- Understanding insurance terms
- Factors that affect your premium
- Types of car insurance coverage
- Where to get car insurance
- How to save on car insurance
- Pros and cons of car insurance
- The bottom line
Understanding insurance terms
Factors that affect your premium
Where you live
Your driving record
Your age and gender
The insurance policy
Types of car insurance coverage
Bodily injury liability
Property damage liability
Medical payments or personal injury protection (PIP)
Uninsured and underinsured motorist coverage
- If you get into an accident with an uninsured driver.
- If you’re involved in an accident with a hit-and-run driver.
- If you get into an accident in which the other driver was at fault and the driver doesn’t have enough insurance to pay for your damages.
- If you’re struck by a vehicle while you’re walking.
Where to get car insurance
How to save on car insurance
- Compare before you buy. Don’t feel like you need to purchase the first car insurance policy that you find. Taking the time to research your options can help you find the policy that best fits your budget. Some insurance companies may offer programs that can save you money, and there are several discounts that you may be eligible for. If you’re in the market for a new vehicle, you can also look up the insurance costs for the cars that you’re considering before making your purchasing decision.
- Several companies make it easy to compare quotes. CarInsurance.net, for example, is a free tool to generate car insurance quote comparisons to help you find the best price. Read our full review on CarInsurance.net and how it works.
- Bundle your insurance policies. If you already have another type of insurance — such as homeowner’s or renter’s insurance — you can start by reaching out to your insurance company. Most insurance companies offer “bundling discounts” if you purchase your car insurance from the same company that you already have an insurance policy with.
- Change your deductible. You can usually lower your premium by raising your deductible. Doing this can help you save on the month-to-month costs of your car insurance. However, you should keep in mind that if you do need to file an insurance claim, you will be responsible for meeting your deductible before your insurance company will reimburse you for a covered claim.
- Look into other discounts. Don’t be shy — ask insurance companies if you qualify for any discounts! Most insurance companies offer discounts for things like taking a defensive driver's course and having a positive driver record. You may also be able to find discounts for being a good student, being a military member, and enrolling in certain programs offered by the insurance company.
Pros and cons of car insurance
Complying with state guidelines. If you’re driving a car, you must be able to prove that you would be able to pay for the damages if you cause an accident. The best way to do this is to have an active car insurance policy. If you do not have sufficient insurance, you run the risk of facing legal penalties such as having your driver’s license and/or car registration suspended. Financial protection. Even if you don’t face legal penalties, getting into an accident without insurance can be financially devastating. The price of your insurance premium is completely worth saving on costly repair shop charges and medical bills if you ever do need to file an insurance claim.
The only con is the cost. Paying for car insurance is just one more thing to worry about. But by doing your research to find the right policy and company for your needs, the pros of having insurance can easily weigh out this one con.
The bottom line
Reclaim Up to $610/Year in Car Insurance
Here’s the thing: your current car insurance company is probably overcharging you. But, who has the time to look around for around a new company?
A website called CarInsurance.net makes it super easy to see if you’re getting the lowest price. All you have to do is enter your ZIP code and your age, and it’ll show you your options.
Using CarInsurance.net, people have saved up to $610 a year.
It takes just a few minutes to see how much CarInsurance.net could put back in your pocket. And the best part? Because we’re driving less, some insurers are slashing prices this month.