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To choose the best car insurance policy, start by determining how much coverage you need and comparing quotes, then choose a company based on affordability, customer reviews, and convenience. You should make sure the policy covers all of your assets and costs as little as possible for the coverage you need.
5 Steps to Choose Car Insurance
1. Determine What Coverage You Are Required to Have
Most states require certain types of auto insurance, such as liability, uninsured motorist, personal injury protection, or MedPay. Plus, if you have a loan or a lease for your car, your lender may require you to have collision and comprehensive insurance.
2. Look Into Optional Types of Coverage
In addition to the required types of insurance, it is recommended that you purchase as much insurance coverage as you can comfortably afford. For example, if you cannot afford to replace your car if it’s totaled in an accident, you should strongly consider getting collision insurance. Similarly, if you are concerned about the reliability of your car, emergency roadside assistance and mechanical breakdown insurance are great types of coverage to have.
3. Consider Deductible Options
Remember that some types of insurance coverage, like collision and comprehensive, will include deductibles. While a higher deductible will mean a cheaper monthly rate, it also means you’ll be paying a lot more out of pocket if an accident occurs. Only choose a deductible that you know you could afford to pay.
4. Choose Some Potential Companies
Start by looking at the best companies for a specific type of insurance coverage you know you’ll need, such as collision insurance or personal injury protection. You can also look at the best or cheapest car insurance companies in your state and narrow your choices from there.
5. Compare Quotes
Once you have a few companies picked out and you know what coverage you’re looking for, you can begin to get quotes. We recommend comparing quotes from at least three companies to make sure you’re getting the best deal, but the more quotes you get, the better informed you’ll be.
The easiest way to get car insurance quotes is online. But if you prefer a more personal approach, you can talk to designated agents from the companies you’ve picked or find a local broker who can walk you through quotes for several different companies.
Types of Car Insurance You May Need to Choose
| Type of Coverage | Required? | Why It Is Good to Have |
| Required in almost every state | To protect other drivers in accidents you cause | |
| Required for many loaned or leased cars | If you cannot afford to replace or repair your car if it is totaled in an accident | |
| Required for many loaned or leased cars | If you cannot afford to replace or repair your car if it is totaled from a non-accident-related event or stolen | |
| Required in 13 states | To protect yourself from expensive medical expenses | |
| Required in 20 states | To cover your vehicle repair costs and medical expenses if an uninsured motorist causes an accident | |
| Required in 2 states | To protect yourself from expensive medical expenses and to cover health insurance and PIP deductibles |
Optional Types of Car Insurance You Can Choose
- Gap insurance to cover the difference between what your car is worth and what you owe on a loan or lease if your car is totaled.
- Rental reimbursement so you can afford a rental car while your car is being repaired.
- Emergency roadside assistance to help you if you get stranded without gas or need a jump start or tow.
- Mechanical breakdown insurance to cover repairs for mechanical parts and systems at a low monthly price.
Factors to Consider When Choosing A Car Insurance Company
- Convenience: How easy is the company to work with?
- Discounts: Do they offer a wide range of discounts to help keep your rates low?
- Customer Reviews: Are customers mostly giving them positive reviews, and do your friends or family members have any experiences with the company?
- Ease of Filing Claims: Do they offer 24/7 claims support?
To learn more, check out WalletHub’s guides on the different types of car insurance, how to get car insurance quotes, and the best car insurance companies overall.
People also ask
What are the 3 types of car insurance?
The three types of car insurance that are universally offered are liability, comprehensive, and collision insurance. Drivers can still purchase other types of auto insurance coverage, like personal injury protection and uninsured/underinsured motorist, but they are not available in every state.
3 Major Types of Car Insurance Explained
1. Liability insurance
Liability car insurance is coverage that pays for other people’s expenses after accidents that you cause, and there are two components of it. Property damage liability...
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