vehicle assignment insurance

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How Your Vehicles Are Used

Ready to add a vehicle or get a quote? Sign into your account here to get started. If you've already started and need help, read on!

To quote your policy or make changes to it, like adding or replacing a vehicle, you’ll need to tell us about how your vehicles are used, how much they're driven, and sometimes, who'll be driving them most.

Primary Use of the Vehicle

Choose your  vehicle's primary use based on how it will be used most frequently. In most cases, “Commute” is the best answer. Select "Commute" if you will regularly drive to work or school.

Choose "Pleasure" as the primary use if one or more of your vehicles are rarely driven or only used for occasional errands.

You may need commercial auto insurance if you're adding a vehicle that will be owned by a business or used for business purposes (some examples below). Commercial auto insurance is often used by:

• Electricians, plumbers, and HVAC professionals
• Carpenters, painters, and other contractors
• Landscapers and plow services
• Caterers and food vendors
• Other business types, like real estate and sales

You can learn more about commercial auto insurance, get a quote, and purchase a policy here . If you have questions, chat with us.

Ridesharing

Adding any type of vehicle that will be used for a ridesharing or delivery services like Uber, Lyft, Amazon Flex or Grubhub will require rideshare insurance. You can learn more about rideshare insurance by calling (800) 207-7847.

If you are a federal government employee or civilian contractor, and you will use your vehicle to conduct federal government business, select “Federal” as the vehicle’s use.

Choose "Farm" as the use of your vehicle if you will use it on a farm or ranch and not for any other purpose, like driving to work. In some states, you may be required to use special farm tags. Check with your state’s DMV or MVA for details.

Who Will Drive It the Most?

Depending on your state, we may ask who will drive your vehicle the most. If the person who will drive this vehicle most is not listed, then you’ll need to add them to your policy first. Learn more about when to add someone to your policy here .

Annual Mileage

Your annual mileage is the number of miles you drive each year. If you aren't sure how much you'll drive each year, enter your best guess. When you select "Commute" as the vehicle's primary use, we'll ask you a few questions to determine your annual mileage estimate. Once you've answered these questions, make sure to click "Save" before continuing to view your quote.

Vehicle Assignment (Matching Drivers to Vehicles)

Depending on your state, we may ask you to estimate which vehicle each person will drive most. Each vehicle on your policy must be assigned a driver in this step. If you don’t see this step, your state doesn't require it.

We understand that each person on your policy might drive different vehicles occasionally. Just do your best to match each person with the vehicle they drive most often. Choose “Save” after making your selections, and then continue to view your quote.

Check out other useful tips about adding vehicles here .

If you need more help, chat with us.

The above is meant as general information to help you understand the types of drivers you may need to add to your policy. This information does not refer to any specific contract of insurance and does not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.

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How to Get Car Insurance

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Getting car insurance can be as time-consuming as a phone call to an agent or as quick as tapping a few links on your phone. Whichever method you choose, you can boil down the process of shopping for car insurance to these five steps:

Gather information.

Determine your coverage needs.

Choose how to shop for car insurance.

Compare companies.

Buy your new policy (and cancel your old one).

Below we’ll guide you through each step of the process.

See what you could save on car insurance

1. gather information.

Before you start shopping for car insurance, collect this essential information:

Basic details, such as the name, address and birthdate of every driver on the policy.

Driver’s license information for everyone on the policy.

Facts about the car, including the make, model, vehicle identification number, safety features, current odometer reading and annual mileage driven.

Driving history for all drivers, including accidents, tickets or any other violations.

Your current insurer, if you have one, and your current coverage limits.

» MORE: Compare car insurance rates

2. Determine your coverage needs

When comparing quotes from multiple insurers, make sure you’re getting the same amount of coverage from each company. Not sure how much you need? Each state has its own minimum car insurance requirements , but you may want broader coverage for your vehicle.

The table below includes some of the most common types of coverage:

Still not sure how much coverage to select? See the next section for info on finding an agent to talk you through your options.

» MORE: How much car insurance do you really need?

3. Choose how to shop for car insurance

Here are the main routes you can take when getting car insurance — and what to know about each one.

Auto insurance direct from the insurer

With direct auto insurance, there’s no need to seek out an agent or broker. Online car insurance quotes from insurers’ websites and third-party comparison sites are popular, but you can also get direct insurance quotes over the phone.

When you get a quote online, you can see all of your policy options and complete the quoting process at your leisure. You enter your own information and won’t have to deal with agents or representatives unless you want to.

Good choice for you if:

You want a pressure-free shopping experience.

Convenience is a top priority — you want to get from quote to coverage as quickly as possible.

You have a basic understanding of how auto insurance works and don’t need a personal relationship with an agent.

The freedom to arrange and manage your policy on your own is appealing.

Possible downsides:

While all direct insurers have representatives to field questions, you may not get responses as detailed as you would from an agent.

Online car insurance quotes aren’t guaranteed; rather, they’re estimates that may differ from your final price.

You’ll need to share personal information to get an accurate quote and may get follow-up calls and emails. If that sounds like a hassle, consider creating a separate email account or Google Voice phone number to screen contacts.

» MORE: Get free car insurance quotes

Car insurance from a captive agent

Getting car insurance quotes through a “captive” agent was once the customary way to buy coverage. Captive agents work exclusively for a single insurance company and act as your main point of contact from the day you buy your policy. Large insurance companies, such as Allstate, Geico and State Farm, have exclusive agents in just about every state.

You don’t quite know what you need and want someone to guide you through your options.

You want someone to help you manage multiple policies.

You want familiarity and a long-lasting relationship with your insurer.

Captive agents are limited in the prices and policy features they can offer, which could be off-putting for shoppers looking for more options.

Agents are paid a percentage of your premium as commission, which could incentivize some to offer pricier policies.

They won’t help you compare their policies to those from other companies.

» MORE: The best cheap car insurance

Car insurance from an independent agent or broker

Unlike captive agents, independent agents and brokers don’t represent a single company. Instead they work with many different providers and can offer you a variety of policies and quotes. Dozens of insurers sell through independent agents, including Travelers, American Family and many smaller companies.

Both agents and brokers earn commissions, but agents represent the insurance companies they contract with, while brokers represent the client who’s buying the policy.

You want someone who can explain the complex parts of your policy. Independent agents and brokers deal with many insurance companies and may have a greater sense of how certain regulations and contract details vary from one company or state to the next.

You like the idea of dealing with an agent but want more price and coverage flexibility than captive reps can provide.

You have a decent understanding of how much coverage you need and can resist unnecessary add-ons or upsells.

They might not be authorized to sell all types of policies from an insurer, nor are they obligated to sign you up for the cheapest. J.D. Power researchers have found that independent agents tend to do more business with the insurance companies they like best.

They don’t have access to quotes from companies that use captive agents, so if you want to compare quotes from some of the largest insurers, you’d still have to get those separately.

Because they work on commission, they might try to sell you on policy features you don’t need.

Brokers often charge a fee to supplement their commission.

» MORE: Insurance brokers: What they do and who needs one

Car insurance from specialty agencies

If you’ve had recent accidents, DUIs, tickets or lapses in coverage, get quotes from high-risk car insurance companies . These insurers specialize in nonstandard policies and are more likely to offer coverage to people with spotty records (or no driving records at all).

Some agencies specialize in high-risk coverage from nonstandard companies and can help you find one that will accept your application. These agencies tend to be local, so search in your area for reputable agencies with websites that indicate agents can get car insurance for drivers who are commonly denied coverage.

If that fails, here’s a state directory of assigned-risk car insurance programs .

4. Compare companies

We recommend getting quotes from at least three different companies before you make your final decision. When evaluating prices, make sure you’re comparing policies with the same coverage limits and deductibles.

