Learn more about California's new minimum auto insurance requirements.
According to the National Association of Insurance Commissioners, the average cost of a liability-only auto insurance policy is $661. However, auto insurance premiums can vary significantly from person to person for many reasons. Understanding how car insurance rates are determined and the factors that affect cost can help you find the rate that works best for you.
Car insurance companies consider multiple factors when setting your auto insurance premium. Plus, rating factors used can also vary from state to state. Here are a few typical factors insurers consider and how they're used to set your rate:
Every individual's insurance needs are different. It's important to note that the questions "how much car insurance do I need?" and "how much car insurance am I required to have?" can have two completely different answers. Determining how much car insurance you need will depend on several factors, such as your state's requirements, financial situation, and relevant additional coverages:
A car insurance policy comprises different coverage types that protect against different situations. Here are a few of the most common types of car insurance coverages:
When shopping for auto insurance, you may encounter the term "full coverage." Some use this term to describe a combination of coverage types that protect a vehicle. However, it's important to note that there is no universal definition of full coverage.
Depending on your location, certain insurance coverages, such as liability insurance, are required by law. On the other hand, optional coverages like rental car reimbursement are optional in most cases.
Full coverage is often used to describe a policy that includes state-required liability insurance along with collision and comprehensive coverage. Nevertheless, what constitutes as full coverage will ultimately depend on your specific situation and needs.
Our auto insurance specialists will know the questions to ask to find a policy that works best for you.
To start a new quote, you will need your driver's license, vehicle identification number (VIN), physical address, and vehicle information, including its make, model, year, and mileage.
Auto insurance policies vary significantly for numerous reasons, and the same applies to premiums. Sometimes, you may have higher limits or additional coverage types than your neighbor. In addition, several factors, such as your driving record, discounts, and usage, can affect the cost of your auto insurance premium.
Yes and no. All your vehicles are required to carry your state's minimum insurance requirements. However, coverage limits for add-on coverage types such as comprehensive, collision, or rental reimbursement can vary. Additionally, you can carry collision and comprehensive insurance on one vehicle and not on another. This may depend on whether you own, finance, or lease all your cars and other factors that vary by vehicle.
According to the National Association of Insurance Commissioners, the top 5 states with the highest car insurance costs are New York, Louisiana, the District of Columbia, Florida, and Rhode Island.
According to the National Association of Insurance Commissioners, the top 5 states with the lowest car insurance costs are North Dakota, Maine, Iowa, Idaho, and Wisconsin.
Most U.S. states require drivers to have auto insurance, and for those with no official requirements, it is still highly recommended to have an auto policy. No matter where you live, it's essential to understand your state's minimum requirements.
States typically express these requirements as a series of numbers, like 25/50/25, indicating the minimum liability insurance coverage you need. For example, California requires a 15/30/5 policy, meaning it must cover up to $15,000 for bodily injuries per person, $30,000 per accident, and $5,000 for property damage.
To learn more about each state's requirements, visit our auto insurance guidelines by state page.
With so many carriers available, we understand that searching for car insurance quotes can feel overwhelming. That's why AIS partners with industry leaders to make it easy to compare auto insurance quotes and find you savings, all in one place.
Whether you need basic liability coverage or are searching for more comprehensive options, our insurance partners can help. Learn more about our partners to find your ideal combination of coverage and price.