Car insurance is a contract between you and an insurance company that provides financial protection in case of an accident or if your car is damaged by other means, such as severe weather. The contract outlines how much the insurance company pays out for vehicle repairs and medical bills.

State minimum liability car insurance requirements determine how much coverage to purchase in order to drive legally in each state. If you cause an accident, a claim is filed with your insurance company to help pay for property damage you caused or medical bills for the people you injured. If you are hit, the other driver’s liability insurance would pay to fix the damage to your vehicle and for your medical expenses.

The price for an auto policy can differ by hundreds of dollars among insurance companies. That’s why comparing car insurance quotes from multiple companies is one of the most effective ways to save money. If you don’t shop around, you won’t know what the cheapest price is for the coverage you need. You should compare auto insurance quotes from at least three companies, and at least once a year, for the same amount of coverage to be sure you’re getting the most affordable rate for your driver profile.

The best way to lower your car insurance rates is to ask about any and all discounts your car insurance company offers. Some of the most common discounts and perks are multiple cars on one policy, bundling car insurance with home, renters, life, or GAP insurance, and accident forgiveness.

It’s difficult to say which car insurance company is the absolute best; it really all depends on your state laws as well as what companies offer services in your state. However, we strive to provide you with as much information as possible to make an informed decision.