- Adjuster
- Someone who investigates insurance claims, estimates damage, and determines who—if anyone—should pay a claim. Adjusters can work on behalf of an insurance company, or you can hire a public adjuster.
- Agent
- A person who sells insurance policies on behalf of a company or independently. They may represent one or multiple companies, and are usually paid by commision.
- Claim
- A formal request that a policyholder makes to an insurance company to pay for a loss, such as collision damage or a medical bill.
- Deductible
- The amount you must pay toward a claim before insurance pays the rest. For example, if you have a $500 deductible and a repair costs $2,000, you will pay $500 and the insurer will pay the remaining $1,500.
- Endorsement
- Also known as a rider, this modifies your policy. It usually adds additional coverage, such as to pay for a rental car while your vehicle is being repaired for a covered claim, or for roadside assistance.
- Liability Insurance
- Insurance that pays for bodily harm or property damage to a third party that was caused by the policyholder, up to the limits of the policy. Nearly all states require drivers carry at least some liability insurance.
- Limits
- The maximum amount an insurance company pays toward a claim, even if the claim exceeds the limit. If you cause $200,000 worth of damage and your policy has a $50,000 limit, you will likely be liable for the additional $150,000.
- No Fault Insurance
- Also called personal injury protection (PIP), this type of insurance is mandatory in some states and optional in others. Your own insurance company pays for your damage and medical bills regardless of fault. You may still have to pay a surcharge if you are at fault.
- Premium
- What a policyholder pays to an insurance company for coverage. You can usually pay monthly or yearly, and some insurers give a discount for paying an entire year’s premiums all at once.
- Surcharge
- An increase in your premium due to a traffic violation, at-fault crash or other claim, or policy lapse that indicates you’re a higher-risk driver. Surcharges are designed to offset higher costs of insuring riskier drivers.
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Liability
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Collision
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Comprehensive
Higher Rate Factors
- At-fault claims
- New driver on policy
- More coverage
- Low credit score
- High-theft ZIP code
- Loyalty
Lower Rate Factors
- Safe driving
- Low annual mileage
- Higher deductibles
- Safety and anti-theft features
- Good grades for students
- Shopping for a new policy
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Switch Insurance Companies
According to CR’s 2024 auto insurance survey, 30 percent of those surveyed had switched insurers in the past five years. They saw a median annual savings of $461.
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Take a Defensive Driving Course
In some states, you can pay a small fee to take an approved defensive driving class that can save you more than $230 on your premiums each year.
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Bundle Your Auto and Homeowners Insurance
Some policyholders might save up to 30 percent by bundling two policies, but others may benefit from buying each policy from a different insurer.
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Sign Up for Driver Monitoring
These programs track your driving habits and, in exchange for giving up some privacy, may help safe drivers save around $120 per year on average, according to our survey.
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Increase Your Deductible
Raising your deductible from $500 to $1,000 could bring your premiums down by 20 to 25 percent. Just make sure you can pay the deductible if you have a claim.
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Report Low Mileage
If you drive fewer than 10,000 miles a year, your insurer may give you an annual discount of about $115.
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Senior Drivers
CR surveys show that seniors’ car insurance needs and experiences typically differ from those of other customers.
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Teens and New Drivers
Because teens and new drivers lack experience, they tend to be riskier and more expensive to insure.
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Bad Driving Records and SR-22s
High-risk drivers need insurance, too. Here’s how to find a policy that covers you if you’ve had too many at-fault crashes, moving violations, or a license suspension.
