Shop around. Each insurer has a different pricing algorithm, and the insurer that offers the lowest price for one person might not be the insurer that offers the lowest price for someone else. Benjamin Shiller, Ph.D. Assistant Professor of Economics at Brandeis University
Car insurance is a type of billion casino royal:insurance policy that pays the bills if the policyholder causes an accident. It can also help pay for repairs or replacement of the driver's own vehicle.
Drivers in nearly all states are required to have some auto insurance to get behind the wheel. But many choose to purchase more than the minimum so they're better protected in an accident.There are also certain billion casino royal:types of car insuꦓrance cove♛rage that may be required by lenders or lessors but that are not typically required by law and that would be option🍌al for those without a car loan or lease.
Consumers buying auto insurance should also make certain their deductible is affordable as they must pay this amount out of pocket if a covered loss occurs.Motorists can get billion casino royal:auto insurance quotes themselves online. They can also work with an independent insurance agent who will compare offerings from multiple insurers to he꧃lp them find the best rates.
After getting at least three to four quotes, drivers can compare pricing and terms to find the best coverage.To find the best billion casino royal:car insurance rates, drivers will need to get personalized quotes from different insurers. That's because prices can vary dramatically depending on an individual motorist's circumstances.
Motorists should also be sure to look for discounts, including for safe driving or vehicle safety equipment, as well as for good grades for teens or membership in certain organizations.Company | Average Annual Rate |
---|---|
Allstate | $2,767 |
Chubb | $3.013 |
Erie Auto Insurance | $1,855 |
Farmers | $2,262 |
Geico | $1,507 |
Nationwide | $1,958 |
Progressive | $2,104 |
State Farm | $2,427 |
Travelers | $1,920 |
billion casino royal:Liability insurance covers losses that the🦩 policyholder causes other people to experience. It can be divided into𒅌 two subtypes:
billion casino royal:Personal injury protection, or PIP, pays for the policyholder's medical bills and lost wages in cases of minor accidents, regardless of who is at fault for the crash.
A total of 15 states require PIP. 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.Most insurers offer billion casino royal:car insurance discounts that can help reduce🥂 the cost of auto insurance. Commonly available discounts include:
State | Average Annual Rate |
---|---|
Alabama | $2,907 |
Alaska | $1,897 |
Arizona | $3,218 |
Arkansas | $2,739 |
California | $2,754 |
Colorado | $3,220 |
Connecticut | $3,028 |
Washington D.C. | $3,187 |
Delaware | $3,759 |
Florida | $3,766 |
Georgia | $3,009 |
Hawaii | $1,619 |
Idaho | $2,010 |
Illinois | $2,498 |
Indiana | $2,065 |
Iowa | $2,286 |
Kansas | $3,246 |
Kentucky | $4,200 |
Louisiana | $4,280 |
Maine | $2,201 |
Maryland | $3,308 |
Massachusetts | $2,315 |
Michigan | $5,766 |
Minnesota | $2,909 |
MIssissippi | $2,792 |
Missouri | $3,225 |
Montana | $2,754 |
Nebraska | $2,913 |
Nevada | $3,250 |
New Hampshire | $2,943 |
New Jersey | $4,316 |
New Mexico | $2,438 |
New York | $4,200 |
North Carolina | $2,511 |
North Dakota | $2,503 |
Ohio | $2,238 |
Oklahoma | $3,109 |
Oregon | $2,421 |
Pennsylvania | $2,532 |
Rhode Island | $3,494 |
South Carolina | $3,133 |
South Dakota | $3,217 |
Tennessee | $2,348 |
Texas | $2,926 |
Utah | $2,788 |
Vermont | $2,379 |
Virginia | $2,808 |
Washington | $1,803 |
West Virginia | $3,075 |
Wisconsin | $2,346 |
Wyoming | $2,393 |
Robert P. Hartwig, Ph.D.
Director of The Risk and Uncertainty Management Center at the University of South CarolinaHow can shoppers feel more confident when selecting an auto insurance provider?
It’s never been easier to ensure you’re getting a good price on auto insurance. Drivers can get dozens of quotes online in minutes, either through one of many online portals or directly through insurer websites and apps. A call to an agent can also generate one or more quotes within minutes. But as with any important purchase, price isn’t everything. Here are several suggestions to help you get the best insurance for your money:What additional coverage(s) would you recommend that shoppers pay for?
Even though not required (unless you have a loan or lease on your vehicle), you should consider carrying collision and comprehensive coverage if your vehicle is less than eight or nine years old. Most people should also carry bodily injury liability insurance coverage with limits of at least $100,000 per person and $300,000 per accident. Most states require minimum liability limits of just $25,000 per person. If you’re sued as the result of your involvement in an accident, costs could add up quickly, driving you into bankruptcy unless you have adequate coverage.What tips would you offer for someone looking to lower their car insurance rate?
PV Viswanath, Ph.D.
