Auto Insurance in 2024 (Helpful Overview)

Auto insurance provides vital coverage in the event of a serious accident. It helps cover repairs to your vehicle, and the cost of a rental car, and even assists with paying medical bills in the aftermath of a car accident.

Do you know how your auto insurance coverage works and what you should expect if you get into an accident? Keep reading to learn what kind of car insurance coverage you need, where to find affordable auto insurance rates, and when you might need to hire a car accident lawyer.

Every state requires drivers to carry some type of auto insurance in order to register and legally drive a vehicle. However, car insurance laws and minimum coverage requirements vary dramatically by state.

To find cheap auto insurance near you, enter your ZIP code above to compare free auto insurance quotes from providers in your area.

The Best Companies in the Auto Insurance Industry

While State Farm auto insurance, Geico auto insurance, and Progressive auto insurance are the top three largest companies, that doesn’t necessarily mean they are the best for you.

Take a look at the list below to see the best auto insurance companies in the country based on customer satisfaction:

1. New Jersey Manufacturer’s Insurance Company
2. Amica Mutual
3. Auto-Owners Insurance Group
4. USAA Auto Insurance
5. The Hartford
6. MetLife
7. State Farm
8. Erie Insurance
9. Allstate auto insurance
10. Nationwide
11. Farmers Insurance
12. Esurance
13. Geico auto insurance
14. Safeco
15. Liberty Mutual

Your choice of provider depends on your driving record, where you live, and the kind of policy you need. Not every car insurance company is available everywhere, and not every driver qualifies for coverage with every company. For example, only AAA members can qualify for AAA auto insurance.

Shop around and compare auto insurance rates from multiple companies in your area before you buy a policy. This will give you an idea of what other drivers are paying in your city and what kinds of policies are available.

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Auto Insurance Policies

As you shop for auto insurance, a wide range of coverage options are available to you depending on your budget, your vehicle, and your specific needs. However, each type of coverage comes with different annual rates.

Research the auto insurance costs of each policy type before you buy. You want to make sure you have adequate auto insurance for all your needs without overpaying for coverage that you don’t need or won’t use.

Car Insurance Monthly Costs for Various Coverage Types

Keep reading for details on the different types of auto insurance coverage you can buy.

Liability Coverage

In every state, drivers must carry some type of minimum liability insurance that will protect the other drivers and passengers involved in an accident. In most states, minimum liability coverage varies between around $10,000 to around $25,000 for each vehicle involved or person injured in an accident.

Liability-only auto insurance has some of the cheapest rates, averaging around $73/mo, but this type of coverage does not offer any compensation for your vehicle or injuries if you cause an accident.

You may save money now with a liability-only policy only to spend it later when you pay out-of-pocket for an accident.

Property Damage Liability Coverage

Property damage liability coverage is designed to do exactly what it sounds like coverage offers financial compensation for damage done to property in an auto accident.

Liability coverage offers compensation for the other person’s vehicle and any expensive items damaged in the accident, but will not pay for damages sustained by your vehicle or property.

Bodily Injury Liability Coverage

Bodily injury liability coverage provides compensation for anyone injured in an accident that you caused. Bodily injury liability insurance is designed to help victims pay their medical bills and cover the cost of wages lost when they cannot work for a long period of time following the accident.

You may have separate limits for each individual injured in an accident and on the total compensation the insurance company will pay out after an accident. Like property damage coverage, bodily injury liability coverage applies only to others injured by your negligence, so you cannot seek compensation through your bodily injury liability coverage if you suffer injuries in an accident.

Personal Injury Protection Coverage

Personal injury protection insurance offers immediate compensation for medical expenses related to an accident, regardless of who causes that accident. Even if you cause an accident, you can use your PIP coverage to provide immediate coverage for medical bills and other treatments for your injuries.

PIP insurance is no-fault insurance, though not every state that offers or requires PIP insurance is automatically a no-fault state. Currently, only thirteen states in the United States require personal injury protection coverage in addition to minimum liability coverage:

• Delaware
• Florida
• Hawaii
• Kansas
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Oregon
• Pennsylvania
• Utah.

