Car Insurance Basics

What Is Car Insurance?

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Disclosure: The ads and links on this website may promote products. We may receive compensation. Always check with legal professionals before making any financial decision.

What is car insurance and why do I need it? Can I drive without car insurance? Where are the best places to find car insurance?

What Is Insurance?

Before we get started, a review of what insurance is will be helpful. The whole point of insurance is based on something called indemnity. Basically, the idea to to restore you to the exact state you were in before a loss. A loss is anytime there is damage to property or personal injury.

Insurance is there to indemnify you after a loss. With car insurance, that may be paying your medical and repair bills to your vehicle. But with home insurance, that may be replacing a roof or flooring after a natural disaster.

With life insurance, since you cannot replace a life, a defined cash amount usually goes to its beneficiary. Medical insurance usually is there to protect you against diseases or huge medical bills.

What Is Car Insurance?
What Is Car Insurance?

Is Insurance Mandatory?

Some types of insurance may be mandated by law or agreement.

For example, if there is a mortgage on your house, you may agree to keep homeowners insurance on the property. That not only protects you, but protects the bank or mortgage issuer against a total lose. That would be mandatory insurance but not legally required.

In some countries, health insurance is required by law. Until recently, the United States required that citizens carry health insurance. If they didn’t, they would have to pay an additional tax. However, that was later removed from law.

All states require drivers to carry liability car insurance in order to drive on public roads. The only exception is when a driver, with the required paperwork, decides to self insure. This is an option in several states. However, you usually have to have several hundred thousands of cash available at all times to cover any damage for which you may be liable.

What Is Legally Required?

You usually are only legally required to carry your state minimum liability coverage in order to drive. However, depending on your circumstances, you may also be required to have certain car insurance coverages by agreement.

The most common reason you may have to carry certain coverages is if you financed your car. Just like a mortgage holder may require a homeowner to insure a house, a car financier may require you to insure your car. This protects them from a total loss.

The most commonly mandated car insurance coverage is full coverage. This is a policy with liability as well as collision and comprehensive coverages. That way, even if you are at-fault in an accident, they will be able to receive payment for the value of your vehicle.

However, you also will probably want Gap coverage if you have a note on your car. This covers the difference between the value of your vehicle and the amount left on your car loan.

What Is Different About Car Insurance?

Because no one knows when a car accident will occur, the government has decided that everyone will have to have car insurance. Although this may seem a bit extreme, drivers are rather prone to accidents.

Car accidents can be extremely expensive to remedy. Not only are there the cost of potential replacing hundreds of thousands of dollars in cars, but they can cost millions of dollars in medical bills, depend on the injuries.

If someone is dismembered or disabled from an accident, you may be liable for their lost livelihood. Although this is rare, $100,000+ medical bills are rather common.

However, most Americans do not have sufficient wealth to cover those expenses. Because of this, it makes sense to require drivers to have coverage on the open road. How would you feel if someone recked your car, sent you to the hospital, and then you had to pay for all those bills yourself?

Why Do I Have To Have Car Insurance?

In addition to it be required by law and often agreement, it makes a lot of sense to carry car insurance. One thing I think about it is what it would be like if I were self-insured and I had to pay $250,000 to another driver because of an accident I caused.

Even if I had ten times that in the bank, I think I would much rather have an insurance company pay for my mistake even if I could afford to pay for it myself. Not only is there the opportunity cost of having that money sitting somewhere, but car insurance premiums are generally only a couple hundred dollars a month.

Of course, if you have the funds, many states will let you self insure. The only times I see this being of great benefit is when you have a large car collection or a fleet of vehicles. Even then, an antique policy may be a better option.

Can I Drive Without Car Insurance?

In several states, if you are caught driving without insurance, they will actually take you to jail. Of course, it is not always that severe. Some states require that you come back with proof of insurance and they charge you a fee for a first time offense.

However, driving without insurance is illegal. Furthermore, it is never a good idea. Would you really want someone to empty your bank account with their bills? If you own a home, it is an even worse idea.

If you are in an accident, even with insurance, and the judge finds you responsible for more than policy limits, you are personally liable for the rest. Or, for example, you have only $25,000 of liability coverage but the other driver has $100,000 of medical bills, you are still responsible for the $75,000 that remains.

This is one of the reasons $100,000 per person and $300,000 of liability coverage is seen as the industry standard. Back to homeowners, if your insurance doesn’t cover the injury, they can actually force the sale of your home. They would keep your equality to pay for their damages.

Where Is The Best Place To Find Car Insurance?

Of course, the cost of car insurance can vary drastically. Unlike a gallon of gas, not everyone pays the same rate. It is an approval process, similar to getting a mortgage or a credit card.

It varies on a whole bunch of individualized factors. Because of that, it really isn’t helpful to see what your friends pay or any advertised number. Your quote will probably be different than theirs.

Usually, online is the best place to shop for car insurance. It saves you time from having to drive around to different offices. It also alleviates some of the worry of pushy salesmen. If you don’t like the website or the company, you can always go to another one.

Sometimes, using a device to track your driving will give you a discount. There are also some companies that give you a quote by tracking your driving. They usually offer some of the best rates.

No matter how you drive, those devices will not make your rate go up. So go ahead and try them to save some money!

Start With Comparison Shopping Sites

Start your search by using a comparison site. This will give you a pretty good idea of how much your insurance will cost. After that, get a quote on the official company website for the two or three cheapest sites. This ensures that you are not paying extra for using the comparison site. It also saves you time because you won’t have to check all 10-15 sites all at once.

However, the biggest downside to these sites can be that they share your personal information. They may sell your name and number to insurance agents. Or they may try and upsell you to buy roadside. Sometimes, they will even advertise cell phone companies. These websites exist to generate leads.

