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View Stock/Getty Images September 20, 2022 Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent. Mariah Posey is an auto and homeowners insurance writer and editor for Bankrate.com. She aims to make the insurance journey as convenient as possible by keeping the reader at the forefront of her mind in her work. Bankrate logo The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo Editorial integrity
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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Bankrate logo Insurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Car insurance doesn’t have to be intimidating. Bankrate’s insurance experts are here to guide you through the basics of car insurance, and help you feel confident during the quoting and buying process. This guide will help you better understand the purpose of car insurance, the parts of a car insurance policy, how much coverage you might need and how to compare quotes. Understanding the basics of car insurance can help to empower you to choose a car insurance company that is right for your needs. Compare rates and save on auto insurance today! Get quotes Close X RatesRates keep going up in 2022. Compare rates and save on auto insurance today! Get quotes Close X This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More RATE INCREASE ALERT Rates increased up to 12% this year
Shop for a better rate before you renew your current policy. This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More Lightbulb Key takeaways Car insurance is a financial product designed to protect your finances from the fallout of auto accidents and injuries. Auto insurance policies consist of numerous different coverage types. Comparing car insurance quotes from different companies can help you find the right policy for your needs. Many factors affect your car insurance rates, including your age and gender (in most states), the type of vehicle you drive, your driving history and the specific coverage you buy. What is car insurance
Car insurance can help pay unexpected costs associated with covered auto accidents. Depending on the coverage you choose, your car insurance policy might pay for damages and injuries you sustain as well as damages and injuries that you cause to others. Insurance is a financial product. Car insurance does not protect your car; it protects your finances. This means that choosing the right company, coverage types and coverage levels for your needs is important for your overall financial health. You might choose to purchase which protects your finances from the fallout of causing damage to someone else’s vehicle or property or injuring someone, or you could choose , which adds financial protection for damage to your car. Insurance operates like a pool. Everyone pitches in a little money — your premium amount — so that if and when an accident happens, everyone loses a little bit, but no one loses everything. How much car insurance do I need
How much car insurance you need will depend on your individual needs. You’ll have to purchase at least the types and limits in your state to drive legally. However, most car insurance experts recommend purchasing higher liability limits, even if you opt for a liability-only policy. State minimum limits are often very low and could leave you with high out-of-pocket expenses if you cause an accident, and the damages exceed your insurance coverage limits. If you have a loan or lease on your car, your financial institution will likely require you to have a full coverage policy. Even if you own your car outright, you might want to consider purchasing full coverage, especially if your vehicle is newer, relatively expensive or you do not have the funds to repair or replace it yourself after an accident. Types of car insurance coverage
An auto insurance policy is a package of several . The kinds and amounts of coverage you choose will depend on your specific situation. If you make a car insurance comparison, make sure the same coverage types and limits are included on each quote, so each company is on a level playing field. Some common coverage types are:
Car insurance coverage for other drivers
The core coverage on car insurance policies are the liability coverage types. These are generally required by law and protect your finances from damages you cause to others. : This is designed to cover the cost of injuries that you cause to another party in an accident. : This pays for the damage you cause to someone else’s property in an at-fault accident, like damage to another vehicle, a building or personal property.
Car insurance coverage for you and your passengers
Some parts of a car insurance policy are designed to financially protect you and your passengers from the expense of injuries. and underinsured motorist coverage: These coverage types can pay for your damages and injuries if you are hit by a motorist who does not have any insurance or does not have enough insurance to cover your expenses. : This pays for your and your passengers’ medical bills stemming from an accident, regardless of fault. Depending on where you live, it may be mandatory, optional or not available. : This coverage is similar to medical payments, but also covers lost wages and the cost to hire someone to do household tasks if you or a passenger is unable to complete them. It is often required in , may be optional, or, like medical payments, may not be available depending on where you live.
