Car Insurance Guide

Affordable car insurance is just a click away with our expert research.

 

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Categories

  • Best Options for Me
  • Provider Reviews
  • Q&A's

 

More About Car Insurance Coverage

One of the first things you need to decide when shopping for car insurance is the type and amount of coverage you’ll need. While each state except Virginia and New Hampshire has minimum coverage requirements, most people purchase more than the minimum for adequate financial protection.

Below is a breakdown of the main types of car insurance:

  • Liability coverage is a combination of bodily injury liability (BI) and property damage liability (PD). This type of insurance covers you against costs associated with damages to other people and their property. It’s also an insurance requirement in most states.
  • Collision insurance covers the cost of damages to your car in the event you get into a collision with another car or an object. Some lenders may require that you carry collision insurance before financing your vehicle.
  • Comprehensive coverage protects your car against damages that aren’t from a collision. Examples include theft, vandalism, natural disasters, and civil disturbances. Some lenders may require you to carry comprehensive insurance before financing the car.
  • Medical payments insurance (MedPay) covers the costs of medical bills for you and your passengers, regardless of who was at fault in the case of an accident (not available in all states). Some no-fault insurance states require this coverage.
  • Personal injury protection (PIP) covers medical treatments similarly to MedPay but also covers other injury-related losses, such as lost wages from days you couldn’t work. Some no-fault insurance states require this coverage.
  • Uninsured/underinsured motorist coverage (UM/UIM) covers you when you get into an accident with a motorist who doesn’t have sufficient insurance and can’t cover your expenses. This Uninsured motorist coverage is mandatory in some no-fault insurance states.
Pictures representing the six standard types of car insurance.

Car Insurance Add-Ons

While you shop for car insurance, you may also see roadside assistance plans, accident forgiveness insurance, gap insurance, and rental car reimbursement.

Additional Coverage Details
Roadside assistance This provides assistance if you suffer a breakdown on the road. Usually includes towing, jump-start, lockout services, and flat tire changes.
Accident forgiveness This waives your first at-fault car accident and doesn’t raise your premium.
Gap insurance If you have an auto loan and your car is deemed a total loss, gap coverage can help pay the difference between your car’s value and the loan balance.
Rental car reimbursement This helps pay for a rental car if your vehicle’s in the shop, usually while you’re a certain distance away from home.

 

Not every insurer offers these types of coverage, but no reputable insurance company will sell you a policy that doesn’t meet your state’s minimum insurance requirements.

Comprehensive and collision coverage aren’t required but are a good idea for most drivers. These policies are worth the cost if you can’t afford to replace your car in the event of a worst-case scenario. In our January 2022 car insurance survey, about 67 percent of respondents reported buying a full coverage insurance plan. Full coverage includes the state minimum requirements as well as collision and comprehensive coverage.

If your vehicle is not especially valuable, the cost of comprehensive and collision insurance may not be worth it. Generally, you should consider skipping this coverage if the amount you pay for coverage each year exceeds 10 percent of your car’s total value. When you compare car insurance quotes, you can see a price breakdown for each type of coverage.

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Meet the team

Will Moore Senior Writer – Motor1 Review Team
Brogan Woodburn Senior Writer

Our Methodology

To help you get a better understanding of how to compare car insurance companies, we first need to explain how we rate providers. In order to determine which insurance companies are worthwhile, we consider industry standing, availability, coverage, cost, customer service, and technology.

Industry Standing

This rating takes into account a company’s longevity in conjunction with the rating given by the Better Business Bureau (BBB). The company’s market share according to the National Association of Insurance Commissioners (NAIC) as well as its AM Best financial strength rating give us a good indication of the provider’s stability. The financial rating from AM Best shows an insurer’s ability to pay out claims.

Availability

We don’t weigh this factor quite as heavily, as some insurers aren’t available in all parts of the country but still offer excellent service. It is important, however, to note if an insurance company imposes any restrictions on membership.

Coverage

The kinds of coverage options a company offers are hugely important. Beyond the six standard types of insurance, which all insurance companies should offer, we look at what optional coverages a company may provide. These additional types of coverage may include:

  • New car replacement
  • Accident forgiveness
  • Roadside assistance
  • Trip interruption
  • Gap insurance
  • Rideshare insurance
  • Rental car reimbursement
  • Telematics insurance

Cost And Discounts

The cost research we use in this article comes from data provided to us from Quadrant Information Services. We also factor in what kinds of discounts and how many a company offers in order to decide on a rating.

Customer Service

Customer service is a very important factor when it comes to choosing the right insurance company. For this rating, we looked at customer ratings and reviews on the BBB and Trustpilot, as well as NAIC complaint ratios. We also took data from our own customer survey, in which we asked nearly 7,000 respondents about their satisfaction with their insurance company and the customer service it provides. Finally, we include scores from three different J.D. Power studies:

  • J.D. Power 2022 U.S. Insurance Shopping Study℠
  • J.D. Power 2022 U.S. Auto Claims Satisfaction Study℠
  • J.D. Power 2022 U.S. Auto Insurance Study℠

Technology

To determine a technology score, we first check to see if a provider offers insurance quotes on its website. Though this is quite common, some companies only sell insurance coverage through agents, which makes it more difficult to compare against other providers. If a company has a mobile app or a usage-based insurance app, we look at customer reviews for each.

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