it may take your insurer longer to decide whether you’re eligible for acquiring car insurance. Even if they allow high-risk drivers, there’s a high chance that they will ask for a significantly higher auto insurance rate.
• You have vintage/classic/luxury car(s): Luxury cars require a specialized and custom auto insurance policy. So, your insurance company will verify whether they can cover your car(s) and then determine the premiums for your luxury car.  

Situations Where You Might Need Car Insurance Urgently

There are certain situations when you may need car insurance urgently. Here are some common scenarios where securing coverage quickly is essential.

• Financing a New Car on Loan or Credit: If you’re purchasing a new car on credit or loan, most car insurance dealers would ask for proof of car insurance, especially collision auto insurance and comprehensive auto insurance.
• Your Auto Insurance Policy is Expiring Soon: You would have to renew your car insurance policy when it’s about to expire, so your current insurance company may take a while to re-validate your car insurance and driving history. On the other hand, if you’re switching to another insurer, then it may take them a while to verify your records and confirm the application.  
• You Need to Register a Vehicle: After purchasing a car, you will get to get it registered at the DMV, and for that, you will need proof of car insurance. Remember, it is illegal to drive an unregistered, uninsured car which can lead to legal consequences such as a $500 fine, license suspension, and up to 1-year jailtime.  
• Your Travel Plans Involve Driving: If you have travel plans to drive to another state for 30 days or less then it’s necessary for you to have a valid car insurance policy. Without active car insurance, you may face various legal penalties.  
• You’re Moving to Another State: Every state in the US has its own unique set of car insurance laws. So, if you're moving to a new state, you must update your policy to ensure your vehicle is properly covered and meets local regulations.

Bottomline

If you’ve read this far by now you know that getting car insurance shouldn’t take longer than 30 minutes. But if it does, then there is an issue that your insurer will inform you soon.

If they don’t respond, you can call them and ask to know the status of your car insurance policy. If everything checks out well, and if there aren’t any issues, then your car insurance should get activated on the same day.

If it doesn’t and if it requires further verification, then ask your insurer how long it may take. If they’re unable to confirm a specific timeframe, if you need car insurance urgently, then you should consider consulting with another insurance firm.

If you need a second opinion, or if you need help, then you will find one of our insurance agents near your location. Or you can contact us to book a free quote and consultation.

Frequently Asked Questions (FAQ)

How fast can I get car insurance?

Usually, it takes 30 minutes to a few hours to get car insurance, so you can get car insurance on the same day you apply for it, or on your preferred day. However, in some cases, there can be possible delays of a few days to several weeks or months.

How long does car insurance approval take? 

Typically, in a few minutes if all the information that you’ve provided checks out fine, and the payment is received and acknowledged. But if there’s an issue which requires further investigation or if the payment didn’t wasn’t successful then it can take a significant time.

Can I get insurance and use it on the same day?

Yes, the moment your car insurance gets approved, you will immediately receive your car insurance card through email, which is basically proof of insurance. You can use that and legally drive on the streets the same day.

Is there a waiting period for car insurance?

It depends on the insurance company, some insurers have waiting periods, while others don’t. Typically, the waiting period is about 7 days, primarily to prevent fraud and allow time for proper application verification.