Your car insurance questions answered: Video series

How does car insurance work?

Car insurance helps protect you from car accident costs. You pay for specific coverages, and if you get in an accident, your insurer can pay your covered costs.

Coverages typically include:

Liability

Coverages typically include liability, which covers the injuries and damage you cause to others.

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Coverage can also include:

Personal injury protection or medical payments coverage

Comprehensive and collision

Uninsured/underinsured motorist

But your policy can also include coverages for injuries to you and your passengers, damage to your vehicle, protection from uninsured motorists, and more.

What doesn't car insurance cover?

Car insurance doesn't cover wear and tear, and it won't cover people who regularly drive your car but aren't on your policy.

Liability coverage is required in most states

Most lenders also require comprehensive and collision coverage

Most states require a minimum amount of liability coverage. And if you get a car loan or lease, your lender may also require comprehensive and collision coverage.

Common car insurance terms

Deductible: The amount you're responsible for before your car insurance will pay out

Limit: The maximum amount your car insurance can pay out for a claim

Some coverages have a deductible and a limit.

Your deductible is the amount you'll pay for a claim before insurance kicks in.

And your limit is the maximum your insurance can pay out for a claim.

Contact Progressive today to find the right coverage for you.

Car insurance helps you stay prepared for expensive accident costs. Contact Progressive today to discuss which coverages are best for you.

How to shop for car insurance

Shopping for auto insurance can help you save. The best way to start is by comparing quotes from different companies.

To quote, you'll need:

Your car's make, model, and year

Your car's mileage

Your driving history

To quote auto insurance, you typically need your car's make, model, model year, and mileage. You'll also be asked about your driving history, including any accidents.

If you already know the coverages and deductible you want, then make sure each quote includes them so you can make a true cost comparison.

Premium = Your policy's price

If not, you can vary each quote to see how your car insurance premium changes when you add additional coverages.

AutoQuote Explorer®

You can also use our AutoQuote Explorer® tool to compare your quoted rate against rates from different companies.

To buy your policy:

Driver's license number

Social Security number

Vehicle identification number (VIN)

Once you've found the right policy at the right price, you'll typically need one or more of the following to buy your new policy: your driver's license number, Social Security number, and vehicle identification number.

Quote to find the right policy at the right price!

Quote car insurance with Progressive’s AutoQuote Explorer® tool today and find the right policy at the right price!

How do car insurance deductibles work?

In the simplest of definitions, an auto insurance deductible is what you pay out of pocket on a claim. As you can see in the example, after you pay your deductible amount your insurer may cover the remaining cost to repair or replace your vehicle. This assumes the damage is covered and the claim for the damage is approved.

Car Insurance Deductible

Repair Cost: $5,000

Deductible: $250 (what you pay)

=$4,750 (what insurance pays)

Things to keep in mind

Here's something to keep in mind when choosing a deductible.

Higher deductible

You pay more out of pocket, but rate is lower

With a higher deductible you'll pay more out of pocket, but your car insurance rate will be lower.

Lower deductible

Your rate is higher, but you pay less out of pocket

With a lower deductible your rate will be higher, but you'll pay less out of pocket.

Coverages that could have a car insurance deductible include: comprehensive, collision, uninsured and under-insured motorist property damage, and personal injury protection if it applies in your state.

Comprehensive, Collision, Uninsured/under-insured motorist property damage, Personal injury protection

Some insurers even offer a disappearing deductible program. It's what it sounds like. If you go a set amount of time without a claim or violation your deductible amount will decrease or be waived.

Disappearing deductible

Progressive offers disappearing deductibles for car, RV, motorcycle, and boat policies.

Contact Progressive today for help choosing your deductible amount.

Let us help you choose a deductible amount! We offer insurance by phone, online, and through independent agents. Prices vary based on how you buy.

Full coverage car insurance.

The term full coverage car insurance is a little misleading.

No single policy delivers 100% coverage. There are options for better protection.

There's no single policy where you're 100 percent covered in all situations, but there are coverage options that may help you get better protection for you and your vehicle. Let's break it down.

In most cases when an insurance company, agent, or lender references full coverage auto insurance they typically mean comprehensive and collision plus any other coverages required by your state.

Full coverage auto insurance. Comprehensive + collision + state-required coverages.

For instance, liability coverage is mandatory in almost all states. It covers damages or injuries you cause to another vehicle or person, up to a certain limit.

Liability coverage. Covers damages/injuries to another vehicle or person.

To protect your own vehicle, that's where comprehensive and collision come in.

Comprehensive & collision protects your vehicle.

