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Questions to ask your insurance agent

Katie Dee on 2024-10-21

Questions to ask your insurance agent

Picture of Written by <a href="https://rateretriever.com/about/katie-dee/"><span style="text-decoration: underline;">Katie Dee</span></a>
Written by Katie Dee
Picture of Edited by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>
Edited by Alyssa DiCrasto

When you’re shopping for car insurance, working with an agent provides you with a wealth of information that can help make the process feel a little less overwhelming. But it’s important to know the right questions to ask your agent so they can help you understand your policy and ensure you’re getting the best policy for your needs.

We are here to help you nail down how to start the conversation with your car insurance agent.

What are my coverage options and what is the best one for me?

Getting an overview of your coverage options is the best place to start the conversation with your car insurance agent. There is so much that goes into nailing down the right policy, and having your car insurance agent talk you through all your options and answer any additional questions that come up is a good way to dive into the insurance shopping process.

After reviewing all the options you can choose from, you can start narrowing things down until you find the best coverage option for you. Your agent will be able to provide valuable guidance here and assist you in making an informed decision that will keep you protected on the road.

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How is my premium determined?

Learning how exactly car insurance companies set rates will help you ensure that you are not overpaying for your insurance. There are several aspects that providers consider when they are setting rates, including the car you drive, the state you live in, your driving record, and more. Speaking with an agent about all these different factors can help to give you an idea of what your specific premium will look like, so you can be sure you’re getting the best deal possible.

Even after you have selected a company and chosen a policy, having your agent there to answer questions and break down why you’re paying the amount that you are will help you feel confident in the choice that you made.

Am I eligible for any discounts?

This is a key topic to go over with your insurance agent. There are several discounts available for car insurance, and odds are you’re not aware of all of them (even the ones you qualify for).

Your car insurance agent can inform you of any applicable discounts that you may not have been aware of otherwise. Knowledge is power when it comes to saving money on car insurance, and with an agent in your back pocket, you’ll have access to all the discount knowledge you could ask for.

What is my deductible and how does it work?

In simple terms, a car insurance deductible is the amount of money you owe out of pocket when you file a claim before your insurance company kicks in to cover the rest. This number will be different for every driver and every policy, and your insurance agent can help talk you through nailing down the right deductible for you.

What are the exclusions and limitations of my policy?

When purchasing a car insurance policy, it is vitally important that you not only understand what is covered, but also what is not. Your insurance agent will be able to break down the intricacies of your specific policy and help you to understand any limitations it has.

Exclusions and limitations are an expected part of any car insurance policy, and understanding them can help you be better prepared for any possible financial burden you may take on when you need to file a claim.

What are my payment options?

Car insurance companies usually offer different options for payment, and your agent can help you understand what those options are. It is common to pay for insurance on a six-month cadence (meaning you pay for coverage twice a year). However, most companies offer you the option to choose other payment options like monthly or even yearly payments. Some companies even offer discounts if you pay for your policy in full annually.

How can I adjust my coverage in the future?

As your needs change, you can adjust your car insurance coverage accordingly. Whether you get a new car or need to add a new driver to your policy, knowing the ins and outs of how you can adjust your coverage is always a smart move.

Bringing this topic up with your car insurance agent is a great way to ensure that you are prepared to alter your coverage as needed. Having a base level understanding of this process from the jump will make the whole thing seem less daunting when the time to make changes actually comes around. Plus, when that time does come, your agent will be able to guide you through the entire process.

Frequently asked

What factors affect your car insurance rates?

There are dozens of factors that affect car insurance rates. Some of the most notable factors are your location, age, gender, credit score, driving record, claim history, vehicle type, coverage limits, coverage types, and deductible. Additionally, the car insurance company you select can affect your car insurance premium.

Does your lifestyle affect your car insurance?

There are several lifestyle-related factors that can impact the cost of your auto insurance policy. For example, if you have a long commute to work or take road trips frequently, you might pay more for car insurance than someone who drives less often. Similarly, if you live in a city or urban area, your rate might be higher than someone who lives in a rural area. However, factors like your job, hobbies, or health don’t have any impact on your car insurance.

How does where you live influence the cost of auto insurance?

Where you live has a significant impact on the cost of your car insurance policy. Insurance companies look at things like the severe weather risks in your area, the rate of vehicle thefts in your neighborhood, the number of uninsured drivers in your location, and the cost of car repairs and labor. If you live in an area with few risks, you will probably pay less for car insurance.

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What is an SR-22 Form?

Katie Dee on 2024-10-16

What is an SR-22 Form?

Picture of Written by <a href="https://rateretriever.com/about/katie-dee/"><span style="text-decoration: underline;">Katie Dee</span></a>
Written by Katie Dee
Picture of Edited by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>
Edited by Alyssa DiCrasto

If you are a high-risk driver, you may be required to obtain an SR-22 Form – also known as an SR-22 Bond or a Certificate of Financial Responsibility – in order to obtain car insurance. Your insurance company files this form with your state’s Department of Motor Vehicles, and it serves as proof that you have the right amount of liability insurance for your state.  

You may be considered a high-risk driver if you have been involved in several at-fault accidents, or have a history of severe violations like a DUI or a DWI, or even if you have a lapse in insurance.

How do I know if I need an SR-22?

It’s important to note that not every state requires drivers with serious infractions to acquire an SR-22 Form. As of 2024, if you live in Delaware, Kentucky, Minnesota, New Mexico, New York, North Carolina, Oklahoma, or Pennsylvania, you won’t need an SR-22 even after a serious driving violation.

If you’re in any other state, you will usually receive a court order to notify you if you are required to obtain an SR-22 Form from your insurance company. You can also talk with an insurance agent, and they can walk you through the process and ensure you’ve checked all your boxes.

Unfortunately, not every insurance company will want to cover a driver that requires an SR-22 because of the risk involved. That being said, you may end up needing to shop around for a new policy.

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Why would I need an SR-22?

Some reasons you might be required to get an SR-22 Form include:

  • You have a DUI, DWI, or other serious driving violation
  • You have been found driving without insurance
  • You have had a lapse in insurance
  • You have several traffic violations or at-fault accidents in a short time period
  • You are driving a car that is not properly registered
  • You need to reinstate a revoked or suspended license

While the rules and regulations around SR-22 Forms vary from state to state, the majority of these qualifying violations will look the same.

How much will an SR-22 cost me?

While the cost to file an SR-22 is typically pretty inexpensive (around $25), there will also be an impact on your car insurance premium. The severity of this financial impact is more about the infraction that led to the SR-22 than the form itself. Car insurance companies set rates based on a number of factors, including your driving record, so having severe infractions on your record will inevitably raise your rates.

For example, if you need to file an SR-22 Form because you got a DUI, the increase in your insurance costs will be a result of the DUI, not the SR-22.

How long will I need an SR-22?

