It is higher than the minimum liability coverage because it incorporates comprehensive liability and collision insurance. Every state has minimum insurance requirements, but most states require much less insurance than you need to protect yourself and your assets. It's hard to say exactly who pays the most for car insurance, since there are a lot of factors that affect your car insurance rates. Insurers can classify young drivers as anyone between the ages of 16 and 25 and sometimes even anyone under the age of 30.
If you have poor credit, one insurer might charge you 10% more for the policy, while another would charge you 40% more. However, unlike minimum coverage, full coverage insurance pays if your car is stolen or if you need repairs after an accident. Deciding between liability insurance only or full coverage can save you hundreds of dollars a year. The average annual cost of insurance varies by state for both full coverage and minimum coverage policies.
Your history may be evaluated differently between insurers, so getting several rates can help you save. If you live in an area with particularly high rates of accidents or thefts, you may see higher insurance rates. Rates can vary by hundreds of dollars a year, depending on where you live and the insurance company you choose. It's important to look for the cheapest insurer after an accident, as each company takes factors such as a fall into account differently when setting prices.
The minimum amount of car insurance needed to meet your needs depends on several factors, such as the state in which you live, the value of your vehicle and the amount of insurance you can afford. A full-coverage auto insurance policy includes comprehensive and collision coverage, in addition to liability. If you get a speeding ticket, insurers believe you'll be more likely to cause an accident, further increasing rates. Your combination of accident history, vehicle, location and other factors may come at a different price with another insurance company, and switching to an equivalent policy with a rival insurer has the potential to save you hundreds of dollars a year.
