Minority-owned banks and credit unions, classified as Minority Depository Institutions (MDIs) by government agencies, are financial institutions where most board members or stockholders are people of color.
MDIs play a crucial role in helping underserved communities. While such institutions don’t solely lend to minorities, they tend to provide more loans and accounts to minority communities than non-minority-owned banks do, according to data from the Federal Deposit Insurance Corp. This is particularly important because members of minority communities, like African Americans, often lack access to financial services and are typically underserved by financial institutions.
Supporting Black-owned or Black-led financial institutions and lenders by doing business with them can help minority communities economically.
Black-owned and Black-led auto lenders
Note that the lenders are listed alphabetically.
Adelphi Bank
Primary location(s): Columbus, Ohio
Good for: Borrowers in Franklin County, Ohio, who want to bank with an institution that empowers the local community. Note that Adelphi is a newer institution that primarily provides commercial lending and, according to a spokesperson for the bank, has only approved a handful of auto loans thus far.
Alamerica Bank
Primary location(s): Birmingham, Alabama
Good for: Residents of Birmingham, Alabama, with great credit scores. Alamerica only provides auto loans under exceptional conditions, and applicants must have good credit scores to apply. The bank does not offer prequalification and does not provide refinance loans.
Andrews Federal Credit Union
Primary location(s): Maryland, New Jersey, Northern Virginia and Washington, D.C.
Good for: Military service members based on the East Coast. The credit union also serves nonmilitary personnel who meet other eligibility requirements, like working for one of its employer groups. In addition to loans for traditional vehicles, AFCU offers financing for new and used boats, motorcycles and recreational vehicles (RVs).
Citizens Trust Bank
Primary location(s): Alabama and Georgia
Good for: Veterans and first-time car buyers in Alabama and Georgia. Citizens also offers auto refinance loans. While any U.S. resident can apply for a credit card with the credit union, only residents of Georgia or Alabama can apply for consumer loans, like auto loans, through the institution.
Commonwealth National Bank
Primary location(s): Mobile, Alabama
Good for: Residents of Mobile, Alabama, who want to borrow from a local institution. The bank provides loans for all borrowers, with a particular focus on serving its historically underserved African American community. Commonwealth National Bank offers vehicle loans for up to 90% of the vehicle’s value, according to a spokesperson for the bank, and also offers auto loans for motorcycles, motor homes, campers, travel trailers, boats, personal water-crafts and more.
Democracy Federal Credit Union
Primary location(s): Maryland, Virgina and Washington, D.C.
Good for: Borrowers in the D.C. metro area who want a variety of auto loan options and the benefits of credit union membership. In addition to new and used purchase loans, the credit union offers refinance loans and lease buyout loans. Democracy also offers additional benefits like GAP insurance and an auto advantage program that extends borrowers’ manufacturer warranties.
First Independence Bank
Primary location(s): Detroit, Michigan, and Minneapolis, Minnesota
Good for: Detroit or Minneapolis applicants seeking a preapproved car loan with a local bank.First Independence provides car loans as well as financing for recreational vehicles like campers, motorcycles, motor homes, snowmobiles and travel trailers.
First Security Bank and Trust Company
Primary location(s): Oklahoma City, Oklahoma
Good for: Auto loan borrowers in Oklahoma City who want to support the institution’s mission of serving minority communities in the area. The bank gives new and used car loans, as well as refinancing loans.
Primary location(s): Chicago, Illinois
Good for: Individuals who live in Chicago’s South Side community. The bank’s website notes that it aims to serve communities outside of Chicago, in Illinois and nationwide, in the future.
Hope Federal Credit Union
Primary location(s): Alabama, Arkansas, Louisiana, Mississippi and Tennessee
Good for: Borrowers in these southern states with limited or no credit history looking for flexible auto loan terms. Hope also provides financing for RVs, boats and all-terrain vehicles.
Good for: Borrowers in primary locations that the bank serves seeking flexible new and used-car auto loans. Consumers can apply for a Liberty auto loan online or at a local branch. Some of the bank’s auto loan features include the ability to make fixed monthly payments, no prepayment penalty and a credit decision within hours of application.
Mechanics & Farmers Bank
Primary location(s): North Carolina
Good for: North Carolina borrowers who want to buy new or used cars between $7,500 and $75,000. The bank also offers auto loan refinancing. M&F has an “Outstanding” Community Reinvestment Act (CRA) rating from the FDIC, which means that it has maintained a record of meeting the needs of the low to moderate-income communities that it serves.
