Car insurance is essential to protect people from devastating financial loss in the event of an accident. To get the right protection at an affordable price, it's important to shop for the best car insurance company. Find our picks of the best auto insurers below, along with essential education to help pick the right amount of coverage.
State Farm offers multiple opportunities for discounts, including for bundling coverage. But the best savings comes from the different programs it offers for young drivers including Steer Clear as well as a good student discount. With comprehensive coverage options and low premiums, parents and teens can rest assured they're protected in case of an accident.
Auto-Owners insurance offers more coverage than its name implies, but it does shine for its auto coverage, among other policy types including homeowners or renters insurance, life insurance, and business insurance. People can buy all the insurance they need from one company while earning generous premium discounts for bundled coverage. Additional discounts for those who pay in full annually or who make at least 36 months of on-time premium payments can provide even more savings for the budget-conscious buyer.
Geico is one of the most affordable insurers available, and it offers comprehensive auto insurance coverage options at premiums that beat out most competitors. Geico promises to save people 15% or more on car insurance, and assessments of policy premiums shows it lives up to its promise. Insurance is available in all 50 states, and there are additional discounts for military members, good students, federal employees, seniors, and others who belong to certain groups or organizations.
With a claims satisfaction rate of more than 90%, Farm Bureau has proven it'll be there if something goes wrong. Farm Bureau also shines with affordable premiums and multiple ways to save, including by signing up for Driveology and earning reduced premiums by letting the insurer collect data about the motorist's driving habits. With top-notch claims handling service and replacement cost coverage for newer vehicles, policyholders have the confidence of knowing their claims will be handled swiftly and efficiently with minimal out-of-pocket losses if a crash occurs.
USAA offers military members and their families some of the best auto insurance coverage available. Premiums are lower than most competitors, there are plentiful coverage options, and many opportunities to save further with premium discounts. Free accident forgiveness coverage after five years also means premiums won't go up if a crash happens. USAA is open only to military members, veterans, and their families. For those who qualify, it's likely their best bet for car insurance.
Car insurance is a type of insurance policy that protects against financial loss. Auto insurance pays the bills if the policyholder causes an accident. Depending what kind of coverage a person buys, it also helps pay for repairs or replacement of their own vehicle.
Here are some of the costs car insurance can cover:
Motorists don't have to buy all of these kinds of insurance coverage. But they should buy the best car insurance coverage to protect against losses they can't afford to pay for out of pocket.
Drivers may not always want to look for the cheapest car insurance when selecting a policy. But many people want enough coverage to ensure an accident doesn't cost thousands of dollars, which may require paying a higher monthly premium.
The amount of insurance coverage a person needs depends on their situation. However, most states have certain minimum requirements. States may require a driver to buy:
In California, for example, a motorist must have:
California doesn't require people to buy PIP. However, 15 states do. These are called "no-fault" states. People who live in no-fault states must use their own insurance to pay for losses after minor accidents. That's true even if another driver were to blame.
New York is an example of a no-fault state. It requires drivers to buy at least $50,000 in PIP coverage. There are also three "choice" no-fault states. There, motorists can opt to buy PIP coverage or choose a different policy often called a "full-tort" policy. A full-tort policy always allows someone to sue other drivers, even after minor collisions.
Many people may want to buy more than the minimum required insurance if they want the best car insurance.
If drivers don't and they cause an accident, they could be held personally liable. If a motorist gets into a collision and causes a death, they could be sued for millions of dollars. Having just $15,000 in coverage would do little to protect their assets.
Some people may also want insurance coverage to protect them if their own vehicle is stolen or damaged. Remember, liability insurance won't cover anything that happens to the policyholder's own car, even with the best policy. A driver could buy collision insurance to repair or replace their vehicle in the event of a crash. And they could get comprehensive coverage to pay for other losses.
With the best car insurance companies, drivers also have other coverage options. For example, they could choose new car replacement coverage. This ensures a motorist gets a brand-new vehicle after an accident in a new car. Otherwise, they'd receive the current market value. This is important since new cars lose value so quickly.
Remember, the more insurance someone buys, the more protection they have from loss -- but the higher the premiums. The best car insurance provides a good balance between affordability and coverage.
When shopping for the best car insurance, some drivers may wish to include comprehensive auto insurance.
Comprehensive auto insurance is also called "other than collision" coverage. It pays for damage to a car that doesn't happen as a result of a crash with another motorist. It's optional, not required. It pays for losses resulting from:
When shopping around for the best car insurance, people can often get comprehensive coverage very affordably. Buying it could save a lot of money if something goes wrong.
Finding the right liability insurance is key to getting the best car insurance. This type of insurance is generally required. It can also protect drivers from large financial losses.
Auto liability insurance pays out when the policyholder damages someone else. If they crash their vehicle into someone's property, it will pay to repair it. If they hurt or kill someone, it will also pay for legal fees to defend a lawsuit as well as a settlement or court damages. It only pays up to policy limits, though.
It's not a good idea to skimp on auto liability insurance. That's because the policyholder is personally liable for damages above what their insurance covers. Drivers should be sure to buy enough coverage to protect their assets. By shopping around and getting several insurance quotes, motorists can find the best car insurance at an affordable price that provides the coverage they need. Car insurance is important, so it's worth the effort.
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