Auto insurance explained
Having a car is the single best way to get around. But owning a car can mean paying big bucks for auto insurance. The cost depends on many factors, such as where you live, the make and model of your car, whether you have any accidents or tickets on your record, and how many miles you drive in a year. You’ll definitely want to consider all of these factors when shopping for auto insurance.
Helpful tips throughout this article will show you how to get the cheapest quotes available—no matter which state you live in! Plus we'll show you some handy tips that will help save money in other ways too (because we know that's not really what this blog post is about).
We'll also give you a quick primer on what auto insurance is and how it works. And we know you want to know! This post has been updated regularly to keep up with the most recent changes in auto insurance laws. Check back often for the latest info, because auto insurance is constantly changing and evolving—and we can help you stay up-to-date!
What’s in this article:
What car insurance is and what it isn't | How much auto insurance cost | Choosing a car insurer | How to get quotes for cheap car insurance | Finding ways to save on your car insurance bill.
What Is Car Insurance?
Car insurance is a contract between you and an insurance company that protects you in the event of a car accident or other loss. Most car insurance policies cover bodily injury, a liability that pays up to a certain amount for injuries suffered by others due to your negligence, and property damage from an accident. Your auto policy may also cover your rental car if your car is damaged and it’s in the shop for repairs. Many policies also include comprehensive coverage, which covers things like damage caused by vandals or animal strikes.
The amount of coverage you need depends on your situation and the type of car you drive. How much auto insurance you buy will depend on your age, where you live, how safe your surrounding area is, and what kind of coverage you want. Most policies will offer discounts for drivers who take safety courses or wear seat belts. You’ll also be able to choose a certain number of free options when shopping for car insurance. Once insurers know there’s a good chance you’ll file no claims, they'll offer better rates to get more business from like-minded customers.
Every state has different laws regarding auto insurance. For example, some states choose to require car insurance companies to cover you in all 50 states, while others only require insurance companies selling policies in their state to provide coverage to residents of that state. So the car insurance laws in your area may differ from the information provided here.
How Much Car Insurance Costs
It’s hard to put a figure on how much auto insurance costs because it can vary dramatically from state to state and from company to company. However, you can get a general idea of how much car insurance costs by using online auto insurance quotes or by talking with an agent.
First, you’ll want to compare rates for the same company for the same type of policy and in the same state. Each quote will give you a certain amount of coverage for a certain number of years. You can use this information to calculate how much auto insurance costs per year.
The purpose of the calculation is not just to compare one company’s rate to another, but rather to determine how much car insurance costs over time. This is called a “pay as you go” plan because you pay for the coverage each month. Compare quotes to see what your average yearly cost will be.
How Much Auto Insurance Cost?
The total cost of car insurance depends on many things, like how much coverage you choose, your age when you purchase your policy, and where you live. As a general rule, the healthier and wealthier a driver is, the better the insurance will be. However, there are many factors that can influence how much car insurance costs in any given area. These include:
You can use online auto insurance quotes to get an idea of how much auto insurance costs in any given area. To do this: Go to InsuranceQuotes.com.
Add up the cost of your car and its depreciated value, if you’re buying the vehicle new. If you’re already driving a car, add up how much insurance it currently costs.
Take these two numbers and divide them by 2 to get the average annual insurance cost for you in your area. You can look at the same company to compare different quotes if necessary.
To figure out how much car insurance costs in your state, visit the Insurance Information Institute’s website. This site has information on insurance in every state, including quotes for average driver costs.
Your gender and age also affect how much auto insurance costs. In general, women pay less than men because they tend to be safer drivers. The older you are, the more you should expect to pay for car insurance. Young drivers are more likely to get into accidents and tickets than older drivers.
Auto Insurance Quotes by State
While most insurers use standard rates nationwide, only some companies provide coverage in all 50 states or territories; therefore the cost of auto insurance in a given state may vary depending on company. It’s important to compare all your options to get the cheapest quotes and to compare them in the same state.
To search for the best car insurance companies in a state, visit InsuranceQuotes.com. From here you can narrow down your choices according to company, type of policy, or where you live. If you’re already insured and looking for quotes in a new state—or if you want to find a new carrier—use an online auto insurance quote comparison tool like InsuranceQuotes.com’s free service or OnYourSideOnline.org (OVSC)’s tool (OVSC is supported by InsuranceQuotes.com). These comparisons take the hassle out of looking at companies by providing you a chart of all the average quotes for your state. Check to see if the company you’re interested in is listed in your state. If not, it means that company may not provide coverage for you there.
Conclusion
No matter what you drive, having the right amount of car insurance can be your most important financial decision. Although the cost of car insurance varies from person to person and state to state, there are a few things you can do to pay less:
Shop for quotes online or in person. Rates differ widely, and it’s often only possible to find out which company has the biggest difference by comparing quotes from multiple carriers.
Don’t ignore your existing policy. A lapse in coverage of more than 30 days can often lead to an increase in rates. Check on a regular basis with your agent or insurance company if you don't have auto insurance coverage.
Tags:
Auto insurance explained