Cut Down These 5 Bills and Save $2,579

Bills, bills, bills. They never seem to end, do they? They take more and more out of your account each month before you even realize it.

You can’t escape them entirely (wouldn’t that be great?), but you can stop them from being so darn painful every month. All it takes is ending your loyalty to a few companies you currently use for bills and fees that come every month.

Trust us, they won’t miss you. And you definitely won’t miss them — especially when you realize how much money you’ve been needlessly throwing away every month.

1. Your Credit Card Bill: Save Up to 10x on Interest Payments

If you’re reading this, there’s a 50% chance you have credit card debt — nearly half of U.S. adults do. And if you don’t pay it off every month, you’re draining your bank account with unnecessary — and terribly high — interest payments.

And the truth is, your credit card company doesn’t really care. It’s just getting rich by ripping you off with high interest rates — some up to a whopping 36%! But a website called AmOne wants to help.

If you owe your credit card companies $50,000 or less, AmOne will match you with a low-interest loan you can use to pay off every single one of your balances.

The benefit? You’ll be left with one bill to pay each month. And because personal loans have lower interest rates (AmOne rates start at 3.49% APR), you’ll get out of debt that much faster.

With a $5,000 balance this month, that could be an extra $150 to your credit card company, or about $15 to a personal loan matched by AmOne. That’s $1,620 going down the drain every year.

AmOne keeps your information confidential and secure, which is probably why after 20 years in business, it still has an A+ rating with the Better Business Bureau.

It takes two minutes to see if you qualify for up to $50,000 online. You do need to give AmOne a real phone number in order to qualify, but don’t worry — they won’t spam you with phone calls.

2. Your Car Insurance Bill: Save $489/Year

When’s the last time you checked car insurance prices?

You should shop your options every six months or so — it could save you some serious money. Let’s be real, though. It’s probably not the first thing you think about when you wake up. But it doesn’t have to be.

A website called Insure.com makes it super easy to compare car insurance prices. All you have to do is enter your ZIP code and your age, and it’ll show you your options.

Using Insure.com, people have saved an average of $489 a year.

Yup. That could be nearly $500 back in your pocket just for taking a few minutes to look at your options.

3. Your Credit Monitoring Service: Cut $240 Down to $0

When it comes to your credit score, it’s important to stay organized and keep tabs on it. After all, it’ll play an essential role in any big purchase you want to make — whether that’s a home or a car.

But there’s no need to spend $19.99/month on a credit monitoring service, when you can get the same protection for $0.

So if you’re looking to get your credit score back on track — or even if it is on track and you want to bump it up — try using a free website called Credit Sesame.

Within two minutes, you’ll get access to your credit score, any debt-carrying accounts and a handful of personalized tips to improve your score. You’ll even be able to spot any errors holding you back (one in five reports have one).

James Cooper, of Atlanta, used Credit Sesame to raise his credit score nearly 300 points in six months.*** “They showed me the ins and outs — how to dot the I’s and cross the T’s,” he said.

Want to check for yourself? It’s free and only takes about 90 seconds to sign up.

4. Your Investment Broker: Never Pay Unnecessary Fees Again

Investing in the stock market is a great tool to grow your net worth. And for a while, it seemed like it was only available to the upper class — the people who didn’t mind paying up to $50 for each trade. What’s $50 when your investment broker is making you millions?

But if you work for a living and don’t happen to have millions of dollars lying around, smartly investing in the market can sound totally out of reach.

But with an app called Stash, it doesn’t have to be. It lets you be a part of something that’s normally exclusive to the richest of the rich — on Stash you can buy pieces of other companies for as little as $1.

That’s right — you can invest in pieces of well-known companies, such as Amazon, Google, Apple and more for as little as $1. The best part? If these companies profit, so can you. Some companies even send you a check every quarter for your share of the profits, called dividends.1

It takes two minutes to sign up, and it’s totally secure. With Stash, all your investments are protected by the Securities Investor Protection Corporation (SIPC) — that’s industry talk for, “Your money’s safe.”2

Plus, when you use the link above, Stash will give you a $5 sign-up bonus once you deposit $5 into your account.*

5. Your Banking Account: Skip the $15 Monthly Fees

The monthly fee your bank is charging you is a huge account-drainer. Especially because some banks charge when you don’t have enough money saved. We’re the people who need that $15 the most!

If you’re just looking for a place to safely stash it away but still earn money, a fancy account isn’t necessary. Under your mattress or in a safe will get you nothing. And a typical savings account won’t do you much better. (Ahem, 0.06% is nothing these days.)

But a debit card called Aspiration lets you earn up to 5% cash back and up to 16 times the average interest on the money in your account.

Not too shabby!

Enter your email address here to get a free Aspiration Spend and Save account. After you confirm your email, securely link your bank account so they can start helping you get extra cash.

Your money is FDIC insured and they use a military-grade encryption which is nerd talk for “this is totally safe.”

Kari Faber is a staff writer at The Penny Hoarder. 

***Like Cooper, 60% of Credit Sesame members see an increase in their credit score; 50% see at least a 10-point increase, and 20% see at least a 50-point increase after 180 days.

Credit Sesame does not guarantee any of these results, and some may even see a decrease in their credit score. Any score improvement is the result of many factors, including paying bills on time, keeping credit balances low, avoiding unnecessary inquiries, appropriate financial planning and developing better credit habits.

1Not all stocks pay out dividends, and there is no guarantee that dividends will be paid each year.

2To note, SIPC coverage does not insure against the potential loss of market value.

For Securities priced over $1,000, purchase of fractional shares starts at $0.05.

*Offer is subject to Promotion Terms and Conditions. To be eligible to participate in this Promotion and receive the bonus, you must successfully open an individual brokerage account in good standing, link a funding account to your Invest account AND deposit $5.00 into your Invest account.

The Penny Hoarder is a Paid Affiliate/partner of Stash. 

Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. This material has been distributed for informational and educational purposes only, and is not intended as investment, legal, accounting, or tax advice. Investing involves risk. 

<!–

–>

Source: thepennyhoarder.com

Solid Marks for Gabi Insurance Review

When it comes to my 401(k), daily alarm clock or, yes, even my rotisserie chicken, I’ve embraced the set-it-and-forget-it mantra. But for car insurance? You’re doing yourself a disservice if you aren’t shopping for better car insurance rates at least once a year.

That’s what makes tools like Gabi so helpful. In our Gabi insurance review, we’ll weigh the pros and cons of using an insurance comparison tool, instead of directly working with insurance agents, when shopping for new car insurance rates.

What Is Gabi Insurance?

Gabi Insurance is a newcomer to the insurance scene. The San Francisco insurance company was founded in 2016, four years after The Zebra (another car insurance comparison site that I had mixed feelings about; get the full scoop in my Zebra car insurance review). While Gabi is known primarily for its auto insurance quotes, users can also rely on Gabi to compare insurance providers for renters insurance, home insurance, condo insurance, landlord insurance and umbrella insurance. (I could not find an option for life insurance.)

Gabi is a fully licensed insurance broker in 50 states plus the District of Columbia, meaning they can underwrite, price and sell policies and handle claims. It also means that, when you generate quotes on the site, you can buy directly on the site. One of the issues with sites like The Zebra is that, after generating your auto insurance quote, you’d have to leave the site and go to the actual insurance company’s site to complete the process.

Gabi works with more than 40 top insurance agencies to help you find the best rate for your car(s), driving history and budget. Among those insurance companies are Nationwide, Travelers, Progressive, Clearcover and Safeco.

Gabi claims it saves drivers an average of $961 per year and can provide quotes in a matter of minutes. It’s time to test those promises.

How Gabi Works: A Review

Getting your Gabi insurance quotes can be relatively painless, depending on the route you take. You have three options:

  1. Don’t provide any of your current auto insurance information.
  2. Provide your car insurance login information.
  3. Upload a PDF of your current auto insurance policy.

Because I’m private by nature (and because I just had the pleasure of dealing with a fraudulent unemployment claim in my name), I was hesitant to provide any login information. I first tried to advance without providing any information, but as we’ll see, this doesn’t get you very far. Eventually, I uploaded a PDF of my policy.

To get a quote for Gabi insurance, you start here.
To get a quote, your journey to cheaper car insurance starts here.

Getting started is easy. First you’ll make your decision re: providing insurance information or not (more on that below). Then you’ll enter your name. (Like I did when reviewing The Zebra, I started the process with the very real, honest name of Joe Schmoe.)

This screenshot shows a portal where Gabi insurance asks what your email is. The reviewer typed in Joe Schmoe.
Mr. Schmoe as he signs up for car insurance quotes.

After providing your name, Gabi will ask for a handful of other contact info: birthday, address, whether you own or rent your home, email address and cell phone number. When asking for the email address, Gabi promises your information is never sold or shared. The Zebra says something similar, yet Geico conveniently sent an email to my inbox addressing me as Joe just minutes after I hit submit on The Zebra’s site.

Gabi Insurance asks for your email address in this screen shot.
Gabi says they won’t share or sell your info; thus far, they’ve held up their end of the bargain.

Contact update: As of two hours after creating my account, I have received one text and two emails from Gabi, but none from any third-party insurance providers. Could it be that Gabi is telling the truth when they say they won’t share or sell your data?

To Provide Insurance Info Or Not to Provide Insurance Info? That Is the Question

That’s what Hamlet said, right?

As I mentioned, in my first attempt at using Gabi’s car insurance comparison platform, I resisted their pleas for my personal info. “They don’t need to know anything about me to build a quote tailored to me,” I foolishly asserted.

But when I got to the magical part where Gabi was supposed to tell me I’m a schmuck who has been paying too much for auto insurance, I was instead given a list of common insurance companies, all with blue buttons that said “View My Quote.”

“Surely I must just click each and see a quote at the ready, despite the platform having no knowledge of my car, driving history or policy preferences,” I told myself. Oh, Joe Schmoe, what a fool you are.

Gabi Insurance shows various options that can help you save money in this screen shot.
When you don’t provide your current insurance policy to Gabi, this is the type of screen you can expect to see.

I quickly learned, upon clicking into Liberty Mutual, Allstate and Progressive, that giving Gabi such limited info meant the site would merely direct me to individual insurance companies to provide more detailed personal information to generate a quote.

That’s right: In that instance, Gabi serves no purpose, because you must start from scratch on every insurance company’s site to compare.

If you’re unwilling to provide either your login info for your current insurance company or a PDF of your auto insurance policy, then Gabi is not right for you.

In the name of research, I decided I was comfortable enough downloading a copy of my policy from Allstate and then uploading it into Gabi. While it does have some personal data within it, my email and password were still safe with me.

It took only a few seconds for the artificial intelligence on Gabi’s site to read my policy and tell me in intricate detail what those pages contained. (This is either really convenient for insurance shoppers or a warning sign that robots are just days away from taking over.)

From there, I was able to input more personal information about myself as a driver, my partner (who is also on my policy) and our car. I tried to remove my partner for a good five minutes just for kicks and eventually gave up. Later on, I learned if I had just waited a few more clicks, I would have had the option of toggling secondary drivers on and off. If Gabi had made that clear, it would have saved me time and frustration.

Actually generating my quotes did take about a minute, which is notably fast. However, I had just used The Zebra a few days before, and that experience was faster, so Gabi seemed slow by comparison.

The Car Insurance Quotes I Got from Gabi

I was pleasantly surprised to see a few insurance agencies whose names I recognized among my top results. And the savings were quite large.

