Car Insurance Companies
Should You Get Car Insurance?
If you are in a collision with another vehicle or object, car insurance can help protect you. Unless you have insurance to cover your losses, any damage to your vehicle is your responsibility. Certain types of auto insurance can also cover legal fees and medical bills for you, your passengers, and the passengers in the other vehicle.
Most states in the United States require drivers to have minimum car insurance in order to legally operate a vehicle.
How to Compare Car Insurance Companies
To find the best auto insurance for your needs, you must consider several factors.
- Pricing: If you have a set budget for car insurance, compare quotes from multiple providers to find coverage that fits your needs.
- Discounts: Many auto insurance companies provide a variety of ways to save money, such as discounts for safe drivers, college students, and military members.
- Types of coverage: While most insurance companies provide basic comprehensive and collision coverage, there are also other, more specialized coverages available, such as electric or classic car insurance.
- Policy limit: Each type of coverage has a maximum limit that specifies how much of your losses your insurance company will cover. Some companies may provide more coverage than others, which is important when driving a luxury or classic vehicle.
- Company ratings: Certain industry ratings can help you determine how you’ll interact with an insurer. Consider J.D. Power ratings for customer satisfaction and AM Best ratings for financial stability.
- Availability: Before purchasing a policy, make certain that the insurance company you choose will service your area. Some companies, such as Sentry, are only available in a few states.
Choosing a Car Insurance Provider
Investopedia provides an easy-to-use online car insurance shopping tool that allows you to compare coverage and pricing from multiple car insurance providers. Once you’ve decided on the best car insurance company for you, you can request an official quote from the provider. These are frequently available online, by phone, or through an insurance agent. After purchasing a policy, you can usually manage your account and pay your premiums online or by contacting your insurance agent directly.
Frequently Asked Questions
How Does Car Insurance Work?
If you are involved in a car accident, your auto insurance policy will protect you from personal and financial liability. It can also protect against natural disasters, such as floods and fires.
What Does Car Insurance Cover?
If you are involved in an accident, your car insurance will cover damage to your vehicle as well as other vehicles or property. It can also cover medical bills and legal fees if there are any injuries as a result of a collision.
What Are the Different Kinds of Car Insurance?
Car insurance comes in a variety of forms, including collision coverage for accidents and comprehensive coverage for natural disasters such as hurricanes or hail. Other common types of auto insurance coverage include medical payments coverage and uninsured or underinsured motorist coverage, which protects you from drivers who do not have car insurance. Coverages vary from provider to provider, so think about your specific needs before starting your search.
What Factors Influence Car Insurance Prices?
Insurers base your auto insurance premiums on a variety of factors, including your age, gender, credit score, and driving history. Certain drivers, such as students, seniors, and military personnel, may be eligible for additional savings that can help reduce the cost of car insurance.
Before deciding on our top choices, our team evaluated 25 insurance companies and collected thousands of data points. We weighed eight criteria and gave more weight to those that had a greater impact on potential customers.
The top choices were chosen based on factors such as median annual premium (weighted 25%), pricing methodology fairness (weighted 15%), and regional availability (weighted 15%).
Our complete methodology is available for those interested in learning more about our selection criteria and process.