Why do I need car insurance?

Liability car insurance is required to drive legally in nearly all states because it helps pay for damage and injuries to others that you cause in an accident. It also helps pay legal costs if you’re taken to court because of an accident. Optional physical damage coverages, comprehensive and collision, pay for damage to your own car regardless of fault. Though it does cost the average driver around $1,300 for full coverage car insurance, it can save you a lot of money. Here’s why:

  • You’re financially protected – with no car insurance, you’d have to pay out-of-pocket for accidents and injuries you cause
  • Your house, savings and assets aren’t at risk should you cause an accident
  • You get reimbursed so you can repair your car after an accident

How do I compare car insurance quotes?

To get the lowest price on your car insurance, you need to compare auto insurance quotes to see which company has the most affordable rate. The cost of a policy can differ by hundreds, sometimes thousands, of dollars. Insurance companies use different methods when deciding how much you pay, so each will have a different price for your coverage. CarInsurance.com Consumer Analyst Penny Gusner offers the following expert advice on comparing car insurance quotes:

  • Assess your coverage needs and decide how much insurance to buy
  • Compare the exact same coverage level
  • Compare at least three different auto insurance companies
  • Research customer satisfaction and claims handling, don’t choose only on price
  • Don’t cancel your existing coverage until you have a new policy in place

Best times to compare car insurance rates

Assess your car insurance cost at these times, when your rates are likely to change:

  • Purchasing a car
  • Adding or removing a driver from a policy
  • Marriage or divorce
  • Moving
  • Adding a teen driver
  • Buying a house
  • DUI or major violation
  • Accident
  • Change in credit score

Related posts

Leave a Comment