Seven other states, including Washington D.C., allow drivers to opt into PIP coverage, but it’s not required by law:

• Arkansas
• Kentucky
• Maine
• Maryland
• South Dakota
• Texas
• Virginia
• Washington

Some state auto insurance laws, like in Texas, require that PIP coverage is automatically offered to drivers as part of liability coverage. They can choose to increase that coverage for an additional cost or opt out. Depending on where you live, you may need to opt in or out of coverage when you sign up for your policy.

Collision Coverage

Liability insurance offers coverage when you can cause an accident that results in serious damage to another vehicle. Collision insurance, on the other hand, offers vital compensation when you commit an act of negligence that ultimately results in damage to your vehicle.

Collision coverage helps ensure that you can repair your vehicle in the event of a serious accident.

Maybe you didn’t brake fast enough at a red light and rear-ended another driver, or you changed lanes a little too soon and clipped the vehicle next to you. Accidents can happen to even the safest of drivers, and vehicle repairs can prove very expensive.

You can also use your collision coverage if the at-fault driver’s insurance company stalls on providing the coverage you deserve following the accident. Turning to your collision coverage can help streamline the repair process. While you may have to pay your deductible, you can often get back on the road faster, and your insurance company can wrestle with the other company on your behalf.

The Cost of  Collision Auto Insurance

While liability coverage is usually fairly universal, most insurance companies base collision coverage on the replacement value of your vehicle. It can cost much more to repair or replace an expensive vehicle or sports car than it does an older vehicle.

While average collision car insurance rates are around $124/mo, you could end up paying much more based on the kind of car you drive.

Before you buy any kind of auto insurance, compare quotes from at least three different auto insurance companies to make sure you’re paying a fair price based on your coverage needs, your driving record, and the make and model of your car.

Comprehensive Coverage

Your vehicle is at risk for more than just accidents. While collisions might be what we most commonly think of when filing an insurance claim, damages caused by vandals, natural disasters, and even city-wide riots can also be covered by insurance.

If you have comprehensive coverage in place, your auto insurance policy will cover the following:

• A natural disaster, including flooding
• A fire
• A tree limb fell on the vehicle
• Theft
• Vandalism

All of these challenges can cause severe damage to your vehicle, leaving you with expensive replacement costs. Collision and liability insurance won’t cover the replacement cost of your vehicle. Comprehensive insurance, on the other hand, will often offer the help you need to get your vehicle repaired after an incident unrelated to an accident on the road.

Full Coverage Auto Insurance

It is recommended that drivers carry more than the minimum liability insurance required in their state. Without enough coverage, you will be caught paying for repairs and medical bills out of pocket.

To be fully covered by auto insurance, drivers should purchase liability, collision, and comprehensive policies, also known as full coverage car insurance.

The average rates for full coverage auto insurance will vary based on where you live and the coverage limits you choose. Shop around with various local providers to lock in the best rates on auto insurance.

Uninsured/Underinsured Motorist Coverage

Basic liability insurance requirements have not changed substantially over the past several years, even though the cost of the average vehicle has increased substantially.

For example, while the average cost of a brand-new vehicle hovers around $41,000, some state minimum liability coverage stops at $10,000 or $20,000 in coverage. If you’re in an accident with an uninsured or underinsured driver, you will be responsible for paying that hefty repair bill yourself.

However, carrying uninsured/underinsured motorist coverage can help ensure that you have the funds you need to repair your vehicle even if the driver that caused an accident does not carry adequate insurance.

Roadside Assistance

Some auto insurance policies offer roadside assistance coverage as an add-on. If you have roadside assistance coverage, you can call for aid no matter where your vehicle ends up, including a tow truck, a mechanic, a locksmith, or even take your bill to your auto insurance company.

The insurance company may also have providers on call that they can send out to deal with your vehicle directly. This coverage may prove essential if you live far from friends and family members who could come rescue you in the event of an accident or car problem.

Rental Car Coverage

If your vehicle is out of commission for whatever reason, you may need to rent a car to get around town while you wait for repairs. Rental car coverage will compensate you for any rental costs up to the limit of your policy.

