What is same-day car insurance?

Need car insurance in a hurry? In many cases, you can apply for and be approved to buy coverage and activate your new auto insurance policy all in the same day.

“Same-day insurance is just a way to describe when a policyholder purchases and activates an auto insurance policy within 24 hours,” says Vonda Copeland, owner of Copeland Insurance Agency in Topeka, Kansas.

Most major insurance companies make it easy to buy same-day car insurance over the phone, online or through a licensed agent, often within an hour or so.

“It allows customers to get covered immediately instead of waiting days for a policy to become effective and can be useful for individuals needing coverage quickly, such as drivers who just purchased a new vehicle or are dealing with a lapse in their current coverage,” she says.

Key highlights

• Nationwide has the cheapest car insurance. A full-coverage policy costs $1,548 per year on average.
• Allstate has the most expensive auto insurance, averaging $2,509 annually.
• For most customers, it is easy to get car insurance from the top companies within an hour or so.
• You can buy same-day auto insurance ranging from liability only to full coverage.

What is same-day auto insurance?

Same-day auto insurance is not an actual insurance product; it simply refers to finding a policy and getting coverage in a single day.

Most insurers can give you a quote on coverage within minutes of inputting your information into their website or talking to an agent. Auto insurance policies typically take effect as soon as the payment for the policy is processed

In some cases, such as insuring a rare or collector automobile, choosing and buying a car insurance policy will require more than a few hours.

“For complex business or high-value policies, an agent can often find more comprehensive coverage and better deals by negotiating with multiple carriers, which may take longer than a single day,” Copeland says. Also, some insurers may require a high-value or collector vehicle to be appraised for valuation before issuing coverage.

How much is same-day auto insurance?

Regardless of whether it takes a few hours or a few days to buy car insurance, the national average for a full-coverage auto insurance policy is $1,895, which breaks down to $158 a month. That’s coverage for both yourself and for others. If you opt to carry only the state-required minimum liability insurance, which only covers bodily injury and property damage to others, the average drops to $503 annually or $42 a month.

Almost every state requires drivers to carry a certain amount of liability insurance to help cover costs if they are responsible for a car accident. Required amounts vary by state but are rarely enough to cover the financial costs associated with a serious at-fault accident.

Full-coverage car insurance comes with higher liability coverage limits and adds comprehensive insurance, which covers non-collision events such as severe weather, theft and vandalism. It also includes collision insurance, which will pay to repair or replace your own vehicle after an accident or other incident.

If you have a loan or lease, carrying the state-required minimum insurance will not be an option because your lender will require full coverage on the vehicle to protect their investment. Your financial institution may also require you to purchase gap insurance, which makes up the difference between what your vehicle’s market value and what you still owe your lender.

Carrying only liability car insurance also means that your own car is not protected. If it is damaged or destroyed in an accident, you will be on the hook for all associated costs.

Who has the cheapest auto insurance?

Nationwide has the cheapest average rate for full-coverage car insurance, just $1,548 per year or $129 monthly. That’s less than the national average annual rate of $1,895 and significantly cheaper than Allstate. Its sample yearly rate of $2,509 is the most expensive among the major carriers whose rate we analyzed.

Can I get car insurance coverage the same day I apply for it?

Absolutely. In most cases, it is easy to apply for and purchase a policy on the same day. Here is a quick overview of how to purchase same-day car insurance:

Prepare your information. You will need to provide a variety of personal info in order to get a quote and purchase a policy, including:

• Driver’s license information for all drivers on the policy
• Birthdates, marital status and Social Security numbers for all drivers
• Vehicle identification numbers (VINs), year, make, model and current mileage for all vehicles being insured
• Your driving record and the records of all those being added to the policy
• Your current address and the address of where your vehicle is garaged, if different
• Current insurance policy for reference

Determine your coverage needs as well as your coverage levels and deductible amount. Liability-only will be the cheapest option but doesn’t protect your vehicle. If you have a loan or lease on the vehicle, your lender will require full-coverage insurance and perhaps gap insurance as well.

