Drivers who cannot decide what level of coverage they should buy may like to know what is the most popular car insurance policy type. There is nothing wrong with going with the choice preferred by majority of policyholders when you have nothing against it. Knowing the biggest insurer, the most sold US auto insurance coverage and the best value car insurance companies are the types of information that offer extra comfort when we are choosing our own policies. This website covers most of these topics and you can find them by using the search box on the top right corner. This post is about the most popular auto insurance coverage in the USA.
Since vehicle insurance liability coverage is a minimum requirement in 49 out of 51 jurisdictions in the United States, it stands to reason that most drivers buy at least liability coverage. Only Virginia and New Hampshire have options for not buying liability coverage, a $500 fee in Virginia and proof of financial ability in New Hampshire. Of course, according to the Insurance Information Institute, for the latest year of available data, 12% of drivers in the U.S. actually drive without insurance and set themselves up for catastrophe. So what are the types of USA auto insurance coverage and what are the most common?
Types of US Auto Insurance Coverage
There are literally a dozen or more types of automobile insurance coverage that you can purchase to protect yourself, others and property surrounding your vehicle. As you add more and more coverage your protection level increases but so as the costs. These insurances come in three basic tiers as explained below.
Individual states rather than one central body set the USA car insurance requirements. Therefore basic coverage refers to the state minimum auto insurance requirements as set out by each state legislature and the District of Columbia. As mentioned, 49 of these areas require basic liability insurance for drivers. This liability insurance only covers the injuries to third-party persons or damages to property in the case that you cause an accident. It does not cover your injuries or your vehicle’s expenses in an accident. The basic limits of liability in each state range widely from a low of 15/30/10 ($15,000 for single injury accidents, $30,000 for multiple injuries and $10,000 for property damage) to a high of 50/100/25. Even at the highest range, most experts agree it is not enough to cover expenses of even a moderate accident.
Liability plus coverage refers to a tier that includes liability coverage with one or two other covers. These covers are often tailored to a person’s situation, such as adding collision where required by finance companies when buying a car or for GAP insurance in the same situation.
On the other end of the spectrum is what is called Full Coverage. This coverage includes double to triple the state liability limits up to a recommended 100/300/100 as well as comprehensive, collision and other covers tailored to your specific needs. You can read more on various types of covers and find out what does car insurance cover?
What Are the Most Popular USA Car Insurance Coverage?
According to the National Association of Insurance Commissioners (NAIC), the body responsible for collecting data on US car insurance policies sold as well as advocating for vehicle insurance within each state, full coverage auto insurance is the most popular choice for drivers. This is overwhelmingly the case.
A breakdown of the most popular USA auto insurance coverage purchased:
- 88% of drivers purchase Liability
- 78% of drivers also purchase Comprehensive Coverage
- 72% of drivers also purchase a Collision policy
- Over 72% of drivers (7/10) therefore purchase a Full Coverage policy
It is clear from these statistics that most popular USA auto insurance is chosen by drivers to protect themselves financially with the best insurance protection they can get. These statistical facts tell us a few things;
- Most drivers don’t buy vehicle insurance because they are required to buy. If it was the case, most people would have just bought minimum liability coverage and be done with it. Seeing most people buy full coverage tells us that people already know the answer to how will buying auto insurance help you?
- Motorists don’t just want to buy basic third party liability but they prefer a decent liability coverage. They also want to purchase policies that will offer good protection for their own vehicles and families.
- We cannot ignore the effects of systematic efforts by insurers, agents and brokers to sell full coverage policies. The good thing is that they don’t just push more expensive policies. Many insurers put a lot of efforts into coming up with cheap full coverage car insurance policies that most people can afford.
- Narrow price gap between a liability and full coverage policy may encourage more people to purchase much better policies, even it means paying a bit more. This is explained in more detail on this post titled how much is car insurance?
- Economic wellbeing plays a very important role in this choice. There is pattern that supports this thinking. Full coverage is by far the most popular auto insurance in prosperous states where motorists drive nicer cars. On the other hand, people tend to buy liability only car insurance in poorer areas.
What Optional Coverage Types Are Worth Buying?
Yet there are still more coverage types that fall under the full coverage moniker that are not always discussed. As a driver you should be aware of all the policy options available to you. This will help you protect your livelihood and finances in the case of an accident.
Here are the most common add-on covers to a Full US Auto Insurance Coverage:
- Rental Car Reimbursement
- Personal Injury Protection
- Accident Forgiveness
- Business-Use Insurance
- Roadside Assistance
- Towing & Labor
- GAP Insurance
- Medical Payments
- Mobility coverage
- Custom Parts & Racing Equipment
- Custom Equipment (wheelchairs, business equipment etc)
Choose the full coverage plan with options that best suits your needs. Be sure to use a great car insurance quotes comparison online tool such as CheapAutoInsurance.net to get your quotes fast and efficiently all from one spot. Remember that finding cheap auto insurance companies for your circumstances will allow you to buy the coverage you want, rather than giving up essential protection due budgetary restrains.