But, there really is no substitute for them. The alternative is to visit each company’s website individually. Even then, they may share information with their agents. You can try an agent that works with several companies. However, nothing requires them to get you the cheapest price. Legally, they can even lie and say they got you the cheapest price available.

Generally, it is best to start with one comparison site. After that, you will at least have a good idea of where to look next.

Summary

After reading this article, my hope is that you will have a better understanding of insurance. Maybe you now know why it is important to have car insurance. You should even know a few places you can look when you’re shopping for car insurance. This guide should be the starting point in your journey.

In order to learn more about car insurance, please read through a few articles on this website. It will teach you what you need to know to lower your rates. You can get all the tips and tricks for cheaper quotes.

Keep reading to learn the secrets!

Auto Insurance Quotes (Complete Beginner’s Guide)

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Disclosure: The ads and links on this website may promote products. We may receive compensation. Always check with legal professionals before making any financial decision.

How do I get auto insurance quotes? Do I have to pay for them? What is the secret to getting the best car insurance rates? This article is for people new to car insurance or for people who haven’t had it in a long time.

Can I Get Car Insurance Online?

Yes! In fact, getting car insurance online may be the best way to get it. Like retail companies, insurance companies save money when you buy online. Then they can pass those savings on to you.

Shopping for insurance online saves you from most high-pressure sales tactics. Also, it will allow you to check multiple places for quotes in relatively short amount of time. This can be far less challenging than driving around town to different agents.

People used to pick their insurance by visiting a family friend who sold insurance. Although you are welcome to try that method, it may not be the best way to get quotes.

Usually apps and websites are the best options. They can also take less time than driving to offices or calling several agents. Because of that, I always recommend looking online first.

Are Car Insurance Quotes Cheaper Online?

They can be cheaper online! Because someone clicking on a website is almost free to the company, many insurers will give you a discount for buying online. You can use this to your advantage. Even just saving $20 a month can mean an extra $240 a year!

Getting car insurance quotes online as has the advantage of saving time. Instead of driving around town or making many phone calls, you can just visit a few websites. You can even shop for rates while watching TV.

Between saving time and saving money, online auto insurance quotes are the right way to go!

How To Get Auto Insurance Quotes

There are multiple ways to get quotes online. Generally, the best way is to visit each company’s website and fill out the form for a quote. Although this is time consuming, it is worth it. Saving even a few dollars a month can really add up over time.

If you must, you can call several insurance agents in your area. However, most only represent one insurance company. The agents who represent more than one company may be even worse.

Since insurance sales agents represent the company, they may not put you first. They usually put their commissions first. If you talk to them, double check the rates they quote you.

There are websites that will compare rates for you. But should you use them?

I would recommend always double checking with the carrier’s website before you pay your premium. For example, if you find that Progressive has the lowest rate on a comparison site, go to Progressive.com and see what they quote you. Read to learn more about them below.

Should I Use A Comparison Site?

Comparison sites promise several quotes from multiple insurance companies. However, the insurance companies have to compensate the website owners if you sign up. This makes their costs go up. As their costs rise, so do their prices. Sometimes you may get a cheaper rate on the company’s website.

However, these sites are a good place to start. They can give you a good idea of the cheapest carriers in your area. From there, you can go to those companies’ websites and get a quote there. You may be surprised at the price difference.

When I worked at an insurance agency, I found out that some of the policies we wrote were higher than if you bought directly from their website. At first, that angered me. I didn’t want to give people a bad deal.

However, it started to make sense when I thought about it from the company’s perspective. If they have to pay a commission for a policy, they have to make up that cost. However, if you type in their website, they may not have to pay a commission at all.

Does It Matter Which Insurance Company I Chose?

Short answer is no, not really. The biggest differences are in the customer service and certain extras. For example, some carriers include roadside at no cost. However, the coverage options are virtually the same across companies. Usually, the coverage should be the exact same.

So when you find a cheaper rate from a company you don’t know, go ahead and sign up with them. You really have nothing to lose.

Can Auto Insurance Rates Change?

Yes! Auto insurance rates can change every day. In fact, nothing stops them from changing every minute. My rule of thumb is to expect about the same rates for a week.

It may vary a bit but usually doesn’t change too much during that time. Of course, there are no guarantees. So it may actually be a good idea to jump on a good deal when you see one.

However, it can be horrible to rush on a high rate. This is why I recommend getting at least 10 car insurance quotes before making a decision.

Generally, I see very little change in rates over a few days. If your choice is to go with the first company you chose or risk rates going up, do the later. You probably will save more money in the long run.

Don’t be too afraid of rate increases. It is also good to know that you can change policies whenever you would like. If you paid your premium but found a better rate, you can sign up with the new company. Then the old company will prorate your payment and refund you the rest.

Which Rates Are The Best?

The cheapest rates are usually the best! The name of the company does not matter. So chose the lowest rates. The coverages you buy are mandated by law. If you’re in an accident, any insurance company has to cover you. They can’t deny your claim to keep your money. They must actually pay all their requirements.

You must ensure you have enough coverage to meet your needs. For example, most financed cars will require full coverage insurance. If you are a homeowner, you will want higher liability limits. I would recommend at least 100/300 liability coverage for homeowners.

What Coverages Do I Need?

What coverages do I need to legally drive? That actually depends on your state. Each state gets to set the law that determines how much coverage you have to have, at a minimum.

However, most drivers would benefit from other coverages. Depending on your situation, you may even require a few extra coverages.

What Is Liability Coverage?

Liability coverage is for accidents where you are at fault. It coverages damage to the other vehicle and the medical bills for the other people. Each car insurance policy has a limit on how much it will pay out. This often will prevent you from having to pay to fix another person’s car.

Liability is essential coverage. This is primarily what every state requires. Most car insurance companies cannot sell you a policy without liability coverage built in. Florida would be a clear exception. They require property damage coverage instead as they are a no-fault state.

