Searching for a new car insurance policy can be stressful, especially when you don’t have all the information you need. So, let’s take a look at five car insurance facts you should know about when you’re researching new plan options.
There are various factors insurance companies use when determining how much you should pay for car insurance. Here are a few:
There are many more factors that can affect your rate, so make sure to talk with an agent to see what else you should know.
It’s important to be able to find a car insurance policy you can afford. So, there are often a variety of car insurance discounts offered, including:
To learn more about these discounts, contact your local agent or visit Dairyland®.
If you’re in a car accident or your car breaks down, insurance can provide collision coverage beyond simple damage to your car. Towing and labor coverage can cover you if your car needs to be towed to a service center or if you need roadside assistance to fill an empty gas tank or fix a flat tire.
If your car isn’t drivable, rental car insurance coverage can help you reserve a rental and help pay for the use of a rental car, up to the limits of your coverage.
Standard auto insurance policies follow your car wherever it goes, no matter who’s driving. If you lend your car to your roommate to go to the grocery store and they get rear-ended in the parking lot, your insurance—not your roommate’s—would provide coverage.
Some states don’t require you to have a standard auto insurance policy. So, you may opt for a named driver policy instead, where the car insurance follows the driver. With a named driver policy, the insurance coverage only extends to people who live in the same household and are listed on the policy. If you have this type of liability coverage and your roommate gets rear-ended at the grocery store and isn’t listed on your policy, that will be an out-of-pocket cost for them.
In every state except New Hampshire, If you own a car, you’ll be required to get car insurance before you can register your vehicle. While you may be required to have car insurance, each state is different, so make sure to check and see what you need to have to meet your state’s minimum requirements.
Want more information on more ways to save on auto insurance? We share all of the ways you can save.
Have questions about your car insurance bill? Check out these common questions about car insurance rates.