Gabi provides more insurance companies that can help you save money.
My top auto insurance quotes from the Gabi insurance comparison platform.

My top quote came from Stillwater and would save me $622 a year. I was dubious upon seeing that, so I clicked into the “View Details” portion of the quote and did find some discrepancies. The largest: My property damage coverage dropped from $500,000 with my current policy to $100,000 with this potential new policy.

Still, the changes were so minor that it ultimately felt like a good deal. But buyer beware: You shouldn’t necessarily expect your current policy and quoted policy to be one-to-one. Go through and make sure all the coverages you want are still represented by the new policy.

Quotes two and three purported to save me $573 and $468 a year, respectively, but again, those quotes weren’t an apples-to-apples comparison with my current policy, as some of the coverages differed.

That said, all three quotes were large improvements over my current auto insurance. My current auto policy is bundled with my homeowners insurance and thus linked to my escrow, so I’ve got some calls to make, but I can safely say I will be using Gabi again soon to find a better bundled policy for auto insurance and home insurance.

What We Like About Gabi Insurance

Clearly, as someone who has just publicly stated he’ll be using Gabi to generate a real quote down the road, I’m a fan. Here’s some of what I liked about Gabi:

  • You don’t have to leave the site. If you find a quote you like, you are able to purchase the insurance on Gabi’s own platform, as long as you are in the United State, since Gabi is a fully licensed insurance broker.
  • It’s got an easy-to-read gauge during the process. It’s a small thing, but I can’t breeze past a good website UX when I see one. I found Gabi’s top-of-the-page tracker for percentage of completion to be a nice touch, especially for a site that is all about efficiency in generating a quote.
Gabi shows how far along you've made it in the process.
Gabi makes it easy to see how far along you are in the process.
  • Uploading my policy was easy. Assuming you want your new coverage at the same or similar levels you’re used to, you can get a quote in minutes by uploading your current policy.
  • You can bundle home insurance with auto insurance. I currently bundle my auto and home coverage, and I would like to continue. It’s convenient to have all my insurance policies in one app, and it earns me discounts.
  • I would legitimately save money. While I haven’t pulled the trigger yet, Gabi could deliver real savings over the course of a year from one of several different insurance companies. More than $600 for me; Gabi truly means it when they promise to find the best insurance company for your needs.

What We Don’t Like About Gabi Insurance

I may be a new Gabi fanboy, but that doesn’t mean I’m onboard with the entire experience. Here’s where I found the car insurance comparison platform fell short:

  • There isn’t an option to describe the policy you want. Gabi pushes you into a scenario where you have to hand over your current insurance account login information or uploading a copy of your policy. If you’re strict about who has access to your data, this could be problematic, as it’s the only way to get quotes to compare on the site.
  • It can sometimes take days. Though I did not provide my login information, some customers have complained that it could take up to two days (depending on the current insurance provider) for Gabi to get into the account and grab the relevant information. That takes the speed out of the process that is supposed to be a hallmark of Gabi.
  • The policies I was provided weren’t perfect matches for my current policy. And Gabi wasn’t upfront about this. I had to do some digging to realize that, by opting for the No. 1 policy choice, some of my coverages would be reduced.
  • They required my cell phone number. I understand needing my number if I decided to move forward with one of the policies, but for the general comparison purposes, I don’t think customers should have to input their numbers.

What Customers Are Saying About Gabi Insurance

Overall, I had favorable opinions of Gabi, but I wanted to see what other customers were saying about the company.

I started with Better Business Bureau and was actually shocked to see that, despite having a BBB rating of an A-, it has an average 1.77 out of 5 stars based on 22 customer reviews. Ouch.

Reviews on the Better Business Bureau website were largely around problems with the actual Gabi service, but some have said working with customer service is not a pleasant experience either, whether due to agent miscommunications or just generally slow customer service response time.

These poor customer reviews are notably absent on Gabi’s site, where it instead shows off its 4.8 out of 5 stars based on “third-party verified reviews” that are certainly not at all curated to paint a favorable picture.

Gabi does score well in terms of its mobile app. In the App Store, it currently has a 4.1 rating. I could not easily find it on Google Play.

The Bottom Line

So should you try Gabi? If you are actually ready to make the switch to a new car insurance provider and don’t mind a little leg work, absolutely. The Zebra is easier since you don’t have to relinquish your personal information, but I found The Zebra to be dishonest about its spam policy, frustrating to use and not really much of a money-saver. With Gabi, you’ll have to actually take the time to give the platform access to your current policy, but in doing so, big savings and an easy sign-up process could be on the horizon.

Timothy Moore is a market research editing and graphic design manager and a freelance writer and editor covering topics on personal finance, travel, careers, education, pet care and automotive. He has worked in the field since 2012 with publications like The Penny Hoarder, Debt.com, Ladders, WDW Magazine, Glassdoor and The News Wheel. 

Source: thepennyhoarder.com

The Best Car Insurance Companies in Florida

The search for the best car insurance company entails digging into such factors as price, coverage options and customer satisfaction. And things get more complicated when you are choosing auto insurance in Florida. That said, we break down how you can choose insurance you’ll afford while feeling comfortable with your choice in auto insurance carrier.

Florida has some of the highest car insurance rates in the nation due to factors like its weather, its no-fault insurance law and the high rate of uninsured drivers. In fact, the Insurance Information Institute reports that Florida had the sixth highest in uninsured drivers in 2019 at 20.4%, the year with the most recent data.

That said, you can still find an insurance company in Florida that provides excellent coverage within your budget. We took a look at the best insurance carriers that serve Florida and picked our five favorite ones, including the best overall auto insurance company in Florida. (Spoiler alert: It’s Geico.)

The factors that influence how much car insurance companies will charge you include your age, marital status, driving history and even ZIP code. Each insurer weighs those factors differently. The best strategy for finding cheap car insurance in Florida will always be to compare quotes. Just make sure the quotes you get are comparable in coverage, and of course, check out our reviews below.

In this article

Methodology

When comparing Florida auto insurance companies, we used our SimpleScore Methodology to consider factors such as discounts, coverage, support, customer satisfaction and accessibility.

We also looked at authoritative reviewers and gatherers of auto insurance statistics such as J.D. Power, Bankrate, Insurance Information Institute and Consumer Reports. Bottom line: We’ve worked to give you the best advice about car insurance in Florida.

The best car insurance companies in Florida

These insurers were ranked at the top of J.D. Power’s 2020 U.S. Auto Insurance Study in the Florida region. J.D. Power is a global leader in customer service surveys. These insurance providers also have excellent marks on our own SimpleScore and have gained the notice of Consumer Reports and the Insurance Information Institute.

  • Geico — Best overall for Florida auto insurance
  • State Farm — Best for Florida auto insurance claims customer service
  • Allstate — Best overall for Florida auto insurance customer service 
  • Progressive — Best for Florida auto insurance coverage options
  • Liberty Mutual — Best for Florida auto insurance discounts

Best overall for Florida car insurance – GEICO

When compared to other Florida auto insurance providers, Geico got top marks both from J.D. Power and Consumer Reports. Why? This carrier’s scores for claims and non-claims service were excellent. In fact, Geico is our favorite all-round Florida auto insurance carrier.

J.D. Power Rating

3/5

AM Best Rating

A++

Standard & Poor’s

AA+

SimpleScore

4.8 / 5.0

SimpleScore GEICO 4.8

Discounts 5

Coverage Options 5

Customer Satisfaction 4

Accessibility 5

Among the auto insurance carriers we track, Geico’s premiums were among the lowest for average minimum coverage, at $433 (per Bankrate’s 2020 data), which is actually also one of the lowest among the Florida providers we like best.

In addition to ranking among the best with J.D. Power for auto insurance companies in Florida (846 out of a score of 1,000) in 2020, we found that Geico was one of the largest auto insurance providers in 2019, according to the Insurance Information Institute, with almost 14% market share. We found that coverage options were robust, with 11, and discounts were quite plentiful, with 16.

Best for Florida car insurance claims customer service – State Farm

We consider State Farm to be the best in claims service satisfaction, an assertion backed up by its strong ratings with Consumer Reports.

J.D. Power Rating

4/5

AM Best Rating

A++

Standard & Poor’s

AA

SimpleScore

4.6 / 5.0

SimpleScore State Farm 4.6

Affordability 4

Coverage Options 5

Customer Satisfaction 4

Accessibility 5

State Farm’s wide reach can be a major attraction for some, with more than 19,000 independent agents and over 16% of the market share among auto insurance direct premiums written. This ensures that such benefits as the number of coverage options (we counted 13) is at your fingertips.

Over at Consumer Reports, we found that State Farm gets a 4 out of 5 for both claims and non-claims service satisfaction, although the company doesn’t rank as well for premiums and policy review satisfaction.

Best overall for Florida car insurance customer service – Allstate

When compared to other Florida auto insurance carriers for overall customer satisfaction, Allstate landed on top, with a J.D. Power score of 851 out of 1,000.

J.D. Power Rating

3/5

AM Best Rating

A+

Standard & Poor’s

A-

SimpleScore

4.4 / 5.0

SimpleScore Allstate 4.4

Discounts 3

Coverage Options 5

Customer Satisfaction 4

Accessibility 5

Allstate is a solid provider of car insurance, with good coverage options, customer support and accessibility. This carrier offers two apps: QuickTrip, which provides support for routing daily trips and maintenance reminders, as well as Allstate Mobile, which can be used for filing claims and other tasks.

This carrier is not a favorite for premium prices: Consumer Reports only gives Allstate a 1 out of 5 in that category, although the company ranks well with claims satisfaction, with 4 out of 5.

Best for Florida car insurance coverage options – Progressive

Progressive is the best in coverage options in our estimation, when compared to other Florida insurance providers, with 13 at our count.

J.D. Power Rating

3/5

AM Best Rating

A+

Standard & Poor’s

AA

SimpleScore

4.2 / 5.0

SimpleScore Progressive 4.2

Discounts 4

Coverage Options 5

Customer Satisfaction 4

Accessibility 4

When it comes to claims satisfaction, Progressive performs well, says Consumer Reports, with a 4 out of possible 5. The Progressive app is also robust, with the ability to get roadside assistance, file a claim and more.

Progressive is middle to top of the pack in premium costs for Florida auto insurance. Bankrate found that average minimum coverage was $1,356, near the top of the providers we follow, while full coverage was middle of the pack at $2,573. That said, Progressive has definite advantages as a large, established insurer.

Best for Florida car insurance discounts – Liberty Mutual

Of the Florida auto insurers we compared, Liberty Mutual won out with its insurance discounts (we counted 17). Options include such discounts as rewarding you for driving a hybrid or electric vehicle and even if you get a quote from this company before your policy runs out.

J.D. Power Rating

3/5

AM Best Rating

A

Standard & Poor’s

A

SimpleScore

4.8 / 5.0

SimpleScore Liberty Mutual 4.8

Discounts 5

Coverage Options 5

Customer Satisfaction 4

Accessibility 5

Liberty Mutual is also one of our strongest in coverage options, with 18 counted. One nice feature is that you can have the option for original manufacturer replacement parts, which means that if you have a Toyota Camry, you can get parts made by Toyota, not an after-market manufacturer.

Consumer Reports found that Liberty Mutual did not enjoy the satisfaction in premium prices that you might hope for, but satisfaction in claims processing was strong with 4 out of 5.

