Things to Know About Auto Insurance
Whether you are buying a used or new vehicle, you will certainly need some type of auto insurance coverage. Regulations regarding auto insurance, rates, and premiums, can vary for each state.
All states, except for New Hampshire and Virginia, require a minimum amount of liability insurance. Liability coverage helps pay for the costs of the other driver's property and medical injuries if you are “at fault” in an accident up to a covered limit. The minimum amount for bodily injury can range from $10,000 to $50,000 per person, and $20,000 to $50,000 for all injuries. The minimum amount of coverage required for property damage ranges from $5,000 to $25,000.
Currently, 12 states have no-fault insurance laws where your auto insurance helps pay your claim for medical payments for you or your family up to a certain limit, whether or not the accident is your fault. The other 38 states are at-fault states, where the person at fault must pay damages for all involved.
The national average car insurance premium is $1,517. Iowa is one of the states with the cheapest average annual auto insurance premium at $1,123. In fact, it is among those states with premiums more than $100 below the national average.
The amount you pay for auto insurance depends on your driving record and experience, how much you use your car (i.e., driving 10,000 or less miles per year), your location, your age, your credit score, and the car you drive.
The Insure study also gives average nationwide rates by vehicle type overall - $1,750 for trucks; $1,801, SUVs; $2,209, cars; $2,475, convertibles; and $2,575, electric cars. Insure likewise provides a list of most and least expensive used cars to insure.
Premiums vary depending on the coverage you choose. In addition to liability insurance, there is collision insurance, which helps cover accident-related repairs; comprehensive insurance, which covers damage from things other than accidents, such as theft, falling tree limbs, and hail; uninsured/underinsured motorist coverage, which protects you if you’re in an accident with an uninsured driver, or a driver that has too little insurance to cover the damage to your vehicle. Full coverage insurance includes all the above.
Before you purchase a vehicle make sure you get quotes with the same level of coverage from at least three insurance companies. Read consumer reviews to make sure you are selecting a company that has reputable customer and claims service.
When in the market for a used car, stop by Carousel Preowned. Carousel Preowned serving Iowa City, Cedar Rapids, Davenport, North Liberty, Marion, and Coralville, IA, is proud to be an automotive leader in our community. We do our best to ensure your complete satisfaction every time you step into our car dealership. This is why we offer the widest selection of used and pre-owned cars, trucks, and SUVs and provide true ease of purchase in Iowa.