Latest news with #MedPay
Yahoo
06-08-2025
- Automotive
- Yahoo
Does health insurance cover car accidents?
Car accidents are traumatic, especially if you get hurt. Car insurance and health insurance can both cover medical treatment. Together, they can help minimize financial pain so you can focus on recovering. Here's how insurance coverage works if you're injured in an accident. This embedded content is not available in your region. Learn more: How does car insurance work? The basics explained. Does health insurance cover car accident injuries? Health insurance can cover medical treatment for car accident injuries, as does certain types of auto insurance. In some cases, auto insurance may be used first, with health insurance kicking in as secondary coverage when the auto insurance benefits have been exhausted. The hospital or medical office where you're treated will typically ask for your auto and health insurance information to use for billing. Car insurance for injuries Auto insurance features a variety of coverages for car accident injuries. Each pays for expenses up to the policy limits. Medical payments coverage, or MedPay. Medical payments coverage pays your medical bills and those of your passengers, no matter who caused the accident. MedPay also covers funeral expenses after a fatal accident. Personal injury protection (PIP). Personal injury protection covers your medical bills and other expenses, such as lost wages, funeral costs, and costs for household tasks you're unable to do because of injury, such as childcare and housecleaning. In some states, it may also cover your passengers. PIP is required in some states and optional or unavailable in others. Other driver's bodily injury liability. Bodily injury liability covers your medical bills and those of your passengers if the other driver was at fault for the accident. The other driver's bodily injury liability may also cover loss of income, pain and suffering, and funeral costs. (The other driver's property damage liability covers damage to your car.) Most states require liability insurance. Uninsured/underinsured motorist (UM and UIM). Uninsured motorist coverage covers medical bills and lost wages of you and your passengers if the other driver was at fault for the accident and doesn't have any or enough liability insurance. UM, UIM, or both are required in many states. Learn more: Most common types of car insurance Up Next Up Next Who pays first — car insurance or health insurance? How car and health insurance work together to cover medical expenses depends on state law and your coverage. If you have personal injury protection. Your PIP coverage will typically pay out first up to the limits on your policy, followed by health insurance if there are more expenses. If you have medical payments coverage. MedPay may be used first as primary insurance for car accident injuries or as a supplement to your health plan, depending on your state and coverage. If the other driver was at fault. You may be able to make a claim against the other driver's liability insurance, depending on the state. You would use your car or health insurance or both to cover immediate medical expenses. Your insurers will seek reimbursement if you receive a settlement after the accident investigation. If the at-fault driver was uninsured or underinsured. You would make a claim on your uninsured/underinsured motorist insurance, which would kick in after the accident investigation. How to determine who pays for what State law and your coverage will determine which coverage kicks in first and pays for certain services. Personal injury protection insurance, for instance, pays for some costs that health insurance doesn't cover, such as lost wages. Get help through your car insurance agent and health plan to navigate the claims process. How to submit medical bills to a car insurance company Contact your auto insurance company after an accident, and ask how to submit claims. Keep receipts of medical expenses, and work with an auto insurance company claims adjuster to make sure the company gets all the pertinent information to expedite payment. Learn more: What to do after a car accident: Your step-by-step guide Contact both your car insurance company and the other driver's insurer if you weren't at fault for the accident. You'll pay for medical expenses as you go, using your own car or health insurance or both, and then may be entitled to a settlement with the other driver's insurer after the accident investigation is completed. However, in states with 'no-fault' auto insurance systems, your auto insurance will cover your medical bills and restrict your right to sue the other driver, except under certain conditions. The at-fault driver may be held legally responsible for damage to your car, though. Does health insurance cover car accidents FAQs What type of car accident injury expenses aren't covered by health insurance? Health insurance doesn't cover expenses outside of medical care, such as funeral expenses, lost wages, and household services. How does accident insurance work with health insurance? Accident insurance is a supplementary policy you can buy in addition to car and health insurance. Accident insurance pays out a lump sum to cover out-of-pocket costs for accident-related expenses, such as deductibles and copayments or services your health plan doesn't cover. Should I hire an attorney if I'm injured in a car accident? A personal injury attorney can help you navigate the claims process and possibly get a bigger settlement if you're seriously injured after a car accident. However, it's important to balance any potential gain with the cost of legal fees.