The duration of your SR-22 requirement will vary depending on your state as well as the infraction that led to it. On average, an SR-22 Form is required for 2-3 years (as long as you maintain a safe driving record in that time period), but your state’s DMV will be able to let you know the exact length of your requirement.

Frequently asked

What factors affect your car insurance rates?

There are dozens of factors that affect car insurance rates. Some of the most notable factors are your location, age, gender, credit score, driving record, claim history, vehicle type, coverage limits, coverage types, and deductible. Additionally, the car insurance company you select can affect your car insurance premium.

Does your lifestyle affect your car insurance?

There are several lifestyle-related factors that can impact the cost of your auto insurance policy. For example, if you have a long commute to work or take road trips frequently, you might pay more for car insurance than someone who drives less often. Similarly, if you live in a city or urban area, your rate might be higher than someone who lives in a rural area. However, factors like your job, hobbies, or health don’t have any impact on your car insurance.

How does where you live influence the cost of auto insurance?

Where you live has a significant impact on the cost of your car insurance policy. Insurance companies look at things like the severe weather risks in your area, the rate of vehicle thefts in your neighborhood, the number of uninsured drivers in your location, and the cost of car repairs and labor. If you live in an area with few risks, you will probably pay less for car insurance.

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10 Emerging car insurance trends to look out for

Katie Dee on 2024-10-04

10 Emerging car insurance trends to look out for

Picture of Written by <a href="https://rateretriever.com/about/katie-dee/"><span style="text-decoration: underline;">Katie Dee</span></a>
Written by Katie Dee
Picture of Edited by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>
Edited by Alyssa DiCrasto

The car insurance industry is a constantly evolving and innovative space. For consumers, it can sometimes feel impossible to keep up with all the new technology and coverage options available. That’s where we come in.

Staying in the know is one of the best ways for you to save money on your car insurance premiums, so we did the leg work and compiled a list of the most prevalent emerging insurance trends for you.

1) Usage-based insurance (UBI)

This is a type of car insurance that uses data about your driving habits to help personalize your premium. UBI looks at aspects such as how many miles you drive, when you drive, and where you drive, as well as safe driving habits like how fast you drive and how you brake and accelerate in order to assign you a rate that more accurately reflects your driving habits.

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2) On-demand car insurance

This type of insurance works best for drivers who need coverage but don’t need it for a full year (the length of most traditional policies). It allows you the flexibility to pay for coverage when and how you need it.

3) Pay-per-mile insurance

Pay-per-mile car insurance allows you to pay for coverage based on how many miles you drive. This kind of insurance could be right for you if you need coverage on a car that you don’t drive regularly because it could help to save you big on your rates.

4) AI and automation

Insurance companies have started to integrate AI technology into their claims processing, customer services response, and risk assessment. This technology allows insurance companies to more quickly and efficiently handle repetitive processes and answer routine questions. This is a benefit to you because it helps to improve customer services such as getting your questions answered quickly and speeding up the whole claims process.

5) Advanced safety features

As driver-assistance systems in vehicles get more and more advanced, a lot of insurers have started offering discounts for drivers with cars that include these features. This encourages people to choose safer vehicles in order to save on their insurance rates, even if the vehicle itself might be more expensive up front.

6) Electric vehicles

As electric vehicles (EVs) gain popularity, insurers are adapting their policies to cover specific risks associated with EVs—like fire and electrocution. Insurance providers also may offer incentives for eco-friendly vehicles.

7) Predictive analytics

Insurers are leveraging predictive analytics to assess risk profiles and improve underwriting processes. The goal here is to more accurate set rates based on individual driver behaviors and conditions. Ideally, this will make car insurance fairer as well.

8) Regulatory changes

Evolving regulations regarding data privacy and insurance practices are impacting how car insurance providers collect and use consumer data, increasing price transparency.

9) Connected Cars

As vehicles become smarter and more connected, the risk of cyber threats has increased. Because of this, insurers are starting to develop policies that address potential cyber vulnerabilities in connected cars.

10) Smart Contracts

Smart contracts are self-executing agreements that can automate different tasks in the insurance space. They are changing the way insurance companies go about policy enforcement, policyholder interactions, fraud prevention, and more.

Frequently asked

What factors affect your car insurance rates?

There are dozens of factors that affect car insurance rates. Some of the most notable factors are your location, age, gender, credit score, driving record, claim history, vehicle type, coverage limits, coverage types, and deductible. Additionally, the car insurance company you select can affect your car insurance premium.

Does your lifestyle affect your car insurance?

There are several lifestyle-related factors that can impact the cost of your auto insurance policy. For example, if you have a long commute to work or take road trips frequently, you might pay more for car insurance than someone who drives less often. Similarly, if you live in a city or urban area, your rate might be higher than someone who lives in a rural area. However, factors like your job, hobbies, or health don’t have any impact on your car insurance.

How does where you live influence the cost of auto insurance?

Where you live has a significant impact on the cost of your car insurance policy. Insurance companies look at things like the severe weather risks in your area, the rate of vehicle thefts in your neighborhood, the number of uninsured drivers in your location, and the cost of car repairs and labor. If you live in an area with few risks, you will probably pay less for car insurance.

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Top 10 Car Insurance Myths Debunked

Katie Dee on 2024-09-06

Top 10 Car Insurance Myths Debunked

Picture of Written by <a href="https://rateretriever.com/about/katie-dee/"><span style="text-decoration: underline;">Katie Dee</span></a>
Written by Katie Dee
Picture of Edited by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>
Edited by Alyssa DiCrasto

1) Your credit score doesn't impact your insurance rate

While credit score might not feel relevant for car insurance rates, as of 2024, California, Hawaii, and Massachusetts are the only states where credit score is not considered a rating factor. If you live in any other state, insurance companies will use your credit score as an indicator of risk, and it will impact your premium. In fact, drivers with excellent credit pay an average of 17% less for car insurance while those with poor credit pay 91% more.

2) Red cars cost more to insure

The car you drive does impact the price you’ll pay for insurance. However, the color of your vehicle will not impact your insurance rates. Insurance companies look at aspects such as the make and model of your car as well as your driving record to set rates. The only time you would need to disclose the color of your vehicle to your insurance company is if you have a custom paint job you want your insurance to cover.

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3) All insurance companies provide the same coverage

The truth is, no two insurance companies are built the same. Insurance policies from different providers can vary widely depending on factors such as coverage level, exclusions, and limits.

4) The more expensive a car, the pricier it is to insure

While newer, more expensive vehicles usually cost more to insure, the cost to repair and replace parts matters much more than the purchasing price of a vehicle when it comes to insurance rates. Additionally, newer cars sometimes have safety features or qualify for other discounts can bring insurance costs down.

5) You only need state-minimum liability insurance

While most states enforce a minimum coverage level for liability insurance, it likely will not be enough if you are involved in an expensive accident. Opting for only the minimum required insurance means that you will probably end up paying more out of pocket in the event of an accident.