Graduate Program Chair of the Lubin School of Business at Pace UniversityHow can shoppers feel more confident when selecting an auto insurance provider?
What additional coverage(s) would you recommend that shoppers pay for?
What tips would you offer for someone looking to lower their car insurance rate?
Benjamin Shiller, Ph.D.
Assistant Professor of Economics at Brandeis UniversityHow can shoppers feel more confident when selecting an auto insurance provider?
Shop around. Each insurer has a different pricing algorithm, and the insurer that offers the lowest price for one person might not be the insurer that offers the lowest price for someone else. Furthermore, it isn't necessarily obvious that the insurer with the lowest price is the best choice. Quality matters, too (e.g., customer service, insurer ratings/solvency). Consider looking up A.M. Best insurance ratings in the process.What additional coverage(s) would you recommend that shoppers pay for?
Many people are worried about the size of the deductible, assuming smaller is better. However, insurance is intended to prevent someone from incurring a devastating expense that leaves them with poor finances in the long term. For example, if someone only has $100,000 of coverage, but then is sued and is forced to pay $500,000, they still owe $400,000 after the insurance payout. If choosing between higher coverage and a lower deductible, I always recommend higher (and broader) coverage. For those with more significant assets or high expected future earnings, umbrella insurance should be strongly considered.What tips would you offer for someone looking to lower their car insurance rate?
The best way to lower your insurance rate is to opt for one of the programs that monitors drivers (e.g., Progressive's Snapshot). If you drive safer while monitored, your insurance premiums are reduced. These programs have the added benefit that they .Additionally, consider the insurance cost when buying a new vehicle. A quick Google search can reveal which vehicles are in general cheapest to insure. Finally, opt for a higher deductible.Deanne Butchey, Ph.D.
Teaching Professor in the Department of Finance at Florida International UniversityHow can shoppers feel more confident when selecting an auto insurance provider?
Shoppers need to ensure the reputation of the auto insurance provider is pristine. Specifically, they need to investigate the following:What additional coverage(s) would you recommend that shoppers pay for?
It is important to review deductible coverages to ensure the ability to receive adequate compensation depending on your personal circumstances. You can offset the risk you are comfortable assuming to obtain a lower premium. For example, if you are able to borrow a car while your car is being repaired, avoid rental car coverage.What tips would you offer for someone looking to lower their car insurance rate?
It is important to:Aniruddha Pangarkar, Ph.D.
Assistant Professor of Marketing at The University of Wisconsin-Green BayHow can shoppers feel more confident when selecting an auto insurance provider?
Whether you are a first-time shopper looking at getting a car insurance policy for your new car or you are someone who is looking at switching to a new company, one of the most critical things before you embark on the process of contacting insurance companies is to first do your own research. By this, I refer to gathering information about each driver on the policy (their name, address, license numbers, date of birth, etc.), information about the car (make, model, VIN number, anticipated annual mileage, etc.), and driving history record (tickets, accidents, etc.). Once you collect this information, it is important to look at some of the auto insurance companies you have in mind online and compare them. In particular, shoppers should look at their coverage needs liability, which is required by most states, full coverage/comprehensive insurance (important and required if your car is financed), uninsured and underinsured motorist coverage, collision coverage, personal injury protection insurance, etc. Each individual's situation is different so it is important to evaluate what kind of coverage you need. The next step is to call up auto insurance companies, either captives (working for a single insurance company, for example State Farm), or an independent insurance agent who might represent several companies, or look up third-party comparison websites for insurance policies.Lastly, if you feel you need to also renew/get renters' insurance, then many companies can give you a bundled option that can save a lot of money. In short, shoppers need to be smart in doing their research, get quotes, and ask relevant questions before finalizing their auto insurance company, which would make them feel more confident of making the right decision.What additional coverage(s) would you recommend that shoppers pay for?
What tips would you offer for someone looking to lower their car insurance rate?
It is important for all shoppers to be smart and discerning. For example, if you are a teenage driver, then certain insurance providers offer good discounts for taking driver education programs or public safe-driving courses, which can alleviate higher insurance normally charged. A teenager with good grades can qualify for a discount from the insurance company. Many insurance companies provide drivers with a device that can be installed in their cars to rate driving tendencies, along with tracking daily mileage, hard braking, rapid acceleration, etc., which can lower insurance rates. There are other ways consumers can lower their insurance rate, such as increasing your deductible (which can result in a lower monthly payment), special discounts for serving in the military, teacher/educator discounts, reducing coverage on older cars, bundling of services (auto and renters' insurance/homeowners insurance from the same company), maintaining a good credit record, getting a low-annual-mileage discount, loyalty discount, discount on multiple vehicles, and accident-free record discount, etc. Lastly, it is important to also be on the lookout for cheaper car insurance policies at all times because the auto insurance industry is very competitive. Therefore, many companies will be pleased to get your business and looking at developing a long-term relationship with new customers.We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of billion casino royal:publishing standards and edi🦹torial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.