Finding auto insurance, or any insurance for that matter, can be a stress-inducing task, but it is a necessary one.
People choose to purchase auto insurance due to the risk of getting in a car accident uninsured. High medical bills and car repair bills can overburden a person and make it impossible for them to get to work, where they would raise money to pay off their debt.
Insurance companies offset this risk by pooling your payments and risk with other insurers. These companies have more liquid money than you, so they can pay when an unfortunate accident happens.
At a minimum, most US states require you to have bodily injury liability and property damage liability policy.
Bodily injury policies cover the other person’s medical bills if you injure them in a car accident.
Property damage liability pays for damage you do to another person’s car.
There are also collision and comprehensive auto policies which covers certain damage you do to your car.
Insurance companies offer bundles and discounts for various auto policies. Some people can get discounts for driving an electric vehicle, and other people can put a geometric tracking device in their car for three months to get discounts based on their driving habits.
Consider auto insurance companies rated well online by judging their customer service, premium cost, deductible, and whether they discount you if you need to cover multiple drivers.