Stop overpaying for car insurance.

Car insurance is legally required in almost every state, but that doesn't mean you should just buy the cheapest policy and call it a day. Whether you're insuring your first car or looking for better rates, understanding how auto insurance actually works helps you avoid overpaying while making sure you're properly protected if something happens.

At its core, car insurance has a few key pieces: liability coverage (which pays for damage you cause to others), collision coverage (which fixes your car after an accident), and comprehensive coverage (which protects against theft, weather, and other non-accident damage). Your state sets minimum liability requirements, but those minimums often aren't enough to fully protect you if you cause a serious accident. Insurance companies also look at your driving record, where you live, what you drive, and even your credit score to calculate your rate.

The key to getting the right coverage without overpaying is understanding what you actually need for your situation. If you're financing or leasing a car, your lender will require collision and comprehensive coverage. If you own an older car outright, you might choose to skip those and save money. Your deductible—the amount you pay before insurance kicks in—also dramatically affects your premium. Ready to compare quotes and find coverage that actually fits your budget and driving habits?