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Shopping for affordable auto insurance? You may consider bundling home and auto insurance to save you money.
Understanding Auto Insurance
Purchasing auto insurance is the smartest way to protect a valuable financial asset, and finding the right coverage at an affordable rate is best achieved by comparing options. At SelectQuote, we simplify this process by shopping policies from highly rated auto insurance companies, making it easy to get competitive car insurance quotes that fit your budget and coverage needs.
Types of Auto Insurance Coverage
When choosing an auto insurance policy, it’s important to familiarize yourself with the different types of coverage. Below are the most common types of auto insurance coverage to keep you and your vehicle protected.
| Type of Coverage | What This Coverage Protects... |
|---|---|
| Bodily Injury Liability | This covers medical, rehabilitation, and funeral expenses for all injured people in the car you hit and/or hit with your car in an accident where you are found at fault. This type of coverage may also include medical, rehabilitation, and funeral expenses for injured passengers riding inside your car. Additionally, bodily injury liability covers legal settlement fees if you were sued because of an accident. |
| Personal Injury Protection (PIP or No-Fault) | No matter who was at fault, PIP covers most medical expenses, including hospital, rehabilitation, and in-home assistance costs. PIP also covers any lost wages and funeral expenses for you and your passengers as a result of the accident. Certain states require personal injury protection in addition to other types of coverage. |
| Property Damage Liability | This coverage applies when you’re at fault for an accident and covers parts and labor for car repairs, property inside the other party’s vehicle, and anything you hit. Property damage liability also pays certain legal expenses. Property damage liability does not cover damages to your own vehicle or property. |
| Uninsured/Underinsured Motorist Protection | If you are hit by a driver with no insurance or inadequate coverage, this type of coverage pays for medical expenses, rehabilitation, and funeral costs for all the passengers in your vehicle. It also pays for the settlement of any lawsuits as a result of the uninsured, underinsured, or hit-and-run driver. Some states require this type of coverage, while other states consider it optional. |
| Collision | Collision coverage covers any damages to your vehicle—up to and including your vehicle’s cost—if you are at fault in a car accident. |
| Comprehensive | Comprehensive coverage helps pay for repairs or a replacement for your vehicle for damage incurred in non-collision events. This includes damage from natural disasters, accidents involving animals or wildlife, falling trees or tree limbs, fire, theft, or vandalism. If you finance or lease your car, your lender typically requires you to purchase comprehensive coverage. |
What does car insurance NOT cover?
While there are plenty of circumstances in which your car insurance will help you pay for damage, it generally won’t protect you from costs you may incur from:
- General maintenance
- Intentional damage
- Damage from normal wear and tear
- Loss of personal property inside the vehicle
How much does car insurance cost?
The cost of car insurance varies based on many factors. Your rates depend on your location, driving record, deductible, the make and model of your vehicle, and more. Different auto insurance carriers may offer significantly different rates or discounts, so it’s a good idea to get a variety of quotes when shopping for auto insurance. That way, you can make sure you're getting competitive coverage that meets your needs.
Average Auto Insurance Rates
Curious about the savings you could see by bundling insurance for multiple cars or even your home and auto insurance policies together? Let us compare average car insurance rates for three common scenarios. Whether you want a new auto insurance policy or want to see what you could save when you switch policies with SelectQuote, we can help show you the difference with free car insurance quotes.
| Average Auto Insurance Rate | Average Multi-Car Insurance Bundle Rate | Average Home and Auto Insurance Bundle Rate |
|---|---|---|
| $170.61/month | $152.58/month | $281.19/month |
Average monthly rates are from effective SelectQuote customer policies between 4/1/2022 and 3/31/2023.
What determines your auto insurance rates?
There is no fixed average car insurance rate because every carrier’s rates are different. Auto insurance rates are calculated using a combination of several factors, including:
- Your age
- Your driving history (tickets, citations, etc.)
- Your claims history
- Make & model of your vehicle
- If you own, lease, or finance your vehicle
- What you use your vehicle for
- Your credit score
- Where you live
- State requirements
- Your marital status
- Amount of coverage you want
- Your chosen deductible amount
How to Buy Car Insurance
Step 1: Decide your coverage.
Evaluate which type(s) of coverage will best protect you and your vehicle. Working with SelectQuote can help you find affordable coverage to protect your valuable assets.
Step 2: Choose a deductible amount.
Your deductible is the amount you pay before any claim is covered. Choosing a lower or higher deductible amount depends on your situation, but SelectQuote can help decide which one is best for your needs.
Step 3: Let SelectQuote do the work.
Instead of shopping rates from dozens of carriers by yourself, SelectQuote can shop top-rated carriers in just minutes. This can save you time, money, and stress when it comes to securing an affordable auto insurance policy.
Auto Insurance Requirements
Car insurance is required in nearly every state, but each state has its own rules, regulations, and requirements surrounding coverage. It’s important to review the standards for your state when purchasing car insurance or making changes to your policy, like adding a new car or driver. Learn more about the car insurance requirements in your state.
Auto Insurance Discounts
Auto insurance is essential to making sure you stay protected on the road, but it can also be a significant expense. Luckily, there are several ways to save money on auto insurance, and there may even be car insurance discounts that you already qualify for. Here are some examples of common auto insurance discounts.
Telematics
Telematics, also known as usage-based insurance, is a program offered by insurance companies that collects information, tracks driving behavior, and often provides discounts for safe driving practices.
Good Driver Discounts
These discounts are based on factors like number of claims you’ve filed or the number of tickets you’ve received. If you can go a few years—typically three to five—without any incidents, you could potentially see a drop in your car insurance premium.
Affiliation Discounts
Being connected or affiliated with a specific group can sometimes provide opportunities for discounts on auto insurance. For example, you may receive a discount based on your military status, your place of work, or where you attended college.
Student Discounts
The most common student discount is a good student discount, which is when a full-time student keeps their grades above a certain threshold. College students also can qualify for a student discount, whether it’s grade-related or exclusive to the college you’re attending.
Bundle Your Auto Insurance to Save More Money
One of the easiest ways to save money on your insurance coverage is to bundle your auto insurance policy with your homeowners or renters insurance policy. When you combine insurance policies, also known as bundling, you’ll earn a multiple-policy discount. SelectQuote customers save an average of $693 when they bundle home and auto insurance. Here are some of the ways you can bundle your policies to save money:
- Auto and Home Insurance Bundle: Bundling home and auto insurance, one of the most common bundling options, allows you to pay one premium for multiple insurance policies, simplifying the billing process.
- Auto and Renters Insurance Bundle: Much like bundling a home and auto insurance policy, adding your renters and auto insurance policies to one bundle can save you money.
- Auto and Motorcycle Insurance Bundle: Bundling your car and motorcycle insurance together can save you money. The more items you insure with an insurance company, the more discounts you are eligible for.
- Multiple Car Insurance Bundle: Instead of insuring two different vehicles under separate policies, bundle your vehicles under one policy for all drivers in your home. In some cases, this can save up to 20% on your coverage.
See How SelectQuote Can Help
While you can buy car insurance directly from an insurance company, SelectQuote pulls available auto insurance quotes from several companies at once to find the policy right for you. We provide you with home and car insurance reviews from actual customers who’ve worked with us and can answer future questions about new coverage options based on your changing needs.
No matter where you are in your auto insurance journey, SelectQuote can help you find affordable coverage. In addition to saving you time and helping you save money by pulling personalized car insurance quotes from several insurance companies at once, we can compare your current costs to potential new options for coverage. See how the savings compare with a free auto insurance quote.
What’s the quickest way to compare car insurance?
Working with a company like SelectQuote that gathers quotes from highly rated carriers on your behalf is one of the most efficient ways to compare car insurance plans.
How much car insurance do I have to buy?
The amount of car insurance you must buy varies by state, as each state sets its own minimum requirements. Most insurance experts recommend purchasing more than the state minimum, as these amounts may not be sufficient in the event of a serious accident. Additionally, if you're financing or leasing a vehicle, your lender may require comprehensive and collision coverage.
Do I really need comprehensive car insurance?
While comprehensive insurance isn't always mandatory, it can provide valuable protection against a wide range of unpredictable events. Whether you need comprehensive car insurance depends on several factors:
- If you're financing or leasing your car, it's likely required by your lender.
- For older cars with low value, it might not be cost-effective.
- It's beneficial if you live in areas prone to natural disasters, animal collisions, or high crime rates.
Get Started with a Free Auto Insurance Quote Today
At SelectQuote, we understand the pain points and frustrations that come with shopping for auto insurance. That’s why we’ve made it easier to shop and save by comparing auto insurance rates from dozens of highly rated carriers on your behalf to find you affordable coverage. The process takes just minutes, so get started and see what you can save.
