A Guide To How Much Car Insurance You Really Need


Have you recently bought a vehicle? Are you wondering if you need car insurance and for how much? The answer is, you do need car insurance to protect you in case  like accidents or natural disasters. Most people know about health and life insurance but do not research car insurance as much.

If you have a car and  car insurance should be a priority. Before purchasing car insurance online, you have to know the different types of car insurance.  How much you may need to pay and what coverage best suits your specific needs. This article sheds a light on these things

Car insurance is a contract between you and your insurance provider protecting you from any losses after an accident.   Car insurance companies offer different coverages

The car insurance provider pays for any damages after the accident. There are over 6 million car accidents per year according to the National Highway Traffic Safety Administration.  Car insurance protects you from potential accidents that you may not be ready for

Car Insurance Terms

It’s important to be well-acquainted with the different terms of car insurance when looking for online car insurance and they include;

Car Insurance Premium

This is the amount that you pay for your insurance coverage. You may be required to pay monthly, quarterly or annually depending on your insurance provider. The premium may vary or change depending on your age, deductible, type of insurance, driving history or more


This is the portion of the damages you are required to pay before your coverage comes in to cover the rest

Fault and No-Fault Insurance

There are 12 states with no-fault insurance and this insurance is typically where insurance companies compensate its policyholders regardless of who is at fault in the accident while fault insurance is where each person who was at fault for the accident bears the liability for damages and injuries and it’s also referred to as a tort-based system

The Coverage Limit

This is the minimum amount your insurance providers will pay for the insurance coverage meaning that if you exceed the limit, then you will have to pay for the remaining costs

Car Insurance Coverage Categories

Car insurance is made up of different coverages that protect you in different circumstances and not all of them are always required. They are;

  • Liability Coverage: This is the most common type of coverage and it covers damages for injuries and damages to property after an accident if you’re legally responsible for it. It consists of two types of coverages which are Bodily Injury Liability and Property Damage Liability. The former covers the injured party’s injury-related expenses like medical bills, lost wages or more. While the latter covers the expenses incurred for the damages to another person’s home or property
  • Personal Injury Protection(PIP): which covers the medical expenses of you or your passenger after an accident
  • Uninsured and Underinsured Motorist: coverage which covers the costs incurred after an accident where the person at fault is uninsured or has minimal coverage
  • Collision: This covers the costs for repairs to your vehicle after an accident
  • Comprehensive:  which covers the expenses that result from your car being stolen, vandalized or due to natural disasters

There exist other coverages that you may opt for which are roadside assistance, umbrella insurance, pay-per-mile coverage, mechanical breakdown and more according to your preferences

Why You Need Car Insurance

It’s extremely important to have online car insurance for extra protection in times of accidents and natural disasters. You need car insurance because of the following reasons among others;

  • For financial protection, purchasing car insurance online can protect you from future catastrophes and the burden of paying for damages since your insurance company will pay for it saving you from having to pay large sums of money
  • It is a legal requirement. Laws vary from state to state and what is required in one state is not necessarily the same in another. However, most states require drivers to carry at least liability coverage. Other states require every driver to carry insurance and if they fail to, they won’t be compensated for the damages

Failure to Have Car Insurance

Driving with car insurance in place is a requirement in most states and failure to do so can lead to many consequences both financial and criminal. If your car is uninsured and you lend it to someone, you are putting that other person at risk. As this point they be driving a car without car insurance

If you are stopped by a police officer for a traffic violation and you are found not to possess car insurance, you may get a ticket for not having car insurance as required by every driver. The officer may  ask for your car to be towed depending on the laws and regulations of your state.   You may be required to appear in court to enter a plea

The penalties may vary from state to state. Therefore it is  better to have car insurance to avoid all of the consequences that may ensue later on. If car insurance is costly for you, you may search for cheap car insurance online by shopping around. Compare quotes to get the best price to suit your needs


Quotes Pilot content is not written by a licensed  insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for your situation


Top 5 State With Cheap Car Insurance Online

Are you looking for cheap car insurance online? Or you are moving from one state to another and are unsure about the cost of your auto insurance. The state that you live in greatly impacts the amount you will eventually pay for car insurance. While some states have high insurance premiums, others have low insurance premiums

There are pros and cons to the state that you live in and it’s important to be well informed to make a wise decision when it comes to car insurance online.

