What is the difference between full coverage and liability-only auto insurance?

"Full coverage" is a common term for a policy that includes liability, collision, and comprehensive insurance, protecting you and your vehicle. Liability-only insurance only covers damages and injuries you cause to others, not your own vehicle or medical expenses.

How much car insurance do I really need?

While state minimums are a legal requirement, most financial experts recommend carrying higher liability limits (e.g., 100/300/50 or more) to protect your assets. If you have a car loan or lease, collision and comprehensive coverage are usually mandatory. Consider your personal assets and risk tolerance when deciding on coverage levels.

Does my credit score affect my car insurance rates?

Yes, in most states, your credit-based insurance score is a significant factor in determining your car insurance premiums. Insurers use it as a predictor of how likely you are to file a claim. States like California, Hawaii, and Massachusetts have banned the use of credit scores for insurance rating.

What factors cause car insurance rates to increase?

Common factors that increase car insurance rates include at-fault accidents, traffic violations (like speeding tickets), adding a young or inexperienced driver to your policy, moving to a higher-risk area, and filing multiple claims. Economic factors like inflation and increased repair costs can also lead to overall rate increases.

Can I get car insurance without a driver's license?

Generally, no. Most insurance companies require you to have a valid driver's license to obtain an auto insurance policy. However, if you own a car but don't drive, you might be able to get a "named non-owner" policy or list another licensed driver as the primary operator.

How often should I shop for new car insurance quotes?

It's advisable to shop for new car insurance quotes at least once a year, or whenever you experience a major life event such as buying a new car, moving, getting married, or adding a new driver to your policy. Rates can change frequently, and comparing quotes can help you find better deals.

What is an SR-22 and when is it required?

An SR-22 is a certificate of financial responsibility that some states require drivers to file with their DMV to prove they have adequate auto insurance coverage. It's typically required after serious driving infractions like a DUI/DWI, reckless driving, or driving without insurance, and it signals to insurers that you are a high-risk driver.

Auto Insurance Guide: Coverage Types, Savings Tips | One…