Car insurance basics
If you drive in America, you need car insurance; it’s the law and it makes good common sense. Every state in the country requires that you have at least a minimum amount of coverage before you get on the road.

What is car insurance?
Car Insurance protects you financially from a variety of losses related to your car. Insurance will pay to fix your car after an accident, or pay to fix another person's car, repair her property, or provide for her medical care if you're responsible for the accident.

What kind of insurance coverage do I need?
Most states require that you have liability insurance; to pay the other drivers for whatever damage you cause in an at-fault accident. Comprehensive coverage pays for the physical damage to your car from things like fire, theft, weather, and vandalism. Collision coverage pays for damage to your car if the accident was your fault (if the other driver was at-fault his insurance will pay for your damages).

How do I choose the right Auto Insurance Policy?
The minimum liability coverage required by your state may likely be low – so if you hit an expensive car, the other driver (or her insurance company) may sue you for any excess damages. Think about a higher coverage limit if you can afford it – and if you have assets to protect in case you get sued.

While most states don’t require Comprehensive or Collision coverage, you should think carefully before deciding to forgo them. Can you afford to buy a new car if yours is damaged or destroyed in an accident, flood, fire, etc., or is stolen? If not, you should probably get comprehensive/collision coverage. Depending on your situation, there may be a variety of other coverages that you might want to consider: gap, medical payment, towing, rental, etc.

Finally, and most importantly, don’t assume that every car insurance policy costs the same. The same level of coverage can cost hundreds of dollars more or less depending on the insurance company. Compare car insurance rates. Shop around and compare quotes. If you would like some help, use the [Get Quotes] button and we’ll show you how much you can save.