While you may be tempted simply to choose the cheapest option, it’s worth reading reviews and ratings for each insurer before you buy. For example, you can check the website of the National Association of Insurance Commissioners to see how many consumer complaints have been filed against a company you’re considering, or read NerdWallet’s auto insurance reviews .

You might decide it’s worth paying slightly more for a policy from a company with better customer service.

» MORE: The best car insurance compa n ies

5. Buy your new policy (and cancel your old one)

Once you’ve chosen a company and a policy, you can usually pay all at once or on a regular schedule, such as monthly. (You may get a discount on your policy by paying in full upfront.)

If you’re buying a new car, make sure you have insurance coverage in place before you drive the car off the lot.

If you’re simply changing policies on an existing vehicle, reach out to your former company to cancel the old policy once the new one is in place. Avoid a lapse in coverage by setting the cancellation date for your old policy for after the start date of the new one. You should receive a refund of any unused premium you paid your former insurer, minus any cancellation fee.

» MORE: Switching car insurance companies in 7 steps

Yes. Many companies allow you to get an online car insurance quote and buy your policy immediately. You may also be able to request coverage, make a payment and get a policy over the phone.

For young drivers, being added to a parent’s insurance policy is often the most affordable option. But if you’re striking out on your own, you may have to shop around with multiple companies to find cheap insurance for young drivers , as policies tend to be more expensive if you don’t have much driving experience.

It’s best to shop around for car insurance about once a year to make sure you’re getting the best available rates. To do so, you can look for quotes online, call a few different companies or ask an independent agent to shop around on your behalf.

Yes. Many companies allow you to get an

online car insurance quote

and buy your policy immediately. You may also be able to request coverage, make a payment and get a policy over the phone.

For young drivers, being added to a parent’s insurance policy is often the most affordable option. But if you’re striking out on your own, you may have to shop around with multiple companies to find

cheap insurance for young drivers

, as policies tend to be more expensive if you don’t have much driving experience.

It’s best to

shop around for car insurance

about once a year to make sure you’re getting the best available rates. To do so, you can look for quotes online, call a few different companies or ask an independent agent to shop around on your behalf.

On a similar note...

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Instantly compare top auto insurance companies.

Switching your insurance could save you hundreds a year.

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Car Insurance Buying Guide

Insurance isn’t the most exciting facet of car ownership, but it’s one of the most important. Your policy is designed to protect you from financial calamity in the event of a collision or related injury, and insurance coverage is required by most states if you want to register a car. Consumer Reports recommends shopping around for the best policy, not only when you buy a car but also every few years, to make sure you’re always getting the best deal possible.

Through a survey of more than 40,000 members, CR has identified the insurance companies that offer the best service with the most competitive monthly premiums. To get the best car insurance rates, it helps to understand what attributes insurers consider when they formulate your monthly premiums. They include the following factors.

Driver profile: Age, driving experience, and driver history—for example, if you’ve had crashes or traffic violations—can all influence the cost of your premium because the insurer may put you in a higher risk category. The addition of a teen driver can also raise the cost of your policy.

Car type: In general, the more expensive the car, the higher the premium because expensive cars cost more to repair and replace. High-performance cars also cost more to insure because of the increased risk associated with owning a faster car.

Credit history: According to Experian, a credit reporting agency, most states allow insurers to factor a customer’s credit score into their rates. Insurers maintain that credit history is a good predictor of the risk that they’ll have to shell out for insurance claims. California, Hawaii, Maryland, Massachusetts, Michigan, Oregon, and Utah restrict or prohibit the practice. In other states, improving your credit score can help you get a better rate.

External conditions: Local weather patterns, traffic conditions, and other factors that increase the likelihood of claims result in higher rates. For example, if damaging storms in your area have generated lots of car-insurance claims in the past, such as major hurricanes and flooding, your company may apply to your state’s insurance regulator for an across-the-board rate increase to reflect its increased exposure to that risk. Customers in areas with higher rates of collisions are also likely to pay more.

Loyalty Doesn’t Pay

It is a common misconception that insurers reward customers for sticking around. A recent national survey commissioned by CR shows that you can save money by shopping around for a better rate from time to time. Twenty-eight percent of the members we surveyed told us they’d switched insurers in the past six years. Among those, 58 percent said they’d found a better price, and 37 percent said they switched because of premium increases from their previous insurer.

“Price optimization” can be another reason to shop for a new insurer every few years. So far, 20 states have outlawed this controversial practice, which allows insurers to raise rates for reasons that aren’t related to increased liability risk. Here’s how it works: If an insurer figures you aren’t likely to jump ship to another carrier, it may raise rates just because it can, costing you extra money.

Factor In Life Changes

If you get married, add a teen driver to your policy, or add or remove a vehicle, or the distance of your commute changes—as it did for many people during the pandemic—ask your insurer how much the changes will cost or save you. Shop other insurance companies to see which carrier can give you the best rate. Remember to ask for an adjustment to your coverage to reflect your car’s depreciation; insurers don’t necessarily do that without your prodding.

For a comprehensive list of insurers that might not be visible with a simple Google search, consult CR’s  car insurance ratings .

Pick a Top-Rated Insurer

Securing a lower premium is important, but price isn’t everything. Find a carrier that—in addition to having competitively low premiums—provides fair and fast claim settlements, offers great customer service outside of claims, helps you review your policy thoroughly, and proactively offers help and advice.

CR rates insurers based on member feedback on the cost of their premiums, the ease of processing claims, the quality of non-claim-related customer service, thoroughness of policy review, clarity of policy coverage, and proactive help and advice. To create our ratings, we surveyed 40,251 CR members in the summer of 2022 about their car insurance. They provided us with 47,713 reports on their experiences with the car insurance companies they did business with, and told us whether they had switched insurers or filed a claim between 2018 and 2022. (CR members’ experiences are not necessarily representative of the U.S. population.)

Don't Skimp on Liability Coverage

Most states require drivers to have at least minimum coverage, but it’s a good idea to bolster your coverage beyond these minimums if you can afford to do so.

Liability insurance: This covers bodily injury and property damage caused to another party in a crash. Experts recommend buying more than the legal minimum even if you don’t have much in assets to protect. Depending on your state, a portion of your wages could be garnished in a judgment against you. A more protective level of coverage is $100,000 per person, $300,000 per incident, and $100,000 for property damage. Douglas Heller, an insurance expert at the Consumer Federation of America (CFA), says an umbrella liability policy may be worth considering because it extends coverage for both your car and home, and it offers additional protections as well. Those policies usually increase the per-person coverage to $300,000.

Low-limit coverage:  Heller says that although they offer better protection, umbrella policies and policies with higher liability limits can be difficult for lower-income drivers to afford. Currently, only three states—California, Hawaii, and New Jersey—offer specialized insurance coverage for lower-income drivers. Heller says that having low-limit liability coverage is better than going without insurance, or simply not driving, which can cut people off from economic opportunity.

Uninsured motorist coverage:  In many states, this coverage is optional—but worth having. According to the Insurance Information Institute, 1 in 8 drivers don’t carry car insurance. That’s a statistic that has remained fairly constant for more than two decades, making uninsured motorist coverage a smart buy, even if it’s not required. This coverage, which is usually inexpensive, pays medical bills for you and your passengers after a crash caused by an uninsured, at-fault driver. Why get it in a no-fault state, where your company pays regardless of who’s at fault? Because it reimburses for lost wages after a crash. Uninsured motorist insurance also covers you and your household as pedestrians, and in hit-and-run crashes. ( Pedestrian fatalities have been on the rise in the U.S., increasing by 54 percent from 2010 to 2020, according to the National Highway Traffic Safety Administration.) Heller says you want to get at least as much coverage for yourself as you would get for others involved in a crash.

