Shopping for auto insurance doesn’t have to be complicated. Clear Coverage Guide helps you explore auto insurance coverage options, understand the factors that can affect your premium, and find coverage that fits your needs and budget.
What Does Auto Insurance Cover?
Auto insurance can include several types of coverage designed to protect you, your vehicle, your passengers, and others on the road. The coverage available to you depends on the policy you choose, your state’s requirements, and the options offered by the insurer.
Liability Coverage — Helps pay for injuries or property damage you cause to others in an accident, subject to your policy limits.
Collision Coverage — Helps pay for damage to your vehicle resulting from a collision with another vehicle or object, subject to your deductible and policy terms.
Comprehensive Coverage — Helps cover certain types of damage to your vehicle that aren’t caused by a collision, such as theft, vandalism, fire, falling objects, or certain weather-related events.
Uninsured/Underinsured Motorist Coverage — May help protect you when you’re involved in an accident with a driver who has no insurance or does not have enough insurance to cover eligible losses.
Medical Payments or Personal Injury Protection (PIP) — Depending on your state and policy, these coverages may help pay eligible medical expenses for you or your passengers after an accident.
What Affects the Cost of Auto Insurance?
Auto insurance premiums can vary considerably from one driver to another. Insurers may consider several factors when determining your rate, and the factors used can vary by insurer and state.
Driving History — Accidents, traffic violations, and claims history can affect your premium.
Vehicle — Your vehicle’s make, model, age, value, repair costs, and certain safety features may influence the cost of coverage.
Location — Rates can vary based on where you live and factors such as accident frequency, theft, weather-related risks, and local claim costs.
Coverage and Deductibles — The coverage types, limits, and deductibles you select can significantly affect your premium.
Driving and Mileage — How you use your vehicle and how much you drive may be considered when determining your rate.
Discounts — Depending on the insurer, discounts may be available for factors such as bundling policies, certain safety features, or other eligibility requirements.
How to Compare Auto Insurance Options
When comparing auto insurance options, price is only one factor to consider. It’s also important to compare the coverage provided, policy limits, deductibles, available discounts, and other policy terms. Choosing coverage that fits your individual needs can be more important than simply selecting the lowest premium.
Compare the Same Coverage Limits — When comparing quotes, make sure the liability limits and other coverage limits are similar. A lower-priced policy may provide less protection, so comparing equivalent coverage can give you a more meaningful comparison.
Compare Deductibles — Review the deductibles for collision, comprehensive, and any other applicable coverages. Choosing a higher deductible may lower your premium, but it can also increase the amount you pay out of pocket after a covered loss.
Review Optional Coverages — Check whether each insurer offers additional coverage you may want, such as rental car reimbursement, roadside assistance, gap coverage, or other optional protections. Availability and terms can vary by insurer and state.
Compare Available Discounts — Review the discounts included with each quote. Depending on the insurer, discounts may be available for bundling policies, safe driving, vehicle safety features, automatic payments, low mileage, or other qualifying factors. Eligibility and savings vary by insurer and state.
Common Auto Insurance Questions
Is auto insurance required by law? — Auto insurance requirements vary by state. Most states require drivers to carry certain minimum levels of coverage, although the types and amounts required differ. Additional coverage may be required by a lender or leasing company if you finance or lease your vehicle. For additional information about auto coverage, visit the NAIC auto insurance consumer guide.
What is the difference between collision and comprehensive coverage? — Collision coverage generally helps pay for damage to your vehicle resulting from a collision with another vehicle or object. Comprehensive coverage generally helps cover certain non-collision losses, such as theft, vandalism, fire, falling objects, or certain weather-related damage, subject to your policy terms and deductible.
What does an auto insurance deductible mean? — A deductible is the amount you generally pay out of pocket toward a covered claim before your applicable coverage pays the remaining eligible amount, subject to the terms and limits of your policy. Deductibles commonly apply to collision and comprehensive coverage.
Does auto insurance cover rental cars? — Coverage for a rental car depends on your personal auto insurance policy and the type of coverage you carry. Some policies may extend certain coverages to a rental vehicle, but limitations and exclusions can apply. Check your policy or speak with your insurance professional before renting a vehicle.
How can I lower my auto insurance premium? — You may be able to lower your premium by comparing quotes, reviewing available discounts, maintaining a safe driving record, adjusting deductibles, reducing unnecessary optional coverages, or bundling multiple policies with the same insurer. Available savings and eligibility vary by insurer and state.
Get a Free Auto Insurance Coverage Review
Ready to explore your auto insurance options? Complete our free coverage review form to tell us what you’re looking for. We’ll use the information you provide to help identify coverage options that may fit your needs.