As much as there are other different factors which affect your insurance premium like your driving history, your age, gender and more, the state that you live in is one of the biggest ones

Before moving or buying a vehicle, you have to do your research on the state that you live in and how much its auto insurance costs to prevent problems in the long run.

This article focuses on the top 5 least expensive states in the US and why there auto insurance prices are low compared to other states;

Rank State Full Coverage Minimum Coverage Difference
1 Maine $1,268 $489 $779
2 Hawaii $1,340 $475 $865
3 North Carolina $1,434 $542 $892
4 Iowa $1,482 $357 $1,124
5 Indiana $1,489 $498 $991



Maine has the lowest rates in the country, with an average minimum cost of online car insurance at $489 per year or sum of $41 per month. The state of Maine has the lowest percentage of drivers that are uninsured making it about 4.5% based on a study done by the Insurance Information Institute

Due to its low population making it safer to drive and the fact that it’s a rural state, drivers can avoid traffic and accidents hence a reduction in the level of claims leading to low insurance premiums

Another reason why the insurance rates aren’t as high is that Maine doesn’t usually experience floods, hailstorms or other natural disasters that lead to damages causing an increase in claims hence high online car insurance rates


Hawaii is also one of the states with low insurance rates. If you live in this state, it’s important to research to find the best cheap car insurance online to save money. Hence search quotes from different companies to get the best rate since they determine their premium on different factors. With an average rate of $475 per year, prices vary from company to company

Hawaii’s minimum car insurance requires you to follow the state’s car insurance laws. However, this doesn’t mean that the protection will be sufficient in case of an accident. You should therefore buy enough liability limits for each accident that will cover your net worth

The cheapest car insurance policy in Hawaii is USAA or Island Insurance. Hawaii requires a certain amount of liability coverage and personal injury protection providing for medical expenses for you and your passengers in case of an accident

North Carolina

The cheapest companies for car insurance online in North Carolina are Geico, Progressive and Erie and there average rates are $318 per year making it approximately $26 per month. These are 41% cheaper than the average minimum coverage in North Carolina which is $542

The average cost of full coverage is $1,434 per year or approximately $120 per month. North Carolina is a rural state with a cheap cost of living and few accidents.

There is healthy competition in the state of North Carolina which lowers the premiums and the number of uninsured drivers is also low


With a minimum coverage of $357 making it about $30 a year and an average annual premium at $1,482, car insurance in Iowa is considerably affordable. You should be cautious when it comes to insurance since many factors may determine it like the coverage you select either full or minimum, policy or driving history

The most affordable carriers in Iowa are IMT Insurance (Wadena), Grinnell Mutual and State Farm. Iowa doesn’t require car insurance but only if you have an appropriate alternative. This means that you as the driver should show proof of financial responsibility in case of an accident by providing;

  • Proof of liability insurance
  • Bond Insurance Card
  • Or Security Insurance Card

Drivers pay low insurance premiums because the state is mostly rural with a low cost of living


With a minimum average coverage cost of $498 per year or $42 per month, Indiana car insurance varies from company to company and city to city.

While some are cheap, others may be slightly higher. In the towns of Monroe and Wabash in the city of Berne, car insurance is cheap because of the low population and the rural lifestyle

The cheapest companies for minimum coverage are Erie, Auto-owners and Progressive with an average of $377 per year making it 24% less than the average of $498

Reasons for Low Car Insurance Rates

As already seen above, car insurance can be determined by different factors that include;

  • The states car insurance laws
  • The state’s economic conditions
  • The level of traffic congestion where if it’s low, then the insurance is low as well
  • The weather conditions in a state
  • The level of competition between insurance carriers

Bottom Line

It’s important to be aware of the state you live in, what factors increase its insurance rates and how it determines your insurance premiums. Some states have expensive car insurance while others have cheap car insurance online as explained above


Quotes Pilot content is not written by a licensed  insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for your situation

American Cars Or Japanese Cars: Top 5 Tips to Consider for Better Car Insurance

Car insurance between american and japanese cars

Are you looking for a new car or a used car with good insurance rates? Is the choice between American and Japanese cars? Do you want cheap car insurance online?