Underinsured coverage:  More motorists are opting to carry only state-mandated minimum liability coverages in order to save money. Underinsured coverage protects you if you get into a crash with someone who doesn’t have enough insurance to cover the cost of injuries and property damage.

Seek Savings on Other Coverages

Collision insurance, which pays for crash damage, and comprehensive insurance, which protects against vehicle theft and damage caused by storms and such, are two types of coverage you may be able to whittle down in order to reduce your premium. You also may be able to forgo other types to save even more money.

Adjust your deductible.  Raising your comprehensive and collision deductibles from $500 to $1,000 can shave 11 percent off your premium on average, says Hunter at the CFA. Just make sure you can afford to pay the extra out-of-pocket cost if you’re unfortunate enough to get into a crash.

Older cars don’t need extra coverage.  Consider dropping collision and comprehensive coverage when your annual premiums equal or exceed 10 percent of your car’s book value. Otherwise, you could end up paying more over time than you would recoup for repair or replacement of your damaged, stolen, or totaled vehicle. (If you have a car that is appreciating and is old enough to be considered a classic, and you don’t drive it to and from work and for most errands, consider getting a classic car policy. That type of coverage insures your car for an agreed-upon value based on its collectability and other factors.)

Drop rental reimbursement coverage.  If you have another car you can use while your vehicle is being repaired, you don’t need to buy this coverage. You can also skip roadside assistance coverage if you have an auto-club membership that’s a better deal, or if roadside assistance comes as part of your car’s warranty.

Review personal injury protection and medical payments coverage.  If you already have good health coverage, you don’t need it through your auto policy. Keep the coverage if you don’t have health insurance, or if your usual passengers might not be well-insured.

Actively pursue discounts.  They can include breaks for bundling home, auto, and umbrella policies with the same carrier; taking a safe-driving course; letting your carrier know about your lower annual mileage; and reporting your  teen driver ’s good academic average, typically a B or better.

Take These Steps to Save More

Keep your credit and driving record clean.  Both have an impact on the price of your insurance premium. For the best rates, you’ll need to have at least three years of clean driving. In most states, the better your credit score, the lower your rates will be.

Choose your car wisely.  Premiums vary by model. When comparing models, ask your insurer for premium quotes on the different vehicle models that you’re considering. Luxury and high-performance cars tend to cost more to insure than more mainstream models.

Assign the right driver to the right car.  Ask your insurance agent who the principal driver should be for each car in your household. Basing those matchups on individuals’ driving records and car values might save you money. Pairing a lower-value car with the driver who commutes the longest distances, for instance, may cost you less than giving that driver the higher-value car. (Of course, this strategy may require come negotiation among family members.)

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• Car Insurance

Car Insurance Calculator: Estimate Your Costs

Updated: Aug 22, 2024, 8:51am

Shopping for a new car or just savvy and want an idea of how much you should pay for auto insurance? You can quickly and easily get an estimate of how much car insurance costs with Forbes Advisor’s car insurance calculator.

Calculate Car Insurance Cost

How to calculate your car insurance coverage needs.

Because a car insurance policy can be made up of several components, the best way to calculate how much car insurance you need is to look at each one separately.

How to Choose the Right Amount of Liability Insurance

Liability car insurance is required in most states and pays for accidental property damage and injuries you cause to others. It also covers the cost of your legal defense and judgments and settlements if you’re sued because of an accident.

Understanding liability insurance limits is critical to choosing the right amount of car insurance. A general rule of thumb is to buy enough liability insurance to cover what could be taken from you in a lawsuit .

Liability limits are written as a group of three numbers, such as 15/30/15, and breaks down to mean:

• 15 = $15,000 of bodily injury liability coverage per person
• 30 = $30,000 of bodily injury liability coverage per accident
• 15 = $15,000 of property damage liability coverage per accident

Buying only your state’s minimum amount of liability car insurance could be a costly mistake because these amounts are usually inadequate if you cause an expensive accident.

Do You Need Collision and Comprehensive Insurance?

Collision and comprehensive insurance are often sold together and cover a wide range of problems, like accident damage to your own vehicle, car theft , collisions with animals, floods, fires, hail damage , vandalism and falling objects (like a tree branch).

No state has a law requiring you to carry collision and comprehensive insurance , but if you have a car lease or loan, your leasing company or lender usually requires this coverage.

You don’t need to choose a collision or comprehensive amount—your coverage will be based on the value of your vehicle, or the payout to you if your car is totaled. You only need to choose a deductible. This is the amount subtracted from your payout if you make a collision or comprehensive insurance claim, such as $500.

Even if you own your car outright, it’s worth considering buying collision and comprehensive insurance if you want coverage to replace or repair your car if it’s damaged due to a problem covered by your policy.

Related: When to drop collision and comprehensive insurance

What Other Car Insurance Could be Required?

Some states, such as California , require only liability insurance. Others, such as  New York , require additional coverage types. Here are other types of car insurance that may be required in your state:

• Uninsured motorist (UM). Mandatory in some states and optional in other states. Uninsured motorist insurance pays for medical expenses of you and your passengers if injured by someone driving without liability insurance. UM limits usually match your liability limits.
• Underinsured motorist (UIM). Similar to uninsured motorist, UIM is required in some states and optional in others. It pays the medical bills of you and your passengers if the at-fault driver has insufficient car insurance to cover injuries they caused. UIM limits typically match your liability limits.
• Personal injury protection insurance (PIP). Required in some states. If you live in a no-fault insurance state, you use your own personal injury protection insurance to pay for medical bills related to a car accident, regardless of fault. PIP also covers other costs such as lost wages and replacement services, such as child care if you cannot do it yourself after the accident.
• Medical payments (MedPay). Required in some states. Medical payments coverage pays medical expenses for injuries to you and your passengers due to an auto accident, regardless of fault.

Expert Tips

How to Lower Your Car Insurance Costs

Insurance Lead Editor

Michelle Megna

Les Masterson

Insurance Editor

• Compare Car Insurance Quotes

The best way to find a good policy at a fair price is to compare car insurance quotes among multiple insurance companies. Rates can vary significantly from one insurer to the next because they assess risk differently. That’s why shopping around is one of the best ways to save money on car insurance .

Ask About Car Insurance Discounts

I recommend asking about all the car insurance discounts you may be eligible for, such as a good driving discount or multi-vehicle discount. Many discounts are applied automatically when you qualify. Others you’ll have to ask for because your car insurance company won’t know you’re eligible—such as a good student discount if you have a teen driver who has a B average or better

Increase Your Deductible

You can save money by raising your car insurance deductible if you have collision and comprehensive insurance. Since your insurer will pay less if you file a claim, you’ll pay less in premiums. But be sure that you’re comfortable paying more out of pocket if you file a claim.

What Factors Impact Your Car Insurance Estimate?

When you shop around for auto insurance among multiple car insurance companies , the best way to get an accurate quote is to provide detailed information about yourself and other drivers who will be on the policy. Here are the factors that generally affect a car insurance quote.

Young drivers pose a greater risk for accidents, so those under age 25 see much higher car insurance rates than other age groups.

Auto insurance companies can use age as a car insurance pricing factor when setting rates—except in California, Hawaii and Massachusetts. Car insurance rates remain fairly steady in your middle years—30s through 50s—and then start to creep up as you approach your 70s. Car insurance rates for seniors steadily rise as you get into your 70s and 80s due to age-related impairments that make you a higher risk for accident claims.

Related: How Age and Gender Affect Car Insurance Rates

Driving Experience

The less time you’ve had behind the wheel, the more you’ll pay for auto insurance. Younger and inexperienced drivers are more likely to be in more accidents, which results in higher car insurance rates.