Many auto insurance policies include rental car coverage as an add-on that costs an extra $2-$15 per month.

However, you may want to check your rental car coverage to learn more about how much coverage your policy will offer, including how long you can have a rental car and how much your policy will pay.

How To Determine Which Auto Insurance Is Best

Before you speak with an insurance agent or buy auto insurance online, go over your specific car insurance needs and what you want to expect from your insurance company in the event of an accident or incident. Consider the type of vehicle you drive, how long you commute to and from work, if you live in a big city or high-traffic area, and how many drivers will be listed on your policy.

If you live in Florida, where many drivers lack adequate coverage, it’s important to consider uninsured motorist protection, especially if you drive a high-end vehicle or have taken out an auto loan. Cheap car insurance for smart cars is essential to review for finding affordable and effective coverage in such cases.

Auto Insurance and Vehicle Value

If you drive a very inexpensive vehicle, replacing it may cost less than your average insurance rates. In this case, liability-only insurance will provide adequate coverage. If you’re driving a high-value car that exceeds the minimum liability coverage limits, it’s important to review your underinsured and uninsured motorist coverage.

This way, you can be sure you’re properly protected if someone else causes an accident with your vehicle. And if you’re looking to save, you can get low-cost car insurance with driver discounts – a smart way to cut costs while still getting the protection you need. Based on the keyword, you’ll discover how to secure affordable insurance by taking advantage of discounts that reward safe driving or other factors.

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Auto Insurance and Auto Insurance Loans

If you’re insuring a new vehicle for the first time, you may have to take out comprehensive collision coverage on your vehicle, according to the terms of your loan.

When you take out a loan to cover the costs of a vehicle, the vehicle stands as collateral for that loan. The lender may keep your title until you pay off the loan. If you stop making payments on your loan, the lender can then take possession of your vehicle. If you have a serious accident, on the other hand, you may no longer have the vehicle for the lender to take possession of.

Most lenders usually require more than the minimum liability insurance to help protect against losses if you’re involved in a major accident. On top of that, your loan may also need Gap insurance to cover any remaining loan balance if your car is totaled. For military car insurance discounts and tips, it’s important to know these details to ensure you’re fully protected financially.

Budgets for Auto Insurance

There are two key questions you need to consider when you look at your budget for insurance coverage purposes:

1. First, you need to know how much you can afford to pay for your insurance coverage. If you plan to take out a loan for a new vehicle, make sure you factor those increased insurance payments into your budget, and;
2. Second, you need to consider whether you have the money in your budget to cover yourself if something happens to your vehicle.

Exceptions in Your Auto Insurance Policy

Most insurance policies have exceptions that could interfere with your ability to receive compensation after an incident. For example, some policies may not cover flood damages, especially if you live in a flood-prone area. When exceptions exist in an auto insurance contract, you can typically add riders to cover those specific situations.

While these riders might raise your car insurance rates, the initial cost is worth it to avoid potentially losing thousands on a denied claim. Be sure to check the best home and auto insurance bundle guide for more insights on how bundling can impact these scenarios and why it’s important to fully understand your policy options.

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Car Accidents and Auto Insurance

Now that you know the type of coverage you need to be adequately covered in a car accident, what should you do after a car accident?

If there are serious injuries, immediately call 911 and the police. If this is a minor accident, move the vehicles off the road if possible and call the police if there is significant damage to your or any vehicles involved.

Do you have to file a police report for a car accident? No, you aren’t under any legal obligation to call the cops after an accident unless there are serious injuries. However, the police will file a report that can help quickly establish fault and make it easier to process your insurance claim.

Provide the police with an assessment of what you observed leading up to the accident, including any factors that may have contributed to the accident. Do not brush off the other driver’s liability or accept liability at this time. That is for the insurance companies to figure out later.

For example, if you stopped fast at a red light and the other driver rear-ended you, you did not cause the accident: the other driver followed too close and did not stop fast enough, and likely bears liability for the accident.