6) Comprehensive insurance covers everything

Contrary to its name, comprehensive insurance is not really comprehensive. Comprehensive coverage is designed to cover incidents that are not covered by other aspects of your insurance policy, but it does not cover everything. For example, comprehensive coverage takes care of collisions with an animal, weather damage, and fire damage, but doesn’t cover collisions with other vehicles or accidents involving an uninsured motorist.

7) You can negotiate your premium

Unfortunately, negotiation isn’t an option when it comes to car insurance premiums. Insurance companies have a rating system that they use to determine what different drivers’ premiums will look like. This system is approved and regulated by state insurance departments, and so premiums are not negotiable.

However, you can control your rate by comparing prices from different insurance companies or by minimizing your risk so insurance companies feel more comfortable assigning you a lower premium.

8) Car insurance quotes are exactly what you will pay

While quotes can get pretty close, they are not the exact amount you will pay for auto insurance. Quotes serve as an estimate of what you can expect to pay based on the information you provide to a carrier. It is not the same as your rate, which is the exact amount that you will pay for car insurance. Once you decide to buy from a certain company, they will write you a policy and give you your final premium price.

9) A no-fault accident will never impact your rates

Unfortunately, any time you submit a claim to your insurance company there is a chance that your premium will increase, even if you are not the one at fault. However, if the at-fault drivers’ coverage takes care of everything and you do not need to submit a claim to your insurance company, your rates should not be affected.

10) Car insurance covers any item stolen from your car or damaged in an accident

More often than not, car insurance does not cover theft or damage of personal belongings. The best way to protect your valuable belongings is by adding them to your home or renters insurance policy.

Frequently asked

What factors affect your car insurance rates?

There are dozens of factors that affect car insurance rates. Some of the most notable factors are your location, age, gender, credit score, driving record, claim history, vehicle type, coverage limits, coverage types, and deductible. Additionally, the car insurance company you select can affect your car insurance premium.

Does your lifestyle affect your car insurance?

There are several lifestyle-related factors that can impact the cost of your auto insurance policy. For example, if you have a long commute to work or take road trips frequently, you might pay more for car insurance than someone who drives less often. Similarly, if you live in a city or urban area, your rate might be higher than someone who lives in a rural area. However, factors like your job, hobbies, or health don’t have any impact on your car insurance.

How does where you live influence the cost of auto insurance?

Where you live has a significant impact on the cost of your car insurance policy. Insurance companies look at things like the severe weather risks in your area, the rate of vehicle thefts in your neighborhood, the number of uninsured drivers in your location, and the cost of car repairs and labor. If you live in an area with few risks, you will probably pay less for car insurance.

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results.  

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you. 

Rate Retriever is an independent company that is not owned by an insurance provider, nor do we provide insurance ourselves. This independence allows us to be your free and impartial insurance research tool, helping you make the best decisions for your insurance needs.  

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide. 

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Top 3 reasons why you should work with a local insurance agent in Texas

Katie Dee on 2024-03-25

Top 3 reasons why you should work with a local insurance agent in Texas

Picture of Written by <a href="https://rateretriever.com/about/katie-dee/"><span style="text-decoration: underline;">Katie Dee</span></a>
Written by Katie Dee
Written by Katie Dee
Picture of Edited by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>
Edited by Alyssa DiCrasto
Edited by Alyssa DiCrasto
Published on 2024-03-25

Read time: 3 min

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When you are beginning your insurance shopping process in Texas, there are several questions that you must consider. These include things like how much coverage you need, how your credit score might impact your rates, what the minimum coverage limits are in Texas, and so many more. It can be easy to fall victim to decision paralysis and end up choosing the first car insurance company you get in touch with. However, working with a local insurance agent in Texas can help you make it through with the coverage you need, the price you’re looking for, and the confidence that you’ve made the right choice.

There are several benefits to working with local agents when shopping for car insurance, but it really comes down to three key points. We have broken them down below to help you decide if working with a local agent in Texas is right for you.

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1: Agents offer personalized, dedicated assistance

One of the most frustrating things about customer service these days is how tough it can be to get a human on the phone. So often, there are rounds of online chat bots or automated voice systems you need to go through before reaching a representative. Unfortunately, the same is often true of car insurance providers.

Local agents are different because they provide clients with a single number to reach them directly. This cuts out frustrating automated systems to reach a human and, since you speak with the same person every time you call, there is a level of continuity that working with providers doesn’t always offer you.  

According to Sally Mercer, Farmers Agent and Agency Owner in Pearland, TX, local agents take the time needed to speak with you and answer every question you have within the context of your specific policy.

“Local agents take the time to listen, ask questions, and offer options based on client needs and budget – no website, online application or representative in a call center is able to do this properly,” Mercer explained.

Stephanie Prather, Allstate Insurance Agent in Haslet, TX, emphasized this point, saying that agents will take more time with you to really get to know and understand your car insurance needs.

“We have the opportunity to speak personally with the driver to ask the questions needed to ensure they are getting all the discounts they are eligible for,” Prather said. “Also, we would have the opportunity to get to know the customer, this would help us know more about their requirements, budget and family, to make sure we are getting the most suitable policy for their specific needs.”

2: Access to a wealth of knowledge

Car, coins, and calculator

The research involved in the car insurance shopping process can feel daunting. With numerous factors to consider and each state setting their own minimum requirements it can be tricky to ensure nothing falls through the cracks.

Charles Nicholas, Farmers Insurance Agent in San Antonio, TX, explained that local agents help to take this burden off drivers. “If they are speaking with an actual agent, they will be able to gather much more detailed information about them and their family and identify other potential discounts and coverage options they might not be aware of if shopping online or using an 800 number to buy insurance,” he said.

Since car insurance is a fairly large and complex expense, having a local agent there to help explain all the nuances of your policy can help you understand why your rate looks the way that it does and give you a sense of security that you are not overpaying – but also that you have the coverage you need.

Nicholas continued, “We might not always be able to save them money, but we will make sure they understand the coverages they have and how they work in the case of an accident.”

3: Opportunities for long term savings

The final key benefit of working with a local insurance agent in Texas is that they can help save you money not just up front, but down the road as well. Local agents have the necessary experience to consider what your claim payout may look like in the event of a future accident, theft, or repair and make sure that you understand what you are likely to be responsible for.

This is something that you may not be immediately concerned with because there is no guarantee that you will ever need to file a claim, but it is an essential thing to consider when shopping for insurance. A really good insurance agent will be able to strike that perfect balance between having a low monthly premium and ensuring that filing a claim won’t bury you.

Bryan Douget, Farmers Insurance Agent in Angleton, TX said, “Aside from the obvious that shopping local is always best for local economy, a local agent helps guide and educate needs vs wants. We all ‘want cheaper’ but we also ‘need’ to be educated on the risks of such decisions.”