Car insurance coverage for your vehicle
If you choose certain coverage types, your car insurance policy could protect your finances from damage that your vehicle sustains. : This covers the damages to your car caused by colliding with another vehicle or object. : Often called “other-than-collision” coverage, this pays for damages to your car caused by various scenarios, including theft, vandalism, weather damage and hitting an animal. Adding comprehensive and collision to your policy means you are purchasing “full coverage.” : If you have a loan or lease on your vehicle, this coverage pays the difference between your loan amount and the depreciated value of your new car if it is totaled or stolen and not recovered. : If your vehicle is not driveable due to a covered loss, this optional endorsement could help pay for the cost of a rental car. : This optional coverage can help cover the costs of service calls, like tows, locksmith services and battery jumps. When , it’s helpful to make sure you have requested the same types and amounts of coverage from each company. That way, you can more easily see which company offers the best premium for the coverage you need. How to compare car insurance rates
If you are shopping for auto insurance, you have probably heard that you should compare car insurance quotes. vary between insurance companies, so shopping around can help you find a policy that fits your needs, even if you are looking for the possible. But what are you looking for? How should you compare auto insurance quotes? How do you know if you are getting a good policy? Factors that affect car insurance rates
Your car insurance premium is not just based on which company you choose. There are numerous other factors that can impact how much you pay for auto insurance, including: Age: Young drivers and those who have just earned their license are and risky driving behavior compared to other groups, which reflects in their car insurance premiums. In all states except Hawaii and Massachusetts, your age impacts your car insurance premium, with teens paying the most. As you age into your , car insurance rates generally begin to drop. However, rates may slightly increase again after around . Gender: Males tend to pay due to an increased likelihood of getting into more accidents and more severe accidents. California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania do not allow insurance companies to use gender as a factor to calculate your premium. Vehicle type: The vehicle you drive is another big factor in how much you will pay. Some vehicles are than others. Credit rating: It may be surprising, but your may impact your car insurance premium. Drivers with tend to file more claims than drivers with higher scores, and so insurance companies charge higher premiums to compensate for the increased risk. Not all states allow credit to be used in determining your rate. Driving record: If you have accidents, tickets or DUI convictions on your motor vehicle record, you will likely pay more for insurance. Insurance history: Drivers with continuous insurance tend to pay less than drivers with or no insurance history. Coverage type and limits: The coverage and levels of coverage that you choose will raise or lower your premium. Generally, higher coverage levels and more optional coverage types will cost more. Discounts: If you qualify for one or more , you may be able to lower your premium. You may also save money on car insurance if you are married. And if you are a , you could find specialized discounts or less expensive coverage options. Car insurance rates by company
Perhaps the first thing you should do when shopping for car insurance is decide what to request quotes from. Different companies have different ways of rating policies so prices will vary even for the same coverage. First, you may want to consider what factors matter most to you. Are you looking for the lowest price possible or certain policy features, like a mobile app or high customer satisfaction scores? By deciding what you want from an insurance company, you may be able to narrow down which companies to approach for quotes. Car insurance rates by state
In addition to the factors listed above, your state has one of the biggest impacts on your car insurance premium. Your state’s minimum coverage laws, the likelihood of getting into an accident, the average severity of accidents and the percentage of uninsured motorists can all impact the average . Car insurance rates by age
In most states, your age plays a significant role in how much your car insurance costs due to the risk of accidents and claims associated with different driver age groups. See how average rates fare by age below. Tips for shopping car insurance
The process of shopping for car insurance might still seem intimidating, but it’s generally the same at every carrier. Whether you shop online or work with a customer representative or agent, you’ll be asked to provide some information about yourself and answer a few questions. Here are some other tips that could help: Compare quotes accurately. This may be the most important part of the car insurance shopping process. When you receive quotes back from each carrier, make sure that the coverage types, limits and deductible amounts are identical. Without checking for this, you may mistake one carrier as being cheaper without realizing it’s giving you less coverage. Understand your deductible. If you have comprehensive and collision coverage on your car insurance policy, you will have for each. The deductible refers to the amount that you are responsible to pay out of pocket in the event of a covered claim, while your car insurance company covers the rest. A higher deductible might result in a cheaper policy, but make sure that your deductible amount is one you could reasonably pay without causing a financial burden. Shop after life events. Buying a new car, getting married, adding a child to your policy — all of these could impact your . Because of that, these and other life events may be a good opportunity to reevaluate your car insurance coverage and premium. Frequently asked questions
How do car insurance claims work
It depends on the situation. If you hit another vehicle or cause damage to someone’s property, you will likely need to with your car insurance company, which can usually be done in an app, online or by phone. A claims adjuster will evaluate the damage, take statements from you and the other party or parties involved, and send payments as needed. If another vehicle hits you, you may have your damage taken care of by their liability coverage. If they did not have coverage or do not have enough coverage to pay for your damage, you could use your uninsured or underinsured motorist coverage.
What happens if I don t buy car insurance
In the vast majority of states, is illegal. You must purchase at least the minimum required types and levels of coverage in your state; if you don’t, you could be fined and have your license suspended. If you cause an accident and don’t have insurance, you’ll be personally responsible for the damages and injuries you cause. Even if your budget is tight, purchasing car insurance is an important step in your financial planning. If your bill is too high, you may be able to by taking advantage of discounts, shopping around and evaluating your coverage.
What is no-fault insurance
“No-fault insurance” refers to personal injury protection (PIP), which is a required coverage in no-fault states. This coverage pays for your injuries and the injuries of any passengers you have in your car after an accident, regardless of fault. PIP may also pay for other qualifying expenses. However, fault is still a factor in car accidents, even in no-fault states. You’ll always pay for the physical damages you cause to another party, and you may still be responsible for medical payments for the other party even after they’ve used their PIP coverage.
Are car insurance rates increasing
Based on Bankrate’s data analysis from S&P Global Market Intelligence, average . Car insurance companies take numerous factors into account when pricing car insurance policies; a combination of an inflationary economy, changing driving habits and supply chain shortages are all driving up average rates. Methodology
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits: $100,000 bodily injury liability per person $300,000 bodily injury liability per accident $50,000 property damage liability per accident $100,000 uninsured motorist bodily injury per person $300,000 uninsured motorist bodily injury per accident $500 collision deductible $500 comprehensive deductible To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually. These are sample rates and should only be used for comparative purposes. Age: Rates were calculated by evaluating our base profile with the ages 18-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. SHARE: Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent. Mariah Posey is an auto and homeowners insurance writer and editor for Bankrate.com. She aims to make the insurance journey as convenient as possible by keeping the reader at the forefront of her mind in her work.