[ Read: Steps to Switch Car Insurance Companies ]

Choosing your Florida car insurance provider

One of the first decisions you’ll have to make when signing up for car insurance is whether to choose a local or national carrier. Both come with advantages and disadvantages.

Local carrier

Pros 

  • A personal relationship with your agent.
  • Services that are specific to your location.

Cons 

  • Fewer discounts.
  • Fewer digital tools.
  • Slower claims process.

National carrier

Pros

  • More discounts.
  • Faster claims process.
  • More money to invest in digital tools.

Cons 

  • May not have an individual agent.
  • Less of a personal touch.

Florida’s minimum insurance requirements

Florida’s minimum insurance requirements are the lowest in the U.S., with 10/20/10 in bodily injury liability and property damage liability. That’s as of March 2021.

What does that mean? Coverage must include up to $20,000 for everyone in an accident (middle number), subject to a limit of $10,000 for one person (the first number), and $10,000 for property damage (the last number). Also, instead of policy limits, policyholders can satisfy the requirement with a combined single limit policy. 

By comparison, Maine’s and Alaska’s minimum required coverages are at 50/100/25. (For Maine, policyholders must also carry coverage for medical payments.)

Property damage

Florida requires that all drivers carry a minimum of $10,000 in property damage liability insurance. This coverage will protect other drivers from financial loss in case you are at-fault for an accident and damage another vehicle. Failure to do so can result in the suspension of your registration or driver’s license.

Personal injury protection

Florida is one of a handful of no-fault auto insurance states. This means that regardless of a car accident, each driver is responsible for covering their own medical bills. As a result, the state requires that all drivers carry at least $10,000 in personal injury protection. This coverage will pay for 80% of medical expenses from a covered accident.

Taxi insurance

Florida requires that taxis carry extra car insurance to protect their passengers. Vehicles registered as taxis in the state must carry at least $125,000 bodily injury liability per person, $250,000 bodily injury liability per accident, and $50,000 property damage liability per accident.

How much does car insurance cost in Florida?

Drivers in Florida pay $2,364 annually for full coverage and $1,101 annually for minimum coverage, according to Bankrate records.

Florida car insurance can get high depending on the ZIP code, as much as $3,314 in Miami, the state’s largest metropolitan area. (Miami-Dade is one of the largest counties in population in the U.S., with almost 2.8 million in 2018, according to the U.S. Census.)

Meanwhile in North Florida, Tallahassee has some of the cheapest premiums for the state, according to Bankrate.

City Average annual premium for full coverage
Jacksonville $2,230
Miami $3,314
Orlando $2,405
Tampa $3,027
Tallahassee $2,043
St. Petersburg $2,662

Bankrate uses Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record and good credit.

Car insurance FAQs

Florida drivers face a variety of unique circumstances that make car insurance rates more expensive. Factors that cause Florida car insurance rates to be high include:

  • The state’s no-fault insurance law.
  • A high rate of older drivers.
  • A high rate of uninsured drivers.
  • High rates of inclement weather.

Florida requires that drivers carry $10,000 of both property damage liability and personal injury protection coverage. But you can certainly choose to purchase more insurance, and you may want to. Florida’s minimum requirements don’t provide any protection for your vehicle, only for other drivers. If you want your car to be covered in an accident, increase your coverages.

Both collision and comprehensive coverage protect you in case of damage to your vehicle, but they apply to very different situations. Collision coverage protects you in case of a car accident. Comprehensive applies to situations where your car is damaged for a reason other than an accident, such as vandalism, theft or inclement weather.

We welcome your feedback on this article and would love to hear about your experience with the insurers we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.

Source: thesimpledollar.com

Understand the Type of Homeowners Insurance You Need

Privacy Policy
The cost to rebuild your house is not the same as your home’s market value. In most cases, the land your house sits on will still be there after a catastrophe, so you do not need to insure that value.
“People think that things can never happen to them and then they wish after the fact that they had taken a little more time and maybe gone for some of the coverages that they decided not to take,” Peterson said. “The biggest mistake people make is they try to save money on their policy iInstead of making sure that they’re covered properly.”
“If you don’t have a mortgage, you are not obligated to buy homeowners coverage and we think that’s a critical error that people make because unless you have a lot of money set aside, you’re going to have financial hit and you’re not going to be protected,” Friedlander explained.
“The risk of not having enough liability coverage is that you’re going to be on the hook for anything beyond your coverage,” Peterson warned.
To make sure all of your items are covered, Peterson recommended a separate personal articles policy to protect those pricey items.
Friedlander said actual cash value saves some money on premiums, but warns you will get less in the event of a major loss. Replacement cost coverage is about 10% more in premiums but you will get about 30 to 50% more when you file a claim.

Home Insurance Basics

To know how much coverage you need, you need to know what you own. Placing a value on your possessions is important.
“Homeowner’s coverage provides financial protection, that’s really what it’s all about,” said Mark Friedlander, director of corporate communications at Insurance Information Institute in New York.

  • Damage to the interior or exterior of your house from a covered disaster. The types of disasters are listed in the policy. Usually if the specific event is not listed, it is probably not covered.
  • Contents of your home if damaged or destroyed in a covered event or if they are stolen.
  • Personal liability for damage or injuries caused by you, a family member, or pet.
  • Housing and other expenses while your home is repaired or rebuilt after a covered event.

You don’t need to figure out everything alone. A good insurance agent should be able guide you through the process of answering the question of how much homeowners insurance do I need.

  • Actual Cash Value: This covers the house (structure) plus the value of belongings inside with a deduction for depreciation. You will get paid for what the items are currently worth, not necessarily what you paid for them. This is the least expensive coverage.
  • Replacement Cost: This covers the house plus the value of belongings without depreciation. This coverage would allow you to rebuild or repair up to the original value of the home and policy coverage limits.
  • Guaranteed or Extended Replacement Value/Cost: This is the most expensive but most comprehensive of coverages and provides the best financial protection for you. It covers the cost to repair or rebuild even if more than the policy limit, usually with a ceiling of 20 to 25%. In addition to this, many policies have additional coverage you can buy that will cover the cost to comply with current building codes that may not have been around when the house was initially built.

The liability section of your homeowners policy covers bodily injury or damage that policyholders or their family members (including pets) cause to others.
So how much homeowners insurance do you need?
“The important thing is to do a home inventory and kind of assess what your valuables are and determine what the value of everything is so that you’re at the right level of protection.” Friedlander said.
“Most of the time the personal property coverage is a straight percentage of the dwelling coverage, typically, 70 to 75%,” Peterson said, adding that is usually enough to cover contents.
“You are preparing for the worst case scenario, not for a minor claim. You need to be prepared for a catastrophic loss,” Friedlander said. “That’s possible whether it’s hurricanes, tornadoes, wildfires. In virtually any part of the country you are living somewhere where you could sustain a catastrophic loss and lose your entire home.”

How Much Homeowners Insurance Do I Need?

“We find that a lot with insurance. People don’t want to pay for things until they have a problem and then they wish they had. People are nice until something happens.”
Policies generally cover:
If your dog bites your neighbor and sues you for medical care, this part of policy could cover you. If your child throws a ball and it accidentally breaks the neighbor’s window, this part of the policy could cover you. If your friend falls at your house on a chipped floor and sues you, this part of the policy could cover you.

A village is flooded from a hurricane in this aerial photo.
Getty Images

Rebuilding Cost

“We always recommend meeting with your insurance professional once a year. We call it an insurance checkup,” Friedlander said. “Review all your coverages and make sure you are protected.”
So don’t focus on what you paid for the house, it’s market value, how much you owe on your mortgage or the property tax assessment.
The Insurance Information Institute recommends at least 0,000 in coverage but many policies only include 0,000. The more assets you have, the more coverage you need.
Within each policy, there are basically three levels of coverage. This becomes important after a covered event when you begin to repair or rebuild.
Go room by room and consider taking photos or videos. Make sure to include things like:
“Most companies use a replacement cost calculator where we plug in the square footage, bedrooms, bathrooms, all the features we can about the house,” Peterson explained. “It gives us a valuation based on the cost to rebuild and we base the coverage on that.”
Peterson said if you have something that could pose a risk to others like a pool or trampoline on your property, you need to be especially aware of the amount of liability coverage you have.
So how much home insurance coverage do you need to buy? There are many factors to consider.

Value of Possessions

Get the Penny Hoarder Daily
You do not need to include your cars in this property inventory because vehicles are not covered by homeowners policies even if they are parked in the garage.
Homeowners insurance protects your home and possessions against a variety of perils including damage or theft, and also natural disasters such as flood, hurricanes, fires and earthquakes.

  • Kitchenware
  • Furniture
  • Clothing
  • Electronics
  • Expensive valuables
  • Camping and sports equipment

Liability coverage will also pay for the cost of defending yourself in court and any court awards up to the limit of the policy.
“A lot of times, actual cash value policies are for homes that don’t qualify for replacement cost policies. They are not in as good of shape or have an older roof or something like that,” said Craig Peterson, an agency owner for American Family Insurance in Overland Park, Kansas. He usually recommends no less than replacement cost policies to his clients.
On most policies, there is often a limit on pricier items like jewelry, art, furs, silver, or electronics. So if a fire destroys your house and you lose ,000 worth of jewelry, your policy might only cover ,000 of that.
After a disaster, you want to make sure you can cover the costs of repairs or rebuilding.

Liability Coverage

There are also differences when it comes to paying things like additional living expenses, hotels, meals, etc., if your home is uninhabitable.
Peterson said it is important to make sure when you’re shopping for insurance that unique things that happen in your area are covered. Depending where you live, you  might need additional coverage for earthquakes, hurricanes, tornadoes, wildfires, sinkholes, etc., that are not generally part of coverage.
Consider what type of coverage you want (actual cost, replacement cost, or guaranteed replacement cost) when you are shopping for policies.
Ready to stop worrying about money?
As important as it is to know what types of coverage you have and what situations are covered, it is as important to know what is not covered at all or may be covered with additional restrictions or different deductibles.
“What we typically see is a majority of homeowners are underinsured,” Friedlander said. “Unfortunately, many of the homeowners purchase insurance protection to satisfy their mortgage lender but they confuse the real estate value of their home with what it would cost to rebuild it.”
If you have more in assets than you have liability coverage for in your homeowners policy, you might consider an umbrella policy which extends your coverage to an amount you decide.
Mortgage companies require a certain amount of coverage, but unlike car insurance, there aren’t any state mandates requiring people to have it.
For more information about the basics of home insurance polices and what they cover, What Home Insurance Actually Covers (and Where You’re on Your Own) can answer many of your questions.

  • Vehicles
  • Investments
  • Future wages
  • Personal belongings
  • Money in bank accounts
  • Real estate besides primary residence

Basically, you need to look at what your house would cost to rebuild, the likelihood of certain types of disasters in your area, the value of your possessions and your liability exposure.
Different policies cover different perils for different types of structures like a condo, renter’s policy, etc. The policies have designinations from HO-0 to HO-8.
To determine how much liability coverage you need, add up the value of your assets, including your home. Make sure to include the following assets when figuring liability:
He said dog bites are his most common liability claims and he sees people all the time who do not believe they need it because they think nobody would ever sue them.
Tiffani Sherman is a Florida-based freelance reporter with more than 25 years of experience writing about finance, health, travel and other topics.
Even if you do the minimum to satisfy your mortgage company, it often isn’t enough. Friedlander said most people make the mistake of not having enough insurance to adequately protect themselves and their families.