CNBC
30-06-2025
- Automotive
- CNBC
What are the state minimum car insurance requirements in 2025?
Car insurance isn't one-size-fits-all: Your budget, risk profile and other factors will determine what kind of policy you get and how much you spend on it. However, every state but one requires drivers to get a minimum amount of liability coverage to legally get behind the wheel. It's intended to pay for injuries and damages to others if you are found at fault for an accident. Many drivers add collision and comprehensive coverage to protect their own vehicles and passengers, but that can add to your premiums substantially. In 2025, the average annual cost of a liability-only car insurance policy was around $736, less than a third of the $2,680 average for full coverage. All U.S. states except New Hampshire require drivers to have a minimum amount of liability car insurance,. The specific amount varies by state but, keep in mind these limits are not adjusted for years at a time and may not be high enough to cover your fully if you're responsible for a collision. (California, Utah and North Carolina all raised their minimums in 2025.) Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent auto coverage is available in all 50 states and Washington, D.C. It offers 16 discounts and a variety of optional add-ons, like roadside assistance, rental car reimbursement and mechanical breakdown offers an array of riders, including rental car reimbursement, rideshare insurance and a Deductible Savings Bank that deducts $50 from your deductible each policy period you go without a claim. As a rule of thumb, you should have enough liability insurance to cover your net worth, or the sum of your assets minus your debts and liabilities. If you have a high net worth, an umbrella insurance policy can increase your liability coverage to $1 million or more. Each state sets its own minimum limit: In New York, for example, the minimum is $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident and $10,000 in property damage liability per accident. This is often expressed as "25/10/10" Here are the minimum amounts of liaibility car insurance required in each U.S. state and Washington, D.C.:About half of U.S. states have other policy requirements, mainly to offset the cost of underinsured and uninsured drivers. Twenty-two states require drivers to have some sort of coverage to account for uninsured (UM) or underinsured (UIM) motorists. No-fault states also require personal injury protection (PIP) or medical payment (MedPay) coverage, both of which cover medical expenses for you and your passengers after an accident, regardless of who is at fault. If you're considering a state minimum car insurance policy, here are some potential benefits and drawbacks you should be aware of. State minimum car insurance is the least amount of liability coverage you can have and legally drive in your state. Some states have other requirements, like personal injury protection, MedPay coverage and coverage for uninsured or underinsured motorists. States with "no-fault" laws requires drivers to have personal injury protection (PIP) or MedPay to cover the cost of medical expenses for themselves and their passengers, regardless of who is responsible for the accident. New Hampshire doesn't have a blanket auto insurance requirement, though it still does require that drivers demonstrate proof of financial responsibility. You can do that with a insurance policy, a bond or a cash deposit with the he state treasurer. If you opt for insurance, the requirement is 25/50/25. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Yahoo
08-05-2025
- Automotive
- Yahoo
Low-income car insurance: What it is and where to get it
If you're struggling to make ends meet, you may have a lifeline if you qualify for specialized coverage known as low-income car insurance. Low-income car insurance is state-sponsored coverage available to those who meet income eligibility requirements. The coverage levels may be at or below state-mandated car insurance minimums and do not provide collision or comprehensive coverage. Knowing about government car insurance for low-income drivers, where it's available, and who qualifies can help you understand your options if you can't afford auto insurance. This embedded content is not available in your region. California, Hawaii, and New Jersey have state-sponsored low-income car insurance. The low-income car insurance program in California provides insurance limits lower than the state-required minimum. It provides the following liability