If you drive a car in America, chances are, you have some type of auto insurance coverage. Every state has rules and regulations concerning automotive insurance. There are many different kinds of car insurance, but everyone in 45 of the 50 states are required to have at least a basic liability insurance policy.

No matter how carefully you drive, you will always have to deal with other drivers. Being a cautious driver will not always prevent inattentive drivers from smashing into the side of your own car. When you make preparations for an accident, by carrying basic car insurance, you will find that in the aftermath of an accident, you will be able to get back on the road in no time.

State Laws

There are many levels of car insurance coverage options. When you purchase a car, you are required by law to have liability insurance in 45 of the 50 states. New Hampshire, South Carolina, Tennessee, Virginia, and Wisconsin are the only states that don’t require their drivers to have liability insurance in certain circumstances:

• New Hampshire requires certain drivers under certain circumstances to carry liability insurance. People convicted of DWI and those who have received too many tickets are required to carry liability car insurance on their vehicles.
• South Carolina requires liability insurance on every person who owns or drives a vehicle. If a South Carolina resident does not own a car and no one in their household owns a car, then they can check off on their driver’s license application to be exempted from the state’s automotive liability requirements.
• Tennessee does not actually require liability insurance, but if you receive a ticket or you are involved in a vehicle accident that results in at least $50 damage, you can have your driver’s license suspended for failure to carry liability insurance if you do not have it.
• Virginia allows you to pay an Uninsured Motor Vehicle fee in lieu of carrying insurance. The fee is $500 and must be repaid every time you renew the registration on your vehicle. The fee is not an insurance policy, so if you are in an accident, you will be held financially responsible for any damages or injuries sustained in the accident.
• Wisconsin does not require for you to carry proof of insurance, but you are required to have liability insurance. There are only three cases where a driver will have to provide proof of insurance in order to get their driver’s license: if their license had been revoked or suspended, and if the driver is under the age of 18 and does not have a sponsor.

Liability is the most basic kind of insurance you can buy. If you cause a car accident, liability insurance covers the damages made to the other vehicle or vehicles, as well as their occupants. If you are in an accident caused by someone else, his or her liability insurance will cover the damage done to you and your car

Most liability insurance is divided into three sections of coverage. The coverage amounts listed under these sections determine how much money the insurance company will pay towards bodily injury per person, bodily injury total, and total property damage.

The coverage that most industry representatives recommend for liability insurance is 100/300/50. This means that $100,000 is available for bodily injury per person, $300,000 is available for bodily injury in total, and $50,000 is available to pay for property damage.

While this is the recommendation from auto insurance companies, state laws require much less. Louisiana has the most lenient laws on liability insurance, requiring only 10/20/10. This permits Louisiana residents to have the cheapest car insurance rates in the country. Maine requires the most amount of coverage with its laws requiring drivers to have coverage amounts of 100/300/50. 

Insurance Types

In addition to basic liability insurance, there are many other car insurance options available to drivers. While liability insurance covers the damage you cause to another car in an accident, collision insurance covers the damage your own vehicle receives in an accident. In other words, collision insurance is a safeguard against your own mistakes. This is an optional policy in most cases, so you do not have to purchase it if you are confident that you will never cause a wreck --- however, most accidents are called “accidents” because the person who caused it did not intend to do it.

Another optional auto insurance feature is comprehensive coverage. This covers everything that would not be caused by an accident, such as theft or vandalism. This also includes most natural disasters.

For instance, if a volcano were to erupt on your car, comprehensive coverage is what you would need to recover your losses. However, if you live in a low-crime, volcano-free area, this type of coverage might be excessive.

If you owe money on your vehicle, most banks and finance companies will require you to carry collision insurance and comprehensive coverage while you still owe them money.

Uninsured driver and underinsured driver insurance coverage is helpful if you are in an accident with an uninsured or underinsured driver. Usually the responsible party’s liability insurance covers damages done to the other party’s car and person. If the “responsible” driver does not have car insurance, they may be unable to pay. Without uninsured coverage, it could be months and a few court battles before your car could be repaired.

Rental car coverage is available if you need transportation while your car is getting repaired after an accident. With rental coverage you can be reimbursed for the costs of a rental car, while your car is in the shop or while you shop for another one to replace a totaled car. Many policies have a limit on how long they will pay for you to rent a car, but this is usually a significant amount of time.

Coverage Options

While most people are required to have at least basic liability insurance, it can be confusing to try and determine what additional coverage options you should purchase. For many, liability insurance is sufficient coverage and a perfect fit for a limited budget.

When you compare car insurance policies, it is best to consider the area in which you live. If you live in an area with a lot of traffic and frequent accidents, then a higher amount of liability insurance and collision insurance might be a good investment.

If you live in the mid-west where there are a lot of tornados and sporadic weather, then comprehensive coverage would be a good option to consider. When looking into comprehensive coverage, make sure the auto insurance offers protection against the common problems in your area. If you live in a coastal state, make sure your policy covers flood damage.

In most cases it is best to have full coverage, which would include a combination of all of the options your insurance company offers. Being as prepared as possible for the inconvenience of an accident can make the whole process go smoother.

If you are one of the millions who need their cars to get to work, then you should probably insure your car as much as possible. Nothing is more inconvenient than having call in to work because you don’t have a way to get there. This doesn’t usually go over very well with the boss either.

Larger cities have readily available public transportation, but this can be expensive and inconvenient. Smaller cities do not generally have public transportation. This can make it impossible to survive while you are waiting for someone else’s insurance company to send you a check.

Get it Cheaper

The best way to find the cheapest car insurance is to compare car insurance quotes. A car insurance comparison can easily be done using online car insurance companies’ websites.

On many of these websites, you can simply enter your information and a quote will be provided right on the screen. A lot of insurance companies offer discounts to people who have multiple lines of coverage with them, so check the rate with the company who carries your homeowners insurance first. If you take the time to compare car insurance quotes and rates through a few different companies, chances are, you will end up with the cheapest car insurance available.

Conclusion

Auto insurance is very important to anyone on the road.

But, getting a cheap car insurance plan is not always the best plan. When you do a car insurance comparison, it is best to compare car insurance policies on more than just the price of the policy. The cheapest car insurance policy will not always be the best car insurance policy for your particular needs. Be honest with yourself when you are doing your auto insurance comparison. Make sure that the plan you get is the plan you need.

To bring this point home, think about the Virginia law that says you can pay the $500 Uninsured Motor Vehicle fee, instead of the cost of insurance. For most drivers, this fee is more than the cost of the actual insurance policy, and the fee does not provide any coverage in the event of an accident. In this case, it simply makes more sense to go ahead and buy that insurance policy.

It is illegal to drive without it insurance in most states. If you go ahead and buy an insurance policy, you can relax as you drive, confident that you are obeying the law and that you will be financially protected in case of an accident. Not having to sweat the journey, across town or across the country, will enable you to enjoy any trip you take.