Liability
Liability insurance covers things like medical or repair costs for other people if you cause an accident—and we recommend having at least $500,000 worth of liability.
Understanding your auto insurance can feel confusing. How the heck are you supposed to know what to look for? So, here’s the good news—you don’t need to be an insurance whiz to make smart decisions. Learn what to consider when getting a policy.
Important Terms to Know
Here are three types of coverage you want to understand before renewing your auto policy. Getting them right makes sure your insurance does its job when you need it most.
Collision
Collision insurance covers the cost to repair or replace your car if you’re in an accident with another vehicle or object. No matter who’s at fault, collision covers damage to your vehicle—unlike liability coverage.
Comprehensive
Comprehensive coverage protects you from things like theft or damage from a fire, a storm, or a natural disaster. It will pay to replace or repair your car as long as the damage isn’t due to a collision.
Tips to Help You Save
Check out the eight ways you could save on your auto coverage. Because let’s be real—you want the right protection, but you also want the right price. Let’s do both!
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Ask for a Discount
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Insurers often give discounts if you join groups like AAA, serve in the military, are a student or senior citizen, work certain jobs (like a nurse or teacher), or park indoors.
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Raise Your Deductible
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We recommend at least a $1,000 deductible to get the lowest insurance rates.
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Drop Coverage You Don’t Need
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Ditch extra coverage, like GAP or premium insurance. You can even drop collision and comprehensive if you’ve paid off your car and have enough cash to replace it.
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Pay Your Premiums In Bulk
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Most insurers charge more if you pay for insurance monthly. Save up and pay six months or—even better—a whole year at a time to get a discount.
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Try a “Safe Driving” App
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Some insurance companies let you download apps to track your speed and other driving habits. If the app shows you’re a safe driver, they’ll lower your rates.
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Bundle Your Policies
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Most insurers offer discounts if you buy multiple policies from them, so consider buying your auto and home (or renters) insurance from the same carrier.
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Shop Around
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Don’t have time? Work with an independent agent! Unlike captive agents who work for one company, independent agents can compare quotes from lots of carriers to get you the best deal. Meet the independent agents we recommend.
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Get Enough Coverage
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Bare minimum insurance just isn’t enough. You need at least $500,000 in liability, plus enough collision and comprehensive to replace your car. Getting the right coverage may raise your rates at first—but a good insurance agent can help you find other discounts and savings so you get the right coverage and the best value.
Trusted Insurance Pros
Are Here to Help
There’s no cost to work with a RamseyTrusted® insurance pro. They’ll do the shopping, explain the fine print, and help you get covered.