limits, plus optional uninsured motorists coverage and MedPay: Up to $10,000 per person for bodily injury or death Up to $20,000 per accident for bodily injury or death Up to $3,000 for property damage To purchase low-income auto insurance in California, you must: Have an annual income of $39,125 or less in single-person households or $52,875 or less in two-person households. You can see income requirements for larger households at the California Low Cost Auto Insurance website. Hold a valid California driver's license. Own a vehicle worth $25,000 or less. Have a good driving record or be a new driver. Hawaii provides eligible residents with free no-fault auto insurance. This coverage pays for your injuries from a car crash, up to the policy limits. You can qualify for Hawaii's car insurance for low-income residents if you: Currently receive public assistance payments with direct cash benefits, supplemental security income benefits from the Social Security Administration, or public assistance benefits in the form of medical services that started before July 1, 1994 Hold a valid driver's license or are unlicensed, permanently disabled, and unable to drive your own vehicle Are the sole registered owner of the insured vehicle New Jersey's Special Auto Insurance Policy provides up to $250,000 of medical coverage after an accident for the treatment of serious spinal cord and brain injuries. It can also provide a $10,000 death benefit. The cost is $365 a year, payable in one or two installments. To qualify, you must be enrolled in federal Medicaid with hospitalization. Seniors can qualify for the above low-income car insurance programs based on income rather than age. If you don't have access to a low-income auto insurance program, ask your insurance agent for ways to lower your car insurance bill. If your state doesn't offer a low-income car insurance program, you can get the minimum amount of coverage required in order to drive legally, but there are risks involved with minimum coverage. Minimum auto insurance requirements vary by state but may include the following: Most states mandate only auto liability coverage. If you cause an accident, your liability insurance pays for the injuries and property damage you cause to others. No-fault insurance states also require personal injury protection (PIP), which pays for medical bills and more for you and your passengers after an accident, regardless of fault, up to the PIP limit. Learn more: Minimum car insurance requirements in all 50 U.S. states State minimum liability coverage levels are often too low to cover all the bills for serious accidents. If accident-related costs exceed your insurance limits, you are still liable for the remainder. If you limit your auto insurance to the minimum liability coverage required by your state, you're leaving yourself without collision insurance and comprehensive insurance. You would have no insurance for repairing your own vehicle if you cause an accident or if your car is stolen. If you don't have a low-income program in your state or you don't qualify, there are other ways to secure cheaper car insurance. Shop around for coverage. Car insurance companies use proprietary formulas to set their pricing. Rates for the same coverage can vary by hundreds of dollars per year from different insurers. Gathering quotes from five or more insurers can help you pinpoint cheap auto insurance options. Pay per mile insurance. If you don't drive much, you may be able to save money with a pay-per-mile insurance plan. Pay-per-mile insurance programs typically charge a low base rate plus a per-mile rate. Examples include Allstate's Milewise and Nationwide's SmartMiles. Ask for discounts. Ask your car insurance agent about getting new car insurance discounts. For example, if you go paperless for policies and bills, you may get a small discount. Some states mandate car insurance discounts for drivers age 55 and older who take a driver safety course, including Florida, Pennsylvania, and Virginia. Raise your deductible. If you have comprehensive and collision insurance, a higher deductible will result in lower premiums, but it's not always worth it. Raising your deductible usually only makes sense if you would be able to pay that amount toward repairs if you have a claim. Consider other assistance programs. Support in other areas of your budget may allow you to afford the minimum auto insurance to stay legal on the road. For example, your state may offer other types of assistance, such as food stamps, help with health insurance, or housing costs.
