Auto Insurance Guide
Car insurance protects you, your car and your savings when something goes wrong on the road. Here's what you need to know before you compare quotes.
The main coverage types
- Liability: pays for injuries and property damage you cause to others. Almost every state requires it.
- Collision: pays to repair or replace your car after a crash, whoever is at fault.
- Comprehensive: covers theft, fire, hail, flooding, vandalism and hitting an animal.
- Uninsured/underinsured motorist: protects you when the other driver has no insurance or not enough.
- Medical payments or personal injury protection (PIP): covers medical bills for you and your passengers. PIP is required in no-fault states.
What affects your rate
- Your driving record: accidents, tickets and claims
- Your age, driving experience and, in most states, your credit history
- The car you drive and how many miles you drive a year
- Where you live and park, down to your ZIP code
- Your coverage limits and deductibles
- Whether you've been continuously insured
How much coverage do you need?
Your state sets the minimum liability you must carry, but the minimum is often far below what a serious accident costs. Many drivers choose higher liability limits to protect their savings and home.
If your car is newer or financed, collision and comprehensive are usually worth having (and often required by the lender). For an older car worth little, you might drop them and save.
How to pay less
- Compare quotes at every renewal instead of letting the policy roll over
- Bundle auto with home or renters insurance
- Ask about discounts: safe driver, good student, military, multi-car, paying in full
- Raise your deductible if you can comfortably cover it
- Keep your record clean and your coverage continuous