Not having enough coverage can be a big mistake.

The Best Car Insurance Companies of 2021

Ease of filing claims, customer service, discounts for such habits as being a good driver or student — these are some of the criteria we look at when choosing the best auto insurance companies on our radar.

The standout was Amica Mutual Group, with its perfect SimpleScore of 5 out of 5, but the others that made our list have their own impressive story to tell, such as State Farm for teen drivers and USAA for military members and their families. Bottom line? You’re bound to find an insurance provider you love from our list.

[Related: What’s the Average Cost of Car Insurance In the U.S.?]

The 10 best car insurance companies of 2021

Rank Company SimpleScore Best insurance company for:
1 Amica Mutual Group 5.0 Best overall car insurance
2 American Family 4.8 Best car insurance for diminishing deductible 
3 Geico 4.8 Best car insurance for customer support
4 Liberty Mutual 4.8 Best car insurance for coverage options
5 State Farm 4.6 Best car insurance for teen drivers
6 Nationwide 4.5 Best car insurance for safe drivers
7 Farmers 4.4 Best car insurance for state-specific discounts
8 USAA 4.4 Best car insurance for military members
9 Allstate 4.4 Best car insurance for accessibility
10 Progressive 4.2 Best car insurance for maximizing savings

Why trust us in finding the best car insurance?

Our research methodology

We’ve created the SimpleScore™ to help you objectively compare products and services here at The Simple Dollar.

Our editorial team:

  • Identifies five factors to compare across each brand
  • Determines the rating criteria for each factor
  • Calculates an average of those five factor scores to get one SimpleScore™

We break down each of these five factors and their rating criteria for our review of the best auto loan companies of 2021.

Why do some brands have different SimpleScores™ on different pages?

Some brands like Bank of America, Wells Fargo, and Chase have different SimpleScores™ because they offer more than one financial solution — like auto loans, home loans, personal loans and banking.

The Simple Dollar also looks at external studies from authoritative sources such as Consumer Reports, the Insurance Information Institute, AM Best and J.D. Power for inspiration.

[Related: The Best Cheap Car Insurance Companies of 2021]

In this article

Best car insurance companies reviewed

Best overall car insurance company – Amica

Amica Mutual is our best overall for auto insurance, gaining our notice in customer service, accessibility, discounts and coverage options.

J.D. Power Rating

5/5

AM Best Rating

A++

Standard & Poor’s

AA

SimpleScore

5 / 5.0

SimpleScore Amica 5

Discounts 5

Coverage Options 5

Customer Satisfaction 5

Accessibility 5

In addition to top marks from our own SimpleScore, Amica Mutual got the attention of Consumer Reports for claims, service and policy review. There was a bit of a markdown for satisfaction in price of premiums, but the rating was still solid when compared to competitors.

This provider offers your standard fare of auto coverage, including comprehensive, collision and uninsured motorist, then offers extra features that you might not find elsewhere, such as free airbag repair.

Customers can get a free quote online and customize coverage options to meet their driving and coverage needs. Amica also makes it easy to report and track claims online and hassle-free. You can get a number of discounts for big savings on your policy, too. You’ll save when you’re accident-free for at least three years and when you take a driver safety class.

Best car insurance for diminishing deductible – American Family

The best insurance company for diminishing deductible, American Family rewards you for safe driving by crediting your deductible $100 each year ($50 with a six-month policy term) up to your policy maximum.

J.D. Power Rating

N/A

AM Best Rating

A

Standard & Poor’s

A

SimpleScore

4.8 / 5.0

SimpleScore American Family 4.8

Discounts 5

Coverage Options 5

Customer Satisfaction 4

Accessibility 5

With 18 discounts offered, this insurance provider leads the pack with some unusual ways to save, such as discounts for young volunteers and for having a parent who is an American Family customer.

American Family’s SimpleScore is practically perfect, with top marks for accessibility and support. You can choose how you want to get help from using the online chat to talking to an agent.

While this insurance company didn’t make the top 10 with J.D. Power for claims satisfaction in 2020, it did rank in the top 20, with a score of 862 out of a possible 1,000. You’ll experience ease in filing a claim, with the ability to file by app, by phone or online.

Best car insurance for customer service – GEICO

Geico is our favorite for customer service, with its handy virtual assistant, access to insurance agents and more.

J.D. Power Rating

3/5

AM Best Rating

A++

Standard & Poor’s

AA+

SimpleScore

4.8 / 5.0

SimpleScore GEICO 4.8

Discounts 5

Coverage Options 5

Customer Satisfaction 4

Accessibility 5

Geico caters to the tech-savvy consumer, which is great for those who don’t want to speak to an agent or listen to the never-ending elevator music while you’re on hold. With the ability to personalize your alerts and access all of your important information, Geico Mobile makes things easy.

Geico’s range of coverage includes the standard fare — collision, comprehensive and liability insurance. Unlike many other companies, rideshare insurance for Lyft and Uber drivers is also available. 

Geico does offer mechanical breakdown coverage, though it’s only for new cars less than 15 months old with less than 15,000 miles. While it’s not applicable to all people, if you fall into this category, you’ll be able to renew mechanical breakdown coverage for up to seven years or 100,000 miles.

Best car insurance for coverage options – Liberty Mutual

We found that Liberty Mutual offers the best in coverage options just by sheer volume — we counted 18. There’s even coverage for teachers while on school grounds and for driving to Mexico.

J.D. Power Rating

3/5

AM Best Rating

A

Standard & Poor’s

A

SimpleScore

4.8 / 5.0

SimpleScore Liberty Mutual 4.8

Discounts 5

Coverage Options 5

Customer Satisfaction 4

Accessibility 5

In addition to top-notch coverage options, Liberty Mutual offers among the most in discounts. In addition to alternative energy discounts and a good student discount, this provider rewards you for military service and even has an early shopper discount that rewards you for getting a quote and signing up before your current policy expires.

This insurance company came in 14th among auto insurance providers in J.D. Power’s 2020 claims satisfaction study, with a 867 out of a possible score of 1,000. Liberty Mutual’s app allows you to file and track claims from your phone, or the company promises a 5- to 10-minute process when filing online.

Liberty Mutual did not fare well with satisfaction in price of premiums, according to Consumer Reports, although they came off quite well in satisfaction in the handling of claims.

Best auto insurance for teen drivers – State Farm

State Farm is our favorite for teen drivers. In addition to the ubiquitous good student discount, this auto insurance provider offers two programs that encourage safe driving habits.

J.D. Power Rating

4/5

AM Best Rating

A++

Standard & Poor’s

AA

SimpleScore

4.6 / 5.0

SimpleScore State Farm 4.6

Affordability 4

Coverage Options 5

Customer Satisfaction 4

Accessibility 5

State Farm is the largest U.S. auto insurance provider by direct premiums, holding 16% of the market in 2019, according to the Insurance Information Institute. We know the size of a company shouldn’t be all we look at, but there are times when it comes in handy.

When it comes to support and accessibility, this provider gets full marks. Count on finding an agent when you need to — access to 19,000 independent contractor agents shows the power of working with a large company.

But if you don’t have time for a phone call, the State Farm mobile app allows you to contact a representative or send a picture of the damage. A user-friendly app is something we often take for granted, but not all companies have this luxury.

Best car insurance for safe drivers – Nationwide

Nationwide is our clear favorite for the safe driver. In addition to possible eligibility for a lower rate if you have at least five years of safe driving, benefit from the proprietary SmartRide® program and get 10% for signing up.

J.D. Power Rating

3/5

AM Best Rating

A+

Standard & Poor’s

AA+

SimpleScore

4.4 / 5.0

SimpleScore Nationwide 4.4

Discounts 3

Coverage Options 5

Customer Satisfaction 4

Accessibility 5

In business since 1926, this insurance provider serves all 50 states and is among the leading companies in the industry. In fact, Nationwide ranked eighth in 2019 in the nation for auto insurance by direct premiums written, according to the Insurance Information Institute, with 2.5% of the market share.

While Nationwide received strong marks for claims-related service from Consumer Reports, it didn’t fare so well with only a 1 out of 5 for premium prices. Interestingly, Bankrate found that Nationwide was one of the highest for average full coverage premium, at $1,485 a year.

We liked Nationwide for its coverage options and discounts — in fact, Nationwide’s number of coverage options was one of the highest of the companies we reviewed, with 15.

Best car insurance for state-specific discounts – Farmers

Even with strong nationwide discount options, Farmers is a standout for state-specific discounts as well. In some states, you can get discounts for having daytime running lights, VIN etchings, and in California only, alternative fuel.

J.D. Power Rating

2/5

AM Best Rating

A

Standard & Poor’s

A

SimpleScore

4.4 / 5.0

SimpleScore Farmers 4.4

Discounts 4

Coverage Options 5

Customer Satisfaction 4

Accessibility 5

Farmers is at the absolute top for coverage options among the insurance providers we track, with 19, including customized equipment like aftermarket infotainment systems and drivers for rideshare companies like Lyft and Uber.

Farmers had an eye-popping $2,000 average in full coverage premium, according to Bankrate. That was only outdone by one other auto insurance company that Bankrate tracked, MetLife at $2,123. The same is true with minimum coverage average, which was $808 for Farmers, making it No. 2 after MetLife at $821. (Bankrate used Quadrant Information Services in February 2021 to pull these numbers.)

This insurance provider’s customers report strong satisfaction in claims processing, Consumer Reports found, something that can give you peace of mind when choosing insurance.

Best car insurance for military members – USAA

USAA is our favorite for military members and their families among auto insurance providers, and for good reason. They get top marks with JD Power for auto claims satisfaction, as well as a perfect score from Consumer Reports.

J.D. Power Rating

5/5

AM Best Rating

A++

Standard & Poor’s

AA+

SimpleScore

4.4 / 5.0

SimpleScore USAA 4.4

Discounts 4

Coverage Options 5

Customer Satisfaction 5

Accessibility 4

USAA fares well on our SimpleScore as well. Count on excellence in customer service and discounts. However, this provider isn’t available to everyone. Only active service members, veterans and their families are eligible for a car insurance policy through USAA. 

Given there are such strict restrictions, you should expect the quote process to take longer and be more involved than other competitors. However, that’s a small price to pay for its exemplary service and established reputation.

This insurance provider offers some of the lowest average premiums — Bankrate reports that USAA’s average minimum coverage premium is one of the lowest among the providers we follow, at $384; its full coverage premium average is actually the lowest of the ones Bankrate tracks, at $1,225.

Best car insurance for accessibility – Allstate

We like Allstate the best for accessibility, meaning we appreciate the ease in filing claims and transparency of information, such as coverage options and discounts.

J.D. Power Rating

3/5

AM Best Rating

A+

Standard & Poor’s

A-

SimpleScore

4.4 / 5.0

SimpleScore Allstate 4.4

Discounts 3

Coverage Options 5

Customer Satisfaction 4

Accessibility 5

Allstate makes up more than 9% of the market share in private passenger auto insurance in direct premiums written, according to the Insurance Information Institute, making it fourth of the top 10 auto insurance providers in the U.S.

But it’s the customer support, customer satisfaction and accessibility such as the user-friendly apps that got our attention, including the proprietary QuickTrip® app that helps you find the best routes and gives you daily maintenance reminders.

