Subrogation is the process that allows a car insurance company to collect money from the at-fault driver’s insurer for expenses paid after an accident. Subrogation makes it possible for drivers to receive insurance claims payouts before the insurance companies agree on who was at-fault. The at-fault driver’s insurance will ultimately cover the cost.

Key Takeaways About Subrogation

• The definition of subrogation is the legal right of one party to collect damages or debt originally owed to another entity by a third party.
• Car insurance subrogation allows the at-fault driver’s insurance company to compensate the other driver’s insurance company for any claims they paid.
• Policyholders benefit from subrogation, since it keeps premiums low for good drivers and helps insurance companies pay claims quickly.
• A waiver of subrogation is an agreement not to collect funds from the at-fault party. Drivers should always consult their insurance company before signing one.

EDITOR’S RATING

3.3 / 5

PROS

• Competitive rates.
• Generous discounts.
• Easy online policy purchasing process.
• Easy online claims process.
• Convenient self-service via mobile app.

CONS

• Higher than average number of customer complaints.
• No accident forgiveness.
• Rideshare policy only available in California, Illinois, and New Jersey.
• No local insurance agents.

Esurance is a pretty good insurance company, earning a rating of 3.3/5 from WalletHub, positive customer reviews, and solid ratings from organizations such as J.D. Power and the Better Business Bureau (BBB). Esurance, which is a subsidiary of Allstate, is best known for being online-based and specializing in cheap, basic insurance policies. Just keep in mind that Esurance only offers auto and home insurance, so it doesn't provide as many other types of coverage as some of its competitors.

The cheapest SR-22 insurance is from Geico, USAA, and Grange Insurance, according to WalletHub’s analysis of 17 major insurers. In addition to relatively low premiums for drivers who need an SR-22, these companies offer discounts that can help policyholders save even more on their high-risk coverage.

Cheapest SR-22 Insurance Companies

• Geico: $556 per year
• USAA: $576 per year
• Grange Insurance: $615 per year
• Progressive: $669 per year
• Mercury: $700 per year
• Travelers: $741 per year
• Wawanesa: $745 per year
• Esurance: $769 per year
• AAA: $795 per year

On average, an SR-22 requirement will raise a driver’s premium by up to 18%.If your state requires you to have an SR-22, your insurance company will file the form with the DMV on your behalf and charge a $15-$25 filing fee. Depending on your state, you’ll need to maintain your filing for 1-5 years.

The 3 biggest factors that affect car insurance rates are state coverage requirements, age, and the car’s make and model. The more coverage you’re required to buy in your state, the more you’ll pay for car insurance. Teen drivers tend to pay more in premiums than older, more experienced drivers. Vehicle type matters because insurance companies consider the safety, anti-theft, and repair-cost statistics for all cars they insure.

10 Factors That Affect Car Insurance Rates

1. State Requirements
2. Age
3. Car Make and Model
4. High-Risk Violations
5. Yearly Mileage
6. Credit History
7. Driving Record
8. Zip Code
9. Marital Status
10. Gender

Some of the factors that affect car insurance rates are within your control, such as your credit history and whether you’ve ever been convicted of drunk driving. Other factors are at least largely out of your control, like your city’s population density and your age.

The most important things to do after a car accident are to stay calm, call 911 if anyone is seriously injured and keep everyone away from oncoming traffic. Once everyone is safe, you should gather information for an insurance claim, including the other driver’s insurance information, witness contact details, and photos and notes related to the accident.

What to Do After a Car Accident

• Stay calm
• Keep everyone safe
• Call 911 & get a police report
• Get witness contact info
• Don’t admit fault
• Document the accident
• Exchange essential information
• Contact your insurance company

If you’re among the millions of HGTV viewers who’ve seen an episode of “Flip or Flop,” you’ve probably thought about the thrill of gutting a house and turning a five- or six-figure profit. But the process isn’t as easy as the professionals on television make it look. Any experienced home flipper would caution you that transforming a fixer-upper into a profitable property is a difficult process.

In other words, don’t get your hands dirty until you’ve learned a thing or two about real estate, construction and how much damage your project could do to your wallet. Breathing new life into a low-cost property won’t necessarily return your full investment and allow you to pocket another $63,500, the average gross flipping profit in Q1 2021. According to RealtyTrac, though, the current homeownership rate is 65.6 percent (down from a high of 69.20 percent in 2004). Current demand for homes is waning after a very strong 2020.

Americans are known for racking up credit-card debt, but just how much we have in total is shocking. At the beginning of 2021, Americans owed nearly $900 billion in credit-card debt. This is a bit less than we had in 2020, thanks to record paydowns due to the stimulus checks during COVID-19 pandemic. However, WalletHub projects that net credit card debt will increase by $60 billion in 2021.

Americans aren’t all in the same boat when it comes to credit-card debt, though. People in some states charge less than others, whether because they have been less impacted by the pandemic, are more responsible about their finances or a number of other factors. To determine which states have the least and most sustainable credit-card debts, WalletHub drew upon TransUnion credit data to calculate the cost and time required to pay off the median card balances of each of the 50 states and the District of Columbia.

What Is Property Damage Liability Insurance?

Property damage liability insurance is a type of coverage that pays for damage to someone else’s property, such as their car or home, resulting from an accident caused by the policyholder. Property damage liability coverage is one of two types of liability insurance and is required in most states.

What Property Damage Liability Insurance Covers

• Damage to other cars caused by the policyholder’s vehicle.
• Damage to any structure or stationary object, including houses and fences, caused by the policyholder’s vehicle.
• An established maximum dollar amount of damage per accident.

Property damage liability insurance never covers damage to the policyholder’s own vehicle or property. In order to cover their own vehicle repairs, the policyholder would instead need to use collision or comprehensive coverage.

Rideshare insurance is a type of car insurance that increases a driver’s coverage and lowers their deductible for accidents that occur when driving for Lyft, Uber, or similar companies. Without a rideshare insurance policy or a rideshare add-on, a driver’s personal car insurance will not apply when they are online with the app.

Best Rideshare Insurance Companies

• Geico
• Progressive
• Esurance
• USAA
• Travelers
• Mercury

Uber and Lyft provide broad coverage when drivers are picking up and driving a passenger. But they only provide liability insurance for drivers waiting for a ride request, creating a coverage gap. Consequently, rideshare insurance coverage can help supplement the insurance provided by Uber and Lyft.

EDITOR’S RATING

2.8 / 5

PROS

• Competitive rates.
• Mechanical breakdown protection.
• Rideshare coverage.

CONS

• Below-average customer service.
• No online claims filing.
• Limited coverage options and discounts.
• Must purchase a policy through an agent.
• Only available in 11 states.

Mercury Insurance is an average insurance company, earning a 2.8/5 rating from WalletHub and solid ratings from organizations like J.D. Power and the Better Business Bureau (BBB). Mercury offers insurance coverage for your car, home, business and more, but it’s only available in 11 states: Arizona, California, Florida, Georgia, Illinois, New Jersey, Nevada, New York, Oklahoma, Texas and Virginia. Still, Mercury ranks well among auto insurance providers in terms of price, according to WalletHub data. Mercury’s generous discounts make its policies even more affordable, too.