Almost every state requires all drivers to have car insurance. Without
it, you’re prone to significantly higher financial loss whether you’re
involved in an accident or your car gets stolen. Insurance protects you,
your passengers, and your car in the case of an emergency. If you’re new
to shopping for car insurance, it’s important to shop around for the
best rate and terms possible. Here’s a comprehensive guide on everything
you need to know to buy car insurance.
What is Car Insurance?
A car insurance policy provides financial protection from a variety of
bodily injuries, property damage, and medical costs,
depending on your specific insurance policy terms. Paying a premium to a
car insurance company can spare you from having to pay the high costs
that can be incurred following a car accident.
What is a Premium?
A car insurance premium is an amount you pay to maintain your insurance
policy. Car insurance companies may require
monthly, quarterly, bi-annual, or annual payments to provide
insurance coverage. Insurance companies will calculate your premium
a variety of factors
that may include your credit history, car type, driving history, and the
What is a Deductible?
A car insurance deductible is the amount of money you’ll pay out
of pocket after an accident. Generally,
low deductibles have higher premiums and vice versa. Some car
insurance policyholders can choose to
pay low premiums, but risk paying more out-of-pocket after an accident than those who
choose a policy with a higher premium. Make sure to work with your
insurance agent on the perfect balance of premium and deductible to fit
How to Buy Car Insurance
It’s never been easier to buy car insurance, even if it’s
your first time. You can choose to buy car insurance online, over the
phone, in-person, or
a combination of all three methods. Regardless of your preference, it’s helpful to shop around for
the best price possible. Insurance companies use different factors to
determine your rate, so you may find a better deal if you do your
From an Insurer’s Agent or Website
Most car insurance companies are easily accessible by phone or through
their website. You don’t need to search for an insurance broker to
help you choose an insurance company. While a bit impersonal, online
insurance shopping gives you plenty of time to make an informed decision
and compare clearly laid out insurance policy options.
Buying car insurance online directly from an insurer’s website
gives you the freedom to customize your insurance package and removes
the pressure of dealing with an insurance agent. You’re also able
to seamlessly look through their insurance coverage options as well as
those of competitors’.
Different Types of Car Insurance
Car insurance coverage varies depending on the specific coverage you
choose. Knowing the different types of car insurances can help you
choose the exact one you need and avoid the ones you don’t. Learn
about the different
types of auto insurance coverage
available and choose the coverage you need.
Some of the different coverages and add-ons include: