Auto Insurance

Car insurance basics

Auto insurance is a contract that can pay certain injury, property and vehicle-damage costs depending on the coverages you select. Every U.S. state except New Hampshire requires some form of auto liability insurance or an approved alternative; New Hampshire still imposes financial-responsibility rules after a qualifying accident. Confirm current requirements with your state insurance department.

Coverage types

Most personal auto policies mix liability with optional physical-damage and injury coverages.

• Bodily injury and property damage liability
• Collision and comprehensive (usually with deductibles)
• Uninsured / underinsured motorist coverage
• Medical payments or personal injury protection, where offered

Deductibles

Collision and comprehensive deductibles are the amounts you typically pay toward a covered vehicle claim. Liability claims generally do not use that same deductible. A higher deductible may reduce the premium and increase out-of-pocket exposure.

Premium factors

Insurers may consider driving history, vehicle, garaging address, coverage limits, deductibles, mileage and other legally permitted factors. Some states restrict the use of credit-based insurance scores. No website calculator can reproduce an insurer’s rating algorithm.