Unless required by your lender or lease company these are optional coverages. They may pay for damage to your vehicle caused by events that are both in and out of your control. And the cost?

Cost?

A policy that only has liability will cost less than a policy that also includes comprehensive and collision.

Liability only + Comprehensive + Collision

However, all three combined will offer more protection.

Payment factors, Deductibles, Discounts

The deductible you choose and any discounts you may qualify for, all factor in when finding a payment that works for you.

Let's discuss what coverage is best for you! We offer insurance by phone, online, and through independent agents. Prices vary based on how you buy.

Contact progressive today to discuss what coverage is best for you.

What is liability insurance coverage?

Liability insurance coverage protects you financially if you're responsible for someone else's injuries or damaged property.

Here's how liability coverage can help

For example, if you back into someone's car, your auto policy's liability coverage could pay for the damage to their vehicle.

Vehicle and property insurance

Most vehicle and property insurance policies, including auto and homeowners insurance, come with liability coverage.

How much liability coverage do I need?

When you quote a policy with liability coverage, you'll choose a coverage limit — the maximum amount your policy will pay for injuries or property damage you cause to others.

Choose a liability coverage limit that matches or exceeds your net worth

It's a good idea to choose a liability limit that matches or exceeds your total net worth, so your assets are well-protected.

Find out what coverage is best for you!

With liability coverage, you can worry less and enjoy greater peace of mind.

Contact Progressive today to find out what coverage is best for you.

How does comprehensive coverage work?

Protects your vehicle from unexpected events

Theft

Fire

Severe weather

Comprehensive coverage AKA comprehensive insurance protects your vehicle from damage caused by unexpected events such as theft, fire, and severe weather.

Auto

Motorcycle

Boat

And more!

You can add this optional coverage to just about any type of vehicle insurance like auto, motorcycle, boat, and more.

Is comprehensive coverage right for you?

But is comprehensive coverage right for you?

Many lenders require it if you lease or finance

It depends. Many lenders will require it if you lease or finance your vehicle.

• Value of your car
• Personal preferences
• Financial circumstances

Otherwise, it mostly comes down to the value of your car, your personal preferences, and your financial circumstances.

High cash value

Or you can't afford to repair or replace your vehicle out of pocket

For example, if your car has a high cash value or you can't afford to repair or replace your vehicle out of pocket, comprehensive coverage could be a smart move.

Collision coverage

Pays for damages if you get into a collision

Comprehensive coverage

Pays for damages out of your control

Comprehensive coverage is often confused with collision coverage. While both protect your vehicle, collision coverage is there if you get into a collision while comprehensive is for non-collision events that are out of your control.

Comprehensive coverage is a great way to know you're covered

Having comprehensive coverage is a great way to know you're covered — no matter what unexpected events come your way.

Let's discuss what coverage is best for you!

Contact Progressive today to discuss what coverage is best for you.

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How does insurance work for a new car?

When you buy a new car, your existing car insurance will protect your new car temporarily with the same amount of coverage. Get around 7 to 30 days to officially add the car to your policy.

How long can I wait to add car insurance to my policy? Around 7 to 30 days.

If you wait longer than your insurer's grace period, your new car may not be covered.

Coverages for your new car. Liability coverage.

Most states require liability. This covers you in case you're responsible for an accident that injures others or damages someone else's car or property.

Comprehensive and collision coverage.

Most car loans and leases also require comprehensive and collision to cover damages to your vehicle.

Loan slash lease payoff coverage.

If you get a loan or lease, you might want loan lease payoff coverage too. This helps pay the difference up to a limit if your new car is stolen or totaled and you owe more on it than it's worth.

Remaining loan, $25,000. Vehicle's value, $20,000. No coverage, $20,000. With coverage, $25,000 minus deductible. Contact Progressive today to insure your new car.

When you're ready to buy a new car, contact Progressive to add your new vehicle or get a quote.

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Progressive. Progressive dot com slash answers.

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What is accident forgiveness? Accident forgiveness is a perk that keeps your insurance rate from going up after you're in a car wreck. Without accident forgiveness, getting in a wreck usually results in a rate increase.

Each insurer treats accident forgiveness differently. Some insurers will forgive your first accident for free. Others offer accident forgiveness as a free reward for new or longtime customers. And some will have accident forgiveness available for purchase.

Progressive offers free small accident forgiveness and large accident forgiveness for your first accident as part of our loyalty rewards program. You can also opt to pay for additional accident forgiveness benefits when you purchase your auto policy. You may qualify for these based on your state, how long you've been with Progressive, and the size of your claim.

Contact us today to see what accident forgiveness options Progressive can offer you.