What is auto insurance?
In its most basic sense, car insurance is a contract between an insurance company and an insured that protects an individual against financial loss in the event of an accident or theft.
These types of policies also offer coverage for liability in the event of a lawsuit.
Insurance Geek helps you learn all you need to know before you get an auto insurance policy and choose your insurance company.
You’ll also get the best instant car insurance quotes with us!
What does car insurance cover?
Before you get your auto insurance quote, you should make sure that you understand your coverage options.
Car insurance can cover a number of items that may cause the destruction of an insured’s vehicle.
Many different insurance options can make up your total car insurance coverage, such as:
- Bodily Injury Liability insurance – In the event that a driver causes a car accident that injures another individual, this type of insurance will pay for medical bills and court costs.
- Property Damage Liability insurance – This part of the car policy pays for the repair or replacement of others’ property and vehicles that are damaged.
- Uninsured/Underinsured Motorist Coverage – Say that the person whose fault it is does not have a contract with an insurance company – how will you get your compensation? By using uninsured and underinsured motorist coverages. Your state may not require you to have underinsured motorist coverages in your policy, but most will require the uninsured one.
- Medical Payments – It can also cover the medical expenses of others who are injured in an accident. Medical payments coverage (also known as simply “med pay”) reimburses the medical bills if you or your passengers get injured. Usually pays for expenses within one year past the event.
- Personal Injury Protection (PIP) – PiP coverage pays for medical expenses and a percentage of lost wages for you and your passengers.
- Collision – Collision coverage or collision insurance defrays the costs of repair of your car when it collides with an object or another vehicle. Collision insurance is usually added as an extension to your regular policy.
- Comprehensive – Your vehicle is not only at risk from collisions. Thus, comprehensive coverage protects it from any other risk. These include accidents, vandalism, theft, and “natural” disasters, such as a tree falling on drivers’ cars.
Cost of auto insurance
Numerous factors can go into the pricing of auto insurance coverage, including:
Age of the Insured
- Make and Model of the Vehicle
- Driving Record
- Past Claims History
- Vehicle Usage (i.e., personal or business)
- Geographic Location
- Where the Vehicle is Kept (i.e., in a garage, on the street, etc.)
- Driver’s Insurance Score
- Optional or Additional Coverage
- Insurance Carrier
If you’re a safe driver and have not had any accidents or moving violations for a certain period, you may be eligible for a premium discount from the auto insurer.
You can qualify for premium auto insurance discounts in other ways, too. For example, you can combine home, auto, and life insurance policies and get a discount.
Do I have to have car insurance?
Although there is no federal law that requires auto insurance, each state in the U.S. has at least some minimum requirements for this type of coverage, particularly in the area of liability coverage. This can help protect other drivers on the road.
Four basic types of coverage may be included in a state’s minimal auto insurance requirements. These include:
- Bodily Injury Liability
- Property Damage Liability
- Personal Injury Protection
- Uninsured / Underinsured Motorist Protection
In many cases, only bodily and property damage liability are necessary.
Minimal auto insurance requirements, though, may vary by state, so it is essential to check with your state’s Department of Motor vehicles and ensure you know how much coverage to purchase.
Examples of Minimum Coverages Per State:
- $15,000 bodily injury liability per person
- $30,000 bodily injury liability per accident
- $5,000 property damage liability per accident
- $20,000 bodily injury liability per person
- $40,000 bodily injury liability per accident
- $10,000 property damage liability per accident
- $20,000 uninsured/underinsured motorist coverage per person
- $40,000 uninsured/underinsured motorist coverage per accident
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $50,000 liability for death per person
- $100,000 liability for death per accident
- $10,000 property damage liability per accident
- $50,000 personal injury protection
- $25,000 uninsured motorist coverage per person
- $50,000 uninsured motorist coverage per accident
Reasons to buy an auto insurance policy
There are several reasons why you should buy auto insurance. For instance, in many states, having at least a minimal amount of car insurance is mandatory.
Having this type of coverage can be beneficial from a financial standpoint, too.
In addition to helping pay for damages that your vehicle may incur, many auto insurance carriers today will also help you save time and inconvenience if accidents happen.
Here, for example, your car insurer may walk you through the claims process or assist you with finding a repair shop or 24 7 roadside assistance.
Another area where having coverage can help is if you do not have sufficient health insurance (or you have no health insurance at all) and you are involved in a car accident.
In this case, it could help with paying for rehab costs, accident-related injuries, and possibly even necessary dental work that is needed as a result of the incident.
What Car Insurance won’t Provide*
Although car insurance can cover a wide range of items, there are some things that this type of coverage may not provide, such as:
- Paying off your vehicle if it is totaled or stolen
- Damage to your car from an animal (e.g., deer)
- Damages to your car if you have an accident while using your personal car for business purposes
- Your medical expenses
- Damage to a car that you are driving, but you do not own
- Damage to your vehicle if someone else is driving it
- Replacement of items that are stolen from your vehicle
- Damage to after-market accessories that are damaged on your car
Get a Car Insurance Quote Online
Getting a reliable car insurance quote seems complicated, with so many insurance companies available.
So, how do you choose which insurance company to trust? Where to get reliable quotes for your state?
We’ve got you! We created a tool that can find you the best deal for your auto policy online.
Here, you can compare auto insurance quotes available in all states.
How to Get Car Insurance Quotes?
The whole process is very simple – We’ll ask you to tell us your basic info, like the ZIP code, state, and what coverages you need.
It’ll take you no longer than two minutes to fill it in.
Then, we contact our carriers and generate the quotes for you. They are real-time and guaranteed because we talk directly to the company.
Compare Car Insurance Quotes
Thanks to our quote engine, you’ll be able to browse all the available quotes and choose the one you like the most.
Should you need any help along the way, our customer service is there for you. An expert Insurance Geek can help you out with your particular situation.
If you need more than one kind of policy – for example, you want to get auto and life insurance – make sure to tell us because you’ll be able to save up and get bulk discounts.
See our carrier reviews. Find the best.
At Insurance Geek, we can help you get a quote and find cheap auto insurance with multiple companies.
We work with over 30 top carriers for every state and ZIP code out there and can help you get a quote and compare various rates side by side.
It’s good to be aware of all the options and find the right insurance company for you. It will help keep the driver and passengers protected under any circumstances.
Also, check with us whether you are eligible for discounts and save up!
Get started today by filling out our quote form above.