How can I tell good auto insurance coverage?

JD Power and AM Best rate auto insurance companies annually. A good insurer provides adequate coverage and plenty of discounts to help you lower your premiums.

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance...

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Reviewed byDaniel Walker
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UPDATED: Apr 27, 2020

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

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. 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.

Things to remember...

  • Having proper coverage means that you can cover medical expenses and other property damage without risking a lawsuit
  • Your policy should offer proper levels of protection against physical damage to the car, medical expenses and property damage that occurs in an accident
  • It is a good idea to make sure that your coverage levels are at least 150 percent of your state minimum coverage

Getting good auto insurance is an important part of driving safely. If anything were to happen to you, would you be able to say that you were properly covered by your insurance policy?

Having proper coverage means that you can cover medical expenses and other property damage without risking a lawsuit.

Comparing quotes and coverage is a good way to know if you’re getting good auto insurance coverage.

Enter your zip code above into our FREE auto insurance comparison tool to start seeing quotes!

The Policy Should Offer Sufficient Coverage

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A good auto insurance policy is going to offer you sufficient coverage across the board. Your policy should offer proper levels of protection against physical damage to the car, medical expenses and property damage that occurs in an accident.

It is a good idea to make sure that your coverage levels are at least 150 percent of your state minimum coverage.

Not having the proper coverage means that you could possibly find yourself in court as the victim tries to sue you for all the damages he is entitled.

The combination of paying for damages out of pocket and legal fees could possibly bankrupt you. It is much cheaper to pay a little more for good coverage as opposed to losing everything paying for an accident.

State minimum levels of coverage are typically not adequate to cover the full cost of most accidents. Finding the best auto insurance is a combination of getting above minimum coverage and finding what is most affordable.

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Find A Company That You Can Trust

You should be able to trust your auto insurance provider. There are many companies out there who will offer cheap insurance that will fulfill your legal obligation.

However, will your insurance company be there for you when you get into trouble? An insurance company that drags its feet while you are trying to file a claim is not worth paying for.

A good piece of advice is to find a company that has some sort of ties to your community. 

You can also talk to a real person if you have any questions about your policy. Customer service is a major part of having a good insurance policy.

A company that is not there for you when you need them will just create more problems. Staying away from companies that only operate over the Internet would be advisable in most cases.

The Policy Should Be Affordable

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Your monthly premiums should be affordable and reasonably priced. Shopping around is a good idea to find the best rates on your auto insurance premium.

A driver with a good credit and driving history should be able to find a policy for under 75 dollars a month. However, consider your own unique driving record before you determine whether or not the price of a particular policy makes sense for you.

There are many ways in which you can lower the premium that you pay on your policy.

Consider any discounts that your provider has as well as lowering the cost of your deductible.

Paying your premium in full every 6 months will allow you to get a better price on your insurance policy. The reason that price is so important is that a policy you cannot afford is not going to help you out much.

Buy Only What You Need

The type of car you drive will determine what kind of insurance you are going to need. Everyone needs to carry liability insurance, but there are many different kinds of optional coverage that you can carry as well.

Comprehensive insurance will cover you in the event that your car is damaged by falling ice or tree limbs. It will also cover you in the event that your property is stolen from your car.

Collision auto insurance pays for any general damage payments in part that happens to your car in an accident.

Whether or not you carry these policies depends on how much you are willing to pay in order to fix your car if it is damaged. However, do not buy this extra coverage if you do not need it.

A good policy will provide coverage for only the things you think you would want to protect. Don’t throw away money on something that you are not going to use.

If you aren’t sure about what kind of extra coverage you might need, you should sit down with an insurance agent who can walk you through the process.

Getting the proper auto insurance is going to help keep your safe while offering peace of mind on the road. Most people will never use the policies they have, but it is comforting to know that there is financial protection in place should anything ever happen.

Having proper auto coverage will allow you to be protected against the high cost of an accident. The last thing you need is to add legal bills on top of damages that you owe to the victim of a crash you caused.

Sufficient levels of coverage combined with great customer service will mean that you have a great insurance policy that will take care of you if you are ever in trouble.

Enter your zip code below to compare auto insurance rates for FREE and find that great policy!

References:

  1. http://money.cnn.com/magazines/moneymag/money101/lesson22/index.htm
  2. http://www.360financialliteracy.org/Topics/Insurance/Cars-and-Auto-Insurance/State-by-State-Minimum-Coverage-Requirements
  3. http://www.rmiia.org/auto/steering_through_your_auto_policy/Filing_an_Auto_Claim.asp
  4. https://www.esurance.com/info/car/myth-your-credit-score-doesnt-affect-your-insurance-rate
  5. https://www.thebalance.com/how-to-get-your-driving-record-527249
  6. https://www.progressivecommercial.com/coverages/liability/
  7. https://www.farmers.com/auto/coverage/
  8. http://abcnews.go.com/Business/video/save-big-car-insurance-11719945

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