Insurance Resources & FAQs

No. When you get quotes through us, insurers use a "soft pull" on your credit, which does not affect your credit score. This is different from a "hard pull" used for loan applications.

Bundling means purchasing multiple policies (like auto and home) from the same insurance company. On average, Americans save about 18% by bundling auto and homeowners insurance, with discounts ranging from 5% to 25%.

Switching is easy. First, purchase your new policy and set its start date. Then, contact your old insurer to cancel your previous policy, ensuring there is no gap in coverage. They will provide a refund for any unused premium.

Several factors contribute to rising rates: increased repair costs due to modern vehicle technology, higher medical costs, more severe weather events, inflation, and increased accident rates post-pandemic. Auto insurance rates increased 15% in 2024 alone.

Yes, insurance is required by law in all states except New Hampshire. However, you may qualify for low-mileage discounts (up to 11% savings) or usage-based insurance programs if you drive less than 10,000 miles per year.

Requirements vary by state. Most states require liability coverage (bodily injury and property damage). For example, California requires $15,000/$30,000/$5,000, while Texas requires $30,000/$60,000/$25,000. Some states like Florida and Kansas also require Personal Injury Protection (PIP).

Liability covers damages you cause to others' property and their bodily injuries. Collision covers damage to your own car from an accident, regardless of fault. Comprehensive covers damage to your car from non-accident events like theft, fire, hail, or vandalism.

"Full coverage" isn't an official policy type, but it typically refers to a combination of liability, collision, and comprehensive coverage. About 80% of American drivers purchase comprehensive coverage, and 77% buy collision coverage.

Adding a teen driver increases premiums by an average of 79%. A 16-year-old driver pays up to 485% more than older drivers. However, good student discounts (up to 16% off) and driver training courses can help reduce these costs.

As of 2024, the most expensive states for auto insurance are: Maryland ($4,060), New York ($3,804), Washington D.C. ($3,399), South Carolina ($3,393), and Florida ($3,166). The cheapest states include New Hampshire ($1,000), Maine ($1,209), and North Carolina ($1,404).

Uninsured motorist coverage protects you if you're hit by a driver without insurance. About 6% of American drivers are uninsured, making this coverage important. Some states require it, while others make it optional.

Common discounts include: Good student (16% average), Multi-policy/bundling (14% average), Low mileage (11% average), Safe driver (10-20%), Multi-car (8-25%), and Vehicle safety features (3-30%). Missouri and Connecticut offer the most discount opportunities.

Usage-based insurance tracks your driving habits through a smartphone app or device installed in your car. It monitors factors like miles driven, speed, braking, and time of day. Safe drivers can save up to 40% on their premiums.

In most states, insurers can use your credit score to determine rates. A decrease from good to poor credit can increase your premium by about $1,231 annually. However, California, Hawaii, Massachusetts, and Michigan prohibit using credit scores for insurance pricing.

A speeding ticket can increase your premium by an average of $367 per year. The increase varies by state and severity of the violation. Some insurers offer accident forgiveness programs that may waive the first minor violation.

About 88% of American homeowners have homeowners insurance. However, 7.4% of homeowners (6.1 million) lack coverage, with higher rates among communities of color and lower-income households.

A standard HO-3 policy (used by 78% of homeowners) covers the structure of your home, personal belongings, liability protection, and additional living expenses. The average claim cost in 2022 was $18,311, with property damage from wind and hail being the most common cause.

Florida has the highest average annual premium at $2,437, followed by Louisiana, Texas, and Oklahoma. Wisconsin has the lowest at $780. Costs vary based on natural disaster risk, local building codes, and claim frequency.

Standard policies exclude floods, earthquakes, sewer backups, and normal wear and tear. You need separate flood insurance (available through FEMA's National Flood Insurance Program) and earthquake coverage. About 32% of homeowners report weather-related impacts in the past five years.

Replacement Cost Value (RCV) pays to replace damaged property with new items without deducting for depreciation. Actual Cash Value (ACV) pays replacement cost minus depreciation. RCV is more comprehensive but costs more.

You need enough dwelling coverage to completely rebuild your home at current construction costs. For personal property, policies typically provide 50-70% of dwelling coverage. For liability, experts recommend at least $300,000 to $500,000.

While not legally required without a mortgage, homeowners insurance is crucial protection for your most valuable asset. Fire and lightning claims average $83,991 per incident, and about 5% of insured homes file claims each year.

Rates are influenced by location (climate risks, crime rates), home characteristics (age, size, construction type), coverage amounts, deductibles, and your claims history. Homes in hurricane, wildfire, or tornado-prone areas typically cost more to insure.

Ways to save include: bundling with auto insurance (18% average savings), installing security systems, updating electrical/plumbing, choosing higher deductibles, improving your credit score, and shopping around annually.

Contact your insurer immediately, document damage with photos, make temporary repairs to prevent further damage, keep receipts, and cooperate with the claims adjuster. Don't throw away damaged items until the adjuster has seen them.

The average American household spends about $1,771 per year on auto insurance (2.57% of household income) and varies widely for homeowners insurance. Combined, insurance represents a significant portion of household budgets.

The largest savings come from: Good student discounts (16% average), Multi-policy bundling (14% average), Low annual mileage (11% average), Usage-based insurance (up to 40%), and Multi-car discounts (8-25%).

You should compare rates annually or after major life changes. In 2024, 55% of drivers shopped around for insurance (up from 38% in 2023), and 22% switched insurers to get better rates.

80% of American drivers say car insurance is now unaffordable for the average person. Higher insurance costs have forced families to cut spending on vacations (32%), clothing (30%), and even groceries (26%).

A lapse in coverage can increase your premium by an average of $178 per year. Most states require continuous coverage, and gaps can result in fines, license suspension, or higher rates when you reapply.

A DUI conviction can increase your annual premium by an average of $1,650, bringing your total policy cost to about $3,421 per year. The increase typically lasts 3-5 years, and some insurers may refuse coverage.

Driving without insurance is illegal in most states and can result in fines, license suspension, and higher future rates. Consider state minimum coverage, usage-based insurance, or payment plans. Nearly 10% of Americans went uninsured temporarily in 2024 due to cost.

Some states offer low-income auto insurance programs. California's Low Cost Auto Insurance Program provides basic coverage for qualified low-income drivers. Check with your state's insurance department for available programs.