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If you own and drive a car in the U.S., chances are you might be overpaying for car insurance. But the search for a new provider can be time-consuming and overwhelming. That’s where insurance brokers can be helpful.

Check out the table to see how much you can save through Credible’s partner Young Alfred, and start comparing quotes online for free. Customers who’ve used an auto insurance broker like Young Alfred have saved hundreds of dollars per year.

Get free quotes now
youngalfred
Perks of working with Young Alfred
  • Bundle home & auto insurance to save up to 30%
  • All online, no phone calls
  • Discounts automatically applied
  • Securely check rates in all 50 states

Here’s what you need to know about car insurance:

Do I need auto insurance?

If your state requires auto insurance and you own a vehicle, then you should have auto insurance. The minimum coverage, however, isn’t enough for many drivers.

Below are the state minimums for bodily injury and property damage. Note that some states also require uninsured motorist bodily injury, uninsured motorist property damage, and personal injury protection insurance in addition to these minimums.

Make sure you understand your state’s laws and coverage limits before purchasing a car insurance policy.

StateBodily injury per person/accidentProperty damage per accident
Alabama$25,000 / $50,000$25,000
Alaska$50,000 / $100,000$25,000
Arizona$25,000 / $50,000$15,000
Arkansas$25,000 / $50,000$25,000
California$15,000 / $30,000$5,000
Colorado$25,000 / $50,000$15,000
Connecticut$25,000 / $50,000$25,000
Delaware$25,000 / $50,000$10,000
FloridaNone$10,000
Georgia$25,000 / $50,000$25,000
Hawaii$20,000 / $40,000$10,000
Idaho$25,000 / $50,000$15,000
Illinois$25,000 / $50,000$20,000
Indiana$25,000 / $50,000$25,000
Iowa$20,000 / $40,000$15,000
Kansas$25,000 / $50,000$25,000
Kentucky$25,000 / $50,000$25,000
Louisiana$15,000 / $30,000$25,000
Maine$50,000 / $100,000$25,000
Maryland$30,000 / $60,000$15,000
Massachusetts$20,000 / $40,000$5,000
Michigan$50,000 / $100,000$10,000
Minnesota$30,000 / $60,000$10,000
Mississippi$25,000 / $50,000$25,000
Missouri$25,000 / $50,000$10,000
Montana$25,000 / $50,000$20,000
Nebraska$25,000 / $50,000$25,000
Nevada$25,000 / $50,000$20,000
New Hampshire1$25,000 / $50,000$25,000
New Jersey$15,000 / $30,000$5,000
New Mexico$25,000 / $50,000$10,000
New York$25,000 / $50,000$10,000
North Carolina$30,000 / $60,000$25,000
North Dakota$25,000 / $50,000$25,000
Ohio$25,000 / $50,000$25,000
Oklahoma$25,000 / $50,000$25,000
Oregon$25,000 / $50,000$20,000
Pennsylvania$15,000 / $30,000$5,000
Rhode Island$25,000 / $50,000$25,000
South Carolina$25,000 / $50,000$25,000
South Dakota$25,000 / $50,000$25,000
Tennessee$25,000 / $50,000$15,000
Texas$30,000 / $60,000$25,000
Utah$25,000 / $65,000$15,000
Vermont$25,000 / $50,000$10,000
Virginia$25,000 / $50,000$20,000
Washington$25,000 / $50,000$10,000
Washington, D.C.$25,000 / $50,000$10,000
West Virginia$25,000 / $50,000$25,000
Wisconsin$25,000 / $50,000$10,000
Wyoming$25,000 / $50,000$20,000
1New Hampshire does not require its drivers to carry auto insurance, however, drivers must be able to cover the cost of property damage or bodily injury as a result of an accident in which they are at fault.

What does car insurance cover?

Auto insurance policies are very specific about what is and isn’t covered. Before choosing a policy, it’s important that you read about the coverage, limits, and any exclusions.

Once you’ve decided on the type of coverage you want, shop around for quotes. You can do this easily by using a car insurance broker, like Young Alfred.

Here are some of the most common types of coverage you’ll find on car insurance policies:

Get free quotes now
youngalfred
Perks of working with Young Alfred
  • Bundle home & auto insurance to save up to 30%
  • All online, no phone calls
  • Discounts automatically applied
  • Securely check rates in all 50 states

Liability coverage

Liability coverage will pay for damage or personal injury you cause behind the wheel.