Gather quotes online, over the phone or by visiting a local agent's office. Be sure that you’re comparing insurance policies with the same coverages, levels and deductible amounts for an accurate comparison.

Decide on the best policy. Consider price but also check reviews regarding customer service and claims handling as well as the financial strength of the company.

Purchase a policy. Once you have found a policy that meets your needs, simply pay for it and coverage will begin immediately. If you currently have car insurance, make sure your new policy is in effect before canceling the old one or you could risk a brief lapse in coverage.

What to look for when buying same-day car insurance

Once you’ve done the hard work of researching car insurance companies and gotten quotes, you are ready to apply for and purchase coverage. For most consumers, this shouldn’t take more than an hour or so. Here are some tips to bear in mind if you’re shopping for same-day auto insurance:

• Read insurer reviews. While an affordable premium should be your priority, shopping on price alone is never a good idea. Research organization J.D. Power’s annual Auto Insurance Study looks at customer satisfaction with their insurers, while ratings agency A.M. Best grades carriers on their overall financial strength and ability to meet claims. Both are worth checking out before you make a final decision on insurers.
• Ask about discounts. Insurance companies offer a variety of discounts so make sure all available discounts are being applied to your policy. Common discounts include bundling your home, renters or condo insurance with your auto policy; maintaining a clean driving record; paying your bill in full and opting for paperless statements; and maintaining a certain grade point average if you're a student.
• Consider raising your deductible. Doing so will almost always lower your premium, but make sure you’ve got the cash to cover your deductible if you file a claim.
• Remember, delays can happen. If you have a luxury or collectible vehicle, getting coverage may take longer than a day if the underwriters require an appraisal inspection to assess its value. Likewise, if you have a poor driving record, a history of multiple claims, or less-than-stellar credit history, you could have difficulty finding a carrier that will insure you.

Is it expensive to buy same-day car insurance online?

In most cases, the price of a policy purchased online and one using an agent should be roughly the same. The big question when deciding where to buy a car insurance policy is how comfortable you are doing it on your own and how complex your insurance needs are.

If you know exactly what coverages and limits you want and have relatively simple insurance needs, going online and getting quotes is often the easiest and quickest way to get a policy put in place.

On the other hand, if you are not sure about coverages or limits or have multiple assets that need to be covered it may be best to bring an expert in to help. A company representative or an independent insurance agent may be able to point out gaps in your coverage while also ensuring you are getting all available discounts.

Frequently asked questions

Can I get car insurance on the same day I have an accident?

Car insurance is not retroactive. You cannot get into an accident and then buy a policy to cover what damage you may have caused. If you do not already have car insurance prior to an accident, you can also be cited for driving without insurance and possibly lose your license and face other legal penalties as a result.

Likewise, if you do have car insurance prior to an accident but then find your coverage is insufficient, you cannot purchase additional protection after the fact in order to make up the difference.

Is it possible to get car insurance the same day you buy a car?

Yes, purchasing an insurance policy on the same day you buy a car is easy to do and, in most cases, required. Whether you pay cash, lease or finance the purchase of a new vehicle, you must have an active car insurance policy in order to drive legally. All states except New Hampshire require drivers to carry at least a minimal amount of liability car insurance.

If you currently have a car insurance policy in place, most insurers offer a grace period of five to seven days where your current policy will also cover your new vehicle. You must get the new vehicle added within the grace period to ensure continued coverage.

Do I have to pay extra to get car insurance fast?

No, getting same-day car insurance does not require paying any additional fees or surcharges. It is easy to shop for coverage online, on the phone, or by going to a local agent’s office to purchase a policy and activate it the same day.

Methodology

Editors collected rate information from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

In addition, we also calculated rates for these hypothetical drivers, but with one or more of the following on their record: speeding ticket, at-fault accident, DUI/DWI, poor credit history, or a lapse in coverage.

We analyzed more than 53 million quotes, over 34,000 ZIP codes, and 170 insurance companies nationwide.

Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property you damage.