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What Is the Best Car Insurance?

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If you drive a car, you’ll probably need car insurance to follow the law in your state. Many companies offer policies that meet these legal requirements, but you may find the number of options overwhelming. If you want to find the best car insurance, you’ll need to consider what kind of policy you need and what’s most important for you in an insurance company.

Why Everyone Needs Car Insurance

Image via Flickr by QuoteInspector.com

Almost every state requires car insurance, with New Hampshire being the one exception. But this isn’t the only reason to have an auto insurance policy. An accident can be devastating, not only physically and emotionally but also financially. This is especially true if you’re at fault for the collision. Auto insurance will help cover the financial costs, including medical costs and lost wages, depending on the policy. Some policies even offer roadside assistance or coverage in case the other driver in an accident has insurance that doesn’t cover all of your costs.

Types of Car Insurance

So, what kind of insurance do you need? Insurance companies have plenty of policies and options to consider, so it’s best to know a bit about what kind of insurance you need.

Most states require:

  • Liability coverage: This type of insurance covers the costs of damage to people or property that happens during a collision. Liability coverage won’t cover your injuries or belongings, and it’s a good idea to make sure you choose a limit that is high enough to cover the potential costs of an expensive accident.
  • Personal injury protection (PIP) coverage: PIP may cover medical costs, lost wages, or the expenses of hiring someone to do your necessary daily tasks, such as childcare or cleaning. This depends on the policy and your state’s requirements.
  • Uninsured motorist protection: This type of insurance covers the cost of an accident if the other driver doesn’t have insurance or if you’re a victim of a hit and run.
  • Underinsured motorist protection: Sometimes, this insurance accompanies uninsured motorist protection policies. You can use underinsured motorist protection if the other driver in an incident has an insurance policy that doesn’t fully cover the expenses from an accident.

Additionally, many companies offer optional policies, such as:

  • Collision coverage: Though this insurance is optional from a legal perspective, you may need it if you lease your car or used a loan to pay for your vehicle. This policy helps pay the expenses of repairing your car in an accident, regardless of who caused the collision.
  • Comprehensive coverage: If your car receives damage from something other than an accident, such as weather or theft, comprehensive coverage will help cover the cost. Loan and leasing companies may also require this type of policy.
  • Medical payments coverage: This can help cover the expenses of medical bills from an accident. It covers you and your passengers, and it even covers any injuries you may receive as a passenger in someone else’s car.

How To Find the Best Car Insurance

The best car insurance for you is the one that meets your needs for your situation and life. It won’t be the same for everyone, so how do you decide what you need? First, ask yourself a few questions.

  • Does your state require certain types of insurance?
  • Do you want a policy that will cover more expenses if an accident happens or is a low monthly cost more important to you?
  • Do you want a company that has lots of online and mobile features or do you prefer a company with a branch you can visit nearby?
  • Does your lease or loan agreement require certain types of insurance?
  • Do you have any factors that could affect your policy rate, such as being a teen or senior driver, a history of accidents, previous DUIs or speeding tickets, or using your car for ride-sharing?
  • Do you want to bundle your car insurance with other types of insurance like life insurance or homeowners insurance?
  • Do you have costly add-ons in your car, such as a custom sound system or expensive tires, that you may also want to insure?

This isn’t an exhaustive list of questions, but this can help you narrow down the insurance that’s best for you.

Top Insurance Companies

Once you have an idea of the policy you need, it’s time to look at some car insurance companies. You can compare between small local companies or look at some of the largest companies that offer insurance nationwide.

Some of the top insurance companies include:

  • GEICO: Most people know this company for its competitive rates, which is one of the reasons it’s considered a top company. GEICO also offers insurance bundles, accident forgiveness, and great rates for young and senior drivers.
  • Nationwide: This company offers surprisingly low rates for new drivers, which can be costly with other companies. You can also select usage-based and pay-per-mile programs to save on costs if you’re a safe driver or rarely drive your vehicle.
  • Travelers: If your loan or leasing agreement requires gap coverage, this company has the best rates around. This company may be best for you if you have a previous DUI, and they offer both minor violation and accident forgiveness.
  • USAA: Current and former members of the military and their family members are eligible for this insurance, so you may not qualify for insurance through this company. If you do meet the requirements, you’ll find that this company has low rates for drivers with and without a history of traffic violations, as well as accident forgiveness and ride-share insurance.
  • Auto-Owners Insurance: If you’re interested in plenty of optional policies you can add, consider some of the plans with Auto-Owners Insurance. It also offers gap insurance and excellent customer service.
  • State Farm: Drivers with a history of accidents or speeding tickets may find better rates with State Farm than with other companies. They also have great rates for teen and senior drivers.
  • Allstate: Consider this company if you have a new car and want gap or new car replacement policies. You can also include accident forgiveness and a disappearing deductible to your policy.

Car insurance is a necessity if you drive any kind of vehicle. If you want to find the best car insurance policy, you’ll need to decide what type of insurance you need, what’s most important for you in a policy, and which company you prefer. The best insurance is the one that is perfect for you.

FIXD Research Team

At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.

We’re here to help you simplify car care and save, so this post may contain affiliate links to help you do just that. If you click on a link and take action, we may earn a commission. However, the analysis and opinions expressed are our own.

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About the Author

FIXD Research Team

FIXD Research Team

At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.

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