Comprehensive coverage

Comprehensive coverage pays for damage to your vehicle caused by things other than collisions.

Collision coverage

Collision insurance covers the cost to repair or replace your own car if you hit another vehicle or object.

Medical payments

Medical coverage on an auto insurance policy covers you and anyone else in your vehicle at the time of a collision. With this medical coverage, the costs fall to the insurer up to policy limits.

Uninsured motorist bodily injury and property damage

While we would hope every driver is an upstanding member of society who carries at least the minimum required auto insurance, in reality, many people head to the nation’s roadways every day without coverage. As a result, nearly half of all U.S. states require some form of uninsured motorist coverage.

Gap coverage

Gap coverage is an optional add-on to your auto insurance policy that pays for the difference to replace your totaled or stolen vehicle, often up to the original purchase price.

Other insurance benefits

Auto insurance policies typically offer more specialized features and benefits to help customers through additional challenges.

What is a deductible?

Deductibles are a common feature of insurance policies. A deductible is how much you have to pay out of pocket before your insurance benefits start. You can typically choose between several deductible options, with a lower deductible requiring a higher monthly payment.

While it may be tempting to choose a higher deductible to save on premiums, it’s important to budget for the potential cost of paying up to your deductible if you do wind up in a fender bender.

How is car insurance priced?

Car insurance costs are somewhat complex, but it’s easy to break down the various factors that determine your rates.

Here are some of the major factors that go into insuring a car and its driver:

  • Driver age: Younger drivers typically pay more than older drivers. Teens typically pay higher rates while middle-age drivers get lower rates.
  • Driving history: If you have either a history of accidents or tickets, you can expect to pay more for insurance. Drivers with more experience and a good record typically get the lowest rates.
  • Driver credit score: Your credit score plays a role in auto insurance rates. Drivers with higher credit scores generally get lower rates.
  • Driver gender: Men and women pay different rates for driving, particularly younger drivers. Male teen drivers will usually pay more than females.
  • Car location: Your home and work locations can influence auto insurance rates. If you tend to park in areas with more claims, insurers may charge higher rates.
  • Insurance history: Your insurance history plays a major role in your rates. If you have a continuous insurance history with few or zero claims, you may qualify for better rates.
  • How much you drive: The number of miles you put on your car in a typical month can drive your rates up or down. Some insurers offer per-mile insurance where you pay less for driving less.
  • Marital status: Married drivers tend to be less risky than singles. While the rate difference is minimal, married drivers tend to pay a little less.
  • Coverage choices: When you choose your deductible and coverage levels, your insurance premiums will go up or down with your selections.
  • Vehicle: The quality, cost, type, and age of the car you drive plays a role in your rates. Someone with a fancy new red sports car will probably pay a lot more than a similar driver with a boring 10-year-old sedan.
  • Discounts: Every insurance company has its own rules around discounts. There are common discounts for multiple policies at the same insurer, a good driving history, a low claim history, adding vehicle safety and anti-theft features, automatic payments, good students, and others.
  • Insurer: Last but certainly not least is the insurance company you choose. Every insurer has its own proprietary rates and formulas for deciding what customers pay. Shopping around can help you save a small fortune in some cases.
Stop overpaying for car insurance. Figure out your exact needs and budget, and then compare multiple providers to find the best quote.

See How Much You Could Save

If you can’t afford car insurance, you shouldn’t just drive without it, as it can be both illegal and a huge risk to your finances. Your best option is to shop around for an insurer that specializes in drivers like you. 

Tip: Look for potential discounts, savings, or lower coverage levels as well. In the worst case, it may be best to take public transportation while improving your finances so you can afford auto insurance in the future.

In some cases, you may be turned down for car insurance. Again, your best option here is to shop around for an insurer that would take you and your vehicle. If it is an issue with the vehicle, consider changing cars to one that’s easier to cover.

About the author

Eric Rosenberg

Eric Rosenberg

Eric Rosenberg is a Credible expert on personal finance. His work has been featured at Business Insider, Investopedia, The Balance, The Huffington Post, MSN Money, Yahoo Finance, Mint.com and more.

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