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 when you have nothing against it. Knowing the most sold package and the best value automobile insurers are the kind of information that offer extra comfort when we are choosing. This website deals with these topics and you can find them by using the search box on the top right corner and get a few quotes too right here.
Since liability coverage is a minimum requirement in 49 out of 51 jurisdictions in the United States, it stands to reason that nearly all drivers have at least this. Only Virginia and New Hampshire have options for not buying it, a $500 fee in Virginia and proof of financial ability in New Hampshire. Of course, according to the III, for the latest year of available data, 12% of drivers in the U.S. actually have nothing and set themselves up for catastrophe. It certainly is a large number that may be due to affordability and ignorance. Let’s not forget that many vehicles may not be operated at all but goes into this statistic. So let’s have a look at what they are and which ones are the commonest.
Types of Auto Insurance Coverage
There are literally a dozen or more types you can have to protect yourself, others and property surrounding the vehicle. As you add more and more comfort level increases but so as the premium. These come in three tiers as explained below.
Basic Coverage
Individual states rather than one central body set the requirements. Therefore basic refers to the state minimum requirements as set out by each state legislature and the District of Columbia. As mentioned, 49 of these authorities require it. This liability only compensates the injuries to third-party persons or damages to property in the case that you cause an accident. It does not include your injuries or vehicle’s expenses. The basic limits in each state range widely from a low of 15/30/10 ($15,000 for single injury incidents, $30,000 for multiple injuries and $10,000 for property damage) to a high of 50/100/25. Even at the highest range, many experts agree it is not enough to pay for expenses of even a moderate accident.
Liability Plus
It refers to a tier that includes this with one or two other additions. Uninsured motorists protection is often added to it. Actually, some states require it to be added to every policy sold. They may be useful for people who don’t use their cars. In that case, they may have it with Comprehensive and drop Collision.
Full Coverage
On the other end of the spectrum, this includes double to triple the state limits up to a recommended 100/300/100 as well as comprehensive, collision and others tailored to your specific needs. You can read more on various types and find out what it is good for.
What Are the Most Purchased Types of Car Insurance?
According to the NAIC, the body responsible for collecting data on policies sold as well as advocating for it within each state, full coverage automobile insurance is the most preferred choice for drivers. This is overwhelmingly the case.
A breakdown of the most popular vehicle insurance policy purchased in the USA:
- 88% of drivers purchase Liability
- 78% also purchase Comprehensive Coverage
- 72% also purchase Collision
- Over 72% of drivers (7/10) therefore purchase a Full Coverage policy
It is clear from these statistics that majority of motorists prefer to safeguard themselves financially with the best they can get. These statistical facts tell us a few things;
- Owners don’t have it because law requires them. If it was the case, they would have just bought the minimum required by law and be done with it. Seeing most people go for full tells us that people already know how useful it can be at times of need.
- Motorists don’t just want to buy basic third party but they prefer decent limits. They also want to purchase policies that will offer good safety net for their own vehicles and families.
- We cannot ignore the effects of systematic efforts by agents and brokers to sell better policies. The good thing is that they don’t just push for more expensive options. Many underwriters put a lot of efforts into coming up with cheap full cover car insurance packages people can afford.
- Narrow price gap between a full and liability only policy may encourage more people to purchase the former, even it means paying a bit more.
- Economic wellbeing plays a very important role in this choice. There is pattern that supports this thinking. Full coverage is by far the most sought after auto insurance in prosperous states where motorists drive nicer cars. On the other hand, people tend to buy cheap liability only in poorer areas.
What Optional Coverage Types Are Worth Buying?
Yet there are still more that fall under the full moniker and not often discussed. As a driver you should be aware of all the alternatives available to you. This will help you defend your livelihood and finances in the case of an accident.
Here are the most common add-ons to a vehicle insurance policy:
- Rental Car Reimbursement
- Personal Injury Protection
- Accident Forgiveness
- Business-Use
- Roadside Assistance
- Towing & Labor
- Guaranteed Auto Protection (GAP)
- Medical Payments
- Mobility
- Custom Parts & Racing Equipment
- Custom Equipment (wheelchairs, business equipment etc)
Choose the plan with extras that best suits your needs. Be sure to use our online quotes comparison tool to get them fast and efficiently all from one spot. Remember that finding cheap carriers for your circumstances will allow you to get what you want, rather than giving up essential protection due budgetary restrains. It is sometimes easy to overlook things when we are overly concerned with costs. However, we need to look at the long-term picture and consider what if we suffer losses beyond our means and have no back up.