This can be especially helpful when determining deductibles because while a higher deductible may lower your rate in the short term, you may be left with more financial responsibility in the future. A local insurance agent will help you assess these risks so you can confidently make the best decision for you.

Frequently asked

How does the insurance company determine my rate?

Car insurance companies determine how much they charge you based on your driver profile. Factors that can impact your rates include: 

  • Demographics –  your age, home ownership, credit score, and more 
  • Your driving history – how long you’ve been driving, traffic violations, and more 
  • Your car –  make, model, and year 
  • Where you live –  state and zip code 
  • How much coverage you want 

Read more about the factors that impact your car insurance rate 

How do I switch my car insurance?

Switching your car insurance is easy, even if you are in the middle of your current policy.

Here are some helpful tips to consider to switch your car insurance:

  1. Decide what coverage you want with your next policy 
  2. Check if your current provider charges cancellation penalties or fees 
  3. Compare prices from at least 3-5 insurance companies (Rate Retriever makes this easy, giving you personalized rates from the top companies near you)
  4. Get a final quote from at least one of your choices
  5. Cancel your current policy once your new one begins

Read more about how to switch your car insurance 

How much car insurance do I need?

The answer to this question depends on where you live and what you would like to cover.

Each state has its own minimum requirements on the type and amount of insurance needed. When you’re trying to determine what and how much car insurance you need, you can start by reviewing your state’s requirements.

Find out what’s required in your state 

Once you review your state’s minimum requirements, you may find that you want additional coverage. For example, sometimes owners of new cars want comprehensive coverage to insure their car from natural disasters and vandalism, even though comprehensive coverage isn’t required by their state. To figure out what insurance you want, you can review the different types of insurance to decide what makes the most sense for your situation.  

Learn about the different types of car insurance 

How is Rate Retriever different than other insurance websites?

The biggest difference between Rate Retriever and other comparison sites is that we are a free and impartial research tool NOT an insurance marketplace.​ This means you can’t purchase a policy directly through RateRetriever.com, but you can use our tool to independently research your options and seamlessly connect with the provider you choose.

Unlike other insurance comparison sites, we:

  • Use third-party data to give you more accurate rate estimates instead of inaccurate, suspiciously low quotes to get you in the door
  • Do not limit your list of results to paid advertisers
  • Do not collect your email or phone number before we let you see your results
  • Give you results after just five questions (however, your results will be more accurate if you complete your profile)

We like to think that Rate Retriever is your insurance companion, not just another insurance comparison site. Our values guide everything we do, which is why we strive to offer transparent, trustworthy insurance tools.

Read more about Rate Retriever

How can I get cheaper car insurance?

There are many ways you can try to get cheaper car insurance. The first is simply to get quotes from multiple providers. This will help you determine if you’re currently receiving the cheapest rates based on your needs and driver profile. Rate Retriever makes the comparison process easy.

Sometimes, the reason your car insurance is so expensive is due to your driver profile. For example, drivers under 20 years old usually pay more for insurance than more experienced drivers, and drivers with a recent at-fault accident or traffic violation typically pay more.

There are ways to lower the cost of your insurance such as taking a defensive driving course. Check with your provider to see if there are any discounts you qualify for or can reasonably earn.

Read more about getting cheap car insurance 

How does Rate Retriever make money?

Rate Retriever works with national and local insurance providers to provide our users with a seamless insurance shopping experience. We may earn a commission from our insurance provider partners when you click on a link, call, or purchase a policy from one of the providers listed on our site. That said, we’re committed to providing you with accurate, bias-free information, and we do not allow our partnerships to limit the results or influence the information we share with you.  

 

We do not sell your personal information, charge you for using our tools, or sell you insurance policies. Additionally, should you choose to purchase a policy from one of our partners, the price you pay will not be adversely affected. 

Read our full earnings disclosure

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What you gain by working with a local insurance agent in Texas

Katie Dee on 2024-03-21

What you gain by working with a local insurance agent in Texas

Picture of Written by <a href="https://rateretriever.com/about/katie-dee/"><span style="text-decoration: underline;">Katie Dee</span></a>
Written by Katie Dee
Written by Katie Dee
Picture of Edited by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>
Edited by Alyssa DiCrasto
Edited by Alyssa DiCrasto
Published on 2024-03-21

Read time: 3 min

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Whether you are switching from a previous policy that no longer works for you, or you’re starting from square one, shopping for car insurance can be an overwhelming and even stressful process. Obviously, the most important thing is finding the lowest rate for the best coverage, however, this seemingly straight forward process can get a little murky. Thankfully, Texas drivers have access to numerous qualified, experienced, and knowledgeable local insurance agents to help carry this burden.

Agent discussing options with couple

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A resource for complex questions

So, what can car insurance agents really do that consumers can’t just take care of themselves? According to Johnathan Shaw, Agency Owner of the Johnathan Shaw Agency in Lubbock, TX , a key benefit that agents bring to consumers is their ability to answer complicated questions that consumers would otherwise need to spend time researching on their own.

“Insurance agents are a big help when it comes to helping consumers. We work with underwriters a lot more consistently, which helps a lot when trying to answer questions that a customer might have and would need to spend hours on the phone trying to find an answer,” said Shaw.

He went on to explain that since agents can get in touch with underwriters more easily, the insurance shopping process typically goes much quicker when they are involved. Having an agent as a resource can help you to get covered faster without sacrificing any coverage or savings.

Furthermore, Debra Lopez, Agency Owner at the Debra Lopez Agency in Conroe, TX, explained that when you work with a local agent, you have a single point of contact who is working to get you the coverage and price you need. This experience is much more streamlined than working directly with a provider where it’s more difficult to reach the same person each time you call.

“There are plenty of benefits to working with a local agent instead of the provider directly, but the main benefits are that it supports local small businesses, gives consumers one person to call for all of their insurance needs, and gives them a professional team that will proactively help them find savings at their renewal or during policy changes,” Lopez explained.

Agents know what questions to ask

Insurance contracts

Cortney Weaver, Farmers Agent at the Weaver Insurance Agency in Odessa, TX, said that a major way Texas agents can help you find the right policy is by asking you questions that you may not have thought to ask yourself.

“We know the towns and surrounding areas where there are high traffic/accidents,” Weaver said. “We offer you the correct coverage that will help you in the event of a claim. We ask questions that could help you in knowing the coverage that is best suited for you, and also ask questions for any possible discounts to provide.”

With all the different aspects involved in getting a car insurance policy, it’s not surprising that a few things may slip through the cracks. Having a local agent in your back pocket offers you a sense of security in the fact that you are turning over every stone and getting the cheapest rate.

Beyond your monthly payments, Weaver explained that Texas agents know all about coverage guidelines so they can discuss different coverage scenarios and how each of them would impact you if the need to file a claim should arise. This kind of forward thinking can help to save you money in the long run.

