Understand auto coverage options
Mandatory Coverages:
Liability Coverage: This is the most important coverage and is legally required in most states. It covers injuries or property damage you cause to others in an accident. It comes in two parts:Bodily Injury Liability: Covers medical expenses and lost wages for others you injure.
Property Damage Liability: Covers repairs or replacements for someone else's property you damage.
Uninsured/Underinsured Motorist (UM/UIM) Coverage: Protects you if you're hit by a driver with no or insufficient insurance. This can be crucial, as uninsured drivers are more common than you might think.
Optional Coverages:
Collision Coverage: Pays for repairs to your own vehicle after a collision, regardless of who's at fault.
Comprehensive Coverage: Protects your car from non-collision events like theft, fire, vandalism, or hitting an animal.
Rental Car Reimbursement: Covers the cost of a rental car while your car is being repaired after a covered incident.
Medical Payments Coverage (MedPay): Pays for your and your passengers' medical expenses from an accident, regardless of fault.
Personal Injury Protection (PIP): Similar to MedPay, but also covers lost wages and other expenses. Available in some states.
Additional Factors to Consider:
Deductible: This is the amount you pay out of pocket before your insurance kicks in. Higher deductibles usually mean lower premiums.
Coverage Limits: These are the maximum amounts your insurance company will pay for each type of coverage. Choose wisely based on your needs and budget.
Discounts: Many insurers offer discounts for things like good driving records, multiple cars on one policy, or anti-theft devices. Ask your agent about available discounts.
What affects the cost of auto insurance
The cost of auto insurance varies widely depending on a number of factors, including:
Your driving history: Drivers with clean driving records (no accidents or tickets) will generally pay less than drivers with poor driving records.
Your age and gender: Young drivers (usually under 25) and male drivers are statistically more likely to be involved in accidents, so they typically pay more for insurance.
Your vehicle: The type of car you drive, its make and model, its value, and its safety features can all impact your insurance rate.
Your coverage: The amount of coverage you choose will also affect your premium. For example, full coverage (which includes collision and comprehensive coverage) will cost more than liability-only coverage.
Your deductible: The deductible is the amount you pay out of pocket before your insurance kicks in. A higher deductible will usually mean a lower premium.
Get estimates from multiple companies
There are several ways to get quotes from multiple insurance companies:
Online quote comparison websites: These websites allow you to enter your information once and receive quotes from multiple insurers. Some popular options include NerdWallet, The Zebra, and Progressive's Quote Explorer.
Individual insurance company websites: Most insurance companies have online quote forms on their websites. You can visit the websites of specific companies you're interested in or use a general search engine to find companies that offer coverage in your area.
Independent insurance agents: Independent agents can represent multiple insurance companies, so they can shop around for the best rates for you. They can also provide personalized advice on your coverage needs.
Compare quotes carefully:
Once you have received quotes from several different companies, be sure to compare them carefully before making a decision. Pay attention to the following factors:
The coverage levels and limits
The deductible
The premium amount
The company's reputation and customer service ratings
If you have any questions about the quotes you receive, be sure to ask the insurance company for clarification. You should also feel free to contact multiple companies for quotes until you find one that meets your needs and budget.
Here are some additional tips for getting the best deal on car insurance:
Shop around early: Start getting quotes well before your current policy expires. This will give you plenty of time to compare rates and find the best deal.
Ask about discounts: Many insurance companies offer discounts for things like good driving records, multiple cars on one policy, or anti-theft devices. Be sure to ask about any discounts that may be available to you.
Consider raising your deductible: A higher deductible will mean a lower premium. However, be sure to choose a deductible that you can afford to pay in case of a claim.
