What is Auto Insurance?
Auto insurance is a contract between you and an insurance company that protects you against financial loss in the event of an accident or theft. In exchange for paying a premium, the insurance company agrees to pay your losses as outlined in your policy.
Types of Auto Insurance Coverage
Liability Coverage
Covers damage you cause to others. Required in most states.
Collision Coverage
Pays for damage to your car from a collision.
Comprehensive Coverage
Covers non-collision damage like theft, vandalism, or weather.
Uninsured Motorist
Protects you if hit by an uninsured driver.
Average Auto Insurance Costs by State
| State | Annual Average | Monthly Average |
|---|---|---|
| California | $1,960 | $163 |
| Texas | $1,876 | $156 |
| Florida | $2,560 | $213 |
| New York | $2,321 | $193 |
| National Average | $1,771 | $148 |
How to Save on Auto Insurance
- Compare quotes from multiple providers
- Bundle with home or renters insurance
- Increase your deductible
- Ask about available discounts
- Maintain a clean driving record
- Take a defensive driving course