With so many different insurance companies out there, you may feel overwhelmed by the idea of picking one. Luckily, comparing carriers wis simple and free.
Get ready to answer some questions. Insurers will typically ask for your driver’s license, driving history, car make and model, mileage, ownership and registration information, and previous insurance details.
Gathering quotes from different insurance companies can help you avoid overpaying for the same coverage. We also recommend comparing other areas, like customer service ratings.
After you tell us a bit about yourself, you’ll have instant access to choose from the best auto insurance carriers. We’ll personalize your matches based on the information you provide and the coverage you need.
Auto insurers offer different kinds of coverage to help protect you financially in various scenarios. Here’s a rundown of six common insurance options so you can understand what type of coverage you need:
According to AAA, the average cost of auto insurance for a new car is $1,202 per year. So, how much is car insurance per month? You’re looking at a monthly cost of about $100, though this number can change depending on several factors. For example, your age, gender, location, credit, driving record, and mileage — as well as the type of car you drive — can all influence your auto insurance premium.
To ensure you’re getting a competitive rate, you should compare car insurance by age, location, credit, driving record, and more.
Learn the basics of car insurance, so you know what to expect if you get into an accident.
Auto insurance is a financial safety net that protects you from having to cover the full cost of car repairs or medical expenses from an accident. Most states require drivers to carry a minimum amount of auto insurance in the form of liability coverage. If you have additional types of insurance, like collision or comprehensive coverage, you’ll be covered in more scenarios.
Insurance helps pay to repair or replace damaged vehicles and reimburse medical expenses after an accident. Let’s walk through how car insurance works:
Comprehensive auto insurance is not required by law. However, if you’re financing or leasing a car, then your lender or dealership will typically require that you purchase comprehensive as well as collision insurance. Even if you’re not asked to buy it, maintaining comprehensive coverage may be a good idea, especially if your car’s market value is high. Comprehensive insurance can provide a significant financial cushion in the event of theft, vandalism, and other incidents outside of your control.
The least expensive auto insurance option would be purchasing the minimum amount of liability coverage required in your state. While this decision may be economical in the short term, it could prove to be more expensive in the long run. If you purchase the cheapest insurance option and cause an accident, then you’ll be on the hook for any car repairs or medical bills that exceed your coverage limits. You’ll also be fully responsible for fixing your car if you hit another vehicle or object or if your vehicle is stolen or damaged by something other than a collision.
The minimum amount of car insurance you must maintain by law depends on the state you live in. In Alaska, for instance, you’re required to purchase liability coverage with limits of at least $25,000 for property damage and $100,000 for bodily injuries, capped at $50,000 per individual. In Arizona, on the other hand, you’re only required to buy coverage with a property damage liability limit of $10,000 and bodily injury liability limits of $30,000 per accident and $15,000 per individual.
Your auto insurance policy would cover vehicle theft if you purchased comprehensive coverage. Liability and collision coverages won’t cover you if your car or certain parts are stolen.
Beyond purchasing the minimum amount of car insurance required in your state, you need to ensure that your assets are protected legally and financially if you get into a serious accident. Start by totaling the value of your car, home, savings, and investments, then deduct your debts to get your net worth. The liability limits of your policy should cover that amount.
Additionally, purchasing collision and comprehensive insurance is wise if you can’t afford to replace your car after it’s totaled or stolen. You could consider dropping collision and comprehensive insurance if your car is older and has depreciated significantly to under a few thousand dollars.
Here are some auto insurance tips to keep in mind before purchasing a policy:
For convenience, major insurance companies generally offer a quote and online transactions. This process allows you to quickly compare auto insurance rates between different insurers and find a good deal. However, there are benefits to working with an agent, including personalized customer service and the opportunity to ask specific questions about your coverage, the laws in your state, and which discounts are eligible for you.
Car insurance companies offer many different types of discounts that can help lower your premium. For example, you could get rewarded for driving accident-free for several years, maintaining good grades at school, having an anti-theft device or system installed in your car, or being a homeowner. Make sure to run through the list of discounts available from your insurer so you can maximize your savings.
Other drivers might not carry sufficient liability insurance to cover damages from any accidents that they cause. Uninsured and underinsured motorist coverage reimburses you for medical bills, car repairs, and lost wages if you’re hit by an uninsured or underinsured driver, respectively. This coverage also applies if you’re the victim of a hit-and-run.
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