What Is Collision Coverage?

Collision coverage, as the name suggests, is for when you are in a collision accident. You can use it to have your car repaired if the other driver’s insurance doesn’t pay for it. This allows you to get your car back. If your car is totaled, they will write a check for the value of your vehicle, minus your deductible.

While they will cover the cost of your repairs, you will be responsible for your deductible.

What Is Comprehensive Coverage?

Comprehensive, also know as other than collision, will cover damages to your vehicle when it’s not in a collision accident. If hail rains down and damages your car, it’s a comprehensive claim. If a deer runs into your car and smashes the front of your car, it should be covered by comprehensive coverage.

What Is Full Coverage?

Full coverage is liability with comprehensive and collision coverage. In fact, it is very uncommon to have either collision or comprehensive separately. Full coverage is usually what drivers need.

In fact, if you have a car payment, you’re probably going to need full coverage.

If your car is newer, you probably want full coverage. If you live in an area with crazy drivers, get full coverage.

What Is Uninsured Motorist Insurance?

What happens if some hits your car and they don’t have insurance? Or what if you have a hit-in-run?

Uninsured motorist insurance will cover you in those situations. Everything from mystery door dings to having your car totaled while it’s parked on the road should be covered.

What Is Underinsured Motorist Insurance?

What if the other driver only has the state minimum and you have a nice car? While, you might be able to recover damages above the state minimum. This would make driving a $100,000 car much riskier in most states.

This is where underinsured motorist coverage comes in. They will pay the difference in your expenses and what the other insurance company pays.

What Is Medical Payment (MedPay) Coverage?

Medical Payment Coverage that helps pay the medical bills for you and your passengers. It will help with those bills no matter who has fault in an accident. It’s available in non no-fault states. It can help you with:

  • Health Insurance Copayment and Deductible
  • Doctor Visits Costs
  • Surgery and Imaging Costs
  • Ambulance and EMT Costs

The coverage is usually optional. It can be a good idea if you are worried about having to pay for those services yourself.

What Is Personal Injury Protection Insurance?

Personal injury protection covers your medical bills. In some states, your insurance pays your medical bills. This can actually lead to lower rates in some circumstances.

Here are a few states that require personal injury protection:

  • Florida
  • Hawaii
  • Kansas
  • Kentucky
  • Massachusetts
  • Michigan
  • Minnesota
  • New Jersey
  • New York
  • North Dakota
  • Pennsylvania
  • Utah

What Are The Differences Between Medical Payments and Personal Injury Protection?

Personal Injury Protection is required in states where it is offered, called no-fault states. But Medical Payments are always optional in states where is it offered.

Personal injury protection can also help cover lost wages and child care.

What Is Gap Insurance?

If you buy all your cars in cash, don’t worry about Gap. Gap insurance covers the difference between the value of your vehicle and what you owe on it. If your car is totaled and was worth $10,000 but you owe $12,000, gap would cover that difference.

As most people are underwater in their vehicle, I would recommend considering gap.

What Is Towing And Labor Insurance?

This is an optional coverage. It usually is used to tow your car if you can’t drive it. Sometimes this is after a car accident but it can be used if you need your car towed to a shop.

In addition to towing, it may cover tire changes, gas, oil and water delivery, battery and lockout services. These can be an absolute lifesaver when you are stranded someone.

What Is Rental Reimbursement Insurance?

As the name suggests, rental reimbursement insurance will cover the cost of transportation expenses. If your car is in the shop after an accident, it will cover the cost of the rental. It may also cover public transportation fare. If you have to take a taxi, it may cover that too.

Of course, this only applies after a car accident. It is an option coverage you can add to you policy. No policy should require it.

The coverage on each policy has limits. It usually is somewhere around $20-50 a day. There may also be a limit on how many days they will pay for. After that, you will have to pay out-of-pocket. However, there usually is no deductible for rental reimbursement insurance.

What Is Classic Car Insurance?

You may think you would need the same insurance for a classic car. You would be wrong! Classic car insurance can give you a great value while better protecting your class car.

Normally, car insurance only covers the actual cash value of your car. Kelly Blue Book can give you an idea of that. However, you’re classic car may be worth a lot more money!

For example, they may think a 1992 Ford Mustang is only worth $1,000. But you know it would cost at least $10,000 to replace it. Classic car insurance covers the value you specify or appraised value. In my experience, they often have some of the cheapest rates.

Your car may be a classic car as long as it is at least 19 years old. You may also need to drive fewer than 7,500 miles a year to qualify. It will have the same types of coverage as other policies. Because these policies are some of the cheapest, it is worth it to have a separate policy for your classic car.

For example, your household may have a red 1992 Mercedes 500SL, a 2018 Honda Civic and a 2020 Ford Focus. You would want to put the Mercedes on one policy with the other two on a regular car insurance policy.

That way, you can save money but still be fully covered.

What Is New Car Replacement Coverage?

Are you worried about needing a new car? Unfortunately, even with full coverage, usually the insurance company will only pay you what your car was worth before the accident. This may not be enough to replace the vehicle you drive.

Let’s say you buy a brand new $25,000 car. If you get in an accident after owning it for 3 years, it may only be worth $7,000. If that’s the case, you may not even be able to replace it with a comparable car. New Car Replacement Coverage will help you get a new car after an accident. It is an optional car insurance coverage.

With some carriers, if your car is two years old or older, they will full replace your car with a new one. This is great for new car buyers. If having a reliable vehicle is worth buying a new car every few years to you, this is probably a coverage you would want to add to your car insurance plan.

What Is Ride-sharing Coverage?

Do I need new car insurance if I am doing ride sharing, such as Uber or Lyft?

Since ride sharing is business use, most personal car insurance policies won’t cover you. However, the most common rideshare companies do offer protection while you are actually driving the customer. This creates a confusing situation.

