You need auto insurance—regardless of whether your state requires drivers to have auto insurance or not. Auto insurance will cover you for risks that can end up costing far more than your monthly insurance premium. If you get involved in an auto accident and you get sued by the other party, auto insurance can protect you. Auto insurance can help with your medical costs related to an car accident, as well as replace your vehicle and even provide you with a rental car until your automobile is fixed. And yes, many states require drivers to have auto insurance—without it, you could get fined.

That doesn't mean you should buy your auto insurance the first place you look. If you want a good price on your auto insurance, you should shop around: ask for auto insurance quotes from a number of insurance agencies. In order to give you an accurate auto insurance quote, insurance agencies will have to a conduct a background check with your state's Department of Motor Vehicles, and they'll need personal information from you like your name, your address and your driver's license number to conduct the check.

Doing a little homework before you purchase your auto insurance could pay off in the form of lower premiums over the years. But when you're getting your auto insurance quotes, make sure you're not comparing apples to oranges. In other words, make sure you're comparing similar auto insurance coverage. For instance, you could have auto insurance quotes from two agencies that differ by $70 a month. But the less expensive option could require you to pay out a higher deductible in an accident than the other one. This could work out for you; you could keep the amount of the deductible in the bank, earning interest for you until the day you need it. But make sure you check the various auto insurance quotes for other information as well, such as medical coverage, rental car coverage, and other features. You'll need to determine which auto insurance features you need and can afford to have—or can't afford not to have.

You can make your research into auto insurance quotes a bit easier by using the Internet. You can often get an auto insurance quote instantly, or within a few minutes. At least one auto insurance company—Progressive Auto Insurance—can give you their rates and the insurance rates of their competitors. Don't rely strictly on their quotes however—they could be giving you the competiton's highest rates rather than their best deals on auto insurance. And think twice before you give out your personal information on the Internet, even for auto insurance quotes. Make sure you're dealing with a reputable auto insurance company first.