Municipal Employees Credit Union
Primary location(s): Maryland
Good for: Auto loan applicants in the greater Baltimore region wanting the convenience of an online car buying service and the benefits of credit union membership. Municipal members can use its online vehicle shopping service AutoSMART to search for and compare new and used cars at dealers near them. The credit union provides financing for new and used cars, as well as auto refinance loans.
Optus Bank
Primary location(s): Columbia, South Carolina
Good for: South Carolina residents, particularly those who are historically underserved people and those who were previously unbanked or underbanked.
SecurityPlus Federal Credit Union
Primary location(s): Baltimore and Ownings Mill, Maryland
Good for: Applicants who want flexible auto loan terms and rate discounts. The credit union provides new and used car loans with loan terms ranging from less than 12 months up to 84 months. SecurityPlus also features a 0.25% APR discount for setting up automatic payments.
St. Louis Community Credit Union
Primary location(s): St. Louis County, Missouri
Good for: Applicants in St. Louis County seeking a variety of auto lending options. The credit union offers new and used car loans, both external and internal refinance loans, as well as cash-out refinancing, private party loans and lease buyout loans.
Unity National Bank of Houston
Primary location(s): Texas and Georgia
Good for: Individuals in the bank’s service areas who want a preapproved auto loan from a local institution.
Methodology:We created this index of auto lenders based on lists of “minority depository institutions,” or MDIs, from the Federal Deposit Insurance Corp. and the National Credit Union Administration. The FDIC considers a bank or financial institution to be a MDI if at least 51% of its stockholders are “minority individuals” or most of its board of directors and the community it serves are minorities. The NCUA considers a credit union to be a MDI if more than 20% of its current members, board members and community it serves are Asian American, Black American, Hispanic American or Native American.
Every driver is different. So when it’s time to research car insurance companies, you’re probably going to prioritize different factors than other people. That can make it hard to find the best car insurance in Utah — if you don’t know exactly what you’re looking for, you may not know whether or not a company will fit your needs.
To make it easier for you, NerdWallet analyzed 27 car insurance companies in Utah to find the top picks for the following categories:
If you prefer to see a full list of the best car insurance companies in Utah, jump to the bottom of this page.
How we found the best car insurance in Utah
NerdWallet’s editorial team considered pricing, discounts, complaint data from the National Association of Insurance Commissioners and more to determine the best car insurance companies in Utah. Our “ease of use” category includes factors such as website transparency and how simple it is to file a claim. As we continue to evaluate more insurance providers and receive fresh market data, our list of best car insurance companies is likely to change over time. In our analysis, we only include insurance companies that have achieved a minimum NerdWallet star rating of 4.5.
Why you can trust NerdWallet
Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage so you can choose the insurance company that works best for you. Our ratings are specific to auto insurance; a company’s rating for other products may be different on our site. See our criteria for evaluating auto insurance companies
Best car insurance in Utah overall
American Family had the highest overall NerdWallet star rating for Utah drivers, out of 27 eligible car insurance companies. These star ratings focus primarily on factors that could affect a customer’s experience with the insurer.
Best star rating
American Family
American Family offers a wide range of coverage, including rideshare and gap insurance, but doesn’t sell policies in all states.
Great set of discounts
Ease of use
Average
NAIC complaints
Far fewer than expected
Best star rating
American Family
American Family offers a wide range of coverage, including rideshare and gap insurance, but doesn’t sell policies in all states.
Great set of discounts
Ease of use
Average
NAIC complaints
Far fewer than expected
Best Utah car insurance for your budget
Out of the 27 companies we looked at, Auto-Owners is the cheapest option on our list of insurance companies rated 4.5 or higher.
Our analysis showed that the average rate for full coverage insurance from Auto-Owners is $1,378 per year or $115 per month for Utah drivers. (However, your rate may be different.)
🤓Nerdy Tip
We don’t have data for every single company that offers coverage in Utah, so compare car insurance rates from several companies to make sure Auto-Owners is actually the cheapest for you.
Check out NerdWallet’s analysis of cheap car insurance in Utah for a detailed breakdown of the most affordable insurers in your state.
Best budget pick
Auto-Owners Insurance
Auto-Owners offers generous perks and a wide range of coverage options but is available in only 26 states.
Great set of discounts
Ease of use
Below average
NAIC complaints
Far fewer than expected
Best budget pick
Auto-Owners Insurance
Auto-Owners offers generous perks and a wide range of coverage options but is available in only 26 states.
