Almost every state has laws stating that people have auto insurance, but the actual regulations regarding auto insurance vary from state to state - so the type of coverage that you require depends on the state in which you live in.

Even if there are no laws, it is highly recommended that you have some form of cover; otherwise you may end up paying out huge amounts of money in the event of an accident, or even losing your home, in a worst-case scenario.

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Why the Insurance Rate Discrepancy?

SUV's are supposed to be bigger, safer, stronger and more secure than smaller vehicles including those being touted to be the safest. SUV's, as they roll down the street or breeze down the highway are the sleek tanks disguised as family cars.

So why is it that SUV's in USA have higher insurance rates than many other vehicles?

According to recent reports released by ABC News and Consumer Reports: Insurance rates are directly related to risk - and there are more risk factors associated with SUVs than their smaller counterparts. This probably seems hard to believe, especially since many of us simply seem to get out of the way and let them pass us by more often than not. Some reasons that insurance rates for SUV's are higher include the fact that when they are involved in accidents, SUVs do more damage to other vehicles, their passengers and pedestrians than cars.

Though many people think SUVs are safer than cars, studies have shown that the opposite is actually true. SUVs are more costly to repair than cars because their manufacturers aren't bound by the same federal standards in low-speed crashes. Due to their high center of gravity, SUVs are more than twice as likely to tip and roll over as cars. Because they're popular and trendy, SUV theft rates run higher than those of most cars.

Not all the information is negative, however. Since SUV insurance companies set rates according to the particular model you drive, where you live, your driving record, your credit history and the safety equipment installed in your vehicle, you can use these factors to your benefit and keep your SUV insurance rates low.

There are ways to reduce your premiums, in fact you could get them cut by up to 50% if you take control and use these money-saving strategies to help lower your premiums on your SUV.

Compare insurance rates with more than one company. Applying for free quotes is the best way to accomplish this. You'd be surprised how much rates on the same coverage can vary from one insurer to another! Do not fall for organizations that advertise as if they are representing various companies, but really collect your information and send them out as leads to various insurance agents. Make the call yourself to various individual insurance companies and take notes, talk to an agent as well as obtaining paperwork from them. Insurance companies will fax or email you a quote, complete with all coverage and all charges. You can lay them all side by side and compare what would be best for you.

Make sure that you do all of this and talk to your insurance agent if you have one before you purchase your SUV. It may be worth it for you; however, if the insurance pushes your payment up too high, it is important for you to know in advance. After all, you need to know if insurance will end up being the deal breaker.

Car Insurance Q & A

Question: If someone borrows my car and crashes it, does my insurance apply, or does theirs?
Answer: Generally speaking, the liability follows the car, so your insurance would apply, as it is your car. The liability insurance of the driver often pays the additional amount if the costs payable are above your policy limits.

Question: If a child goes to college with mom or dad’s car, are they covered under the parents’ personal auto policy?
Answer: This can vary from company to company. Check with the insurance provider and make sure that the child is listed as an additional driver. Do this before the child goes to college, and it will avoid unnecessary disputes later on.

Question: Do I need ‘gap’ insurance?
Answer: If your vehicle is on finance, and its value is now less than the amount you owe, then yes you need gap insurance. If you owe less than its value, then no, you do not need gap insurance.