To remedy that, several car insurance carriers have made policy coverage options just for ride sharing. These will cover the gap between your personal use of the vehicle and the coverage Uber and Lyft provide for their drivers. This way, you will be covered at all times.

If you drive for Uber or Lyft even occasionally, you should have ride sharing coverage on your policy.

What Is Sound System And Accessory Coverage?

If you spend a bunch of money on tricking out your car, you may want this coverage. It will let you insure all the audio or special equipment you added to your vehicle.

If you would cry over having to replace your sound system, you’ll want this coverage. If you are one of those people who look like they belong on Pimp My Ride, you probably have spent extra money on your sound system and other accessories.

Do I Need Car Insurance With A Driver’s Permit?

In most states, no. The insurance company of the driver will cover a driver with a learners permit. This is one reason why some parents do not let their high school kid get their license.

Unfortunately, young drivers usually have much higher insurance rates than more experienced drivers. For this reason, it may be a good idea to have your child get their permit as young as they can but wait to get a license. This way, they can build up a bit of a driving history before having to pay for insurance.

How Do I Get Car Insurance Without A License?

Again, if you have a permit, you shouldn’t need your own car insurance policy. Some people need car insurance without having a license. Usually, they need an SR-22 or FR-44 Policy. However, that usually is only for people with suspended licenses (see below).

However, you can actually buy a car without license. If that is the case, you probably won’t need insurance until you get a license.

Just as a reminder, there are policies that are SR-22 and FR-44 only policies. They are usually rare but they don’t cover damage to your car. You also usually can’t legally drive with them unless added to a normal car insurance policy. Always make sure you have the right policy for your needs.

Can I Get Car Insurance With A Suspended License?

Yes! You can get SR-22 insurance with a suspended license. Usually, this is actually required by your state to get your license reinstated. Most car insurance carrier will do SR-22 policies. They usually end up being rather cheap since you won’t be driving or insuring a vehicle.

Some people with alcohol or drug-related DUIs may need an FR-44 certificate. Basically, this is when a car insurance company sends a form to the DMV every month so there is a record of you having car insurance. If at all possible, I would recommend doing a paid-in-full option. That way, there won’t be any reason to worry if a premium payment is delayed or bounces.

How Can I Get Cheap Car Insurance For A Teenager?

Car insurance for teenagers can be tricky! Since they don’t have much or any of a driving history, it is likely that they will have higher rates. Of course, this can vary based on geography and on the driver.

Generally, young male drivers have higher rates than young female drivers. This trend continues on through the mid-twenties or so. Unfortunately, there really isn’t a way around it.

After a few years of clean driving, their rates will go down. One tip is to have them attend drivers education. Usually, this will lower their rates in states where it isn’t required.

Several insurance companies will also give them a discount for having good grades. This can also help lower the cost.

However, whatever you do, don’t make your teenager get their own policy! Some parents think they are teaching their children to be responsible by making them pay for their own insurance. While there is nothing wrong with having them work, there is a better method.

Put your teenager on your policy as an additional driver. As he or she may end up driving your vehicle, this should work out. If they need to pay for insurance, have them pay the difference in your rate after adding them. This way, it will be cheaper overall and it won’t destroy your budget.

When I worked as an insurance agent, I saw too many parents make that mistake. They thought their 16 year-old kid needed to be the named insured on a policy. This makes everything more complicated and expensive.

Step One: Shop For Quotes

You’ll want to get as many quotes as you quickly can. I would start with two comparison sites and then go from there. Unfortunately, car insurance quotes are a qualification process. They usually take time. Using a comparison website can speed up the process.

After you have found the cheapest 2-3 rates, go to those companies’ websites and get quotes there. See if they are the same as from the comparison site. Then choose the cheapest.

Step Two: Select The Coverage You Need

This actually goes along with Step One. If you don’t know what you need, read the information above about full coverage and liability. Those paragraphs will give you a pretty good ideal of what you’ll need.

You don’t want to overpay but being underinsured could cost you heavily. Make sure you have a basic understanding of each common coverage option.

Step Three: Pay Your Premium

Most insurance policies last for either 6 or 12 months. However, most default to a monthly payment. Sometimes there is a discount for paying the policy in full. Sometimes it doesn’t matter. If you can save a couple dollars and you’re in a position for it, pay it in full. If there is no discount, just do the monthly payment.

After you have figured out the cheapest carrier for the coverage you need, picked a payment option, go ahead and pay that first premium. After you do that, they will bond your policy making it effective. If you got in an accident even two minutes after that, you would be covered.

Step Four: Print Out Your Insurance Card

You’ll want proof of insurance in your vehicles as soon as possible. You don’t want to be pulled over without your card. You don’t want to have an accident without insurance information. So make sure you have the cards handy. Usually the best spot is in the glovebox next to your car registration.

Summary

Naturally, car insurance is a necessary evil. No one likes paying for it but they love piece-of-mind and being taken care of when they’re in an accident. When you’re in an accident, it is great to know that you will be okay.

Please take the time to learn about each coverage. This will help you get what you need without paying for things you’ll never use. For example, most people won’t need sound system and accessory protection in the vehicle. However, if you have Forgiato rims and a couple subwoofers, you probably will want that to be protected.

If you want to learn more about car insurance, be sure to look around at a few more posts. If you can’t find an answer you’re looking for, please comment it down below!

How To Shop For Car Insurance In 2021

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Disclosure: The ads and links on this website may promote products. We may receive compensation. Always check with legal professionals before making any financial decision.

How To Shop For Car Insurance In 2021
How To Shop For Car Insurance In 2021

Are you trying to figure out how to get cheap car insurance? Shopping for insurance rates can be hard. But this guide will help you shop for the best car insurance rates In 2021!

The best way to shop for car insurance in 2021 is to shop online. Use a comparison site and then go to the company’s website to verify the rates.

