Vehicle Insurance
Explore our vehicle insurance articles to learn everything you need to know.
How Much Car Insurance Do You Really Need? A State-by-State Look (Focus on a few key states for detail)
Confused about car insurance needs? This guide reveals how much auto insurance you really need, covering state minimums and essential extra coverages for true financial protection.
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Insurance ExpertMotorcycle Insurance: Specific Needs and Coverage Types
Navigate motorcycle insurance by understanding its specific needs and coverage types. Protect your bike, liability, and self with essential tailored motorcycle insurance options for every rider.
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Insurance ExpertFull Coverage Auto Insurance: What It Includes and Is It Worth It?
Demystify full coverage auto insurance! Learn its core components—liability, collision, comprehensive, and more—and determine if this essential car insurance protection is worth the investment for your financial peace of mind.
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Frequently Asked Questions About Vehicle Insurance
Collision coverage pays for damage to your vehicle resulting from a collision with another vehicle or object, regardless of who is at fault. Comprehensive coverage pays for damage to your vehicle caused by events other than collisions, such as theft, vandalism, fire, natural disasters, falling objects, or animal collisions. While both are optional coverages, they're often required if you have a car loan or lease.
Liability coverage protects you financially if you're responsible for injuring someone or damaging their property in an auto accident. It consists of bodily injury liability (covers medical expenses, lost wages, and legal costs if you injure someone) and property damage liability (covers repair or replacement costs if you damage someone else's property). This coverage is legally required in most states and protects your assets from being seized to pay for damages you cause.
Your auto insurance rates will likely increase after an accident if you're determined to be at fault. The increase typically lasts 3-5 years and can be substantial (20-40% or more). However, many insurers offer accident forgiveness programs that prevent rate increases after your first at-fault accident. Some insurers may not raise rates for minor claims or if you have a long history of safe driving. If the accident wasn't your fault, your rates might not increase at all.
A car insurance deductible is the amount you pay out of pocket before your insurance covers the rest of a claim. For example, with a $500 deductible, if repairs cost $2,000, you pay $500 and your insurer pays $1,500. Deductibles apply to collision and comprehensive claims, but not to liability claims. Choosing a higher deductible lowers your premium but means higher out-of-pocket costs when you file a claim. Deductibles are applied per claim, not per policy period.
Common auto insurance discounts include: safe driver discounts (accident-free for several years), multi-policy discounts (bundling auto with home/renters insurance), multi-vehicle discounts, good student discounts, defensive driving course discounts, safety feature discounts (anti-theft devices, anti-lock brakes), payment discounts (autopay, pay-in-full), membership discounts (professional organizations, alumni associations), and loyalty discounts for long-term customers. The availability and amount of discounts vary by insurer.