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Finding the best car insurance today doesn't have to be stressful; you can easily get affordable car insurance online, and that's just right for you. Before you switch your car insurance, it’s good to understand the basics. Keep reading to learn more and feel confident on the road, knowing you’re covered.
Car insurance is a legal requirement in every state except New Hampshire and Virginia. If you live in a state where it's mandatory, you'll need at least the minimum coverage to register your car and drive legally.
Usually, this basic coverage includes personal liability insurance. But if you're looking for more peace of mind, you can add extra types of coverage, often referred to as endorsements.
Here are the most common types of car insurance and what they cover:
- Personal liability insurance: This type of insurance covers your financial responsibilities if you cause an accident that injures someone or damages their property. Remember, though, it won't cover your medical bills or vehicle repairs.
- Collision insurance: This optional add-on helps pay for your vehicle's repairs after a crash with another car or a single-car accident.
- Comprehensive insurance: Another optional policy, comprehensive insurance covers non-collision damage to your car, including hail storms, theft, vandalism, falling objects, fires, and even run-ins with animals.
- Uninsured/underinsured motorist insurance: This coverage kicks in if you're in an accident with someone who doesn't have insurance or doesn't have enough to cover your losses. It covers both your injuries and property damage.
- Medical payments insurance: Also known as "MedPay," this optional coverage pays for medical bills if you or your passengers are injured in an accident.
- Personal injury protection (PIP): PIP covers medical expenses for you and your passengers after an accident, regardless of who was at fault. Some states require it, while in others, it's available as an optional add-on.
» Click here for a more in-depth explanation of the different types of car insurance.
Every driver has unique car insurance coverage needs, so it can be tough to find the right car insurance for you. Before you buy an auto insurance policy, figure out what level of coverage makes sense for your situation.
- Liability coverage: State-mandated minimum liability limits may not provide sufficient financial protection. If you prefer a bit more security, consider increasing your liability limits and adding uninsured/underinsured motorist coverage.
- Vehicle protection: You’ll need collision and comprehensive insurance for physical damage coverage. The coverage limit is typically your car’s actual cash value (ACV), but some insurers offer new car replacement coverage for a higher limit.
- Endorsements: Optional add-ons like roadside assistance or rental reimbursement can provide extra benefits and fill potential gaps in your policy. However, only select endorsements that fit your needs, as they’ll raise your premium.
» Click here to read more about tips for cutting car insurance costsy.
The key to securing the best car insurance rate involves several factors, many of which you can control and improve. You can save hundreds of dollars each year by using online tools that compare multiple providers and match you with the best car insurance quotes.
Is the cheapest option the best? While comparing prices is important when looking for new car insurance, the lowest price isn't always the best choice. Different car insurance companies may seem to offer similar policies, but each one evaluates drivers and their habits differently, leading to big differences in rates.
Car insurance companies consider many factors when calculating your premium. Some of the elements that affect the cost of your auto insurance include:
1. Location: Urban areas tend to have higher auto insurance rates than rural areas due to heavier traffic, higher accident rates, and increased vehicle thefts.
2. Age: Younger, less experienced drivers—especially teens—are statistically more likely to get into accidents. So, they typically pay higher premiums. Rates generally decrease with age and driving experience.
3. Gender: Young men often pay more than young women because they're statistically more accident-prone. That's right, the data doesn’t lie. However, this difference typically levels out as drivers get older.
4. Credit score: A lower credit score can indicate financial instability, which insurers associate with a higher likelihood of filing claims. So, drivers with poor credit scores may face higher premiums.
5. Driving record: A history of accidents or violations makes you a higher risk to insure and raises your rates.
6. Claims history: Drivers who haven’t filed claims are less risky to insure and may receive lower rates.
7. Vehicle type: Your car’s make, model, and year affect your premium. Luxury cars, sports cars, and vehicles with high repair costs or high theft rates cost more to insure.
8. Coverage limits: Selecting lower limits reduces premiums but provides less financial protection.
9. Deductibles: Choosing a higher deductible means more out-of-pocket costs for claims but lower overall premiums.
Fortunately, there are ways to bring down your premium and secure the best car insurance quotes. Try implementing some of these strategies to get a lower car insurance rate:
- Improve your credit score
- Take a defensive driving course
- Pay your annual premium in full
- Choose a higher deductible
- Drop coverages you don’t need
- Enroll in your insurer’s telematics program
- Compare car insurance quotes
Car insurance rates vary based on each driver’s unique profile. To find affordable car insurance online, you can use a matching service that uses your answers to pair you with the best insurer, or you can painstakingly compare quotes from multiple insurers yourself using these steps:
1. Research insurance companies: Before you get car insurance quotes, research car insurance companies that match your coverage needs. For example, look for insurers that offer generous discounts, multiple insurance coverage options, excellent financial strength, and positive customer reviews. Don't hesitate to contact the insurers directly and ask questions to understand what car insurance policies are being offered.
2. Choose your coverage types and policy limits: Think about the amount and types of coverage you need. Remember, selecting higher coverage limits will lead to a higher premium, but it also means better financial protection if you need to file a claim. Consider adding endorsements that might be useful, like roadside assistance or new car replacement coverage.
3. Get quotes: Once you’ve nailed down your policy preferences, get quotes from the insurance companies you researched. Aim to get quotes from at least three or four different carriers. Make sure you compare the same coverage types, limits, and deductibles to get an accurate comparison.
4. Compare the costs: The final step is to compare car insurance quotes. Check which insurer offers the best rate for your desired coverage. Before committing to a policy, double-check the insurance terms and conditions to ensure you understand what is and isn't covered.
Dealing with an accident or another covered loss can be challenging, so knowing exactly how to file an insurance claim can alleviate at least one stressor. The exact insurance claim process is different with every insurer, but these basic steps should hold true for most car insurance claims:
1. Call the police: If you get into an accident or your car gets damaged or stolen, notify the police immediately. A police report will provide crucial details for the insurance adjuster during their investigation.
2. Document the damage: Once it's safe, take photos of the damage to your vehicle and jot down a detailed description of what happened. If there were any witnesses, get their names and contact information.
3. Notify your insurance company: Contact your insurance company to start the claim process. You'll need to submit the necessary paperwork, including the police report and any evidence you've gathered of the damage.
4. Wait for claim approval: After you've filed the claim, the insurance adjuster will investigate to assess the cost of repairs. The adjuster may need to inspect the vehicle in person if the damage is extensive.
5. Get your settlement: Once they approve the claim, you'll receive the settlement amount minus your deductible. Remember that some insurance companies may pay the settlement directly to the auto body shop handling the repairs rather than giving you the money.
Finding the right car insurance can be complicated, with so many factors to consider and options to choose from. But don't worry; you've made it this far, and now it's time to take the next step. Answer our short quiz to get matched with the best new car insurance policy tailored to your needs. Let's make sure you're fully covered and ready to hit the road with confidence!