Consumer Report respondents didn’t care for the pricing of premiums — the company received 1 out of 5 for that item. However, Allstate fared better with satisfaction in handling of claims, with a 4 out of 5.

Best car insurance for maximizing savings – Progressive

We love Progressive because it maximizes savings for customers, with not only the usual discounts such as for paying in full and being a safe driver, but also for owning your home and having continuous insurance.

J.D. Power Rating

3/5

AM Best Rating

A+

Standard & Poor’s

AA

SimpleScore

4.2 / 5.0

SimpleScore Progressive 4.2

Discounts 4

Coverage Options 5

Customer Satisfaction 4

Accessibility 4

Unique to Progressive, the Snapshot tool bases your rate on your driving habits — like how often you drive, if you slam on the brake or if you used your phone while driving. You’ll get an automatic discount for using the Snapshot app.

This insurance provider’s insurance coverages are full of surprises, such as free pet injury coverage that pays any veterinary bills if your pets are injured in an auto accident. And in addition to the standard fare like liability, collision and comprehensive, gap insurance from Progressive covers 125% of the cost of the car if it’s totaled while you’re still making payments. 

Compare 2021 car insurance rates

Make sure when comparing car insurance quotes from different companies you are looking at the same policy type and coverage level. Cheaper quotes could just be a policy with less coverage.

How does the auto industry work?

There are projected to be almost 290 million registered vehicles in the U.S. in 2021, according to Hedges & Company, up from about 287 million in 2020. And the National Highway Traffic Safety Administration estimated there were 6.7 million vehicular accidents in 2018, the most recent available data. That’s a lot of cars and a lot of repairs to keep up with. That’s where insurance comes in.

Auto insurance helps cover car repairs and personal costs when life happens. Whether it’s an accident, pothole or car trouble, your coverage can help you cover these costs after your deductible. The less your car’s value is, the less you’re likely to pay in premiums — though it will depend heavily on your coverage, state, age and other factors. 

It’s helpful to think of the auto industry as a never-ending cycle. We pour money into cars and maintenance, but car insurance helps cover the cost if anything goes wrong.

What’s factored into auto policies and rates? 

Your auto policy and the premium will depend on a few factors. It will also determine whether or not an insurer is a good fit for your car coverage needs. Most policies depend on the following:

Depending on these and other factors, you could pay more or less in car insurance. Think about buying a brand new, high-end car when you turn 21 years old. You’re likely to pay more for the car’s year, make and model. You may also pay more as a young driver with a less established driving record. You’re also likely to pay more if you live in California than your friends in South Carolina are paying. Keep in mind that your policy and premium are unique to your needs, driving record and other personal factors.

What’s happening in the car insurance industry today?

At the start of the pandemic, some insurers offered drivers a reimbursement on their monthly payment to help economically. Policyholders were driving less due to COVID-19 nationwide lockdowns. Allstate offered their drivers a 15% Shelter in Place payback on their premiums for April, May and June. Other providers offered credits toward premiums instead. Since that point, drivers have been on the road less often. If you’re working remotely but still need auto insurance, it’s the perfect time to look into low-mileage auto insurance for extra savings or switch carriers for extra savings. You’ll only pay for the miles you drive, and you’ll still have all the coverage you need.

Guide to finding the best car insurance for you

There’s a lot to know about the car and insurance industries to fully understand how auto insurance works, but we don’t want to bore you with a long history lesson. Here’s what you need to know to help make a well-informed decision about your car insurance.

[embedded content]

What makes the best auto insurance companies?

The best auto insurance companies give policyholders flexibility, affordability and simplicity from beginning to end. Whether it’s getting a free quote, paying a monthly premium or filing a claim, today’s top picks are giving customers what they need when they need it most. 

Coverage options 

Start by looking at a provider’s coverage options. You’ll want an insurer with a number of policies and coverage options to meet your needs. Ask your agent what types of car insurance they offer and if any add-ons are available, including rental car coverage and Roadside Assistance. Many insurers will offer a few options including collision, personal injury and gap coverage. 

Customer service 

Switching insurance providers isn’t all about rates. Service matters just as much, if not more. After all, you’ll be working closely with an agent to handle your policy, claims and any other concerns. Take a look at your agent’s BBB rating or J.D. Power rating to see what other customers think, and to weigh any pros and cons. You can also give your agent a call for a first-hand customer service experience to ask about claims, coverage, rates and more. 

Rates 

Your auto insurance shouldn’t break the bank. Shop around for the most affordable rates by speaking with agents and getting free quotes online. Be careful when aiming for the lowest rates, though. Cheaper coverage doesn’t always mean it’s the best. You may pay a low monthly price, but the policy could lack the coverage options you need. Make a list of necessary coverages and find the most affordable rate for your needs. 

Once you’ve found a premium you’re comfortable with, give the agent a call to get more information on discounts and other ways to lower the cost. You may save money on your rate by bundling home insurance, driving safely or taking a driver’s safety course. 

Consider these factors when shopping for car insurance

Check your state requirements: not every state is the same

In nearly all states, drivers are required by law to carry some form of car insurance or proof of financial responsibility. Every state has requirements for the level of insurance and the minimum amount of coverage each driver must have. Use the Insurance Information Institute’s guide to determine the insurance requirements for your state.

After you’ve found what’s the minimum amount of insurance required for your state, you should know if you live in a no-fault or fault state. If you live in a no-fault state, regardless of if an accident is your fault, collision damages and medical expenses will be covered by your insurance company.

We’ve researched state requirements and the best carriers across all 50 states:

What is an at-fault state?

There are two kinds of state laws when it comes to establishing fault in an accident:

  • No-fault state — This means that drivers only assume responsibility for their own injuries and damages. No-fault state drivers are required to carry personal injury protection (PIP) to ensure that you have the adequate coverage to pay for medical expenses from an accident.
  • At-fault state — Also known as a tort state, this means that the person responsible for the accident pays for all of the damages associated with that accident, including the other driver’s expenses.

Choose the right amount of coverage for you: Full coverage vs minimum

Full coverage annual rates are significantly higher than minimum coverage rates. But an inclusive car insurance policy isn’t something you should opt out of just to save money— especially if there’s a collision. Full coverage pays for damages to your car caused by an accident, while the state minimum, also known as liability insurance, will cover damages you cause to other people and their car while driving.

Even though a cheaper monthly premium might seem attractive, having more than the imposed state minimum will ensure that you’ll pay less out-of-pocket in case there’s an accident.

For example, in a major car accident, an individual’s medical expenses are likely to exceed $15,000, yet that’s the minimum liability limit in some states. When shopping for liability insurance, it’s a good idea to choose a coverage that will exceed what you might need.

While different states will require different types of coverage, the most basic auto insurance policies are bodily injury liability, personal injury protection (PIP) and property damage liability. There are additional coverage options as well, which typically cover things like pet injuries or new car replacement costs, among other expenses. Some examples include:

Understand your deductible and how it affects your premium

Most coverage options will have a deductible –– the amount of money you have to pay out-of-pocket towards a covered loss before your insurance policy will step in. Collision, comprehensive and uninsured/underinsured motorist coverage will all have a deductible.

While you shouldn’t opt out of coverage options just to save money, there are times it just doesn’t make sense to have the extra coverage. A classic example is collision coverage. If your car’s value is too close to the deductible, you probably won’t get reimbursed from your insurance company after a loss.

Let’s say your car is worth $1,000 and your deductible is $1,000. If you get into an accident and your car sustains $800 worth of damage, you wouldn’t get an insurance payout because your deductible would cover the entire cost. It’s always important to determine which types of coverage make sense for you, but especially if you have an older car that’s low in value.

How to save money on car insurance

Now that we’ve laid out the most important aspects that you should know about car insurance, here are some tips on how to save money on your car insurance policy.

1. Compare car insurance quotes

Risk isn’t the only factor that car insurance companies use to calculate your rate. Many insurers also use “price optimization,” meaning they set rates based on how much customers are willing to pay.

Large insurance companies analyze an enormous amount of customers’ personal data, such as social media posts, credit scores and even your online shopping habits. Then, they run the data through a proprietary algorithm that estimates how likely you are to shop around or just renew your existing policy each year. Shopping around every year or two is the best way to avoid this practice and it will help you find the cheapest car insurance options. For most car insurance companies, getting a quote is an easy, online process that you can do in minutes. You’ll just need to provide information like your address, vehicle information and driving history.

[ For You: Understanding Auto Insurance Quotes ]

Shopping around every year or two is the best way to avoid this practice and it will help you find the cheapest car insurance options. For most car insurance companies, getting a quote is an easy, online process that you can do in minutes. You’ll just need to provide information like your address, vehicle information and driving history.

2. Raise your deductible

A higher deductible means a lower monthly cost. It’s a better budget option but know that if you get into an accident, you’ll have a steeper up-front cost to pay for the damages.

3. Raise your credit score

A good credit score saves you money on just about every monthly service or bill and car insurance is no exception. If you focus on improving your credit score first, you’ll save hundreds and thousands of dollars on your annual premium. Look for ways to improve your credit score ahead of shopping.

4. Ask for discounts

If you want a policy with a lot of additional coverage, the end price can feel a little overwhelming. Especially when you consider car insurance isn’t something you’re actively using every day. Capitalizing on the discounts providers offer is one way to ease that financial burden. When you’re shopping around, look for discounts that tailor to your needs. Here are some of the common discounts offered by most providers:

  • Defensive driving discount
  • Good driver discount
  • Low mileage discount
  • Safe driver discount
  • Multi-driver or multi-policy discount
  • Student discount

5. Bundle your insurance

Do you pay separate companies or have separate policies for your renters, home or motorcycle insurance? Renter + auto discounts and home + auto discounts are common. Ask your insurance provider if there is a chance you could be saving money each month by bundling separate insurance.

Car insurance FAQs

Non-owner car insurance policies protect you if you are in an accident that damages someone else’s car while driving it. It’s a lot cheaper than a regular car insurance policy and many of the best car insurance carriers offer this type of coverage.

The amount you pay for car insurance depends on the coverage you choose, where you live and other demographic data. We found that the average cost of car insurance for a full coverage policy is about $130 per month, while a policy that just requires the state minimum coverage is under $100. If you are paying more than the $130 monthly premium, it’s worth shopping around for other car insurance companies or asking your current insurer why your rates are so high.

Regional providers often outshine nationwide options because they have fewer customers, allowing them to dedicate more time to each policyholder. So if customer service and the availability of representatives is important to you, a regional option may be best for you.
However, because regional insurance providers have fewer customers, they also tend to have more expensive premiums and fewer discounts.

Your car insurance coverage extends to a rental car within the U.S. If you’re planning to rent a car overseas, your credit card may provide coverage. If not, you may need to buy additional insurance from the rental agency.

After an accident, regardless of if you are at fault, you need to file a claim with your car insurance company. After the claims process, you will be able to get your car fixed and still keep your current car insurance.

However, your car insurance monthly premium will likely go up after an accident. The amount depends on the type of claim or driving incident.

In most states, car insurance is required by law. Not having coverage can result in license suspension and fines. But even if your state doesn’t require car insurance, you could be left with hefty car repair fees and medical bills to cover if you’re found at fault in an accident.

Ask the Experts

  • Ben ReynoldsBen Reynolds

    Ben Reynolds

    CEO and Founder

  • John DeichlJohn Deichl

    John Deichl

    General Manager

Can a policy become more expensive over time?