Car Insurance Is Confusing!

Shopping for car insurance can even confuse the best of us. So it doesn’t matter how long you’ve been driving.

Car insurance companies use terms you don’t always know or remember. Shopping for car insurance seems complicated. And the biggest part of it is knowing what coverages you actually need. That way, you won’t be paying for anything extra.

This will also make sure you get the coverage you need. I’m sad every time I see someone get into hit-and-run without uninsured motorist coverage.

If they had it, they would be able to get their car fixed or a new one.

Unfortunately, most people seem to go for the state minimum. While that can be all you need, it likely is not. And usually, for literally a couple more dollars a month, you can get better coverage.

Shopping For Car Insurance Is All About Comparing Rates

After that last paragraph you may be thinking “hey, wait. I want to save money, not spend more of it!”.

Here is the greatest secret with car insurance: better insurance can still save you money. This is true in a couple of ways.

Having less insurance usually will cost you more. If your car is totaled without full coverage, you now have to buy a new car.

Even if it cost $100 a month extra for full coverage, if your car is worth $12,000 it would pay for itself in less than 10 years.

When you compare rates, you can afford better insurance. I found that I was able to get better coverage for about 1/3 of what I was paying when I changed carriers. This seems crazy but it’s true.

Shopping for car insurance is all about getting lots of quotes. This will let you see where offers the best rates for the best coverage.

What Car Insurance Coverages Do I Really Need?

The world of car insurance is crazy. There are so many different options. Even different states and companies may call similar coverage different things.

If you’re not sure what coverage you need, check out my guide!

It will help you know if you need full coverage or liability, plus a whole lot more!

Summary

Now you know some of the secrets to shopping for car insurance. This tips can help you save a TON.

One of my favorite companies to shop is actually Root Insurance. You may want to check them out!

Please leave us a comment if you learned anything in this article!

Car Insurance: A Complete Guide In 2021

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Disclosure: The ads and links on this website may promote products. We may receive compensation. Always check with legal professionals before making any financial decision.

Car Insurance Complete Guide

Car insurance may seem like a different world to drivers. Usually, you spend more time buying a car and learning how to drive than learning about car insurance. Why spend time learning about car insurance? It can help you understand what you’re paying for every month.

What is Car Insurance?

Although rather complicated, car insurance protects a driver from some financial responsibility if they are in a car accident. Car insurance covers damage to your vehicle, medical bills, lost wages, damage to another vehicle and even some legal fees. The road ahead is unknown but car insurance protects you.

Naturally, no one ever expects to be in a car crash. Insurance is there to help cover the costs when a accident does occur. It keeps you and your family safe.

If you cause damage to another driver’s vehicle, it can cover most or all of the costs. It can give you peace-of-mind to know that nearly all drivers are insured.

It is a contract between the insurance company and you. The contract usually means that they will cover certain costs in you are in an accident.

Why Do I Need Car Insurance?

Car insurance can protect you from some devastating surprises on the road. Being insured can help cover medical bills, repair bills, even legal costs in a car accident. Only driving with active car insurance can save you from some huge headaches.

In most states, car insurance is mandatory for all drivers. Some states do make exceptions but those are usually for corporate fleets and wealthy individuals. States usually require someone without insurance to have enough money to pay for all the expenses, should an accident occur.

Depending on the state, driving without insurance may actually lead to jail time. In other states, it comes with a ticket for the first few offenses. Because car insurance keeps other drivers safe, it is dangerous to drive without it.

If you’re caught driving without insurance, you may be arrested, ticketed and may lose your license to drive. Even if you only receive a ticket, that will change your driving history. This will make your insurance rates go up when you next get insured.

For all the reasons and more, please do not drive without car insurance.

How Does Car Insurance Protect Me?

Depending on your coverage, it can protect you from vehicle thief, accident, acts of God (such as natural disasters), uninsured drivers damaging your vehicle, underinsured drivers damaging your vehicle, personal injury, medical costs, legal fees, lost wages and lost of vehicle.

Having a company cover some or all of these costs can make a huge difference. They can take a lot of the headache out from being involved in an accident. They can stand beside you during the whole process.

Can you imagine what would happen if you accidentally totaled a new BMW or Mercedes? Without insurance, you would be on the hook to replace their vehicle.

What Types Of Car Insurance Are There?

  • Liability Coverage
  • Collision Insurance
  • Comprehensive Insurance
  • Uninsured Motorist Insurance
  • Underinsured Motorist Insurance
  • Medical Payment Coverage
  • Personal Injury Protection Insurance
  • Gap Insurance
  • Towing And Labor Insurance
  • Rental Reimbursement Insurance
  • Classic Car Insurance
  • New Car Replacement Coverage
  • Ride-sharing Coverage
  • Sound System Coverage

Do I Get All Those Coverages?

In most cases, the answer is no. It varies from company to company but most states only require liability coverage. Some also require medical payment coverage or personal injury protection. In other to know for sure, you’ll need to check your policy.

Most insurers often all or most of these coverages. You can often add them to your policy. Personally, I try to make sure I have a good level of personal injury protection, underinsured and uninsured motorist limits in my policy. That way, I know I will be taken care of in those situations.

What If I Just Want Cheap Car Insurance?

In most cases, you’re looking for the state minimum. This varies from state to state. You’ll want to double check to make sure your have the right coverages. However, this may not end up being the best for you. No one knows the future, but you never know when you will need a certain coverage.

Recently, I spoke with someone who was hit by a driver who just drove away. This man made his living by delivering food. Because he did not have uninsured motorist coverage, he lost his vehicle and means of making a living.

Usually, if you have a car payment, you’ll need to have full coverage car insurance. This is something almost all the financial companies require. This is in case you are at fault in an accident. I would also recommend Gap coverage.

