Auto Insurance

What car insurance is for

An auto policy is a contract that may pay certain injury, property, and vehicle-damage costs based on the coverages you choose. Almost every U.S. state requires liability insurance or an approved substitute; New Hampshire is the notable exception but still has financial-responsibility rules after qualifying accidents. Check your state insurance department for current rules.

Common coverage parts

Personal auto policies usually combine 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 available

How deductibles fit in

Collision and comprehensive deductibles are what you typically pay toward a covered vehicle claim. Liability claims usually do not use that same deductible. Raising the deductible may lower the premium while increasing what you pay after a loss.

What can move the premium

Carriers may look at driving history, vehicle, garaging ZIP, limits, deductibles, mileage, and other factors the law allows. Some states limit or ban credit-based insurance scores. No public calculator can recreate an insurer’s full rating engine.