What is car insurance?
Car insurance pays for damage to your car and protects you financially if you’re responsible for someone else’s injuries or property damage. Auto insurance can also pay for medical bills if you or your passengers get hurt in an accident or if you’re hit by a driver who doesn’t have enough insurance or doesn’t have enough insurance. Your policy protects you up to certain limits that you and your insurance company have agreed on.
Do I need insurance for my car?
All states except New Hampshire require auto insurance. If you cause an accident in New Hampshire, you still have to pay for it, so you’ll want to be insured. Driving without insurance could result in a fine, license suspension, or even jail time.
Progressive and most other insurance companies will make sure that any policy you choose meets the rules of your state.
What does auto insurance cover?
Auto insurance pays for a wide range of accidents that can happen on or off the road. Even though coverages can be different from state to state, these are the ones that most auto insurance policies have as standard:
Liability
In 49 states, you have to have liability insurance on your car. If you are found to be at fault in an auto accident, liability coverage can pay for damage to other vehicles, damage to objects, injuries to other drivers and their passengers, and lawsuits if you are sued because of the accident.
Comprehensive
Comprehensive coverage protects you from damage to your car caused by things you can’t control, like theft, vandalism, trees falling on your car, and more.
Collision
Collision coverage pays for damage to your car if it flips over or hits another car or object, like a tree, guardrail, or fence.
Personal Injury Protection and Medical Payments (PIP)
Most states offer medical payments coverage, but personal injury protection is a broader coverage that is only available in states that require it. Both pay for medical bills if you or someone in your car gets hurt in an accident (regardless of fault).
Underinsured/Uninsured Motorist Bodily Injury (UMPD) and Property Damage (PWD)
When you are hit by a driver who has no insurance or not enough insurance, UIM can pay for your injuries and those of your passengers. If you get into an accident with an uninsured or underinsured driver, UMPD can pay to fix or replace your car.
Other coverages you can choose
Includes paying for a rental car, paying off a loan or lease (called “gap coverage”), and helping you out if your car breaks down. Progressive gives you more options for auto insurance coverage.
What is not covered by car insurance?
A basic auto insurance policy won’t cover things like wear and tear, regular drivers who aren’t on the policy, or driving on a ridesharing platform. But you can sometimes buy extra coverage or a separate policy or warranty to cover things that aren’t covered by your auto insurance. For instance, you can add coverage for ridesharing to your Progressive auto insurance.
How is the cost of car insurance set?
When setting the price of your car insurance, insurers look at many things, such as your age, driving record, location, and the kind of car you drive. Find out more about the things that affect how much car insurance costs and how much it costs on average.
What is the cost of car insurance?
Your car insurance premium is the amount of money you pay to your insurance company for coverage. Most of the time, you can pay your premium monthly or all at once.
What is the deductible on your car insurance?
Your deductible is the amount you have to pay out of your own pocket before your insurance company will pay for your claim.
For example, let’s say you have a $500 deductible and hit a telephone pole, which costs $2,000 to fix. You’ll have to pay $500, and your insurance company will pay the other $1,500. Your insurance company will give you a choice of deductible amounts.
The higher your deductible, the more of the cost of a claim you have to pay. That means you’ll pay more out of pocket, but your overall rate will be lower, and vice versa.
Does car insurance cover maintenance?
Auto insurance doesn’t pay for repairs, maintenance, or normal wear and tear on your car. In the event that your car breaks down anywhere in the United States or Canada, your roadside assistance coverage from Progressive will pay for a tow to the nearest mechanic.
FAQs
How do payments for auto insurance work?
When purchasing auto insurance, you can pay your annual payment in full or in monthly installments. Most businesses let you set up automatic payments using your credit or debit card, but you may also be able to pay by check, money order, or electronic funds transfer, which will deposit money directly from your bank to your insurer.
How does insurance work when an accident occurs?
Your insurance company will typically cooperate with the other driver’s insurance company to identify who was at blame in an accident. The insurance of the party at blame pays for the damage and injuries they caused. Depending on the coverages in your policy, even if you were at fault, damage to your own vehicle may be covered. Your uninsured/underinsured motorist policy will pay for the damage if you are involved in an accident caused by a driver who has no insurance or insufficient insurance to cover the harm they caused.
How can I obtain affordable auto insurance?
The greatest method for finding affordable auto insurance is to compare rates from multiple providers. One firm may price $120 per month for auto insurance, while another may charge $80 per month for the same coverage. If you want the cheapest auto insurance regardless of your insurer, you should hunt for discounts or increase your liability and collision deductibles.
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