Full Coverage Car Insurance

Full coverage usually means your policy includes liability coverage, collision coverage and comprehensive coverage. It will also include anything else mandated by law, such as medical payments or personal injury protection.

Liability coverage covers damages you may do to another vehicle. Collision coverages cover your vehicle if the other party is not found at fault. It will cover repairs or replacement up to the value of your vehicle. If own more than your vehicle is worth, gap coverage covers the difference. Gap is not usually a part of full coverage.

Comprehensive coverage is for damage to your vehicle outside of an accident. If there is hail damage to your vehicle, that is a comprehensive claim. If a deer rams into your vehicle, comprehensive coverage can pay for your repairs.

Do I Need Towing?

A single tow can run over $100. Having a car lockout can cost close to that. Most insurance companies now include towing coverage in their policies. This can be helpful when you desperately need a tow. However, they can classify this as a claim on your insurance. This can lead to higher rates later down the line.

If you have AAA or another roadside assistance program, I would highly recommend using that instead. It can actually end up being cheaper, depending on how many tows you need. These types of memberships are usually rather inexpensive and come with several benefits.

Where Should I Get Car Insurance Quotes?

There are so many places to get insurance quotes. There are local agents, national phone lines, corporate websites and even comparison shopping sites. Where should I start?

I recommend that everyone start with a comparison shopping site. This can let you get quotes from several companies at once. However, I recommend always checking the corporate websites of at least two of the lowest quotes. So that you will know that you’re getting the best rate possible.

Sometimes, how you shop for rates can change the rate you get. Since the corporate website is usually the cheapest way for them to get business, companies usually keep their cheapest rates there.

Of course, you can call your local agent. However, I would recommend getting at least 10 quotes before picking one. That way, you know you’re getting one of the cheapest rates in town.

How Can I Save Money?

Everyone wants to save money! No one really likes paying for car insurance, despite how the coverages may help you later. You will want to start comparing quotes to find the best one.

Of course, it’s best to know what coverages you need. This will save you from paying for coverages you don’t need. That is the best place to start.

Once you know what coverages you need, then it is time to compare quotes. As I’ve said, make sure you get several quotes before making a decision. Maybe try with a comparison insurance site. Afterwards, always double check with those carriers websites.

Although this will take some time, it can help you save hundreds over the course of a year. A lot of the time, people will keep the same company for years. This investment of a few hours of time may save you lots of money over time.

Summary

Now you know what car insurance is, why you need it, how it protects you, the types of coverages available, some of the coverages you may need, how to get cheap insurance by saving money on it. If you have more questions, feel free to look around this site. I have several articles about choosing car insurance policies and saving money.

Personally, I have found that Root Insurance saved me the most money so far. Of course, I will always keep looking for better rates. But, for now, Root has been a great company for me.

If you are looking for a good rate, I would recommend trying Root. In fact, if you click here and use my link, you will actually get a $50 bonus just for getting a quote through them!

All you have to do is download the app, fill out a few questions and then let it track your driving. In my experience, it usually take about 7-10 days to get the quote back.

Car Insurance Quote

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What is a car insurance quote? Do I need a car insurance quote? How can car insurance quotes differ from insurance rates? Where should I look for the best car insurance quote?

What Is A Car Insurance Quote?

A car insurance quote is an estimated cost of a policy. Because insurance is a qualification process, you need a quote to compare prices. Car insurance quotes give you a good idea of what you will end up paying.

Of course, this rate is subject to change. If you get a good car insurance quote today, it may be higher tomorrow.

Where To Get Auto Insurance Quotes

If you get a quote without letting them run your driving history, be prepared for the rate to go up. If you get a quote before they’ve run your credit report, be prepared for it to go up. A quote is the most important part of getting insured.

Do I Need A Car Insurance Quote?

Yes! If you are looking to drive a car, you will need to get an insurance quote. Also, if you think you may be paying too much for car insurance, you’ll need a quote.

A car insurance quote is the first step in the process of getting car insurance. So if you are already insured or satisfied with your rate, you may not need a car insurance quote.

How Can Car Insurance Quotes Differ From Insurance Rates?

Generally, an insurance quote is an estimate of the final cost. If your driving history or credit are better than expected, the rate may be lower. If you didn’t disclose a car accident or a ticket, it might go up after the estimate.

Also, you may get a discount if you pay several months of your policy at once. This is usually called a paid-in-full policy.

Where Should I Get Auto Insurance Quotes

Where Should I Look For The Best Car Insurance Quote?

There are basically four places where you can get a car insurance quote: comparison websites, corporate websites, an independent car insurance agent and a captive car insurance agent.

A comparison site’s main advantage is the possibility to help you save time. You can get 10-20 quotes from different companies at the same time. However, they may be more expensive than buying directing through the company websites.

Corporate websites are often the cheapest way for an insurance company to get new business. Because of this, you can often save money by getting a quote through their websites. However, it can become time-consuming to comparison shop this way.

Independent car insurance agents, or non-captive agents, represent multiple car insurance companies. The main advantage is that they do most of the work for you. However, they do not have a fiduciary duty to you and aren’t required to disclose the best rates they find. They can choose to only tell you about the quotes that pay them the most.

Captive insurance agents represent only one insurance company. They are people like your local Allstate or Geico agent. Unfortunately, working through them can have several drawbacks. They may take longer or be more expensive than going through a corporate website. They also don’t have any fiduciary duty to you.

Instead, I recommend trying a comparison site and then double checking the best rates on the corporate sites. This can save you time and make sure you’re getting the best rate possible.

Summary

So you now know why you need a car insurance quote and where to look for one. If you want to learn what I use, check my review here.

Click here if you want to try Root Insurance today!

Where To Get Auto Insurance Quotes

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Disclosure: The ads and links on this website may promote products. We may receive compensation. Always check with legal professionals before making any financial decision.

Are you looking for the best ways to get auto insurance quotes? Learn all the secrets of how to get the cheapest car insurance possible!

