Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 14, 2020

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It’s all about you. We want to help you make the right car insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Car insurance comparison shopping should be easy. We partner with top car insurance companies. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Key takeaways...

  • Many items make up car insurance coverage including the types of coverage, policy limits and policy deductibles
  • Depending on what coverage you accept you may or may not have adequate financial protection in the event of an accident
  • Affordable auto insurance can only be found by balancing your financial means with the amount of coverage you feel is sufficient for adequate protection

Car insurance is mandatory and for many consumers, the hunt for a car insurance company begins with finding the most affordable auto insurance rates.

While choosing the car insurance company with the most affordable rates is logical the problem lies with not all car insurance policies being equal.

Many items make up car insurance coverage including the types of coverage, policy limits, and policy deductibles.

Depending on what coverage you accept you may or may not have adequate financial protection in the event of an accident.

Use our FREE quote tool to compare auto insurance rates today!

Table of Contents

Are all car insurance policies the same?

Sadly no and this is why many times drivers can find themselves underinsured or uninsured. Car insurance is comprised of several components such as comprehensive car insurance, collision coverage, personal liability coverage and more.

Additionally, each policy will have a maximum amount of coverage for each type of insurance purchased.

Then you have the deductible which plays a big role in your premiums and your out of pocket cost when submitting a claim.

All states have minimum car insurance requirements but these requirements are simply set for drivers to have some kind of insurance and barely cover anything except damages relating to a very minor car accident.

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How do I compare car insurance policies?

Once you become a consumer in need of car insurance, education will be your best friend.

Imagine paying $150 every month to a car insurance company only to be told, “I’m sorry – we do not cover damage to your car” when you get in an accident. Believe it or not this conversation happens day!

Most states only require liability insurance coverage and liability does not cover damages to your vehicle.

We have a great starter guide to car insurance located here which helps explain the different types of auto insurance.

Where do I find affordable car insurance?

Affordable auto insurance can only be found by balancing your financial means with the amount of coverage you feel is sufficient for adequate protection.

When you simply compare car insurance companies by premiums you are misleading yourself and your family about choosing the best car insurance policy.

Learn more about auto insurance and then enter your ZIP code below to get FREE car insurance quotes now!

References:

  1. https://www.consumerreports.org/cro/news/2011/05/top-10-tips-for-finding-the-right-car-insurance-policy/index.htm
  2. https://www.thebalance.com/how-to-choose-your-auto-insurance-deductible-527483
  3. https://www.kbb.com/car-advice/articles/how-to-choose-the-right-auto-insurance-company/
  4. https://injury.findlaw.com/car-accidents/car-insurance-laws-by-state.html
  5. http://guides.wsj.com/personal-finance/insurance/how-much-car-insurance-do-you-need/