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How much auto insurance do I need?
Do all states have a mandatory auto insurance minimum?

Auto Insurance Frequently Asked Questions

How much auto insurance do I need?
Do all states have a mandatory auto insurance minimum?
If I have a loan for my vehicle or if I am leasing, will it affect my auto insurance coverage?
What is no-fault insurance?
How do I get the best policy value for my money?
How do I get low auto insurance rates?
What are deductibles?
What auto insurance discounts are available?
What is collision coverage?
What is comprehensive coverage?
Is it worth paying for uninsured motorist coverage?
What are endorsements?
What are exclusions?
What does medical payments coverage pay for?
What should I do if I have an accident?
Can I rent a replacement vehicle?
How do I make a claim?
What does the actual cash value provision mean?
What is bodily injury liability?

Answers

How much auto insurance do I need?

There is no one right number for every individual. The amount of auto insurance you need depends on what you can afford to pay out of pocket in deductibles and what the total replacement value of your automobile is. It also depends on whether or not you will need to rent a car after an accident and whether you want your auto insurance policy to cover that cost.

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Do all states have a mandatory auto insurance minimum?

All but three states require you to carry some insurance. Check here and see our individual state guides for more detailed information.

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If I have a loan for my vehicle or if I am leasing, will it affect my auto insurance coverage?

Yes. You need to check the wording of your auto loan or lease/finance package to see what minimum requirements you must meet. If you do not own your car outright, chances are you will be required to have both collision and comprehensive coverage.

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What is no-fault insurance?

Some states require an individual's insurance company to settle the claims of their clients even if another driver was at fault for the incident. This is considered no-fault insurance coverage.

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How do I get the best policy value for my money?

By comparing online auto insurance quotes on this site, you'll get a wide variety of choices between different insurance companies, rates and benefits. To ensure you get the best value for your money, make sure you evaluate the benefits of each policy against its rates-don't just choose the cheapest option.

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How do I get low auto insurance rates?

The lowest auto insurance rates are awarded to those who have earned them. Be a safe driver, follow the speed limit laws and present a low risk of claims to your insurance company and you will be rewarded with low rates. You can also raise your deductibles and lower your limits in order to reduce your insurance costs further.

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What are deductibles?

This is the amount you agree to pay out-of-pocket if you get into an accident and make a claim. Learn more here.

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What auto insurance discounts are available?

You get discounts for everything from paying annual premiums instead of monthly installments to buying a car with special safety features to installing additional antitheft tracking devices that help law enforcement locate your car if it is stolen.

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What is collision coverage?

Collision coverage pays for the repair or replacement of any vehicle or object damaged in a collision. The maximum you can claim is your vehicle's fair market value less your deductible.

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What is comprehensive coverage?

Comprehensive coverage pays for damages that result from whatever perils are listed in the policy. This could include events like fire or flooding and may also include theft. The maximum you can claim is your vehicle's fair market value less the deductible.

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Is it worth paying for uninsured motorist coverage?

There are a significant number of drivers on the road who either do not carry any insurance or whose insurance is too low to pay out more than a fraction of the costs involved. Uninsured (or underinsured) motorist coverage protects you against this by ensuring that your policy will pay the claim. Many states require this coverage. To find out if yours does, see our state specific insurance guides.

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What are endorsements?

Endorsements are additional terms and coverages added on to a standard policy, e.g. when you add a second vehicle to the policy that you do not own but drive often.

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What are exclusions?

Exclusions are items or events that are excluded from coverage on your policy.

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What does medical payments coverage pay for?

This pays your medical expenses up to an agreed limit if you're injured in an accident (whether as a driver or a pedestrian) no matter who is at fault for the injury. Depending on the coverage you buy, it may also include passengers in your vehicle and family members being carried as passengers in another vehicle. This coverage may not be necessary if you have health insurance.

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What should I do if I have an accident?

If you are involved in a traffic accident, contact the police at the scene and get the names, addresses and insurance details of everyone else involved. Then call your insurance company.

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Can I rent a replacement vehicle?

If your policy includes rental car reimbursement then you may be able to. Read your policy for details.

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How do I make a claim?

Most insurance companies allow you to make claims either online or over the phone. Some insurers will even send a claims inspector to the scene of your accident if you call them while you are there.

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What does the actual cash value provision mean?

If you vehicle is totaled, you're only allowed to claim the actual cash value (also referred to as fair market value) of that vehicle at the time of the accident. This means it will have depreciated some from the original value. Replacement value reimburses you the amount you would need to replace the vehicle.

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What is bodily injury liability?

If you injure or kill someone in an accident, you have to pay the medical expenses for treating that person and damages for pain and suffering. Bodily injury liability will cover the amount of this cost that exceeds the deductible (up to the amount of the coverage limits).

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