Driving Record

Driving safely and keeping a clean driving record leads to cheaper rates. Here’s how certain infractions can result in rate increases:

• At-fault accidents. Your car insurance rates go up after an accident 45% on average if you cause property damage. If there are injuries, it bumps up to a 47% increase.
• Speeding. Your car insurance rates go up after a speeding ticket 24% on average.
• DUI. Your rates for car insurance after DUI go up by an average of 74%.

Your Location

Auto insurance companies look at your location to see what types and how many claims are filed in your area. Location-driven risk factors include accidents, theft, vandalism and other car-related crimes and claims, plus weather claims, such as hail or flooding. The cost of vehicle repairs and medical care will also affect car insurance costs where you live.

If you live in an urban area, you’ll normally pay more than drivers in the suburbs or rural areas. Cities have higher rates of car accidents, car theft and vandalism, which will be reflected in your car insurance rates even if you’re a great driver.

Related: Car Insurance Rates By State

Your Vehicle Model

The type of car you drive impacts your car insurance estimate. Insurers analyze past claims that have been paid for specific car models, including the cost of repairs and theft rates, which can impact the cost of optional coverage types like collision and comprehensive insurance. If your vehicle model costs more to repair or replace, expect to pay more for car insurance.

Related: Most and Least Expensive Cars to Insure

Car insurance companies usually use a person’s credit when setting rates—except in California, Hawaii, Massachusetts and Michigan.

The use of a credit-based insurance score in setting car insurance rates is controversial, but car insurance companies point to a Federal Trade Commission report that correlates a person’s credit score and the likelihood of making an insurance claim. As a result, you can see a car insurance rate increase if you have bad credit .

Our data analysis found drivers with poor credit pay 76% more on average for car insurance than those with good credit. But not all insurers use credit in the same way, which is why it’s crucial to shop around for better rates.

Lapses In Car Insurance Coverage

If you have a gap in your car insurance coverage, you will pay higher rates than drivers who kept continuous coverage. Your risk as a driver is higher to car insurance companies when you have gaps in your car insurance history. Maintaining insurance shows stability, making you less of a risk.

Coverage and Deductibles Selected

Selecting a bare-bones liability car insurance policy will cost less than buying full coverage car insurance that includes comprehensive and collision coverage. But the trade-off is that you’ll leave yourself vulnerable to large car accident lawsuits that aren’t fully covered by insurance.

Car insurance deductibles are associated with collision and comprehensive coverages. You select your deductible, which typically range from $500 to $2,500. The higher the deductible you choose, the less you’ll pay. This is because your deductible is the amount subtracted from a claim check, so your insurance company pays less when you choose a higher deductible.

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Penny Gusner

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Get Multiple Quotes

– Brian S., Athens, Georgia

The best way to get an idea of how much you’ll pay is to get several car insurance quotes. You can do this online at insurance company websites, or work with an independent auto insurance agent, who will be able to give you multiple quotes. Another way to estimate your cost is to use online tools such as our car insurance calculators.

Methodology

We used data from Quadrant Information Services , a provider of insurance data and analytics. Rates are based on liability coverage of 100/300/100 ($100,000 in bodily injury liability per person, $300,000 per accident and $100,000 in property damage liability), uninsured motorist coverage, and collision and comprehensive coverage insurance with $500 deductible for a 40-year-old female. 

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Car Insurance Calculator Frequently Asked Questions

What do you need to get a car insurance cost estimate.

To get an estimate with Forbes Advisor’s car insurance calculator, you need to:

• Select your state.
• Pick the driving record that best matches yours.

If you go on to compare car insurance quotes   and buy a policy, you’ll want to have on hand:

• Your driver’s license (and that of any other household driver)
• Vehicle identification number (VIN) from your car (look on the driver’s side dashboard or doorjamb)
• Vehicle’s mileage

How can deductibles affect my car insurance estimate?

Choosing a higher deductible will lower your car insurance premium, and choosing a lower deductible will generally increase what you pay. That’s because a higher deductible means you pay more out-of-pocket for a collision or comprehensive insurance claim before your car insurance kicks. This reduces the insurer’s cost.

How can discounts change my car insurance estimates?

Discounts can impact your car insurance estimate by reducing the total premium you pay. To get an idea of how discounts can change your car insurance costs . The types of discounts, the eligibility criteria and potential savings vary among insurance companies. When you compare quotes, make sure you’re comparing costs that factor in the discounts you’ll receive.

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Penny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance into easy-to-understand advice and tips to help consumers make the best choices for their needs. Her work has been featured in numerous major media outlets, including The Washington Post and Kiplinger’s.

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Driver Statuses Assigned To Drivers On Car Insurance Policies

Car insurance is a very important item to have. There are many different types of plans available, each with a different cost. The premium each driver will pay depends on several factors closely examined by the car insurance company. Some of these factors include the age of the driver, whether or not the driver is married and the driving record of the main person listed on the policy.

Driver status is another important factor an insurance agent will take into consideration when helping you set up a policy. During this process, a policyholder has the ability to choose who can drive a certain car on their policy and still have car insurance coverage. A person can opt to have other drivers within the household be able to drive the car by simply listing them on the policy. Certain drivers can also be excluded from the list, meaning that they are not allowed to drive the vehicle at all. Doing this may be beneficial if someone has a bad driving record, meaning they come with a higher risk of having to file an accident claim. If an excluded person is driving the car and an accident occurs then the insurance company will not be held liable for any damages.

Excluding certain drivers can help policyholders save money and is a very good idea for households with multiple drivers. Drivers can be insured for one vehicle, but excluded on another. For example, if a child is going to college and will not be driving their parent's vehicle, the parent can exclude them on the policy. Excluding them from the list of eligible drivers for that vehicle can result in lower premiums. When the child returns home, the policyholders can then reinstate them and change their driver status so that they are included on the car insurance policy.

Most insurance companies will assign a certain person to be the main driver of a vehicle. The person with the best driving record is usually assigned as the listed person, with others in the household being secondary drivers. The person that has the best driving record is the one with the least amount of accidents, tickets or other types of moving violations – and is therefore eligible for the lowest car insurance rate. Assigning that person as the main driver of a vehicle is advantageous for the insurance company and the policyholders. It can help the policy holder to save money on their car insurance premiums while still allowing others in the household to drive the vehicle.

Knowing the type of driver statuses you will assign in your household is key when you are establishing your car insurance policy.

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Assignment of Benefits: What You Need to Know

• August 17, 2022
• Steven Schwartzapfel

Insurance can be useful, but dealing with the back-and-forth between insurance companies and contractors, medical specialists, and others can be a time-consuming and ultimately unpleasant experience. You want your medical bills to be paid without having to act as a middleman between your healthcare provider and your insurer.

However, there’s a way you can streamline this process. With an assignment of benefits, you can designate your healthcare provider or any other insurance payout recipient as the go-to party for insurance claims. While this can be convenient, there are certain risks to keep in mind as well.

Below, we’ll explore what an assignment of insurance benefits is (as well as other forms of remediation), how it works, and when you should employ it. For more information, or to learn whether you may have a claim against an insurer, contact Schwartzapfel Lawyers now at 1-516-342-2200 .

What Is an Assignment of Benefits?

An assignment of benefits (AOB) is a legal process through which an insured individual or party signs paperwork that designates another party like a contractor, company, or healthcare provider as their insurance claimant .

Suppose you’re injured in a car accident and need to file a claim with your health insurance company for medical bills and related costs. However, you also need plenty of time to recover. The thought of constantly negotiating between your insurance company, your healthcare provider, and anyone else seems draining and unwelcome.

With an assignment of benefits, you can designate your healthcare provider as your insurance claimant. Then, your healthcare provider can request insurance payouts from your healthcare insurance provider directly.