How agents can simplify the insurance shopping process

Another important benefit of shopping for insurance with an agent is that they can make the process much simpler than if you were to do it on your own. Whether it’s their ability to easily find you discounts, or the way they can explain nuances of your policy in easily understandable terms, Texas agents are there to help you along the way.

According to Laura Ferring, Owner of GEICO Local Flower Mound in Flower Mound, TX, this straightforward assistance comes in several different ways.

“Firstly, local agents have a deep understanding of the unique insurance needs and regulations specific to the area, ensuring tailored coverage that meets state requirements,” Ferring said. “Secondly, they provide personalized guidance, helping clients navigate through various policy options and select the most suitable coverage for their individual circumstances… Lastly, local agents often offer convenient in-person assistance, making the insurance shopping process more accessible and straightforward for consumers in Flower Mound and surrounding areas.”

All this is to say that working with a local agent makes the process of shopping for insurance feel much less burdensome for the consumer. Having a dedicated expert there to help you out can turn the process from a time-consuming and annoying responsibility into a quick and easy one.

Frequently asked

How does the insurance company determine my rate?

Car insurance companies determine how much they charge you based on your driver profile. Factors that can impact your rates include: 

  • Demographics –  your age, home ownership, credit score, and more 
  • Your driving history – how long you’ve been driving, traffic violations, and more 
  • Your car –  make, model, and year 
  • Where you live –  state and zip code 
  • How much coverage you want 

Read more about the factors that impact your car insurance rate 

How do I switch my car insurance?

Switching your car insurance is easy, even if you are in the middle of your current policy.

Here are some helpful tips to consider to switch your car insurance:

  1. Decide what coverage you want with your next policy 
  2. Check if your current provider charges cancellation penalties or fees 
  3. Compare prices from at least 3-5 insurance companies (Rate Retriever makes this easy, giving you personalized rates from the top companies near you)
  4. Get a final quote from at least one of your choices
  5. Cancel your current policy once your new one begins

Read more about how to switch your car insurance 

How much car insurance do I need?

The answer to this question depends on where you live and what you would like to cover.

Each state has its own minimum requirements on the type and amount of insurance needed. When you’re trying to determine what and how much car insurance you need, you can start by reviewing your state’s requirements.

Find out what’s required in your state 

Once you review your state’s minimum requirements, you may find that you want additional coverage. For example, sometimes owners of new cars want comprehensive coverage to insure their car from natural disasters and vandalism, even though comprehensive coverage isn’t required by their state. To figure out what insurance you want, you can review the different types of insurance to decide what makes the most sense for your situation.  

Learn about the different types of car insurance 

How is Rate Retriever different than other insurance websites?

The biggest difference between Rate Retriever and other comparison sites is that we are a free and impartial research tool NOT an insurance marketplace.​ This means you can’t purchase a policy directly through RateRetriever.com, but you can use our tool to independently research your options and seamlessly connect with the provider you choose.

Unlike other insurance comparison sites, we:

  • Use third-party data to give you more accurate rate estimates instead of inaccurate, suspiciously low quotes to get you in the door
  • Do not limit your list of results to paid advertisers
  • Do not collect your email or phone number before we let you see your results
  • Give you results after just five questions (however, your results will be more accurate if you complete your profile)

We like to think that Rate Retriever is your insurance companion, not just another insurance comparison site. Our values guide everything we do, which is why we strive to offer transparent, trustworthy insurance tools.

Read more about Rate Retriever

How can I get cheaper car insurance?

There are many ways you can try to get cheaper car insurance. The first is simply to get quotes from multiple providers. This will help you determine if you’re currently receiving the cheapest rates based on your needs and driver profile. Rate Retriever makes the comparison process easy.

Sometimes, the reason your car insurance is so expensive is due to your driver profile. For example, drivers under 20 years old usually pay more for insurance than more experienced drivers, and drivers with a recent at-fault accident or traffic violation typically pay more.

There are ways to lower the cost of your insurance such as taking a defensive driving course. Check with your provider to see if there are any discounts you qualify for or can reasonably earn.

Read more about getting cheap car insurance 

How does Rate Retriever make money?

Rate Retriever works with national and local insurance providers to provide our users with a seamless insurance shopping experience. We may earn a commission from our insurance provider partners when you click on a link, call, or purchase a policy from one of the providers listed on our site. That said, we’re committed to providing you with accurate, bias-free information, and we do not allow our partnerships to limit the results or influence the information we share with you.  

 

We do not sell your personal information, charge you for using our tools, or sell you insurance policies. Additionally, should you choose to purchase a policy from one of our partners, the price you pay will not be adversely affected. 

Read our full earnings disclosure

See all FAQ's

Why should I work with an auto insurance agent in Georgia?

Katie Dee on 2024-02-16

In Georgia, local agents function as a resource to help make the insurance shopping process less stressful and – most importantly – to help you feel confident that you’re getting the best rate for the coverage you need. If you’re not sure whether or not working with a local agent is right for you, don’t worry, we have asked expert insurance agents to break down all the necessary information to help you decide.

Car theft in Georgia rose by more than 60% in 2023. What does this mean for auto insurance rates?

Katie Dee on 2024-01-26

Car theft in Georgia rose by more than 60% in 2023. What does this mean for auto insurance rates?

Picture of <h5>Written by <a href="https://rateretriever.com/about/katie-dee/"><span style="text-decoration: underline;">Katie Dee</span></a></h5>
Written by Katie Dee
Written by Katie Dee
Picture of <h5>Edited by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a></h5>
Edited by Alyssa DiCrasto
Edited by Alyssa DiCrasto
Published on 2024-01-26

Read time: 3 min

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Car theft was one of only two types of crime that went up in Atlanta in 2023, according to an article by 11alive.com. While the rate of murder fell for the first time since the pandemic, Atlanta saw a 64% increase in the rate of motor vehicle theft, and a spike in Georgia car insurance rates likely won’t be far behind.

According to Rate Retriever’s Quarterly Insurance Rates Update Report, the estimated average premium for car insurance in Georgia is $1,642 per year, 10% lower than the national average of $1,824. However, the rise in car theft may have insurance companies reevaluating rates across the state due to the added risk.

car thief

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What caused the spike in car theft?

If your car insurance rate is at risk of being impacted by the increase of stolen vehicles in Georgia, you deserve to understand what caused it. Thefts of Hyundai’s and Kia’s specifically rose dramatically over the last year due to a viral trend that exposed the vulnerabilities of several model years which make these cars easy targets.

According to the National Highway Traffic Safety Administration, in order to combat this theft, more than 3.9 million Hyundai’s and 4.5 million Kia’s were eligible for software updates geared at fixing the issue in 2023.

Why does the rate of car theft matter for car insurance?

Car insurance policy

Car insurance rates are highly personalized, so they will look different for every driver. Some of the factors that influence your rate include your driving record, your age, the make and model of your car, and the state you live in.