Your policy could become more expensive, especially as your career or financial situation changes, your risk of an accident or auto theft could increase your insurance rates. Missing loan payments could indirectly affect your rates since it will lower your credit score and car insurance companies significantly consider credit scores when determining your rates.

Can certain jobs affect my coverage?

Specific job titles can also affect your rates since being in a profession where you could be more distracted while driving can make you a more risky driver. Every provider will analyze this differently since being on the road more could significantly impact your car insurance rates even when your occupation is perceived as more responsible. 

Can I drive for Uber/Lyft using my personal car insurance?

No. Rideshare insurance is a hybrid policy that includes coverage for personal auto use and when drivers are signed in a ridesharing app, but not covered by the company’s insurance. Drivers for on-demand delivery companies should also have rideshare insurance to avoid a coverage gap.

Do I need to compare auto insurance rates if I move out of state?

When moving out of state, you will need an entirely new policy. The new rates will be determined by many factors including the zip code. You should also check whether your new state is no-fault, meaning your insurance company would pay for your injuries and related expenses after an accident, no matter who was responsible. Also, the party at fault could still be sued for injuries over a certain threshold. No-fault states require you to have personal injury protection insurance to cover you after an accident.

How much can someone really save by comparing rates?

You can potentially save hundreds of dollars by comparing your rates. It’s recommended that you shop every two to three years to compare the rates offered by your current insurance provider with other providers to properly assess your rate. 

We welcome your feedback on this article and would love to hear about your experience with the car insurance companies we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.

If you’ve been denied coverage by private insurance companies due to past driving incidents, there are state assistance programs that can provide proper coverage and keep you safe from high bills or driving illegally. A handful of states have government-sponsored programs to help low-income families afford cheap full coverage car insurance. Hawaii, California, Maryland and New Jersey offer government-sponsored car insurance for low-income individuals. 

Usage-based car insurance (UBI) is determined based on your driving behaviors and miles driven. Powered by vehicle installed devices, plug-in devices, or even mobile apps, this type of insurance allows the carrier to monitor your driving habits and best align your premium with your actions while behind the wheel. Carriers such as Progressive and Allstate offer these programs.

If you are considered high risk to insure, it might be helpful to hire an independent insurance agent to find the best deal for you across multiple companies.

Due to the COVID-19 pandemic, many Americans are struggling to pay monthly bills. You are not alone. There are some companies offering support, delayed payments and discounts to help.

Don’t give up! There are multiple ways to get car insurance if private companies are offering high rates or don’t have a policy available. 

Source: thesimpledollar.com

A Simple Financial Spring Cleaning Checklist

Spring is the perfect time to complete a financial clean-up. Here we share a few financial areas of your life that may need some sprucing up. No mop required!

1. Banking

The banking industry is quite competitive. If you’re not getting any perks from your credit card company or bank, it’s time to make a switch.

Credit Cards

Credit card companies today offer everything from travel rewards to gift cards to cash back. Many cards even offer perks without requiring an annual fee. If you pay your credit card balance faithfully each month and are only rewarded with a good credit score, it may be time to shop around for a new card. Keep in mind that when you apply for a new credit card, your credit report takes a hit, so take your time researching and don’t apply for multiple cards.

Bank Accounts

Are you still paying minimum balance fees, monthly checking, or savings account fees? How about ATM or overdraft fees? Don’t! There are too many bank options these days competing for your business to still be paying multiple fees.

What about interest rates? Is your money making money? The Federal Reserve recently raised interest rates, but the average savings account rate is still only 0.06%. If you’re not making at least that, it may be time to think about switching.

Do you bank with a brick-and-mortar bank? How often do you actually go into one of their branches? If you think you can go without having an actual bank to walk into, consider switching to an online bank. Not only do online banks have minimal fees, they boast some of the highest interest rates around.

E-Statements and Auto-Pay

Save a tree and lower your risk of identity theft by switching to receiving online statements only. If you prefer to have a paper copy, make sure you shred the statements before tossing them out.

Consider switching to auto-pay whenever the option is offered. American households tend to have many different bills to pay all due at different times; it’s easy to accidentally overlook one. If you switch to an auto-pay billing option, payments are deducted automatically when they are due, so it’s one less thing to worry about. Just be sure to occasionally review your statements to ensure the right amounts are being deducted.

2. Taxes

You most likely have already filed your taxes. Did you have to pay in or did you get a refund? If the outcome was not what you expected, it’s time to double-check your withholding allowance on your paychecks.

We all want to lower our tax bill. Deductions can help, however, unless you pay to work closely with an accountant, how do you know what qualifies as a deduction?

Some common tax deductions include:

  • Dependent child credits,
  • Mortgage interest and real estate taxes,
  • Health insurance premiums,
  • Student loan interest.

Take a look at this article for some perhaps surprising tax deductions you should consider for next year: 9 Things You Didn’t Know Were Tax Deductions.

3. Budget

When is the last time you sat down and wrote out a monthly budget? Do you know your debt-to-income ratio?

A few years ago when I was in the market to buy a house, I opened an Excel spreadsheet and calculated what I spent on average each month compared to the income I bring in. Thankfully, Intuit recently introduce a new app, Turbo, which does this for you with ease. Generally, you want to aim to keep your debt-to-income ratio below 36% and mine was 53%. I had to make some changes. I tightened my budget (mainly by canceling cable TV and renegotiating my Internet bill) and paid off my auto loan. My ratio today is still a bit high, but it’s getting better.

Going through the memberships and subscriptions you currently pay is a great way to quickly lower your debt-to-income ratio. Chances are you’ll find you are paying a monthly fee for something you seldom use, or at least can live without. Do you need both Netflix and Hulu? Both Spotify and iTunes Music? Both Blue Apron and Hello Fresh? Probably not.

Print off the last two to three months of your credit card and bank account statements and go line-by-line to figure out a way you can save some money. Additionally, if you have a Mint account, log in and check out the Trends tab. You can view your spending and see where the majority of your money is going. You may be shocked at how much you spend within a certain category. It’s easy to just hand over your credit card, but actually seeing a graph of how much you spend can be a much needed wake-up call.

Spending by Category _ Mint

4. Retirement

It doesn’t matter how old you are, you need to plan ahead for retirement.

If your employer offers a 401(k), take advantage of it. This is the easiest way to save for retirement (not to mention it lowers your taxable income.) If they offer to match a certain percentage, even better. Aim to increase your contributions each time you get a pay raise, this way you won’t even miss the money.

Do you have more than one 401(k) or IRA? Consider consolidating.

Consolidating retirement accounts that share the same tax treatment can be beneficial for two reasons:

1. Keeping all your money in one place makes it more simple and manageable.

2. Having only one account reduces the amount of fees you’re paying.

A retirement rollover is the best way to move money from one account to another. It’s important to do so correctly to avoid fees. Check out this article for more information: How to Handle Retirement Rollovers Correctly.

For those of you whom have established retirement accounts, when was the last time you rebalanced your investment portfolio? Never?

Typically, the younger you are, the more risk you can handle in your investments because you have more time to make up for any losses. The closer you get to retirement age, the more conservative you should be. Financial planning experts recommend that you rebalance your portfolio once or twice a year, but check up on it frequently to make sure you’re in line with your target.

As you’re thinking about your retirement planning, also think about your beneficiaries. How long ago did you open your retirement accounts? Are your parents still listed as your beneficiaries on your 401(k) from your first job? Or maybe an ex-spouse is still designated? Review your beneficiaries as it may be time for an update.

5. Legacy Planning

Just because Spring is all about rebirth, doesn’t mean we should avoid the subject of death. There are three important aspects of legacy planning that should be dealt with sooner rather than later:

1. Writing a will

2. Authorizing power of attorney

3. Buying life insurance

Wills

If you don’t want the state to decide where your assets go when you die or, more importantly, who will be in charge of your children and funds owed to them, then you better draw up a will. Another, often forgotten, reason to have a will is to ensure no tension occurs within your family after you are gone. Without a will, you may have relatives arguing over your possessions and everyone may want input on what should happen to your assets.

If you have a complicated estate, such as business interests, trusts, multiple investment properties, etc., then you should probably hire a lawyer to help with your will. However, if your estate is a bit more simple (e.g.: married with kids and you own a house) you can draw up your will right online, if you’d like. You’ll need to print it off and get it witnessed and notarized, but it’ll be much cheaper than hiring a lawyer.

Power of Attorney

There are two kinds of power of attorney: financial and medical.

A financial power of attorney is most often just simply referred to as a power of attorney (POA) and this is a document that states a person or organization you name to act on your behalf in regards to handling financial and business transactions.

A medical power of attorney is a document that states a person you name who has the authority to make medical decisions for you if you are unable to do so, for example if you’re unconscious or mentally incapable.

Most people assume only elderly individuals need to have these POA documents in place, but you don’t need to be 80 years old to get into a car accident and become unconscious. If you become mentally or physically incompetent, your designated POA agents can make decisions on your behalf instead of it being left up to strangers who wouldn’t know your wishes, such as doctors and judges.

If you’re over 18 and considered of sound mind, you can draw up both types of POA documents. Hiring a lawyer is an option, but, like wills, you can create these documents online for a fee. Be sure to discuss with your agents of choice before drawing up the documents and make sure they understand your wishes and their responsibilities.

Life Insurance

Life insurance isn’t the happiest financial product to think about. However, while many Americans admit life insurance is important, many households are underinsured. People are telling themselves “It won’t happen to me,” meanwhile they really should be asking “What if?”

If you have young children, life insurance is a must. How would your loved ones be affected if your income were to suddenly disappear? Stop postponing and get a term life insurance quote today. Life insurance is more affordable than you think and because the process is mainly digital, it’s also become much more convenient to buy.

If you already have life insurance, good for you! But don’t forget to review your policies periodically after life changes such as a new baby, marriage or divorce, or changing jobs. Your coverage needs may have changed, not to mention beneficiaries may need updating.

Although many of these financial spring cleaning to-dos may take a bit of time to complete, you’ll feel accomplished and will ultimately be in a better financial place. Do you have any financial spring cleaning tips to share? Leave a message in the comments section.

Natasha Cornelius is a content manager and editor for Quotacy. She has worked in the life insurance industry since 2010, and has been making life insurance easier to understand with her writing since 2014. A long-time Mint user, Natasha loves making frugal fun by creating new DIY projects. Connect with her on LinkedIn.

From the Mint team:

What’s Turbo and why are we talking about it?

Turbo is part of the Intuit family of products, just like us. We work with Turbo, TurboTax and Quickbooks to get all our customers on the right track financially. While Mint provides free credit scores to our customers, Turbo combines the same score, plus other information like verified IRS filed income and debt to income ratio to create a broader financial health profile. Try out our sister app to see where you truly stand financially – beyond the credit score.

Mint may be compensated by some of the links that appear in this article. Our partners do not endorse, review or approve the content. Any links to Mint Partners were added after the creation of the posting.  Mint Partners had no influence on the creation, direction or focus of this article unless otherwise specifically stated.

Learn more about security

Mint Google Play Mint iOS App Store

Source: mint.intuit.com

What’s the Average Cost of Car Insurance in the U.S.?

When it comes to shopping around for car insurance, it can be difficult to figure out the pricing structure. Part of the issue is that the price varies significantly by where you live, the minimum coverage requirements and a number of other factors. 