CNBC
29-04-2025
- Automotive
- CNBC
Ask yourself these 6 questions to see how much car insurance you need
Every driver needs car insurance, but not everyone needs the same type or amount of coverage. The policy that's right for you depends on many factors, including the age of your car, how you paid for it, and where you live. Take CNBC Select's six-question quiz to see how much car insurance you really need. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent auto coverage is available in all 50 states and the District of Columbia. It offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown offers an array of riders, including rental car reimbursement, rideshare insurance and a Deductible Savings Bank that deducts $50 from your deductible each policy period you go without a claim. All U.S. states except New Hampshire require drivers to have some level of liability car insurance to pay for damage or injuries to others. The amount of bodily injury and property liability coverage, however, is different from state to state. The 12 states with no-fault insurance laws also require drivers to get personal injury protection (PIP) or medical payment (MedPay), which cover medical expenses for you or your passengers after an accident, regardless of who is found to be at fault. Twenty-two states and Washington, D.C., require drivers to have uninsured/underinsured motorist (UM/UIM) coverage, which protects you financially if you're in a collision with someone who doesn't have enough insurance or no insurance at all. Collision coverage pays to repair or replace your car if it hits another car or object, regardless of who is at fault. Comprehensive coverage covers non-collision events, like theft, vandalism, hail, failing tree branches and fire. While comprehensive and collision coverage aren't mandated by law, most lenders require borrowers to have them if they're still making payments on a loan or lease. If your car is totaled or stolen, a standard insurance policy will only reimburse you for the actual cash value of the vehicle, which takes depreciation into account. (New cars can lose as much as 20% of their value in their first year.) If you're still paying off your car, especially if you made a small down payment, gap insurance can cover the difference between the vehicle's value and the amount you still owe on it. According to the Insurance Information Institute, gap insurance is a good idea if you: Adding gap insurance only increases full coverage premiums by about $20 to $60 a year, according to the III. Your dealership may offer gap insurance, but it's usually cheaper through an insurance company. Travelers is known for its affordable rates and offers discounts if your car is no more than three model years old. The best way to estimate your costs is to request a quote Yes Travelers auto insurance policies are affordable and backed by the sixth largest company for car insurance by market share according to the NAIC. The company also offers a number of discounts to customers, including discounts for bundling, owning a hybrid or electric car, and good student discounts. Nationwide allows drivers to purchase gap coverage on cars that are up to six years old. The best way to estimate your costs is to request a quote Yes Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you. Terms apply. If you're leasing, check your lease agreement before adding gap insurance: It may already be included in the lease price. If you own your car outright, you don't need gap insurance. Full coverage is a good idea for most car owners and is usually required if you have a loan or lease. But if you own your car outright and it's only worth a few thousand dollars, a full coverage policy might be overkill. The rule of thumb is to drop collision and comprehensive coverage if your car is worth less than 10 times your annual premiums. If, for example, you have a car worth $5,000 and your comprehensive and collision coverage costs more than $500 for the year, it may not be worth keeping comprehensive and collision coverage. You can check the value of your car with Kelley Blue Book, the industry standard for pricing. Your net worth is the sum of all of your assets minus all your debts. Determining this amount will give you a good indicator of how much liability coverage you need. The minimum insurance requirement in many states may not be enough to cover all the expenses you could accrue after an accident: In Connecticut, for example, drivers need $25,000 in bodily injury liability per person and $50,000 total per accident, as well as $25,000 property damage per accident. Let's say you're held liable for a crash that seriously injures four people and totals their $50,000 SUV. If their medical expenses are $20,000 per person, you've already exceeded your $50,000 per accident limit for bodily injury liability by $30,000 and your property damage limit by $25,000. You could be sued for the balance, as well as pain and suffering, and would have to pay for it out of pocket. Depending on where you live, that could involve emptying your bank account, liquidating your investments and even selling your car or house. But having adequate liability coverage protects your assets. If your net worth is higher than the limits your car