Once you speak with the police, get in touch with your insurance company as soon as possible. Most insurance companies now have 24/7 hotlines available, so you can call in and report the accident immediately and ask for further clarification about what you should do next. With some companies, you can file your auto insurance claim with the mobile app.

Auto Insurance Claims

Not sure how to file a car insurance claim? It’s easier than you think. If you carry collision insurance on your vehicle, you have two options for filing a claim after the accident:

1. You can choose to go through the other driver’s insurance company and wait for compensation, which may lead to delays, or;
2. You may choose to go through your own collision insurance, pay your deductible, and let your insurance company deal with the other company and reimburse you later.

If you plan to file a claim through the other driver’s insurance company, you will need to get in touch with that insurance company. The company will be able to open a claim, but cannot proceed with that claim until talking to the other driver.

Your insurance company can advise you about the best course of action following the accident. However, getting the ball rolling soon after the accident will help streamline repairs to your vehicle.

It can take time to get your vehicle repaired after a car accident. You may need to wait for the other driver to get in contact with their insurance company, wait to have the damage to your vehicle appraised, and wait to have the repairs approved through the insurance company. This process, due to its time-consuming nature, can leave you extremely frustrated.

If the insurance company drags its feet or refuses to provide the compensation you deserve, you may need to get in touch with an auto insurance attorney to learn more about your rights. Use our free search tool below to find free legal advice, local auto insurance agents, and free auto insurance quotes near you.

Do you have adequate car insurance for your needs? Do you need help finding a car insurance provider who will offer the coverage you need in the event of an accident, natural disaster, or theft? Enter your ZIP code below to get the auto insurance advice you need.

Auto Insurance Case Studies: Top Companies

Erie Insurance

Erie Insurance offers a range of services to meet diverse customer’s needs., including its comprehensive  DUI policy. The Erie Insurance DUI policy is tailored to help those drivers with DUI convictions.  In addition,  Erie Insurance also offers an extended car warranty that helps cover any unexpected repairs beyond what your standard warranty may cover. The roadside assistance option with Erie Insurance makes sure that you receive prompt help in case of emergencies on the road.

Geico Insurance

Geico is a popular company for auto insurance. The company offers so many different options for different drivers. It all starts with the ease of obtaining an auto insurance quote from Geico. Getting a Geico car insurance quote online is very easy, and you can also use the app if you prefer. Either way allows customers to quickly compare rates and coverage options.

Once a policy is in place the Geico declaration page will be accessible in your account. This helps policyholders understand their protections all in one spot.

Geico offers more than just standard coverage options. For example, they provide rental car insurance, which is important to consider if you’re wondering, “Does Geico car insurance cover rental reimbursement if my car is being repaired?” Additionally, Geico features spousal insurance, allowing married couples to benefit from discounted rates.

If you’re wondering, “Can I get Geico insurance with a permit?”,  the answer is yes. Like many insurers, a driver with a permit can be added to an existing auto insurance policy or purchase a new one.

USAA Insurance

USAA offers exhaustive insurance options for its members. Gap insurance is an option with USAA.  For those concerned with affordability, the United Services Automobile Association (USAA) Gap insurance cost is competitive and designed to provide comprehensive coverage without breaking the bank.

Additionally, USAA offers vehicle replacement assistance if your is deemed a total loss.

Final Thoughts on Auto Insurance Quotes

In conclusion, obtaining accurate auto insurance quotes requires providing detailed information about your vehicle and driving history. Comparing quotes from different providers ensures you find the best rate, allowing you to better understand your coverage and manage potential costs effectively. Shopping around is key to securing the most affordable and comprehensive auto insurance plan.

If you’re wondering “Who pays for property damaged by independent contractors?” you’ll want to check out the Free Advice website, as it provides valuable insights on property damage liability, particularly when it comes to new sports cars and their auto insurance needs. Understanding these details can help you make informed decisions about your coverage options.

The Free Advice site facilitates quotes so that you can do an auto insurance comparison. You can easily obtain as many auto insurance quotes through their platform to see how different policies stack up. Uncover affordable auto insurance rates from the top providers by entering your ZIP code.

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