Through this system, the health insurance provider directly pays your physician or hospital rather than paying you. This means you don’t have to pay your healthcare provider. It’s a streamlined, straightforward way to make sure insurance money gets where it needs to go. It also saves you time and prevents you from having to think about insurance payments unless absolutely necessary.

What Does an Assignment of Benefits Mean?

An AOB means that you designate another party as your insurance claimant. In the above example, that’s your healthcare provider, which could be a physician, hospital, or other organization.

With the assignment of insurance coverage, that healthcare provider can then make a claim for insurance payments directly to your insurance company. The insurance company then pays your healthcare provider directly, and you’re removed as the middleman.

As a bonus, this system sometimes cuts down on your overall costs by eliminating certain service fees. Since there’s only one transaction — the transaction between your healthcare provider and your health insurer — there’s only one set of service fees to contend with. You don’t have to deal with two sets of service fees from first receiving money from your insurance provider, then sending that money to your healthcare provider.

Ultimately, the point of an assignment of benefits is to make things easier for you, your insurer, and anyone else involved in the process.

What Types of Insurance Qualify for an Assignment of Benefits?

Most types of commonly held insurance can work with an assignment of benefits. These insurance types include car insurance, healthcare insurance, homeowners insurance, property insurance, and more.

Note that not all insurance companies allow you to use an assignment of benefits. For an assignment of benefits to work, the potential insurance claimant and the insurance company in question must each sign the paperwork and agree to the arrangement. This prevents fraud (to some extent) and ensures that every party goes into the arrangement with clear expectations.

If your insurance company does not accept assignments of benefits, you’ll have to take care of insurance payments the traditional way. There are many reasons why an insurance company may not accept an assignment of benefits.

To speak with a Schwartzapfel Lawyers expert about this directly, call 1-516-342-2200 for a free consultation today. It will be our privilege to assist you with all your legal questions, needs, and recovery efforts.

Who Uses Assignments of Benefits?

Many providers, services, and contractors use assignments of benefits. It’s often in their interests to accept an assignment of benefits since they can get paid for their work more quickly and make critical decisions without having to consult the insurance policyholder first.

Imagine a circumstance in which a homeowner wants a contractor to add a new room to their property. The contractor knows that the scale of the project could increase or shrink depending on the specifics of the job, the weather, and other factors.

If the homeowner uses an assignment of benefits to give the contractor rights to make insurance claims for the project, that contractor can then:

• Bill the insurer directly for their work. This is beneficial since it ensures that the contractor’s employees get paid promptly and they can purchase the supplies they need.
• Make important decisions to ensure that the project completes on time. For example, a contract can authorize another insurance claim for extra supplies without consulting with the homeowner beforehand, saving time and potentially money in the process.

Practically any company or organization that receives payments from insurance companies may choose to take advantage of an assignment of benefits with you. Example companies and providers include:

• Ambulance services
• Drug and biological companies
• Lab diagnostic services
• Hospitals and medical centers like clinics
• Certified medical professionals such as nurse anesthetists, nurse midwives, clinical psychologists, and others
• Ambulatory surgical center services
• Permanent repair and improvement contractors like carpenters, plumbers, roofers, restoration companies, and others
• Auto repair shops and mechanic organizations

Advantages of Using an Assignment of Benefits

An assignment of benefits can be an advantageous contract to employ, especially if you believe that you’ll need to pay a contractor, healthcare provider, and/or other organization via insurance payouts regularly for the near future.

These benefits include but are not limited to:

• Save time for yourself. Again, imagine a circumstance in which you are hospitalized and have to pay your healthcare provider through your health insurance payouts. If you use an assignment of benefits, you don’t have to make the payments personally or oversee the insurance payouts. Instead, you can focus on resting and recovering.
• Possibly save yourself money in the long run. As noted above, an assignment of benefits can help you circumvent some service fees by limiting the number of transactions or money transfers required to ensure everyone is paid on time.
• Increased peace of mind. Many people don’t like having to constantly think about insurance payouts, contacting their insurance company, or negotiating between insurers and contractors/providers. With an assignment of benefits, you can let your insurance company and a contractor or provider work things out between them, though this can lead to applications later down the road.

Because of these benefits, many recovering individuals, car accident victims, homeowners, and others utilize AOB agreements from time to time.

Risks of Using an Assignment of Benefits

Worth mentioning, too, is that an assignment of benefits does carry certain risks you should be aware of before presenting this contract to your insurance company or a contractor or provider. Remember, an assignment of benefits is a legally binding contract unless it is otherwise dissolved (which is technically possible).

The risks of using an assignment of benefits include:

• You give billing control to your healthcare provider, contractor, or another party. This allows them to bill your insurance company for charges that you might not find necessary. For example, a home improvement contractor might bill a homeowner’s insurance company for an unnecessary material or improvement. The homeowner only finds out after the fact and after all the money has been paid, resulting in a higher premium for their insurance policy or more fees than they expected.
• You allow a contractor or service provider to sue your insurance company if the insurer does not want to pay for a certain service or bill. This can happen if the insurance company and contractor or service provider disagree on one or another billable item. Then, you may be dragged into litigation or arbitration you did not agree to in the first place.
• You may lose track of what your insurance company pays for various services . As such, you could be surprised if your health insurance or other insurance premiums and deductibles increase suddenly.

Given these disadvantages, it’s still wise to keep track of insurance payments even if you choose to use an assignment of benefits. For example, you might request that your insurance company keep you up to date on all billable items a contractor or service provider charges for the duration of your treatment or project.

For more on this and related topic, call Schwartzapfel Lawyers now at 1-516-342-2200 .

How To Make Sure an Assignment of Benefits Is Safe

Even though AOBs do carry potential disadvantages, there are ways to make sure that your chosen contract is safe and legally airtight. First, it’s generally a wise idea to contact knowledgeable legal representatives so they can look over your paperwork and ensure that any given assignment of benefits doesn’t contain any loopholes that could be exploited by a service provider or contractor.

The right lawyer can also make sure that an assignment of benefits is legally binding for your insurance provider. To make sure an assignment of benefits is safe, you should perform the following steps:

• Always check for reviews and references before hiring a contractor or service provider, especially if you plan to use an AOB ahead of time. For example, you should stay away if a contractor has a reputation for abusing insurance claims.
• Always get several estimates for work, repairs, or bills. Then, you can compare the estimated bills and see whether one contractor or service provider is likely to be honest about their charges.
• Get all estimates, payment schedules, and project schedules in writing so you can refer back to them later on.
• Don’t let a service provider or contractor pressure you into hiring them for any reason . If they seem overly excited about getting started, they could be trying to rush things along or get you to sign an AOB so that they can start issuing charges to your insurance company.
• Read your assignment of benefits contract fully. Make sure that there aren’t any legal loopholes that a contractor or service provider can take advantage of. An experienced lawyer can help you draft and sign a beneficial AOB contract.

Can You Sue a Party for Abusing an Assignment of Benefits?

Sometimes. If you believe your assignment of benefits is being abused by a contractor or service provider, you may be able to sue them for breaching your contract or even AOB fraud. However, successfully suing for insurance fraud of any kind is often difficult.

Also, you should remember that a contractor or service provider can sue your insurance company if the insurance carrier decides not to pay them. For example, if your insurer decides that a service provider is engaging in billing scams and no longer wishes to make payouts, this could put you in legal hot water.

If you’re not sure whether you have grounds for a lawsuit, contact Schwartzapfel Lawyers today at 1-516-342-2200 . At no charge, we’ll examine the details of your case and provide you with a consultation. Don’t wait. Call now!

Assignment of Benefits FAQs

Which states allow assignments of benefits.

