Auto Insurance FAQ Questions about auto insurance answered.

Q: Why should I use QuoteWizard to shop around for auto insurance?

A: QuoteWizard will connect you with up to four custom-matched insurance agents that will compete to offer you the best policy at the best rate. We will do our best to save you time and money—sometimes over $800 a year!

Q: Are auto insurance rates really that different from one insurer to the next?

A: Absolutely. Some insurance companies are great at providing low-cost insurance to drivers with less than perfect records. Others offer great rates to drivers with perfect driving histories and are expensive for everyone else. The difference is usually in the hundreds of dollars.

Q: Can't I just get quotes online and not have to talk to any agents?

A: Most insurance companies will give you a quote on their websites, but the best rates aren't online. If you don't talk to a local insurance agent, you might be missing out on hundreds of dollars in discounts. Or, even worse, you could end up paying for more insurance than you actually need.

Q: Do I need auto insurance?

A: If you want to legally drive, you need car insurance. Every state but one (New Hampshire, you know who you are) requires that that you carry at least some liability coverage to protect yourself in the event of an accident. Check out our article on the subject entitled, What to do if You Can't Afford Insurance.

Q: How much should my deductible be?

A: The difference in price from a policy with small deductible and one with a large one is about 25%. One important thing to keep in mind is that your deductible is only applicable to repairs and replacement cost on your vehicle. The bottom line: carry as high of a deductible as you can possibly afford, but don't assume you'll never have to pay it. Read more in our article about choosing the right deductible.

Q: What does where I live have to do with my auto insurance rates?

A: In general, people that live in large cities and densely populated areas pay more for insurance. This is because having more cars on the road increases the likelihood of accidents, theft, and vehcile break-ins. For a list of other factors, see our article about location and insurance rates.

Q: What does no-fault auto insurance mean?

A: Currently, 13 states have a partial or total no-fault system. No-fault auto insurance means that, after a car accident, your own insurance company pays for your medical costs regardless of whose fault the accident was. Read our article all about no-fault auto insurance for more information.

Q: I got a speeding ticket—are my rates going to go up?

A: It depends. A lot of insurance companies don't raise your rates after just one ticket (some states even have laws on the books forbidding this). If you already have several tickets on your record, your insurance company will probably raise your rates in accordance with the severity of the ticket. If your rates drastically increase, don't take it lying down—shop around for a cheaper insurance company!

Q: If I borrow someone else's car, whose insurance is liable?

A: Generally, insurance travels with the car. If you get in an accident while driving your friend's car, their insurance is liable. Likewise, if you loan your car to someone else, your insurance is still the primary insurance. Read about exceptions in our article about insurance on loaned and borrowed cars.

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