Above all, insurance companies determine your premium based on how much risk your policy introduces. The uptick in stolen vehicles in the state in 2023 has resulted in Georgia ranking among the top 10 states with the highest rate of vehicle theft in the country and this has caused the risk associated with drivers in Georgia —and Atlanta specifically— to go up considerably.

An increase in stolen cars correlates with a heightened likelihood that a policyholder will file a claim. As a result, insurers may increase their rates to better protect themselves down the line.

Car insurance in Georgia

Even with the negative impact thefts may have on car insurance rates, your specific premium may not be affected as much as you think. Car insurance companies will not just evaluate the risk associated with your state, they will narrow it down to the specific zip code you live in. Certain regions in Georgia bring more risk than others, and if you are insuring your car in a lower-risk zip code, your premium will likely be lower.

Based on Rate Retriever’s data, Atlanta was the second most expensive region to insure a car in Georgia as of the third quarter of last year. Premiums in this area averaged $2,005 per year, coming in second only to Decatur, GA where rates sat around $2,223 per year.

While the spike in stolen vehicles may raise rates even higher in Atlanta, premiums in regions like Valdosta, GA (where car insurance is the cheapest in the state) may be unaffected. Currently, drivers in this area pay on average $1,229 per year for insurance, 25% less than average for the state.

Saving money on car insurance in Georgia

If the increase in thefts has you feeling uneasy about your own premium, don’t panic. There are several factors that play a role in what you will pay for car insurance, and many of them remain in your control.

While it can be easier said than done, the best way to be sure your rates stay low is to drive safely. Insurance companies look to your driving record and accident history in order to get an idea of how likely you are to file a claim. If it is determined that you are a high-risk driver, they will assign you a higher premium in anticipation of future claim payouts. Alternatively, if you have a proven track record of driving safely and not filing many claims, insurers will feel more comfortable giving you a lower rate.

Improving your credit score is another way you can lower your rates. Drivers in Georgia with a poor credit score pay over 70% more for car insurance while those with excellent credit can save around 10% every year.

Additionally, raising your deductible can be a good way to lower premiums. This method will not be right for everybody, as a higher deductible means that you are accepting more financial responsibility if you ever need to file a claim down the line.

Finally, one of the easiest ways to control your car insurance premium is to shop around and compare rates from several different providers in your area. You can get started by taking our short quiz to compare data-backed rate estimates from insurers near you.

Frequently asked

How does the insurance company determine my rate?

Car insurance companies determine how much they charge you based on your driver profile. Factors that can impact your rates include: 

  • Demographics –  your age, home ownership, credit score, and more 
  • Your driving history – how long you’ve been driving, traffic violations, and more 
  • Your car –  make, model, and year 
  • Where you live –  state and zip code 
  • How much coverage you want 

Read more about the factors that impact your car insurance rate 

How do I switch my car insurance?

Switching your car insurance is easy, even if you are in the middle of your current policy.

Here are some helpful tips to consider to switch your car insurance:

  1. Decide what coverage you want with your next policy 
  2. Check if your current provider charges cancellation penalties or fees 
  3. Compare prices from at least 3-5 insurance companies (Rate Retriever makes this easy, giving you personalized rates from the top companies near you)
  4. Get a final quote from at least one of your choices
  5. Cancel your current policy once your new one begins

Read more about how to switch your car insurance 

How much car insurance do I need?

The answer to this question depends on where you live and what you would like to cover.

Each state has its own minimum requirements on the type and amount of insurance needed. When you’re trying to determine what and how much car insurance you need, you can start by reviewing your state’s requirements.

Find out what’s required in your state 

Once you review your state’s minimum requirements, you may find that you want additional coverage. For example, sometimes owners of new cars want comprehensive coverage to insure their car from natural disasters and vandalism, even though comprehensive coverage isn’t required by their state. To figure out what insurance you want, you can review the different types of insurance to decide what makes the most sense for your situation.  

Learn about the different types of car insurance 

How is Rate Retriever different than other insurance websites?

The biggest difference between Rate Retriever and other comparison sites is that we are a free and impartial research tool NOT an insurance marketplace.​ This means you can’t purchase a policy directly through RateRetriever.com, but you can use our tool to independently research your options and seamlessly connect with the provider you choose.

Unlike other insurance comparison sites, we:

  • Use third-party data to give you more accurate rate estimates instead of inaccurate, suspiciously low quotes to get you in the door
  • Do not limit your list of results to paid advertisers
  • Do not collect your email or phone number before we let you see your results
  • Give you results after just five questions (however, your results will be more accurate if you complete your profile)

We like to think that Rate Retriever is your insurance companion, not just another insurance comparison site. Our values guide everything we do, which is why we strive to offer transparent, trustworthy insurance tools.

Read more about Rate Retriever

How can I get cheaper car insurance?

There are many ways you can try to get cheaper car insurance. The first is simply to get quotes from multiple providers. This will help you determine if you’re currently receiving the cheapest rates based on your needs and driver profile. Rate Retriever makes the comparison process easy.

Sometimes, the reason your car insurance is so expensive is due to your driver profile. For example, drivers under 20 years old usually pay more for insurance than more experienced drivers, and drivers with a recent at-fault accident or traffic violation typically pay more.

There are ways to lower the cost of your insurance such as taking a defensive driving course. Check with your provider to see if there are any discounts you qualify for or can reasonably earn.

Read more about getting cheap car insurance 

How does Rate Retriever make money?

Rate Retriever works with national and local insurance providers to provide our users with a seamless insurance shopping experience. We may earn a commission from our insurance provider partners when you click on a link, call, or purchase a policy from one of the providers listed on our site. That said, we’re committed to providing you with accurate, bias-free information, and we do not allow our partnerships to limit the results or influence the information we share with you.  

 

We do not sell your personal information, charge you for using our tools, or sell you insurance policies. Additionally, should you choose to purchase a policy from one of our partners, the price you pay will not be adversely affected. 

Read our full earnings disclosure

See all FAQ's

The cost of adding a teen driver to your car insurance

Katie Dee on 2024-01-10

The cost of adding a teen driver to your car insurance

Written by Elizabeth Rivelli

Reviewed by Alyssa DiCrasto

Last updated: November 28, 2023

Woman driving car

For most teenagers, getting a driver’s license is a rite of passage. But before teens can get behind the wheel alone, they need to have car insurance. As the parent or guardian of a newly licensed teen driver, you might have questions about car insurance for teens , including how much it costs. In this guide, we’ll look at the average cost of adding a teen to car insurance and explain how you can lower your premium after adding a young driver to your policy.

Adding a teen driver to your car insurance policy

After your child gets their driver’s license, you have two options. You can add them to your existing car insurance policy or you can purchase a new policy for your teen. In general, adding a teen to your existing policy is the cheaper option. Teens with their own car insurance policy pay extremely high rates for coverage due to their lack of experience and increased risk.