Every state allows you to offer an assignment of benefits to a contractor and/or insurance company. That means, whether you live in New York, Florida, Arizona, California, or some other state, you can rest assured that AOBs are viable tools to streamline the insurance payout process.

Can You Revoke an Assignment of Benefits?

Yes. There may come a time when you need to revoke an assignment of benefits. This may be because you no longer want the provider or contractor to have control over your insurance claims, or because you want to switch providers/contractors.

To revoke an assignment of benefits agreement, you must notify the assignee (i.e., the new insurance claimant). A legally solid assignment of benefits contract should also include terms and rules for this decision. Once more, it’s usually a wise idea to have an experienced lawyer look over an assignment of benefits contract to make sure you don’t miss these by accident.

Contact Schwartzapfel Lawyers Today

An assignment of benefits is an invaluable tool when you need to streamline the insurance claims process. For example, you can designate your healthcare provider as your primary claimant with an assignment of benefits, allowing them to charge your insurance company directly for healthcare costs.

However, there are also risks associated with an assignment of benefits. If you believe a contractor or healthcare provider is charging your insurance company unfairly, you may need legal representatives. Schwartzapfel Lawyers can help.

As knowledgeable New York attorneys who are well-versed in New York insurance law, we’re ready to assist with any and all litigation needs. For a free case evaluation and consultation, contact Schwartzapfel Lawyers today at 1-516-342-2200 !

Schwartzapfel Lawyers, P.C. | Fighting For You™™

What Is an Insurance Claim? | Experian

What is assignment of benefits, and how does it impact insurers? | Insurance Business Mag

Florida Insurance Ruling Sets Precedent for Assignment of Benefits | Law.com

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Consumer Insight

Sept. 13, 2023

Assignment of Benefits: Consumer Beware

You've just survived a severe storm, or a tornado and you've experienced some extensive damage to your home that requires repairs, including the roof. Your contractor is now asking for your permission to speak with your insurance company using an Assignment of Benefits. Before you sign, read the fine print. Otherwise, you may inadvertently sign over your benefits and any extra money you’re owed as part of your claim settlement.

The National Association of Insurance Commissioners (NAIC) offers information to help you better understand insurance, your risk and what to do in the event you need repairs after significant storm damage.

Be cautious about signing an Assignment of Benefits. An Assignment of Benefits, or an AOB, is an agreement signed by a policyholder that allows a third party—such as a water extraction company, a roofer or a plumber—to act on behalf of the insured and seek direct payment from the insurance company.  An AOB can be a useful tool for getting repairs done, as it allows the repair company to deal directly with your insurance company when negotiating repairs and issuing payment directly to the repair company. However, an AOB is a legal contract, so you need to understand what rights you are signing away and you need to be sure the repair company is trustworthy.

• With an Assignment of Benefits, the third party, like a roofing company or plumber, files your claim, makes the repair decision and collects insurance payments without your involvement.
• Once you have signed an AOB, the insurer only communicates with the third party and the other party can sue your insurer and you can lose your right to mediation.
• It's possible the third party may demand a higher claim payment than the insurer offers and then sue the insurer when it denies your claim.
• You are not required to sign an AOB to have repairs completed. You can file a claim directly with your insurance company, which allows you to maintain control of the rights and benefits provided by your policy in resolving the claim.

Be on alert for fraud. Home repair fraud is common after a natural disaster. Contractors often come into disaster-struck regions looking to make quick money by taking advantage of victims.

• It is a good idea to do business with local or trusted companies. Ask friends and family for references.
•  Your insurer may also have recommendations or a list of preferred contractors.
• Always get more than one bid on work projects. Your adjuster may want to review estimates before you make repairs.

Immediately after the disaster, have an accurate account of the damage for your insurance company when you file a claim.

• Before removing any debris or belongings, document all losses.
• Take photos or video and make a list of the damages and lost items.
• Save damaged items if possible so your insurer can inspect them, some insurance companies may have this as a requirement in their policy.

Most insurance companies have a time requirement for reporting a claim, so contact your agent or company as soon as possible. Your  state insurance department  can help you find contact information for your insurance company, if you cannot find it.

• Insurance company officials can help you determine what damages are covered, start your claim and even issue a check to start the recovery process.
• When reporting losses, you will need insurance information, current contact information and a  home inventory or list of damaged and lost property . If you do not have a list, the adjuster will give you some time to make one. Ask the adjuster how much time you have to submit this inventory list. The NAIC Post Disaster Claims Guide has details on what you can do if you do not have a home inventory list.

After you report damage to your insurance company, they will send a claims adjuster to assess the damage at no cost to you . An adjuster from your insurance company will walk through and around your home to inspect damaged items and temporary repairs you may have made.

• A public adjuster is different from an adjuster from your insurance company and has no ties to the insurance company.
• They estimate the damage to your home and property, review your insurance coverage, and negotiate a settlement of the insurance claim for you.
• Many states require public adjusters to be licensed. Some states prohibit public adjusters from negotiating insurance claims for you. In those states, only a licensed attorney can represent you.
• You have to pay a public adjuster.
• The NAIC Post Disaster Claims Guide has information on the different types of adjusters.

Once the adjuster has completed an assessment, they will provide documentation of the loss to your insurer to determine your claims settlement. When it comes to getting paid, you may receive more than one check. If the damage is severe or you are displaced from your home, the first check may be an emergency advance. Other payments may be for the contents of your home, other personal property, and structural damages. Please note that if there is a mortgage on your home, the payment for structural damage may be payable to you and your mortgage lender. Lenders may put that money into an escrow account and pay for repairs as the work is completed.

More information. States have rules governing how insurance companies handle claims. If you think that your insurer is not responding in a timely manner or completing a reasonable investigation of your claim, contact your  state insurance department .

About the National Association of Insurance Commissioners

As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.

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According to Bankrate’s analysis, the average cost of car insurance in August 2024 is $2,329 for full coverage and $633 for minimum coverage. However, these are just average figures; the cost of your car insurance policy will likely vary. Car insurance is not a one-size-fits-all product: your coverage limits, policy endorsements, location, driving history, credit score and vehicle type can all play a part in determining what you pay for your policy. As such, car insurance is like a fingerprint — each quote will be different, which is why it’s important to know how to compare them.

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• Average car insurance rates are $2,314 for full coverage and $644 for minimum coverage.
• Experts recommend comparing quotes with the same coverage limits from at least three carriers to find the best fit for your risk profile.
• Drivers under 25 or over 70 and those with violations or accidents tend to pay higher premiums based on insurer risk calculations.
• To request quotes, you’ll need your driver’s license number and vehicle identification number handy, along with information about your driving habits and any recent tickets.
• An insurance rate is the amount an insurer charges per unit of exposure — that is, the cost set by an insurer for a certain amount of car insurance coverage. 
• An insurance quote is the estimated cost of a policy based on the applicant’s coverage selections and the rates set by the insurer. 
• An insurance premium is the actual amount a policyholder agrees to pay to maintain an insurance policy, based on the rate charged for their selected coverage. 

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Compare auto insurance rates

Compare car insurance rates by age.

In all states except Massachusetts and Hawaii, insurers use your age to determine your auto insurance premium. When analyzing car insurance premiums by age, young drivers under the age of 25 typically see higher rates compared to adults. This is because younger drivers have less experience behind the wheel and are more likely to engage in risky driving behavior. According to our analysis, a 21-year-old driver pays an average of 71 percent more for a full coverage car insurance policy compared to a 40-year-old.

Bankrate compiled age-related data from several carriers based on August 2024 rates pulled from Quadrant Information Services to give you an idea of how much you might pay at different points in your life.