insurance company offers, umbrella insurance can cover you for liability claims up to millions of dollars. One of our top picks for umbrella insurance is American Family Insurance, which has coverage of up to $5 million. The best way to estimate your costs is to request a quote Undisclosed Yes American Family has a wide variety of umbrella policies available, including personal coverage, commercial coverage and coverage for ranches and farms. It's also highly rated for auto and home insurance. In some cases, insurers may try to upsell you on coverage you don't need, like roadside assistance or protection for mechanical breakdowns. Many credit cards offer roadside assistance, including the Chase Sapphire Reserve® (see rates and fees), Chase Freedom Unlimited® (see rates and fees) and Capital One Platinum Secured Credit Card. On Chase's site On Chase's site New cardholders receive a 0% intro APR for 15 months from account opening on purchases and balance transfers. Good to Excellent670–850 18.99% - 28.49% variable $0 Earn $250 cash back See rates and fees. Terms apply. Member FDIC. Read our Chase Freedom Unlimited® review. The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater. 3% of each transaction in U.S. dollars If your card does, buying it from your insurer is redundant. (If you have AAA or belong to another motor club, you also probably already have access to roadside assistance.) Mechanical breakdown insurance (MBI) acts like an extended warranty, paying for unexpected engine issues, transmission failures and faulty electrical systems. An MBI add-on to a full coverage policy averages between $30 and $100 a year. These policies have strict requirements regarding the age, mileage and condition of covered vehicles. They don't generally cover routine maintenance, normal wear-and-tear or cosmetic repairs. And if your car is still under warranty, it covers much of the same territory. This number breaks down the amount of bodily injury coverage a policy has per person, per accident and the amount of property damage it covers per accident. A 100/300/100 covers up to $100,000 of bodily injury coverage per person at up to $300,000 per accident, and up to $100,000 of property damage per accident. A good liability limit for car insurance is one that meets your net worth, which is the sum of all of your assets minus any debts you owe. Full coverage car insurance is a package that includes liability, comprehensive and collision car insurance. While it is more expensive than just getting liability coverage on its own, getting all three coverages is often required by loans and lease terms. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Yahoo
29-04-2025
- Automotive
- Yahoo
Most common types of car insurance explained
Car insurance is a financial safety net that saves you from paying the full expenses that arise after a car accident, vandalism, storm damage, theft or other problems. There are multiple types of car insurance you can purchase that will cover your vehicle, yourself, your passengers, and others on the road. Understanding the various types of car insurance coverage and when they pay out will help you decide what coverage is right for you. This embedded content is not available in your region. While many types of auto insurance are optional, some are required based on where you live and if you're leasing or financing your vehicle. These are the six major types of auto insurance. Collision insurance covers damages to your vehicle due to an accident – whether you've collided with another car or hit a tree or telephone poll in a single-car accident. If your car is beyond repair, collision insurance will reimburse you based on the actual cash value of your vehicle – minus your deductible. Collision insurance is not state-mandated but is usually required if you're financing or leasing your car. With comprehensive insurance, your insurance company will pay for your car to be repaired or replaced following non-collision incidents, such as vandalism, theft or damage from natural disasters, such as floods. Comprehensive coverage also covers damage to your vehicle if you've hit an animal on the road. This type of insurance isn't mandatory but also is often required by your lender or leasing company if you have a car loan or lease. Read more: Does car insurance cover flood damage? Liability insurance pays for medical expenses and car repair costs for others in accidents you cause. It won't cover your bills, but rather the expenses of the person or people you hit. Every state except New Hampshire and Virginia requires drivers to purchase – and maintain – liability insurance when they register a vehicle. It typically has two components, bodily injury liability and property damage liability coverage. Required minimum liability limits vary by state. Medical payments insurance – also known as MedPay – covers injury-related expenses for you and your passengers following an accident, even if you were at fault. It can help pay for ambulance fees, health insurance deductibles, and funeral costs in addition to your regular doctor's bills or hospital bills. MedPay is only required in three states but most states offer it as optional coverage. It is similar to personal injury protection insurance coverage