Having car insurance is one of the most important financial decisions that one needs to make. With the increasing number of cars on the road, the chances of occurrence of car accidents are also increasing. The amount that one needs to pay in case of any injury or damage can be quite high, making car insurance inevitable.
Simultaneously, various states have made it a mandate to have car insurance. Driving without insurance can lead to fines, license suspension, or even jail time. In the most basic terms, car insurance is a financial security that protects the vehicle in case of damage and the owner in case of financial liability. The insurance covers the insured up to the limit, as defined in the insurance contract with the insurer.
Need for Car Insurance
Having car insurance is a point of debate. While a few think it is beneficial to have, others look at car insurance as an added expense to the yearly budget. But, undoubtedly, if you drive a car, then having car insurance is a must. The basic needs for car insurance are:
● It is mandatory as per the law in various states
● It offers financial protection against medical bills, liability coverage, or legal fees
● It can be a mandate while financing the car
● It helps to cover the repair and replacement costs
● It helps to avoid devaluation of the car
● Ultimately, it helps to protect the insured as well as other passengers.
Standard Coverages to Look for
Auto insurance covers a range of mishaps that can occur either on or off-road. The coverages vary from state to state, but the most common ones to have that creates the best car insurance are:
● Liability coverage
It covers damages to other vehicles and property, injuries to other drivers and passengers, and lawsuits caused by accident.
● Collision coverage
It covers for damage caused by the collision to your car and pays for the repair and replacement of vehicle parts.
● Comprehensive coverage
If damage to a car is caused by a reason apart from accidents like vandalism, certain weather events, and accidents with animals, this will help pay for damages.
● Uninsured/ Underinsured motorist coverage
Not everyone owns car insurance. This coverage protects the owner and car against uninsured or underinsured drivers and hit-and-run accidents. Depending on the limit of the policy, the medical and other expenses are covered.
● Medical payments coverage
A broader coverage helps to pay the medical bills related to the accident, irrespective of who was at fault for the accident.
● Personal injury protection coverage
It is an extension of the medical payment coverage covering the loss of income resulting from the covered accident.
● Rental reimbursement coverage
This coverage allows you to rent a car if you cannot drive your car after an accident.
● Gap insurance
The market is uncertain, and the car value can deplete quickly. This will help to cover the amount of loan on the car after the loss or theft.
● Towing and labor insurance
This coverage allows you to get the reimbursement for the tow and the labor cost of the car’s repairs.
● Classic car insurance
A special coverage designed for the vintage and classic car collectors’ unique needs lets you drive vintage cars with ease.
Car insurance is typically inexpensive. As per estimates offered by Statista for 2020, the average cost of car insurance for 18-year-old men was around 7,500 U.S. dollars, and for 18-year-old women, it was around 6,800 U.S. dollars.
Top Car Insurance Companies
The national average on car insurance in the States in 2019 was USD 1517 as per the National Association of Insurance Commissioners. When you look forward to getting car insurance in the USA, the top car insurance companies to look for are:
One of the insurance companies with the widest range of satisfied customers and easy claim filing process offers services to veterans, members of the military, and their immediate families. The average amount of premium is USD 885 yearly.
The company offers services in all the USA states with the basics plus mechanical breakdown coverage that helps to cover the repair costs. Additionally, it offered some discounts based on clean driving records. The average amount of yearly premium is USD 1168.
An auto insurance company sells insurance in 25 states of the USA with the highest number of satisfied customers and an easy claim process; Amica uses advantage points for upgrades. It also offers free glass repair, locks replacement, and airbag repair after deployment. The average premium to be paid annually is USD 1350.
A company that offers customized and state-specific car insurance plans to suit the needs. The insurance offers’ unique features include pet injury protection, collision coverage, deductible “savings bank,” and few others. The average premium that the insurer needs to be paid is USD 1375 yearly.
● American Family
American family operates in 19 states and is ranked in 17th to be the most satisfying insurance claim settlers in 2020. The company offers a range of discounts, loyalty programs, and an application to monitor driving, allowing them to earn better discounts. The average premium is USD 1400 yearly.
A company working in all USA states employs a program of telematics to track how safely a person drives. Based on the results, it offers discounts on the optional deductible rewards program to the insured. The average premium is USD 1880 yearly.
One of the largest auto insurance providers in the world, this company offers a decent level of customer satisfaction, customer service, and value. The additional bundle of coverages and discounts offered to make it one of the finest to opt for. The average premium one needs to pay is USD 1680 yearly.
Being in business for 90 years, this company may sometimes lack claim settlement based on policies but has a surreal track record of resolving all the claims. The company offers various additional coverages, accident forgiveness, and discounts to all the insurers. The premium is around USD 1865 annually.
The company is similar to any other insurance company in respect of additional coverage and discounts offered. But the optional plan that offers the insurer a loop for one accident and one minor violation every 36 years to avoid a rise in premium is most admirable. The average premium to be paid is USD 1267 annually.
● State Farm
The largest personal auto insurer in the USA offers discounts to insurers in some states based on the number of cars, driving records, and having a student at school. The ease of earning the discounts by driving safely, monitored by the company’s application, makes it unique. The average premium is USD 1235 yearly.
Selecting the Best
While selecting the insurance company to avail of the car insurance, one needs to look for the additional coverages, premium cost, discounts, and overall car insurance processing. A company that offers competitive rates at the most suitable insurance premium and additional benefits like discounts for better driving record and claim settlement time are a few factors to look for. Undoubtedly, a thorough analysis based on the needs of the insurer is the prime factor while selecting the best car insurance.
When it comes to car insurance, there are various types to compare and contrast. At the same time, the policy differs from state to state. Based on the premium cost, you might look to select an insurance that offers the best coverage against physical damages, medical bills, and lawsuits. The legal requirement of the amount of insurance for states is different, so checking the minimum guidelines is necessary while buying car insurance.
The best car insurance safeguards the driving experience and assures the driver and others to make good the loss if any occurs.