The finder.com comprehensive guide to car insurance
What is car insurance — and why do I need it?
In simple terms, car insurance is a contract that you have with an auto insurance company where you pay them a periodic fee in exchange for monetary coverage in the event of an accident. The auto insurance company will cover medical fees and vehicle repair damages up to the amount in the insurance policy that you’ve signed up for.
No one ever plans to be in an accident, but there are around 16 million auto accidents in the United States every year. According to the Centers for Disease Control and Prevention, more drivers die in car crashes in the United States than any other high-income country. What does this mean for you? This just comes to show why car insurance is a necessity, especially in the US.
In most parts of the United States, having car insurance is mandatory and required by law in order to drive. Minimum coverage auto insurance is required in almost every state except Virginia, New Hampshire and Mississippi. Minimum coverage is determined by the state and vary from state to state. Auto Insurance typically covers medical fees, vehicle repair damages, bodily damage, legal fees and property damages.
No one wants to overpay for car insurance. Here are seven ways to pay less than your state’s average driver.
If you haven’t purchased a car yet, do your due diligence and compare insurance prices for each car model that you’re interested in. The price differences might surprise you.
Increase your deductibles. A higher deductible means lower premiums. What’s a deductible and what’s a premium? The deductible is the amount that you have to pay out of pocket before your car insurance covers the rest. So for example, if you have a $500 deductible on a $2,000 accident, then you would have to pay $500 out of your own pocket before your insurance company covers the other $1,500. The premium is basically the price that your insurance company is charging you for the policy plan. However this means that if you ever do actually get into an accident, you will have to pay more than if your deductibles were lower.
Compare insurance providers. In a study done in New York, the average driver can save up to $625 by switching car insurances. Insurance prices differ for all individuals based on age, driving history, credit history, car model etc. so it is best to always check with at least 2 or 3 providers before committing to a company.
Did you know?
Did you know that you can use our insurance comparison tool to quickly shop for and compare all auto insurance providers in your area?
Check and maintain your credit history. Most auto insurance companies take your credit history into account for your pricing. The reasoning behind it? Research actually shows that people with a higher credit score tend to make fewer claims.
Low mileage discount. If you drive under a certain amount of miles every year, you can tell your insurance company and possibly qualify for a low mileage discount. This is a common discount that many drivers actually qualify for but are not aware of. Discount and mileage amount varies based on insurance company.
Group discount. If the insurance company you’re with offers more than just auto insurance, consider getting all your insurance through them. Most companies offer a group discount, even if it’s just for more than 1 car. For example, common insurance policies to bundle together are home and car insurance.
Adjust your coverage. Do you really need all that coverage for that 1990 Toyota Camry? Make sure you are getting the appropriate coverage for the car that you’ve driving. In the 1990 Toyota Camry example, you might skip out on comprehensive coverage for example.
Articles on auto insurance you might be interested in:
Did you know that shopping for and comparing your auto insurance quotes every 6-12 months can save you thousands of dollars over your lifetime? When you compare using our Car Insurance Finder tool, you can quickly shop for, compare and get quotes from all the top insurance providers within minutes. So what are you waiting for?
Allstate is one of America’s largest and oldest auto insurance companies. With comprehensive tools and the ability to have all your policies in one place – auto, home and life – Allstate could be a great option for your situation.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, we may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.