but less comprehensive. Personal injury protection – also known as PIP – is insurance that covers injury-related expenses for you and your passengers if you're in an accident, regardless of who is at fault. In addition to your medical costs, it can cover lost wages, at-home care, childcare costs, and funeral expenses. Personal injury coverage is required in 12 states, including 'no-fault' states where drivers are required to file a claim with their own insurance company after an accident, even if they didn't cause it. For this reason, PIP is sometimes referred to as no-fault insurance. PIP is optional in some states and not available in others. Uninsured motorist insurance covers bills from your injuries – and property damage, depending on the type of coverage – if you get in an accident caused by someone who does not have auto insurance, aka an uninsured driver. Underinsured motorist insurance is similar, but it helps to cover your expenses when you're in an accident caused by someone who doesn't have enough insurance. Nearly half of all U.S. states require drivers to have uninsured motorist coverage. Uninsured motorist coverage is sometimes bundled with underinsured motorist coverage. Alongside the main types of car insurance, are additional options to further protect yourself and your vehicle or specialized coverage to fit unique situations.. Accident forgiveness, an extra option offered by some insurance companies, prevents your car insurance rates from increasing after an accident. Auto glass insurance is optional coverage you can add on to your car insurance policy to cover repairing or replacing a damaged or broken windshield. Depending on the incident, windshield damage could be covered under collision or comprehensive insurance or under the at-fault driver's liability insurance. If you store your car for a long period without driving it, you might reduce your coverage down to comprehensive insurance and the minimum amount of coverage your state requires. Sometimes this strategy is referred to as 'car storage insurance.' Classic car insurance covers bodily injury and property damage liability for vehicles considered classic, collectible, or antique. This type of insurance typically includes limitations on how often the car can be driven and requires the vehicle to be securely stored. A collision damage waiver covers damage to a car while you're renting it. You can buy the coverage at the rental car counter. Generally the insurance pays for repairs if the car is damaged in an accident, the windshield is chipped, or the vehicle is hit in a parking lot. In some cases it may cover the vehicle if it's stolen. If your own car insurance policy covers rental cars, then you may not need to purchase a collision damage waiver. Credit card rental car insurance is a benefit offered by some credit cards to cover rental cars. You have to charge the entire rental cost on the card to activate the coverage. Not all credit cards offer this benefit, and the coverage terms vary, so check your card's guidelines for details. Custom parts and equipment insurance – also known as CPE coverage – covers modifications you make to your car to enhance its appearance or performance. If you've added custom rims, a new speaker system, tinted windows, or a special paint job, these enhancements would not be covered under a standard auto policy unless you've added CPE coverage. If you work as a delivery driver or rideshare driver, your personal auto insurance policy probably won't cover you if you get into an accident while making a delivery, transporting passengers, or waiting in between gigs. You may need to purchase add-on delivery drivers insurance or rideshare insurance if you're not covered under an employer's commercial insurance policy. Even if your rideshare company provides insurance coverage, there may be instances – such as when you're waiting to pick up your next passenger or accept your next delivery – when you wouldn't be covered. You can add emergency roadside assistance to your auto insurance policy to get help if you're stranded on the road. This coverage typically provides towing services, tire change services, battery services, fuel delivery, locksmith services, and more. You could also choose to get emergency roadside assistance through an organization such as AAA, or it may be included as a perk from your credit card company or cell phone provider. If you drive an electric vehicle, you won't need to purchase special EV car insurance. A standard insurance policy – which could include liability coverage, collision coverage, comprehensive coverage, and more – will help you cover the costs of injuries, auto repairs or vehicle replacement if you're in an accident or your car is stolen or damaged. But be prepared: Because electric vehicles tend to have newer technology that is costly to replace and difficult to source, insuring them generally costs more. Learn more: The reasons electric car insurance will cost you more. Here's how to save. Forced-placed insurance is a temporary policy that a lender purchases on a vehicle when a borrower doesn't obtain sufficient coverage. Most auto loan contracts require borrowers to purchase collision and comprehensive insurance to cover vehicle theft or damage. Forced-place