• Young drivers
• Adult drivers
• Senior drivers

Compare car insurance rates for young drivers

Teen drivers are inexperienced, which leads to a greater likelihood of accidents and risky driving. In fact, the Centers for Disease Control and Prevention (CDC) reports that teens have a higher crash rate than any other age group. Because of this, teens typically cost more to insure than older drivers. Bankrate found that, depending on your teen’s age, Nationwide, Geico and Farmers tend to have lower average rates for young drivers.

Teens are not the only age group that face higher-than-average rates; drivers from the ages of 20 to 25 also see elevated car insurance prices. This is largely also because of inexperience behind the wheel, but the increase tends to be less dramatic for drivers in their early 20s compared to teen drivers. However, some young adults may find the best car insurance rates by choosing to stay on their parent’s policy as opposed to purchasing one of their own.

Compare car insurance rates for adult drivers

Drivers typically see some relief in terms of car insurance rates when they turn 25. More driving experience and maintaining a clean record signal to your car insurance company that you are unlikely to file an insurance claim, which is usually rewarded with a lower rate. Car insurance premiums tend to hit a downward trend from ages 25 to 50 . With the table below, you can compare car insurance rates from different carriers for a variety of age groups.

Compare car insurance rates for senior drivers

Senior drivers , typically defined as age 60 and older, may see their car insurance rates begin to creep back up, although some insurers don’t begin to adjust rates until you reach age 70. That is because senior drivers statistically are at greater risk of being in an accident. Aging-related health factors , like decreased eyesight and slowed reaction time, can impair a driver and increase the risk of accidents.

Based on our analysis, older adults may want to consider getting quotes from USAA, Nationwide, Geico and Auto-Owners for low-cost coverage as these carriers offer some of the best average insurance rates for senior drivers.

Keeping a clean motor vehicle record (MVR) is typically one of the best ways to avoid premium increases on your car insurance policy. Because car insurance rates are based on risk, high-risk drivers generally pay more for coverage and may have trouble obtaining coverage from standard auto insurers. Insurers will review the driving history of all drivers on the policy by obtaining MVR and Comprehensive Loss Underwriting Exchange (CLUE) reports (which provide your auto claims history) so providing this information up front will help ensure you receive an accurate quote.

• Speeding ticket
• At-fault accident

Car insurance rates after a speeding ticket

Speeding tickets are relatively common, but most carriers still see them as an indication of high-risk driver behavior. As such, a speeding ticket on your motor vehicle record causes your average annual payment to be 23 percent more per year. On top of the increased insurance costs , you may need to pay fines and even license and/or vehicle registration reinstatement fees, depending on the severity of your infraction.

Fortunately, most carriers only consider speeding ticket convictions for three to five years when determining rates. Depending on your state, carrier and ticket severity, you will likely see your rates come back down after a few years of infraction-free driving.

• Full coverage
• Minimum coverage

Compare car insurance rates after a speeding ticket in your state

Compare car insurance rates after an at-fault accident

Accidents on your MVR will typically increase your premiums, especially if you were found at fault. Insurers typically see a driver with one or more at-fault accidents as more likely to cause an accident in the future and charge them a higher rate as a result.

The table below shows average rates before and after an at-fault accident from several major car insurance companies. On average, drivers with a single at-fault accident pay 45 percent more annually than drivers with the same coverage and no accidents. Accident forgiveness coverage may prevent a rate increase after your first at-fault accident. However, it is important to note that even if you have this coverage with your current insurer (meaning they won’t raise your rate because of an at-fault accident), that accident will likely affect your quoted rates with other insurers, as it is included on your MVR. Accident forgiveness does not typically transfer between carriers and usually must be earned or purchased with new providers.

Compare car insurance rates after an accident in your state

Car insurance rates after a dui.

DUIs are among the most serious offenses that a driver can commit, and drivers with a DUI conviction pay an average of 95 percent more for coverage compared to drivers with clean records. Depending on your state’s regulations, you may also face a suspended license and registration, numerous fines and other financial and legal penalties. A DUI conviction can stay on your driving record for life in some states. Finding car insurance with a DUI on your MVR may be much more difficult than it is with a clean driving record, as not all insurance companies will agree to insure such risky drivers. If you have a DUI conviction on your record, it may be worth looking into a carrier that specializes in writing policies for high-risk drivers.

Compare car insurance rates after a DUI in your state

You will likely need to file an SR-22 (or FR-44 , if you’re in Virginia or Florida) after a serious infraction like a DUI, license suspension, reckless driving or if you were caught driving without an insurance policy. An SR-22 is not a car insurance policy; it is a form your insurance company files with your state’s department of motor vehicles that proves you carry at least the minimum amount of car insurance required in your state. Depending on the driving infraction, you may need to carry an SR-22 for one to five years.

In most states, your credit tier will affect your car insurance premium. Generally, drivers with lower credit-based insurance scores tend to file more claims and are thus viewed as a higher risk by carriers. California, Hawaii, Massachusetts and Michigan ban or restrict the use of credit as an auto insurance rating factor.

Compare auto insurance rates by credit tier in your state

Before you start the process of looking for car insurance, take some time to consider what’s most important to you. Maybe you’ve outfitted your car with aftermarket parts and other customizations and need specific coverage for this. Or maybe you have a child who’s about to become a new driver and need competitive rates for adding a teen to your policy.

Whether you’re looking for endless coverage options or just the basics, understanding what you want will help guide you toward the best auto insurance rates. Once you’re ready to get started, here’s how you can streamline the process:

1. Collect your personal information

Whether you get an auto insurance quote online or over the phone, you'll likely share the same personal information. This is the information you'll likely need to have on hand:

• Driver information: You'll need the names, birthdays and driver's license numbers of all the drivers you would like to add to your quote. Included drivers should be all drivers in your household plus any driver who regularly drives your vehicle.
• Vehicle information: At the very least, you will need to provide the makes and models of the vehicles you need to be covered. If you can, you may want to include your vehicle identification numbers (VIN) , as this information may provide you with a more accurate quote. If you’ve outfitted your vehicle with aftermarket parts , you will need to include this information as well.
• Driving history: During the quote, the car insurance company may ask if any drivers have been in any accidents or received tickets within a specific timeframe. If you don't advise the company of past driving activity upfront, your quoted premium may go up once the company reviews your driving records after you decide to purchase the policy.
• Usage information: How often you drive can also play a role in your car insurance costs. When you are requesting quotes, an insurer will likely ask you how often you use your vehicle, your estimated annual mileage, whether or not you commute, etc.

2. Choose the right coverage levels

After you provide your personal and vehicle information, the company will ask you what coverage types you would like to include in your quote. When selecting your level of coverage, your individual needs and financial goals will dictate what coverage package is best for you. For instance, if you are leasing your vehicle, your financial lender will likely require you to carry liability limits higher than your state’s required minimum limits. Or, if you have a newer vehicle you are still paying for, you may consider adding gap insurance . Regardless of your selections, you may want to ask for similar coverage options on each quote to ensure you are conducting an apples-to-apples comparison.

Understand car insurance requirements in your state

Most states (except for New Hampshire) require that drivers purchase a car insurance policy in order to register their vehicles. While exact state minimum requirements vary on a state-by-state basis, they all include some form of bodily injury and property damage liability. In no-fault states , you may also need to purchase personal injury protection, uninsured motorist coverage and medical payments coverage. Getting familiar with the coverage requirements in your state can help you better understand how your policy works to protect your finances; plus, it can help you spot any potential coverage gaps.

How much car insurance do you need?

Bankrate’s insurance editorial team, which includes licensed insurance agents, knows that balancing affordability and coverage is key.

3. Compare auto insurance quotes

Once you’ve shared your information with the insurance company, you will receive a coverage proposal or quote in return. This typically consists of a premium estimate with the coverage options you selected and a list of covered drivers. Your quote should also already factor in any discounts you qualify for like a home and auto bundle , safe driving discount, student discount or other discount type. Discounts vary by insurer, and some may offer more savings opportunities than others.

