Car Insurance
Car insurance can help protect drivers and others from certain financial losses involving a vehicle. Coverage requirements and available options vary by state and policy.
What Is Car Insurance?
Car insurance is a type of vehicle insurance designed around personal automobiles. Policies can combine required and optional coverages depending on the driver's state and needs.
Liability Coverage
Liability coverage can help pay for certain injuries or property damage you are legally responsible for, subject to policy limits.
Collision Coverage
Collision coverage generally applies to certain damage to the insured vehicle resulting from a collision, subject to the deductible and policy terms.
Comprehensive Coverage
Comprehensive coverage generally addresses certain non-collision losses, such as specified theft, weather, vandalism, or animal-related damage, subject to the policy.
Uninsured and Underinsured Motorist Coverage
This coverage can provide protection in certain situations involving drivers who have insufficient or no applicable liability insurance, subject to state rules and policy terms.
PIP and Medical Payments
Personal injury protection and medical payments coverage can help with certain medical or related expenses, depending on the state and policy.
Minimum vs. Full Coverage
State minimum requirements generally represent the minimum legally required coverage and may not provide the same protection as a broader policy. The phrase full coverage does not represent one standardized policy.
What Affects Car Insurance Costs?
Premiums can vary based on factors such as location, driving history, vehicle, coverage selections, deductibles, claims history, and insurer pricing models.
How to Lower Your Cost
Potential ways to reduce premiums can include comparing available options, reviewing deductibles and coverage needs, asking about eligible discounts, and maintaining a safe driving record.
State Requirements
Auto insurance requirements vary by state. Drivers should verify current requirements with their state insurance regulator and insurer.
Frequently Asked Questions
What is liability car insurance?
Liability coverage can help pay for certain injuries or property damage you are legally responsible for, subject to limits.
What is a car insurance deductible?
A deductible is generally the amount you pay toward a covered loss before the insurer contributes, subject to the policy.
Is car insurance required in every state?
Auto insurance requirements vary by state, so drivers should verify current requirements where they live.