However, parents who add a teen driver to their car insurance policy will still see their premium increase. During this time, it’s important to find ways to reduce your car insurance rate. There are a variety of ways to get a lower teen car insurance price, including shopping around for new quotes that might be more affordable after adding your child to the policy.

Find cheap car insurance near you

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What does it cost to insure a teenage driver?

If your child has recently gotten their driver’s license, you’re probably wondering how to insure them. You might be deciding whether to add them to your own policy or get a new policy for your teen. Looking at average car insurance rates for teens and parents can help you make the best choice for your financial situation. 

The average cost of car insurance for a teen driver on their own insurance policy is significantly higher than the average rate for a parent on their own policy – by about 340%.

When a parent adds a newly licensed driver to their car insurance policy, premiums go up. Our rate data shows that the average rate for a parent and a teen on the same policy, with a single vehicle, is a little more than double (about 147% more per year) the parent’s policy alone. For a parent and a teen on the same policy with two cars, the average rate sits around 240% more per year.

For parents, adding a teen to an existing car insurance policy can be expensive. However, it’s much cheaper than purchasing a new insurance policy for your teen. Adding a teen to your existing policy and insuring two vehicles costs 36% less than having an individual policy for the parent and an individual policy for the teen.

In the table below, you can see the average cost of insuring a 17-year-old driver on their own policy, and on a combined policy with their parent:

State Teen's Policy Parent's Policy Combined
Alabama 8,588 1,531 4,248
Alaska 6,722 1,524 4,062
Arizona 8,866 1,616 4,700
Arkansas 8,459 1,702 4,101
California 5,144 1,923 4,029
Colorado 10,124 1,848 4,239
Connecticut 10,435 1,994 4,942
Delaware 14,276 2,297 5,573
Florida 11,851 2,300 6,135
Georgia 10,961 1,781 5,109
Hawaii 1,701 1,255 1,263
Idaho 6,314 1,072 2,959
Illinois 8,344 1,652 4,166
Indiana 5,906 1,335 3,335
Iowa 6,025 1,390 3,300
Kansas 8,713 1,771 4,114
Kentucky 9,611 1,861 4,942
Louisiana 12,724 2,780 7,497
Maine 5,074 1,186 2,934
Maryland 10,951 2,159 5,581
Massachusetts 6,079 1,647 3,627
Michigan 9,433 2,406 5,799
Minnesota 7,199 1,796 4,551
Mississippi 7,787 1,486 3,920
Missouri 9,264 2,004 4,950
Montana 7,143 1,384 3,008
Nebraska 6,894 1,693 3,885
Nevada 12,800 2,136 6,701
New Hampshire 6,315 1,280 3,259
New Jersey 12,246 2,087 5,676
New Mexico 7,604 1,450 3,591
New York 10,545 3,334 6,903
North Carolina 4,918 1,525 3,172
North Dakota 7,281 1,431 3,427
Ohio 5,703 1,184 2,991
Oklahoma 11,037 1,974 4,412
Oregon 7,873 1,417 3,892
Pennsylvania 7,192 1,863 4,821
Rhode Island 11,605 1,908 5,718
South Carolina 6,972 1,579 4,791
South Dakota 8,051 1,916 4,093
Tennessee 7,514 1,522 4,285
Texas 9,313 2,068 5,204
Utah 10,063 1,582 3,885
Vermont 4,647 1,114 2,958
Virginia 8,420 1,517 4,678
Washington 7,774 1,467 3,735
Washington DC 9,225 1,940 4,399
West Virginia 7,725 1,450 4,402
Wisconsin 6,646 1,364 3,427
Wyoming 4,450 1,178 3,270

When does my teen need car insurance?

A teenager needs car insurance before they can legally drive on their own. Typically, your insurance policy will cover your teen while they have their learner’s permit and are supervised by a licensed driver at all times. But once the teen is licensed, they need to be insured.

You should add your teen to your car insurance policy as soon as they get their driver’s license. If you’re adding them to your existing policy, you can call your car insurance company and request to add a new driver, or add them to your policy online.

If you’re purchasing a new policy for the teen, you will need to shop around and get quotes, and submit an application. If you take out a policy on your teen’s behalf, the policy will likely need to be in your name, even if your teen is paying the premiums.

Should I put my child on my car insurance?

Most car insurance agents recommend adding your child to your existing car insurance policy. Purchasing a new policy just for your teen is incredibly expensive, and rates typically don’t come down until the driver reaches their mid-twenties. Although your rate will go up after adding a teen to your policy, it’s the cheaper option. Additionally, there are a variety of ways to lower your premium while the teen is insured on your car insurance policy.

How to add a teen driver to car insurance

Adding a teen driver to your car insurance policy is usually a simple process. You can contact your insurance company and let them know that you want to add your teen to your car insurance policy. Many car insurance companies also allow you to add a new driver through your online account or the company’s mobile app.

You will need to provide basic information about the teen, like their date of birth and driver’s license number. If your teen has their own vehicle, you will also need to add the car to your policy. Have the make, model, year, VIN, and odometer reading ready when you add the vehicle. Adding a second vehicle to your policy could help you earn a multi-vehicle discount.

How to save money on teen car insurance

There are many ways to reduce your car insurance premium after adding a teen to your policy. One of the best options is to look for discounts. Most car insurance providers offer discounts for taking a defensive driving course, bundling your policies, paying your premium in full, having no recent claims on your record, and insuring a new vehicle.

If your insurance provider offers a telematics-based insurance program, enrolling and participating can also help you save money. These programs use a smartphone to track your driving behaviors during trips, such as your speed, brake force, phone use, and time of day. If you consistently demonstrate safe driving habits, you could earn a discount.

For policies that require a deductible, like collision and comprehensive insurance, choosing higher deductibles can reduce your premium. However, make sure you can afford to pay the higher deductible out-of-pocket in the event that you need to file a claim.

Another great way to save money on car insurance is to shop around and compare quotes from multiple insurance companies. Comparing quotes can help you find the most affordable rate for your situation. You can take our short quiz to see how much you can expect to pay for car insurance when you add your teen.

Discounts for teenagers

Many car insurance companies offer discounts specifically for teens. While every car insurance provider offers different discounts, the most common discounts are good student discounts and students away at school discounts.

With a good student discount, teens can qualify for a reduced premium if they maintain a minimum grade point average (GPA) or receive honors, such as making the Dean’s List. With a student away at school discount, teens can save money if they attend school at least 100 miles away from home and don’t take their vehicle with them. Typically, this discount is only available on collision and/or comprehensive insurance.

Some insurance companies may offer other teen discounts, such as savings for taking a driver safety course or driver’s ed program. You can ask an insurance agent about what savings your teen might qualify for.

Frequently asked

Do you have to add your child to your car insurance policy?

Parents and guardians are not required to add their child to their car insurance policy. However, teens must be insured before they can legally drive alone. If you don’t intend to purchase a new car insurance policy for your teen, you will need to add them to your existing policy.

