This car insurance guide explains the fundamentals of auto coverage in the U.S., including the most common
coverage types, how deductibles and limits work, what affects your price, and how to choose a policy that fits
your budget. If you’re new to insurance, start with the basics and then compare options based on how you drive.

Auto Insurance Basics

If you’re brand-new to auto insurance, it helps to review the core concepts first. Our

auto insurance basics

page breaks down key terms like premiums, deductibles, and coverage limits in a simple way.

Common Types of Car Insurance Coverage

Liability Coverage

Liability coverage helps pay for injuries and property damage you cause to others. It typically includes
bodily injury liability and property damage liability. It usually does not pay to repair your own vehicle.

Collision Coverage

Collision coverage helps pay to repair or replace your car after a crash with another vehicle or an object.
A deductible usually applies.

Comprehensive Coverage

Comprehensive coverage helps pay for non-collision damage, such as theft, vandalism, storm damage, falling objects,
fire, or hitting an animal. A deductible usually applies.

Medical Payments / Personal Injury Protection (PIP)

Depending on your state, MedPay or PIP may help cover medical expenses for you and your passengers after an accident,
regardless of fault.

Uninsured / Underinsured Motorist Coverage

This coverage may help if you’re hit by a driver who has no insurance or not enough insurance to fully pay for damages.
Availability and details depend on your state and policy.

Deductibles vs. Coverage Limits

Deductibles and limits are often confused. They mean different things and affect both your costs and your protection.

What Affects Car Insurance Prices?

Insurance companies estimate risk using multiple factors. While exact pricing varies by insurer and state,
these factors commonly influence rates:

• Driving history: tickets, accidents, and claims history
• Driver profile: age and experience
• Vehicle: repair costs, safety features, and theft risk
• Location: where you live and park your vehicle
• Coverage choices: higher limits and lower deductibles usually cost more
• Insurance history: gaps in coverage can increase your premium in many cases

Choosing Coverage: Practical Recommendations

There is no one-size-fits-all policy. A good approach is to select coverage based on your vehicle’s value,
your budget, and the level of financial risk you want to avoid.

For new or young drivers

If you’re a newer driver or shopping on a tight budget, see our resource on

cheap car insurance for young drivers

for coverage ideas and cost-saving strategies.

For drivers looking for low upfront costs

Some drivers focus on lowering the initial amount due. Depending on availability, you may want to explore

cheap car insurance with no deposit

as well as flexible payment options like

buy now pay later car insurance
.

What to Do After an Accident

After a crash, staying calm and following a simple checklist can make the claims process smoother.

1. Check for injuries and call emergency services if needed.
2. Move to a safe area if it’s possible and safe to do so.
3. Exchange contact, vehicle, and insurance information.
4. Take photos of the scene and any damage.
5. Report the accident to your insurer and keep copies of documents.

If you’re insured with Young America, our

Young America Insurance claims guide

explains what to expect and how to move through the process.

FAQs

What does “full coverage” mean?

“Full coverage” usually means you have liability plus collision and comprehensive. It does not mean every
situation is covered, so always check exclusions, deductibles, and limits.

Do I need collision and comprehensive on an older car?

It depends on your car’s value and your budget. If replacing or repairing your car would be difficult, those
coverages may still be worthwhile.

How can I lower my premium?

Common strategies include comparing quotes, choosing a higher deductible (if affordable), keeping continuous
coverage, and asking about discounts like safe-driver or good-student programs.

Learn More About Young America Insurance

If you’re researching providers, you can also learn more about

Young America Insurance

and how coverage options may work for different driver profiles.