A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products, including home, life, auto, and commercial, and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, mainly in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Oct 14, 2021

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Important facts to know...

  • There are many different types of insurance companies and policies
  • It can be confusing which one is best for you
  • The key is to look at the most important types of coverage and consider your risk
  • Shop and compare and ask questions to find the best choice

Insurance commercials on radio and TV are common these days. Many people wonder why there seem to be so many different kinds of ads for auto insurance companies.

One reason is that car insurance is a highly competitive business that is needed by most people across the country. Therefore, there is a high demand for it.

It can be confusing when there are so many insurance companies advertising that it is often difficult to know which one to choose. This potential for confusion is why it is important to research for yourself before making a choice.

Compare car insurance quotes right here to find the best rate for the coverage you need.

Is car insurance required in every state?

In every state except for New Hampshire and Virginia, auto insurance is a requirement. In Virginia, you are required to pay for any and all accidents, injuries, or damage that is due to a car accident.

In both Virginia and New Hampshire, you are required to pay for any damages that you cause in an auto accident but you are not required to carry auto insurance in these two states.

They do recommend carrying insurance, however, so that you would not have to prove financial ability to pay for accident damage out of your pocket.

In every other state, there are mandatory car insurance requirements for drivers.

If you have an accident or are caught driving without insurance coverage in any of the other 48 states, you can be cited and receive fines and even lose your driving privileges if you do not comply with the laws.

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The Purpose of Auto Insurance Ads

Auto insurance is a highly competitive business. There are so many different types of car insurance that it can be confusing to consumers as to which company, policies, and options are best for them.

It’s good to see and compare the various types of insurance you can get, but the information you glean from a 30-second or 60-second commercial spot is often not enough to make a decision.

Ads Only Market Selling Points

Ads for auto insurance tend to dwell on lower premiums, better coverage options, and other selling points of a hypothetical policy.

These ads do not include specific aspects of a policy or answer specific questions a person might have, much less highlight any downfalls of a policy or of a company’s standing.

For this reason, it is imperative that individuals shop for auto insurance focusing on exactly what they need and being sure to ask any questions they have about a specific policy or coverage type.

What You Should Look For in a Policy

  • Mandatory insurance requirements – First, make sure that the insurance you are considering will cover you for mandatory insurance requirements in your state or residence. Having insurance that covers your primary requirements in your state is the most basic requirement of a good insurance policy.
  • Other optional coverages – Other optional coverage types include comprehensive coverage, collision coverage, car rental insurance, medical coverage, and roadside assistance. Ask about these types of options when you shop and compare insurance companies and learn how much these add-ons might cost you and what all they should cover.
  • Good claims record discount – One thing you will need to look for when shopping for car insurance in addition to what they offer is a good claims record. Insurance companies that have a good claims record will usually get you your claim faster, and they are more likely to be trusted.
  • Positive customer service and credit ratings – When you deal with an auto insurance company, you need to know that you will have help when you need it. Many individuals rate their companies online, and you can find information about most companies you’re considering using websites like Moody’s or A.M. Best to find this information.

All of these are qualities that you should look for when shopping and compare insurance policies.

Auto insurance companies are all competing for business, and they will all offer a convincing argument that their product is best for you but the only way to know which companies and policies are best is to read the fine print and ask the right questions.

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How to Save on Car Insurance

One of the main concerns of drivers looking for car insurance is the cost of their premiums.

While this is a valid concern, it is important to remember that, no matter how high your premiums are, the cost to pay for an accident is a much more catastrophic situation than any amount of premium if you have to pay it yourself. That is the purpose of insurance.

You always need to weigh the risk with the cost.

Insurance companies do the same thing in that they look at the risk to cover you and your automobile based on some factors and base your premium on this.

To save money on insurance, look into possible discounts such as low mileage or veteran discounts, as well as other ways that you can cut your cost of your premiums.

Shop and Compare Policies Online

By shopping and comparing some policies and services, you will be able to see what each policy will do and then weigh the risk you have on a daily basis. Think about how many miles you drive, how many people you take in the car with you, and what your liabilities are.

By looking at all of the factors, you will be able to make an educated decision on what you need.

Having car insurance is a requirement, even in the states that do not require it. If you doubt this, think about the cost you will have to pay out of your pocket if you drive without the right coverage.

You never know why lies down the road. But if you have the right auto insurance, you are covered, no matter what happens.

Compare car insurance quotes to see how much you could save.