If you own a car, you’ll need insurance. But how much insurance do you need? And how do you choose the right plan?

Below, you’ll get an overview of everything insurance, from why you need it to where to get it.

What is Car Insurance for?

Car insurance is there to protect you against major expenses when something goes wrong.

Whether you get into an accident or end up the victim of a hit and run, your insurance is there to cover repairs, medical expenses, and other costs.

What and how much is covered will depend on your specific plan. That’s why it’s important to understand the different types of insurance and what you need for your car. 

Different Types of Car Insurance

Each US state has different minimum requirements for car insurance. Many drivers will opt for the bare minimum to save money, but it’s important to note that these bare-bones plans will often leave you in a tough spot if you run into major costs. 

Here is a look at the different types of insurance you can get.

Required Insurance

Liability Coverage is mandatory in all states except New Hampshire. It covers damages to third parties if you’re at fault in a car accident. This includes a bodily injury liability for costs related to injured people and a property damage liability for costs related to repair costs. 

Collision and Comprehensive Coverage are required from some lenders for financed or leased vehicles. 

Collision insurance helps to pay for repairs to your car if you collide with something. Whether it’s another car or a fire hydrant, collision insurance can help your car back in shape.

Comprehensive insurance covers any damage to your car that comes from events outside of your control. This insurance protects against fires, storms, or break-ins. 

Additional Insurance

Medical Payments Coverage (MPC) and Personal Injury Protection (PIP) help cover the medical costs for people in your vehicle during an accident, whether behind the wheel or riding along.

This type of insurance gives extra peace of mind and can be applied to medical bills, ambulance services, and treatment related to the accident. 

Uninsured and Underinsured Motorist Coverage helps to protect you financially if you’re in an accident and not at fault.

Typically in an accident, costs are covered by the insurance of the driver at fault. If the driver is uninsured or underinsured, this type of coverage can help offset their inability to pay.

Which types of insurance you need and which ones you don’t depend on a few things. If you drive a lot, or park your car on the street where there’s higher chance for a break-in or hit and run, you probably don’t want a bare-bones insurance plan.

Best Car Insurance Companies

When you start shopping for insurance, you’ll realize quickly that there are a ton of options to choose from. 

So how do you sift through so many companies and pick the best one? (Pro Tip: Don’t base it on who has the best commercials)

Cost is important, but it isn’t necessarily as easy as finding the lowest premium. You’ll also want to consider things like customer service, payment options, and flexibility. 

Let’s take a look at the biggest names in car insurance:

  • State Farm
  • Geico
  • Progressive Corporation
  • Allstate
  • USAA

Top Insurance Providers

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