Your auto policy and the premium will also depend on such factors as age; car year, make and model; driving record; and gender, which we get into more later.

The average cost of car insurance in the United States is $1,758 per year, which works out to about $146.50 per month. In Florida, the average monthly cost is 29% higher than the national average. A car insurance policy in Alaska, on the other hand, will cost you much less on average, at just $77.88 per month. Even ZIP codes in the same town can differ.

This means that your insurance premium and the premium of your friend living across town will likely be quite different.

With all those factors, how do you know what to expect when it comes to the cost of auto insurance? Well, we’ve got your back. We’ll go into how much auto insurance costs by state and by insurance provider, dive into the other factors, and talk about what you can do to save money on auto insurance.

Research Methodology

The Simple Dollar analyzed millions of car insurance rates in every U.S. ZIP code to determine the average cost by state, carrier, coverage amount, credit score, and other factors from Coverage.com. This includes analyzing thousands of rates from all 50 states that were publicly sourced from 2019 insurer filings. Rates are based on a 30-year-old male or female that had a clean driving record, and we looked at those who had both good and poor credit. These rates should be used to inform your car insurance shopping process, but your own quote may differ based on your unique driving profile.

In this article

What decides the cost of auto insurance?

Here, we’ll get into details about factors that decide the cost of your car insurance. They can be:

  • Age
  • Gender
  • Where you live
  • The car you drive
  • Your driving history
  • Education level
  • Profession
  • How long you’ve been driving
  • Your credit score
  • Your driving habits
  • The amount of coverage you choose
  • The type of coverage you choose

[Read: The Simple Guide to Car Insurance]

1. Why does where I live affect the cost of car insurance?

Car insurance rates vary dramatically by state and even ZIP code.

Let’s look at Louisiana. That state offers the most expensive rates for full coverage, with an average annual rate of $3,279.18. One of the reasons why car insurance is so expensive in Louisiana is because the state has one of the highest accident rates. The number of fatal accidents and frequency of collisions in the state is significantly higher than the national average, which leads to higher auto insurance rates.  

State car insurance rates are also determined by the number of uninsured drivers on the road. This leads Florida to be the most expensive state for minimal coverage — 26.7% of drivers don’t have car insurance. Uninsured drivers create more risk and ultimately increase the price of insurance for everyone.

Most expensive full and minimum coverage costs per state

State (Full coverage cost) Average Full Coverage Cost Average Full Coverage Monthly Cost State (Minimum coverage cost) Average Min. Coverage Cost Average Min. Coverage Monthly Cost
1. Louisiana $3,279 $273 1. Florida $1,544 $129
2. Florida $3,289 $266 2. Michigan $1,525 $127
3. Maryland $3,079 $257 3. Maryland $1,489 $124
4. Michigan $2,730 $227 4. Louisiana $1,488 $124
5. New York $2,609 $217 5. Rhode Island $1,445 $120
6. Pennsylvania $2,493 $208 6. Connecticut $1,309 $109
7. New Jersey $2,471 $206 7. New York $1,245 $104
8. California $2,417 $201 8. New Jersey $1,162 $97
9. Rhode Island $2,394 $200 9. Delaware $1,017 $85
10. Colorado $2,346 $196 10. Nevada $989 $82

Which states have the cheapest car insurance?

At an average premium of just over $300 each year, Iowa drivers pay the least amount for minimal coverage –– by a significant amount. Iowa’s low population density is one of the main reasons costs are so low. The majority of the state is made up of “dense rural” areas, rather than urban areas. With fewer drivers on the road, there is less risk of accidents overall.

Cheapest full and minimum coverage cost per state

State (Full coverage rank) Average Full Coverage Cost Average Full Coverage Monthly Cost State (Minimum Coverage rank) Average Min. Coverage Cost Average Min. Coverage Monthly Cost
1. Idaho $1,094 $91 1. Iowa $306 $26
2. Maine $1,242 $103 2. South Dakota $382 $32
3. Hawaii $1,264 $105 3. North Dakota $390 $32
4. Iowa $1,275 $106 4. Wyoming $393 $33
5. Vermont $1,366 $114 5. Nebraska $412 $34
6. Ohio $1,397 $116 6. Idaho $429 $36
7. Nebraska $1,397 $116 7. Hawaii $439 $37
8. North Carolina $1,417 $118 8. Montana $441 $37
9. North Dakota $1,419 $118 9. Ohio $462 $38
10. New Hampshire $1,487 $124 10. North Carolina $482 $40

2. What are my choices of insurance coverage and which are more expensive?

Though every state sets its own regulations, there is a minimum amount of insurance you must carry in each of the 48 states that require car insurance. (New Hampshire and Virginia don’t require insurance.) You can choose to carry higher limits, which will result in a higher premium.

What type of auto insurance coverage should I choose?

You can also choose to add collision and/or comprehensive coverage to your policy to create “full coverage.” While minimum coverage only protects you against liability claims from others, full coverage also protects your vehicle. Collision coverage, as the name suggests, protects your vehicle when it collides with another vehicle, building or other objects. Comprehensive coverage protects your vehicle in non-collision incidents, such as theft or a natural disaster. 

Not everyone needs full coverage. Here are some things to consider if full coverage is right for you:

  • Older vehicles may not need full coverage since the deductible could be higher than the value of the car.
  • Full coverage may not be worth it if you rarely drive and have little to no history of accidents.
  • If you have a lease or a car loan, check with your lender. You may be required to maintain full coverage.

Your policy limits and deductible will fine-tune your car insurance costs, whether you choose minimum or full coverage. The policy limits are how much the insurance company will pay for each type of incident. The deductible is how much you are responsible for paying before the insurance company starts to pay.

Should I choose minimum coverage vs. full coverage?

Minimum coverage car insurance differs in every state, but it usually includes: bodily injury, liability coverage and property damage liability coverage at a minimum. This is the cheapest coverage you can buy, and you can’t legally carry less than the minimum amount.

Full coverage car insurance, on the other hand, is more expensive because it offers significantly more protection. However, it’s worth the added cost. If you settle for the state’s minimum insurance requirements, you run the risk of being underinsured.

Full coverage car insurance usually includes:

You will see coverage amounts listed as three numbers separated by slashes, such as 30/50/30. These numbers represent, in order, bodily injury liability per person, bodily injury liability per accident and property damage liability per accident, in thousands of dollars. So 30/50/30 insurance covers $30,000 of bodily injury per person, $50,000 of bodily injury per accident and $30,000 of property damage per accident.

Drivers can also elect to purchase additional coverage for things like roadside assistance, rental car reimbursement and accident forgiveness.

If you get into a costly accident, there’s no guarantee that you’ll have enough coverage to pay for the full extent of the damages. In that case, you would be financially responsible for paying the difference, which would come out-of-pocket.

3. Can my credit score impact the cost of car insurance?

Your credit score can have a massive impact on your car insurance rates, regardless of other factors. Only three states — California, Hawaii and Massachusetts — ban insurers from factoring in credit score, while in many states your rates could more than double if your credit is poor.

Car insurance cost: poor credit vs. good credit

Carrier Good Credit Full Coverage Average Cost Poor Credit Full Coverage Average Cost Difference
Allstate $2,457.21 $3,528.41 $1,071.19
American Family $1,728.63 $2,897.22 $1,168.59
Farmers $1,534.08 $2,560.31 $1,026.23
Geico $1,336.58 $2,197.10 $860.52
Nationwide $1,379.07 $1,931.89 $552.82
Progressive $1,915.07 $2,976.39 $1,061.32
State Farm $1,902.69 $2,701.59 $798.90
Travelers $1,952.91 $2,635.82 $682.91
USAA $1,178.28 $3,486.49 $2,308.21
Average Difference     $1,058.96

4. Do my age and gender affect the cost of auto insurance?

In a word, yes. Even your basic demographics can have a strong impact on your car insurance costs. Most (though not all) states allow drivers to be rated based on:

  • Age: Younger drivers and those over the age of 75 generally pay more.
  • Gender: Among drivers under age 25, men typically pay more than women — this discrepancy tends to go away for more experienced drivers.
  • Marital status: Married people are considered lower risk, and thus tend to pay less for car insurance.

5. Can my type of car affect the cost of my insurance?

Which car you choose can have a surprisingly big effect on your insurance rates.

Less expensive to insure

  • Big vehicles
  • Family vehicles such as SUVs or sedans

More expensive to insure

  • Small cars
  • Sports cars, especially those that are considered high-performance

6. How can my driving history affect the cost of auto insurance?

As you might expect, insurance companies don’t particularly like paying claims. So if your driving history is poor, you can expect higher premiums. In order of costliness, some things that could raise your rates include:

7. Do auto insurance companies care about my driving habits?

Statistically, the more you drive, the more likely you are to get into an accident. Likewise, parking on the street is more likely to result in damage than parking in your own garage. To save money on car insurance, consider:

  • Taking public transportation to work
  • Reducing your commute
  • Carpooling
  • Paying for off-street parking

8. How does the car insurance company I choose affect my cost of auto insurance?

Of course, all insurance carriers are free to set their own prices. Some carriers offer discounts for which you might qualify, such as safe driving bonuses or discounts for military families, and some may rate your particular risk level lower than others. So it always pays to shop around.

As you can see below, most major car insurance providers are in the same ballpark for rates, but there are some clear outliers. You’ll get the most expensive full coverage auto insurance premium from Allstate, and the most affordable from USAA.

On the opposite end of the spectrum, Travelers offered the most expensive minimum coverage rate of $815.41, and USAA offers the cheapest rate by far – just $487.04 each year. This makes USAA seem like the obvious choice, but USAA doesn’t provide coverage to just anyone — it has strict military and immediate family restrictions.

Carrier Full Coverage Average Cost Full Coverage Monthly Cost Minimum Coverage Average Cost Minimum Coverage Monthly Cost
Allstate $2,457.21 $205 $800.53 $67
American Family $1,728.63 $144 $813.48 $68
Farmers $1,534.08 $128 $614.64 $51
Geico $1,336.58 $111 $568.88 $47
Nationwide $1,379.07 $115 $830.00 $69
Progressive $1,915.07 $160 $742.80 $62
State Farm $1,902.69 $159 $801.81 $67
Travelers $1,952.91 $163 $815.41 $68
USAA $1,178.28 $98 $487.04 $41

How can I save on car insurance?

There are a few tricks for saving on auto insurance, including lowering the amount you drive, improving your credit score, and of course, driving more safely. You can also get a host of discounts, depending on your choice in insurance provider.

To get the best deal for your circumstances, conduct a car insurance comparison.

Different insurers offer different discounts. Insurers like Geico, State Farm and Progressive are frequently recognized for having cheaper car insurance rates.

Common discounts include:

  • Good student savings
  • Certain organization membership
  • Active duty military
  • Bundling other policies with the same company
  • Driving a low-risk car
  • Infrequent driving
  • Having a good credit score

Boost your credit score

Taking the steps to improve your credit score is a powerful way to save money on your car insurance. As an added bonus, it will help reduce costs in other areas like credit card APRs. Start by paying all of your bills on time, checking your credit report for errors and keeping your credit card balances low. Remember, improving your credit score is a marathon, not a sprint. It will take some months to see your score increase.

[Read: Car Insurance Rates Are Up – Here Are Eight Ways to Get Yours Back Down]

Car insurance cost FAQs

It varies by state, but in general, you can expect to need coverage for bodily injury liability, property damage liability and uninsured/underinsured motorist protection. States like New Hampshire don’t require car insurance, though additional requirements are in place.