Where Can I Get Auto Insurance Quotes?

As anyone who watches cable TV can attest, there are lots of car insurance companies. However, some of the best companies don’t have cleaver giggles. Sometimes they market differently to save their customers money. Of course, you can start at the big named companies. But I would highly recommend trying other companies too. After all, they offer the same coverages and often have better rates.

A recent newcomer is the comparison shopping site. These sites offer a way to compare rates from several companies at once. Because insurance is an approval process, this can save you time. However, these sites may not disclose certain rates if it makes them less money. Legally, they are under no obligation to do so. Although these sites are a good place to start, I always recommend following up with the cheapest company’s website to make sure you get the same quote.

Where To Get Auto Insurance Quotes

Good places to start include Insurify, NerdWallet, Gabi, and The Zebra.

Where Should I Get Auto Insurance Quotes?

Again, it’s good to start with a comparison auto insurance website. This will give you a good idea of which companies are in your area. It also may show you where to look. Of course, always double check the rates. From this point, it may be a good idea to see what types of discounts you can get. For example, lots of companies now will track your driving habits in exchange for a discount. Factoring in a bit of that discount may change the game.

With car insurance quotes, more is better. Aim for at least 10 different quotes if you want to save money. That way, you’ll know for sure about what you should be paying.

Of course, this is a time consuming process. However, it can be a rewarding use of your time. Saving a bit every month really adds up over time.

Where Should I Get Auto Insurance Quotes

Where Would You Get Auto Insurance Quotes?

Personally, I love Root. Click here to read my review of Root Insurance. Getting a quote with them really does take several days. They track your driving and base your rates off of that. So if you can’t wait, get a rate with another company first. Make sure you’re always insured before you drive. After you get a quote from Root, you can always change right there and then. They’ll even cancel your old policy for you.

Where Would I Get Auto Insurance Quotes
Where Would I Get Auto Insurance Quotes?

Summary

Hopefully, this article helps you. You now know where to get auto insurance quotes. Of course, I would start with a comparison site and slowly narrow down your list. This should help you find the best rates in your area! After that, try Root or something similar to make sure your getting rewarded for good driving.

If you got any value out of this at all, please consider sharing the article with a friend. It really helps out the blog to have new readers and should help them save a few dollars too.

If you have any questions, feel free to drop a comment below or visit the Contact Us page.

Happy Driving!

Read More…
How To Get Car Insurance Quotes Without Personal Information
Do Auto Insurance Quotes Affect Credit?
Car Insurance Quote
Are Car Insurance Quotes Accurate?
How To Shop For Car Insurance In 2021
What Is Car Insurance?
Should I Get Car Insurance Online?

http://secretcarinsurancetips.com/3-reasons-dairyland-might-be-the-next-big-insurance-company/

Do Auto Insurance Quotes Affect Credit?

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Disclosure: The ads and links on this website may promote products. We may receive compensation. Always check with legal professionals before making any financial decision.

Do auto insurance quotes affect credit? Will getting a car insurance quote lower my credit score? How can I get quotes without hurting my credit?

Do Auto Insurance Quotes Affect Credit?
Do Auto Insurance Quotes Affect Credit?

Do Auto Insurance Quotes Check Credit?

Are you wondering if they have to check your credit when you get a quote? A car insurance company wants to know if you will pay your premium. Also, your credit history can help them see how risky it would be to insure you. However, there is good and bad about them checking your credit.

Insurance credit is different from your score. Some people think that insurance companies are like a bank. They think they need a perfect score. But that isn’t the case. This is because insurance companies are actually more interested in your monthly bills. Since most people pay a monthly premium, they want to see bills in your name. If your utilities are in your name, you’re off to a great start.

Because everyone needs insurance, they won’t hold you to a standard of perfection. If you need a score range, you’ll probably be fine with around a 600, but it depends on the carrier.

How Does Credit Affect Auto Insurance Quotes?

Your credit can impact your auto insurance quotes. Some companies require good credit. However, a poor credit history can change your rate.

One time when I was trying to set a lady up with a policy from The General, the rate just about doubled. Her driving history was clean. Nothing else changed when I ran her reports. I asked a mentor and he said it must be her credit history.

I have rarely seen a rate decrease due to credit. However, the increase is usually small. Better yet, most people’s credit doesn’t seem to raise their rates. So I wouldn’t worry too much about it.

Will They Have To Run My Credit?

Unfortunately, they will have to run your credit. However, they usually do a soft credit check which won’t impact your score. The big things they will look at are multiple accounts in collections and missed payments.

Life happens and one or two accounts in collections probably won’t affect you.

Summary

Yes, auto insurance quotes can affect credit because they check your credit. However, this may actually not be a bad thing. Your credit rarely seems to up your rate.

As long as you have okay credit, you will be fine. If you can, just make sure you’re paying monthly bills in your name. There isn’t a way to really skip having your credit checked.

If your quotes are too high, check out this app! Or just download it here!

How To Get Car Insurance Quotes Without Personal Information

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Disclosure: The ads and links on this website may promote products. We may receive compensation. Always check with legal professionals before making any financial decision.

How to get car insurance quotes without personal information? Can I get a quote without running my credit or driving history?

How To Get Car Insurance Quotes Without Personal Information
How To Get Car Insurance Quotes Without Personal Information

Quotes Without Personal Information

Can you get quotes without person information? Yes! Should you? Probably not. Here’s why: insurance is an application process. Just as your neighbor’s mortgage interest rate is interesting but unhelpful. This is also true for car insurance. Although there are ways to get estimates on the cost of car insurance, since those rates won’t be what you pay, they aren’t going to lead you to the right car quote.

If you want a nondescript quote, you can Google Search average insurance rates in your state. If you put in your age and state for an idea. You can even see about how much a DUI or ticket will raise your rate. These, unfortunately, are the best you’ll get without disclosing personal information. The less information you get, the less accurate the quote will be.