insurance protects the lender's interests, and the cost is added to the borrower's monthly loan payments. Gap insurance – which stands for guaranteed asset protection insurance – helps minimize your financial loss if your car is totaled or stolen and you owe more than your vehicle is worth. Standard insurance policies only pay out up to your car's current value, which might be much less than your auto loan balance, thanks to depreciation. Learn more: What is the actual cash value of my car? Here's what to know. Mechanical breakdown insurance — similar to a dealer's extended warranty — pays for repairs when a major component of the car malfunctions, such as the transmission, suspension, engine, drivetrain, air conditioning, or heating. The coverage is usually limited to new and lightly used vehicles and requires you to keep up with routine maintenance outlined in the car's owner's manual. New car replacement insurance reimburses you for the purchase price of a new car if your vehicle is totaled in an accident or event covered by your collision or comprehensive insurance. Normally collision or comprehensive coverage pays out the actual cash value of your vehicle if it's totaled. Insurers that offer new car replacement insurance restrict the coverage to vehicles that are relatively new, anywhere from one to five years old, depending on the company. Non-owners car insurance provides basic liability coverage for a driver who doesn't own a vehicle and isn't included as a named driver under another driver's policy but frequently rents or borrows someone's car. Additional coverage, such as medical payments coverage, personal injury protection and uninsured motorist coverage, may be added to a non-owners car insurance policy for more complete protection. If your car needs to stay at the repair shop following an accident, you can use rental car reimbursement to cover the costs of a rental car (or other options such as rideshare services or public transportation). Your insurance company may require you to have comprehensive and collision insurance in order to add on rental reimbursement coverage. Usage-based insurance programs track your driving patterns to help determine your car insurance price. The programs typically require you to use a plug-in device, smartphone app, or your vehicle's OnStar (or similar system) to monitor your driving. The data is transmitted to the insurance company. There are two types of programs – pay-per-mile and pay-how-you-drive. Pay-per-mile insurance can help infrequent drivers save money on car insurance, but not all insurance companies offer it. Rather than paying a flat car insurance rate based on the cost of your annual policy, you'll pay two separate rates: one based on your demographics and a second on your usage (or per mile), which is tracked using a telematics device that plugs into your vehicle. The per-mile rate you pay can fluctuate depending how much you drive. Pay-how-you-drive programs consider your mileage as well as your driving behavior, such as acceleration rate, braking habits, and smartphone usage to determine your car insurance price. The amount of car insurance you'll need will depend on where you live, whether you own your car outright, and your financial ability to cover accident-related costs. Each state has its own requirements for car insurance coverage. If you're leasing or financing your vehicle, there may be additional requirements. You should also consider how much money you'd feel comfortable spending out of pocket should you get into a non-covered accident and have injuries or property damage. When people talk about full coverage insurance, they typically mean a combination of liability, collision, and comprehensive coverage. This provides a wide range of financial protection to cover medical bills and car repair costs following a car accident or other damage to your vehicle. Additional coverage – such as uninsured motorist coverage, personal injury protection, and medical payments coverage – can be added onto your policy and may even be required depending on your state. If you're caught driving without car insurance, you could be fined, have your vehicle impounded, get your license suspended, or potentially face jail time, depending on your state laws. In some cases, you may have to file a SR-22 form with your state, which serves as a certificate of financial responsibility. You can likely expect higher car insurance premiums after an SR-22 filing or when you get a new policy after having a lapse in coverage. Auto insurance companies use a variety of factors to determine your car insurance premium. The vehicle you drive, the types of insurance coverage you need, your driving record and insurance claims history certainly play a big role. Depending on the laws in your state, other non-driving-related criteria – including your age, gender, marital status, credit history, and ZIP code – can also affect how much you pay for car insurance. Each company has its own method for determining your rates, so get insurance quotes from multiple providers to find the best and cheapest car insurance. Learn more: What is a car insurance premium and how is it calculated? Tim Manni edited this article. Barbara Marquand contributed to this article.