Everyone has their own choice between American and Japanese cars. While some may believe that Japanese cars are better than American cars, it’s not always true. To get the best car, you must look at the different features of the car that make it unique and make a significant comparison

When choosing between an American and Japanese car, the decision is based on many factors putting into consideration the pros and cons of each. You can choose one that fits your needs by weighing all the options when it comes to car insurance online. The factors that contribute to better car insurance include;

1) Reliability and Dependability

The Japanese cars are labelled as the most reliable and well-built vehicles like the Toyota which is known for its dependability because of its cheap parts and lack of breakdowns

When looking at this factor, you have to consider if you can trust a car part like the interior. Car features or more to last as specified and not fail along the way. Japanese automakers manufacture vehicles that are highly profitable with high returns hence enabling them to focus on producing quality vehicles

They don’t go around making big changes since quality and efficiency is their main focus. However, the American automakers focus on profits and tend to make new modifications to the vehicles. With affordable parts and a reliable car for everyday use, Japanese cars are considered to be more reliable due to that fact

Hence if you want cheap car insurance online, then reliability and dependability are factors that you should consider. This is because cars that are reliable last much longer since there are a few occurrences of breakdowns

2) Style and Design

American vehicles usually change their designs and styles frequently unlike Japanese cars that don’t change the car’s style and the models are usually the same for years. If you prefer big flashy cars, then American cars are the way to go.

However, when it comes to online car insurance, you have to be cautious in terms of the car you own. Despite being luxurious, big flashy cars are prone to attract thieves. This will, in turn, lead to more car insurance claims hence the prices increasing. You have to put all of this into consideration when choosing an automobile

3) Quality

When deciding between American and Japanese vehicles, what you should consider is the quality of a vehicle. This means that you should focus on the strength and longevity of an automobile

American cars are unique because of their strength since they are known as muscle cars. This is because they possess a powerful engine that requires lots of petrol. Japanese cars are also known for their quality and they tend to last for longer periods of time. This means they may not require that many repairs hence reducing on the number of insurance claims filed leading to better car insurance online

4) Safety

To determine this, you have to look at how safe it is to drive a car on several roads and if it can withstand the test of time. The popular belief is that Japanese automobiles are much safer than American cars mainly because the Japanese develop technologies that are generally believed to raise the standards of safety. However, American cars are also safer and it depends on which car you choose

Therefore if you want a better insurance rate, you have to compare the two and choose a safer car since they are less susceptible to accidents hence a reduction in the number of claims

5) The Price and Cost of Repairs

When purchasing a vehicle and the choice is between American and Japanese cars, it can get confusing to choose one. But the most important thing that you should do when choosing one out of the two is to look at

  1. The prices of vehicles
  2. How much the repairs are in case of breakdowns

While some believe that American cars are cheaper than Japanese cars, others believe that Japanese cars are less expensive. However, there isn’t going to be a clear answer until you look at the make and model of each car and how much it might cost you in terms of maintenance in case of repairs

Therefore when considering insurance for your automobile, it’s reasonable to look at the price of a vehicle and how much repairs would cost after an accident. Taking these factors into consideration is important to getting better insurance rates. All these are factors which can increase the cost of insurance

Bottom Line

If you want better insurance, you have to be cautious when purchasing a vehicle as it’s the most important factor that affects insurance. There many factors to when looking at a vehicle and choosing between American and Japanese cars.  You have to consider the above-mentioned factors to get better insurance rates for your automobile


Quotes Pilot content is not written by a licensed  insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for your situation