How much does it cost to insure a 16-year-old?

The average cost of car insurance for a 16-year-old is $4,800 per year. However, car insurance rates depend on many factors besides age. Your location, vehicle type, coverage limits, and insurance company are several other factors that can affect personalized premiums.

Is it cheaper to be on your parent’s insurance?

Yes, it is generally cheaper to be insured on a parent’s insurance policy. The average 17-year-old pays $7,401 per year for their own car insurance policy. For comparison, the average rate for a teen on their parent’s policy, with one vehicle, is $4,189 per year.

Can I insure my child’s car if they don’t live with me?

Most insurance companies don’t allow parents to insure children that don’t live in the same household. Typically, you can only add people to your car insurance policy that live in the same household and share the same address. However, every insurance company has its own rules, and some may allow you to insure a child’s car if they don’t live with you.

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results.  

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you. 

Rate Retriever is an independent company that is not owned by an insurance provider, nor do we provide insurance ourselves. This independence allows us to be your free and impartial insurance research tool, helping you make the best decisions for your insurance needs.  

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide. 

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How much car insurance coverage do I need?

Katie Dee on 2024-01-10

How much car insurance coverage do I need?

Written by Elizabeth Rivelli

Reviewed by Alyssa DiCrasto

Policy on ipad screen

In nearly every state, drivers are required to carry a minimum amount of car insurance. You must carry at least the minimum amount of coverage to register your vehicle and legally drive. However, the amount of coverage your state requires won’t necessarily be enough to fully protect you in the event of an accident.

Before you purchase an auto insurance policy, it’s important to ask the question, “How much car insurance coverage do I need?” In this guide, we’ll explain how much coverage drivers typically need, and who can benefit from choosing a full coverage policy. We’ll also share the average cost of car insurance for minimum coverage and full coverage.

How much car insurance do I need?

Every state has different car insurance requirements. You must meet the state’s requirements to get behind the wheel legally. If you lease or finance your vehicle, you might be required to carry more car insurance coverage than your state mandates.

Minimum car insurance requirements

Most states require drivers to carry a minimum amount of personal liability insurance. Liability insurance covers your legal and financial responsibilities when you cause an accident and someone else gets injured or their property gets damaged. Some states also require drivers to carry uninsured and/or uninsured motorist insurance or personal injury protection (PIP) as part of a minimum coverage policy.

Select your state from the dropdown menu to see its required coverage types and minimum coverage amounts:

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Lender requirements

Drivers who lease or finance their vehicles are often required to carry more coverage than the state requires. Typically, lenders require drivers to have a full coverage policy for the duration of their lease or loan agreement. A full coverage policy provides physical damage coverage for the vehicle. This is important to lenders because they have an insurable interest in the vehicle and legally own the car until your loan is paid off or your lease is returned.

Full coverage car insurance

A full coverage car insurance policy is optional for most drivers (unless it’s required by a lender). Full coverage car insurance policies include a bundle of coverages that provide coverage for you and your vehicle. Here are the coverages that are typically found with a full coverage car insurance policy:

  • Liability insurance: A full coverage policy includes liability insurance, and the coverage limits tend to be higher than what the state requires. This gives you more financial protection if you cause an accident.
  • Collision insurance: Collision insurance covers your vehicle’s repairs after an accident, regardless of which driver was responsible. It typically pays out based on your car’s actual cash value (ACV) and has a deductible.
  • Comprehensive insurance: Comprehensive insurance is often called “other-than-collision insurance.” It covers your vehicle’s repairs if there is damage from incidents like falling objects, fires, floods, hail, or vandalism. Comprehensive insurance also covers theft.
  • Medical payments insurance: If you or any of your passengers get injured in a car accident, medical payments insurance provides a small amount of coverage for your medical bills.

Full coverage vs. minimum coverage car insurance

If you’re wondering, “How much auto insurance coverage do I need,” you can start by comparing a minimum coverage policy and a full coverage policy. A minimum coverage policy is required by law in almost every state, and it’s also the cheapest policy you can get. However, minimum coverage insurance provides the least amount of coverage, and no coverage for your own property in an accident you cause or a non-collision event.

A full coverage policy is optional for most drivers, and it provides significantly more protection than minimum coverage. A full coverage policy will help pay for your vehicle repairs after a collision or non-collision incident, so you don’t have to pay entirely out-of-pocket. Because full coverage is more comprehensive, the premiums are more expensive than minimum coverage.

Most drivers can benefit from choosing a full coverage policy, even if you own your vehicle outright. Although the premiums are higher, having full coverage will save you money if you need to file a physical damage claim. If your vehicle gets damaged and you only have minimum coverage, you must pay for your vehicle repairs out-of-pocket. If your car is totaled, you won’t receive any money to replace it.

How coverage level impacts cost of car insurance

The amount of coverage you have directly impacts your car insurance rate. Minimum coverage insurance is usually much cheaper than full coverage. Based on the rate data we collected, the average minimum coverage premium is $735 per year and the average full coverage premium is $1,824 per year.

In addition to the type of coverage you choose, the amount of coverage you select will also affect your rate. However, lowering your coverage limits doesn’t always have a dramatic impact on the cost of your policy.

For example, we found that a full coverage policy with liability coverage limits of 100/300/100 and a $500 deductible costs $1,824 per year, on average. On the other hand, a full coverage policy with lower liability limits (50/100/50) and a $500 deductible only costs about $10 less per year.

Frequently asked

What is the best coverage for car insurance?

There’s no “best” coverage for car insurance, but insurance agents generally recommend that drivers purchase a full coverage policy. Full coverage provides much better protection than minimum coverage. To find the most affordable full coverage insurance for your situation, it’s a good idea to get quotes from several insurers. You can take our short quiz to see how much you can expect to pay for car insurance.

What is the difference between full coverage and liability car insurance?

Full coverage and liability-only car insurance differ in a few ways. A full coverage insurance policy will cover your vehicle’s repairs after an accident, even if you were responsible. It also pays for some of your medical bills if you get injured in a crash. A liability car insurance policy only covers another person’s losses if you cause an accident. Minimum coverage insurance is also cheaper than full coverage.

Is $100 a month too much for car insurance?

There’s no monthly car insurance payment that is considered “too much.” Car insurance rates are personalized to each driver based on factors like location, age, credit score, claim history, vehicle type, and other things. The type of coverage, amount of coverage, and your insurance company can also impact your rate. For reference, the average minimum coverage policy costs about $61 per month and the average full coverage policy costs $152 per month. However, you might pay more or less for car insurance based on your individual situation.

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results.  

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you. 

Rate Retriever is an independent company that is not owned by an insurance provider, nor do we provide insurance ourselves. This independence allows us to be your free and impartial insurance research tool, helping you make the best decisions for your insurance needs.  

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide. 

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