It depends on a few factors. You should consider the likelihood of your car being damaged (based on your area, your vehicle’s age and similar factors) and your ability to pay for repairs if damages were to occur. Also think about how often you drive. From the start, driving more will put you at a higher risk for an accident.

After an at-fault accident, you can expect to see a 42% rise in your premium, according to data from InsuranceQuotes and Quadrant Information Services. Unfortunately, these rates were measured from people with relatively clean driving histories. If you have a less-than-perfect record, you may be subject to even higher premium increases. How much your rate will increase will depend on the claim type, if you were at fault, your carrier and what state the accident took place in.

We welcome your feedback on this article and would love to hear about your experience with the car insurance we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.

Source: thesimpledollar.com

You Don’t Need To Be A Millionaire To Leave Up To $1.5 Million In Life Insurance To Your Family

Let us guess: You’ve sort of thought about getting life insurance — Hmm, I should probably do that sometime.

That way, if something bad happens to you, you’ll still be able to look out for your loved ones. Thanks to your thoughtfulness and smart decision-making, they’ll be more financially stable and won’t be left stressing about paying the bills without you.

But you just haven’t gotten around to it. You figure it’ll be kind of a hassle, and you really don’t need another bill to pay, right?

Are we getting warm? OK, but what if we told you it’s surprisingly easy and affordable to check this off your list?

An Affordable Solution

Let’s start with the basics: Life insurance is probably cheaper than you think. In general, people overestimate the cost of life insurance. For instance, nearly half of millennials think life insurance costs about five times what it actually does, according to a study by the insurance industry group LIMRA.

Meanwhile, a company like Bestow offers term life insurance rates starting at just $16 a month.

No Waiting, No Medical Exam

Here’s another thing: It’s not the hassle you think it is.

Historically, getting life insurance could be a weeks-long process. You could be asked to go to a doctor’s office to get a physical and bloodwork, then organize and send back results and other paperwork.

But newer companies like Bestow are changing the game. Bestow uses algorithms instead of medical exams to evaluate applicants.

If you’re between the ages of 18 and 60, you can get a free quote without a medical exam — or even having to get up from the couch. In fact, most customers who apply for a Bestow policy do it from their phones. It takes as little as five minutes.

With Life Insurance, Sooner is Better

I’ll worry about this later, you’re thinking. Maybe 10 or 15 years from now.

Here’s the problem with that: You probably won’t get a better deal on life insurance than you will right now, while you still have your health. You’ll never get any younger than you are right now. And the younger you are, the lower your premiums usually are. So, by getting in early, you’ll be protecting your loved ones at what’s likely your best possible price.

“Term life insurance is an affordable way to get started with a death benefit that can cover you through the most important upcoming years — a new mortgage, young children, etc,” says Kerri Moriarty, a financial business strategist based in Boston.

Getting a free quote  from Bestow takes just minutes, and if approved, you could get coverage today. Now’s a great time to start planning for the future. To get the best deal, apply while you’re young and healthy.

Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. He has life insurance.

<!–

–>

Source: thepennyhoarder.com

Part 1 of 3: Life Insurance Buyers’ Common Q&As

Understanding your policy’s death benefit.

Q: How long does it take my beneficiaries to get my life insurance death benefit?

Once the death benefit claim form and a copy of the death certificate have been received by the carrier, beneficiaries typically receive the death benefit check in two weeks.

However, if the insured dies within the contest-ability period (which is typically two years) the death benefit may take longer because the life insurance company has the option to investigate the claim if they choose do to so.

Q: How do I know my beneficiaries will get paid the death benefit?

Life insurance companies are not in the business to rip people off.  As long as your policy is inforce at the time of your death (in other words, the premiums were paid up-to-date) your beneficiaries will receive the death benefit payout.  There are only a few exceptions to this, which we discuss in detail below.

Q: Are there any situations in which my life insurance policy won’t pay out?

There are three instances in which a life insurance company can choose to deny or reduce a term life insurance policy’s death benefit.

One: Contest-ability Period

Life insurance policies include what is called an Incontestability Clause.  This clause states that the life insurance company has a specific period of time (typically two years) to dispute the validity of the insured’s statements made on an application.  So, if you die within the contest-ability period, the life insurance company has the right to investigate the details of your medical history to ensure you did not misrepresent yourself on the application.

For example, stating that you did not smoke cigarettes when, in fact, you did up until the day you died.  In a situation like this, insurance companies have the right to withhold some of the death benefit from your beneficiaries or even deny the claim altogether.

Two: Suicide Clause

Another situation in which the life insurance company has the right to deny a death benefit is if the insured commits suicide within a certain period of time, again typically within two years.  In this situation, however, the life insurance company will return all premiums that have been paid to date to the family.

Three: Homicide

The last situation in which an insurance company may not pay a death benefit is if the insured was murdered.  If the insured was murdered, the life insurance company will typically call the police department involved and inquire as to whether or not the beneficiary of the policy is a suspect.

If the beneficiary is a suspect, the life insurance company will hold payment until the charges are dropped or the beneficiary is deemed not guilty of the crime.

Q: Will my term life insurance death benefit payout be taxed?

Term life insurance is the least complicated type of life insurance and in most cases your beneficiaries will not have to pay federal or state income taxes on the death benefit they receive.  Since the policy premiums are paid using after-tax dollars, Uncle Sam already got his cut.

There are two main exceptions to this rule:

  • Estate taxes
  • Gift taxes

If you own your own policy, the death benefit proceeds become part of your taxable estate.  If your estate exceeds the exclusion amount, which is over $5 million dollars, it can get taxed.  For most people, this isn’t an issue.

The second exception is what is known as “The Goodman Triangle.”  If the policy owner, insured, and beneficiary are three different people, the death benefit could count as a taxable gift to the beneficiary.

Q: How can I be sure my policy’s life insurance carrier will still be around when I die?

All major life insurance companies have financial strength ratings.  There are multiple agencies each with their own rating scales and standards that assess the long-term financial stability of these insurance companies.  These ratings typically follow the school-like A through F scale.  The higher the rating, the more stable the company is and the more likely the company will be able to pay future claims.

When you are looking to purchase life insurance, whatever means you are using to buy it through should tell you the insurance company’s rating.  Any company with an A rating or better is considered financially stable and you should not worry about any future claims not being paid out.

Natasha Cornelius is the content manager and editor for Quotacy.  She has worked in the life insurance industry since 2010 and has been making life insurance easier to understand with her writing since 2014.  A long-time Mint user, Natasha lives in Bozeman, Montana where she loves to garden, DIY anything she can, and explore beautiful Big Sky country.  Connect with her on LinkedIn.

Learn more about security

Mint Google Play Mint iOS App Store

Source: mint.intuit.com

Do I Need Life Insurance?

Do you remember what it’s like being a kid with no financial responsibilities? Neither do I. It seems like we have been adulting forever. If life insurance isn’t quintessential adulthood, I don’t know what is. As you are reading and researching life insurance, one of the biggest questions you ask yourself is “Do I even need life insurance?”

Ask yourself this question: Does someone rely on me financially? If the answer is yes, then you likely need life insurance. Let’s discuss a few different types of people and their need for life insurance.

Single? You probably don’t need it.

If you are single and have no children, you probably don’t need life insurance. However, if you’re an ultra-planner or want to have a family sooner rather than later, locking in those low rates while you’re young and healthy can be a wise move.

Here are a few situations in which buying life insurance would be recommended even if you’re single:

  • Co-signed loans

Maybe your grandparents are co-signers on your private student loans or your parents co-signed on your mortgage. If you die before the balance is paid, the creditors can go after your co-signers. Life insurance can pay for these debts.

  • Caring for relatives

If you are caring for siblings or aging relatives you should consider life insurance to ensure that your loved ones are still provided for even if you are no longer around.

Have dependent children? You definitely need it.

Those with children have the greatest need for life insurance. Children rely on you for food, clothing, shelter, medicine, and everything else. If you die, life insurance can continue to fund these things, and it can also pay for hopes and dreams such as college tuition or a wedding.

Let’s take a closer look at specific parental situations:

  • Dual income families

If your household has two incomes contributing to standard of living, the sudden loss of a parent can cause financial upheaval if there is no life insurance to replace the lost income. One parent is now responsible to provide what two incomes previously did. For example, the proceeds from a life insurance policy can pay off the mortgage ensuring the children do not have to be uprooted from their home or school district.

  • Single parents

Let’s face it, the loss of a single parent to a child would be devastating. When married couples purchase life insurance, they often plan with the possibility that one spouse will remain to care for the children. Single parents do not have this luxury and absolutely need life insurance.

  • Stay-at-home parents

When you think of life insurance, you may only think a breadwinner needs coverage and not a stay-at-home parent – this could not be further from the truth. Imagine everything a stay-at-home parent does: babysits, cleans, cooks, transports, grocery shops… the list goes on. According to Salary.com, a stay-at-home mom is worth approximately $112,962. If the stay-at-home parent were to die unexpectedly, life insurance can pay for someone to help with these tasks.

Married? You most likely need it.

You don’t need to have children to rely on your significant other’s income. You’re building a life together and doing so requires money. You are likely both contributing to rent or a mortgage, car payments, utilities, and credit card bills. What happens if one of you were to die prematurely? The death benefit from a term life insurance policy can help pay for those expenses and cover the cost of a funeral.

It’s not uncommon today for couples to be in a committed relationship but postpone marriage. While it’s a little easier to own life insurance on your significant other if you are married, non-married couples can still purchase life insurance on one another as long as they can prove insurable interest.

Insurable interest is when a person can expect to suffer financial loss upon the death of another specific person. Having both names on a mortgage loan, both named on a lease, or owning a business together are just a few examples of how you can prove insurable interest.

The two types of life insurance

There are two main types of life insurance: term life insurance and permanent life insurance.

Term insurance:

  • Basic, inexpensive life insurance
  • Temporary – lasts a certain length of time (typically 10, 20, or 30 years)
  • Ideal for most people

Permanent insurance:

  •  Lasts a lifetime
  • Accumulates cash value
  • Much more costly than term insurance
  • Not necessary for most people

For most individuals, term life insurance is suitable coverage. It is designed to last only during the years in which you have the greatest need for it. Permanent life insurance can be beneficial for more complicated situations such as managing wealth for large estates.

The key benefits

Buying life insurance means you hand over some of your hard earned dollars to an insurance company – so what do you get in return?

  • Your life insurance policy will provide significant funds to your loved ones when they need it most, allowing them to grieve without the added financial stress.
  • The death benefit is typically considerably greater than the premiums you paid.
  • The proceeds are generally safe from creditors. Even if you die with debt, creditors cannot go after the life insurance proceeds paid.
  • Life insurance proceeds are typically not taxed by the federal government.
  • Peace of mind in knowing your loved ones will be financially protected if you are taken from them too soon.

Natasha Cornelius is the content manager and editor for Quotacy. She has worked in the life insurance industry since 2010 and has been making life insurance easier to understand with her writing since 2014. A long-time Mint user, Natasha lives in Bozeman, Montana where she loves to garden, DIY anything she can, and explore beautiful Big Sky country. Connect with her on LinkedIn.

Learn more about security

Mint Google Play Mint iOS App Store

Source: mint.intuit.com