However, your car and driving history are going to have the largest impact on your rate. The value of your vehicle is one of the ways they determine the risk to insure you. This is especially true for full coverage insurance. Since they may be liable to replace the entire vehicle, they look to its value. A $400,000 Rolls-Royce would be much costlier to replace than a $25,000 Toyota. How many tickets you have will also change your rate.

Why Quotes With Personal Information Are Better

Inaccurate quotes are virtually pointless. Because your rate will always be different, my rate doesn’t tell you much. As tempting as it may be to not fill out the forms, they are the only way to find out what you’ll have to pay. With a good quote, you’ll know exactly how much to pay. Try your best to get as many quotes as possible. Then you will have a good idea of where has the best rates.

Your Information Is Safe

Insurance companies primary goal is to have you as a customer. They have every reason to keep your information secure. In fact, it would be horrible if they didn’t take care of it. The insurance industry is highly regulated. If they didn’t take care of everyone’s private information, they would get complaints. Those complaints would be investigated. If they’re careless, they will go out of business. No one wants to do business with someone like that. If you’re still concerned, check each website’s privacy policy.

Summary

Although you can get an idea of rates without personal information, they won’t be personalized. Some carriers don’t pull your information for a quote. But you probably won’t want them. Generally, the more information you give them, the better. It may feel awkward to say you’re a homeowner but you may get a discount for it.

If your quotes are high, find out why. Maybe just get a quote with Root Insurance today!

How Long Are Car Insurance Quotes Valid?

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Disclosure: The ads and links on this website may promote products. We may receive compensation. Always check with legal professionals before making any financial decision.

How much time do I have to decide to go with an insurance company? Will their rates change tomorrow? How long are my car insurance quotes valid?

How Long Are Car Insurance Quotes Valid?
How Long Are Car Insurance Quotes Valid?

What Is A Valid Car Insurance Quote?

An auto insurance quote is estimated price for insuring you and your vehicle. Depending on how you get the quote, it may be very accurate or not accurate at all. Generally, the more information you give the company, the more accurate the quote is. Because insurance is a qualification process, the quote has to see what rates you qualify for. Just like a credit card, you may get better rates than your neighbor.

So, make sure you take advertised rates with a grain of salt. As long as one person gets that rate, a company can advertise it. So be careful to manage your rate expectations. Since those rates look so appealing, it makes people click on their ads. However, your quote comes through a qualification process.

How Often Do Valid Car Insurance Quotes Change?

It depends on the car insurance company. Whenever the company gets new information, they will update their rates. If there is an increase in car accidents in your zip code, your rate goes up. Then those car insurance quotes won’t be valid. If anything changes in your driving profile, those rates will change. There really isn’t a great way to know. With that uncertainty in mind, I find rates usually take a few days to substantially change. However, if you find a great rate, you may want to jump on it.

Can I Take My Time?

Can I take my time with valid car insurance quotes? You can but it may cost you. If you don’t have coverage, a longer lapse in coverage can increase your rates. If you think something may change in your driving record or credit report, waiting can cost you. Don’t drive without insurance. If you’re caught, your ticket will raise your rates. Plus, in states like Florida, you can actually go to jail! So always make sure you’re insured.

If you currently have insurance, you usually have a few days to decide before the rates change. But personally, I would decide inside of a week. I have written policies where the quote on Friday was the same as the quote on Monday. It is possible that the quote will stay the same for weeks. However, I would not wait much longer. Get at least 5-10 quotes and choose which one you want within about a week.

Summary

Unfortunately, there is no rule as to how long an insurance company keeps their rates the same. A valid car insurance quote today may be gone tomorrow. A quote may change by the end of the day, tomorrow or next month. Of course, getting as many quotes you can helps you get the best rate. It would be great if all the rates held for at least a couple weeks. However, knowing this can empower you as a customer. Knowing that you probably have a few days allows you more time to make an informed choice.

If you want to learn more about insurance quotes changing, make sure you read my blog post here!

Click Here if you want to see which apps are the best for car insurance quotes. Or you can go ahead and visit Root Insurance!

Are Auto Insurance Quotes Free?

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Should I have to give payment information to get a quote? Do I have to pay anything? Are auto insurance quotes free?

Are Auto Insurance Quotes Free?
Are Auto Insurance Quotes Free?

Does An Insurance Company Need My Payment Information?

Is the insurance agent asking for your card number? Is the website refusing to give you a price until you create an account? Do they need this information? No, they don’t need any payment information. Auto insurance quotes should be completely free. In fact, you should only give payment information after you agree to a quote.

Some companies may ask for your card up front. Stay away! Either, they are planning on charging your card or they want to make it easier to give them money. Although there is nothing sinister about the latter, it makes it hard to make the right decision. It becomes easy to say “just charge it”. This may lead you to overpaying by hundreds. Do not give them your card number until after you choose them.

Do I Have To Pay Anything For An Auto Insurance Quote?

The short answer is no but it may depend on the state and agent. For example, some states allow an agent to charge a producer fee. While they can’t charge it until they write the policy, it can feel like you’re paying for the quote. Allow states allow the fee, it is not required. Generally, the agent makes money off of the commission of your premium. If they charge a fee, the fee varies by producer. I have charged anywhere from $50-$150 for a producer fee in different states. However, you can probably find a producer who won’t charge you the fee. If you want to go with an agent who charges the fee, you can ask them to lower it. No one wants to pay money for nothing.

Are Auto Insurance Quotes Free?

Yes, they should be free! Some may even give you an incentive for getting a quote. Root Insurance will give you a $50 gift card for getting a quote from them. You should check it out! Otherwise, any insurance company should give you a quote before you decide to buy their insurance. How would you know if you can afford their insurance without the price?