Keep in mind that if the insurance company did not check the driving records of all drivers listed on the policy, the quote can change once you purchase the policy. And sometimes, more information is required before a policy can be issued, such as proof of address or prior insurance. The insurance company will inform you if additional information is needed, along with how to provide it and an approval timeframe.

Best car insurance companies for 2024

The best car insurance companies offer rates, coverage options, discounts, third-party scores and digital tools that fit your individual needs. 

4. Evaluate company features and customer service

When comparing auto insurance quotes, don’t lose sight of other factors that could make an insurance company a good or bad fit for you. Beyond looking for the cheapest rates, you may want to look for an insurer whose representatives you trust to manage your policy and handle any claims efficiently.

Gauging customer satisfaction for insurance companies can be difficult, but third-party ratings and customer reviews paint a picture that may guide your search. For a sense of an insurer’s financial strength, you may want to look at AM Best ratings, which capture a company’s ability to reliably pay out on claims. Another measure of claims satisfaction comes from J.D. Power, which regularly reviews policyholders to understand their overall satisfaction with insurers’ customer service and claims handling. Finally, seeking out reviews from real customers on forums like Reddit or TrustPilot may offer some insight into the major strengths and pain points experienced by current policyholders.

How to choose the best car insurance company

Bankrate can help you learn how to differentiate auto insurance companies so you can choose one that fits your unique situation.

Does buying a new car give shoppers an opportunity to save on their insurance rates?

Kenneth Chavis IV

Chloe Moore, CFP®

Senior wealth advisor at Versant Capital Management

"The best way for shoppers in the market for a new car to get an estimate of insurance costs for the potential new vehicle is to contact their existing auto insurer and request a quote for the car they are considering purchasing. In addition to make and model, provide as much detail as possible about the car including safety features to get an accurate quote."

Founder, Financial Staples

"This really depends on the type of car you’re looking to purchase, as some cars cost more to insure than others. Before you buy a car, I recommend checking with your insurance agent to see how your rates will be affected."

Can I get a cheaper rate by switching car insurance companies?

Switching to a new car insurance company could get you a lower rate for a couple of reasons. First, insurance companies calculate rates differently, so a different insurer might offer a lower rate based on your profile compared to your current insurer. Additionally, some insurers may offer temporary or one-time discounts to new customers who switch from another insurance company , which could reduce the amount you’re paying for auto insurance. That said, if your current insurer offers you a competitive rate, there's a chance you won't save by switching, especially with rates rising in many states. You can always shop around, explore your options and decide to stay with your existing carrier.

How can I get a lower rate on my car insurance?

Comparing car insurance rates from multiple providers is not the only way to save on car insurance . Before you begin shopping around for new quotes, it may be helpful to first inquire about discounts offered by your current insurance provider. Similarly, taking stock of your coverage needs and eliminating unnecessary add-ons may also help to lower your rates. In addition, maintaining a clean driving record and working on your credit score (in relevant states) may help keep your rates low over time.

Raising your insurance deductible can also save some money off your premium. However, be cautious if you use a high deductible as a money-saving technique. Your deductible is the amount you are responsible for paying when you file a claim before insurance kicks in, so make sure it’s an amount you are able to pay on short notice.

Why do car insurance rates vary between companies?

Insurance pricing is based on predicted risk. Insurance companies charge higher prices for drivers they believe have a higher risk of generating claims based on their driving record, age, vehicle type, location and other factors. But predicting risk is not an exact science; every insurer approaches it differently, resulting in different rates from different carriers. Comparing rates is a strategic way to identify carriers whose risk calculations are most favorable to you.

What is the average annual car insurance premium?

In the U.S., the average annual cost of car insurance is $2,314 per year for full coverage and $644 per year for minimum coverage. For the past several years, Bankrate has closely monitored auto insurance rates. Unsurprisingly, premiums are trending upward with no signs of dipping back down. However, your rate may differ since individual factors like your age, gender, driving history, vehicle and more affect the price of your car insurance policy. If your car insurance rate increased at renewal, you may be able to save by shopping around, evaluating your coverage types and levels, and improving your credit score.

Bankrate utilizes Quadrant Information Services to analyze August 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates for our base profile are based on the following characteristics and coverage levels:

Bodily injury liability

Property damage liability

Personal injury protection

Uninsured motorist bodily injury

Collision deductible

Comprehensive deductible

Other profiles

For age-based insurance rates:.

Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

For teen insurance rates:

Rates were determined by adding a 16- or 17-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.

For model-based insurance rates:

To determine cost by vehicle type, we evaluated our base profile with the following vehicles applied: BMW 330i, Ford F-150, Honda Odyssey, Toyota Prius and Toyota Camry (base). For new vs used vehicles, we also included the following years in our calculations: 2016, 2017, 2018, 2019 (base) and 2020.

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlight where they fall short.

• Cost & ratings 50%
• Coverage & savings 30%
• Support 20%
• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, August 2024 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power , AM Best , Demotech and the NAIC , were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

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Auto insurance rates are jumping the most since the 1970s, but there could be relief soon

Soaring auto insurance costs have been a principle driver behind inflation over the past year, but there could be relief on the way, according to Bank of America.

The bank’s economists see several driving factors behind the run-up in costs to ease in the months ahead, possibly taking some of the heat off a category that has  pushed the Federal Reserve  to keep up its inflation fight.

“The turbocharged increases in motor vehicle insurance premiums are a response to underwriting losses in the industry. Insurers saw losses,” BofA economist Stephen Juneau said in a note. However, he added, “There are signs that many insurers are getting back to profitability.”

Primarily, the hit to insurers, which has been passed on to consumers, arose from three sources: higher vehicle prices, increased costs for repairs and “more accidents as driving trends returned to normal,” Juneau said.

There’s some good news on that front.

Sales prices for new and used vehicles have been trending lower in recent months and are down 0.4% and 6.9%, respectively, on a 12-month basis, according to  Bureau of Labor Statistics data  through April. Also, repair and maintenance services costs were flat in April though still up 7.6% from a year ago.

Motor vehicle insurance costs, though, continued to soar.

The category rose 1.8% in April on a monthly basis and was up 22.6% from a year ago, the largest annual increase since 1979, according to Bank of America.

In the CPI calculation, auto insurance has a weighting of nearly 3%, so it’s a significant component.

The recent trends probably do not “mean that your premium will fall, but we think the rate of increase should slow,” Juneau said.

That has been the general story with inflation: prices are not falling, but the rate of increase is well off the pace of mid-2022 when inflation hit its highest level in more than 40 years. Overall  CPI inflatio n ran at a 3.4% annual rate in April.

There’s one other tidbit of good news when it comes to Fed policy.

The central bank’s primary inflation barometer is the Commerce Department’s measure of personal consumption expenditures, not the consumer price index from the BLS. In the PCE gauge, auto insurance has a smaller weighting, meaning it is less of an inflation driver.

If the BofA forecast for insurance disinflation is accurate, it could at least give the Fed more confidence to start cutting rates later this year. Current market pricing is indicating an expected first cut in September, with one more possible before the end of the year.

“We think further improvement in this aggregate is one key for the Fed to become more confident in the disinflationary process and start its cutting cycle,” Juneau said. “Until then, we expect the Fed to keep rates in park.”

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Jeff Cox is a finance editor with CNBC.com where he covers all aspects of the markets and monitors coverage of the financial markets and Wall Street. His stories are routinely among the most-read items on the site each day as he interviews some of the smartest and most well-respected analysts and advisors in the financial world.

Over the course of a journalism career that began in 1987, Cox has covered everything from the collapse of the financial system to presidential politics to local government battles in his native Pennsylvania.