Great set of discounts
Ease of use
Below average
NAIC complaints
Far fewer than expected
Best Utah car insurance for customer satisfaction
In addition to being relatively affordable, Auto-Owners is also the best car insurance company for Utah drivers when it comes to customer satisfaction. This is based on a comparison across auto insurers with a NerdWallet 5-star rating.
Auto-Owners had the fewest number of complaints to state regulators for a company of its size, and you can learn more in our Auto-Owners insurance review.
Best for customer satisfaction
Auto-Owners Insurance
Auto-Owners offers generous perks and a wide range of coverage options but is available in only 26 states.
Great set of discounts
Ease of use
Below average
NAIC complaints
Far fewer than expected
Best for customer satisfaction
Auto-Owners Insurance
Auto-Owners offers generous perks and a wide range of coverage options but is available in only 26 states.
Great set of discounts
Ease of use
Below average
NAIC complaints
Far fewer than expected
Best Utah car insurance for ease of use
State Farm is the best car insurance company in Utah in our ease of use category. State Farm customers can manage their policy and submit claims online, and the mobile app has excellent user ratings for both iOS and Android devices.
Best for ease of use
State Farm
State Farm offers numerous discounts and extras including travel expense coverage, making it a good choice for most drivers.
Average set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
Best for ease of use
State Farm
State Farm offers numerous discounts and extras including travel expense coverage, making it a good choice for most drivers.
Average set of discounts
Ease of use
Above average
NAIC complaints
Fewer than expected
Full list of the best car insurance companies in Utah
Out of all 27 car insurers we analyzed, here is the full list of the best car insurance companies in Utah, all with a NerdWallet star rating of 4.5 or higher.
If you’re moving away for college and planning to bring a car, remember to check how this change might impact your car insurance. You might need to purchase your own car insurance policy, for example, or you may be able to stay on your parents’ policy if you meet certain conditions. Having the right coverage in place can help ensure you’re covered in case of an accident.
If you’re a teen driver or you have a teen driver listed on your policy, you might also be looking for ways to save. Adding a younger driver can make car insurance more expensive, but the good news is that some companies offer cheaper average rates than others for college students. In addition, several companies offer competitive student discounts.
The best car insurance for college students
While many of the best car insurance companies provide discounts to college students, some are more generous than others. Below, Bankrate’s insurance editorial team selected five top car insurance providers that offer competitive rates to college-aged drivers on their parents’ policy, according to 2023 auto insurance rate data pulled from Quadrant Information Services.
Each company is listed with its Bankrate Score, which shows how well each insurance provider performs overall, on a five-point scale. Our team calculates Bankrate Scores by analyzing each company’s average premiums, coverage offerings, discount options, complaints filed with the National Association of Insurance Commissioners (NAIC), mobile app, J.D. Power score for customer service and AM Best rating for financial strength. The closer a company scores to five, the better it performs across each category.
Insurance company
Bankrate Score
Average full coverage premium with a student discount on their parents’ policy
Average full coverage premium without a student discount on their own policy
Geico
4.4
$2,523
$4,048
State Farm
4.2
$2,689
$7,089
Progressive
4.2
$3,163
$7,088
Farmers
3.8
$2,762
$6,567
Allstate
3.8
$4,184
$7,089
*Rates calculated for 18-year-olds students, either on their parents’ joint policy with a student discount applied or on their own policy without a student discount applied
Geico
Why we picked this carrier: Geico offers a low average full coverage rate when adding an 18-year-old college student to their parents’ car insurance policy.
If you’re looking for cheap car insurance, you may want to get a quote from Geico. Geico’s average annual cost for full coverage car insurance for 18-year-olds on their parents’ policy is $2,523 per year with a good student discount. College students may also be able to qualify for other discounts to further bring down the cost, like Geico’s discounts for membership in several organizations. The company received a high Bankrate Score of 4.4 for its wide range of discounts and low average premiums. However, the company lost a few points for its lack of optional endorsements. Unlike some of its competitors, Geico does not offer a 24-hour helpline.
PROS
Checkmark
Offers discounts for fraternity, sorority, honor society and other membership organizations
Checkmark
Several student discounts available
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Low average rates for college students added to their parents’ policy
CONS
Close X
No 24/7 helpline
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Few optional endorsements
Learn more: Geico insurance review
State Farm
Why we picked this carrier: State Farm offers a generous potential discount percentage for good students.
Parents with 18-year-old students on their State Farm auto policy pay an average annual cost of $2,689 for full coverage car insurance with a good student discount. State Farm offers savings for eligible college students who can maintain a GPA of at least 3.0. Students attending school away from their primary residence without a car may also be eligible for a distant student discount, and combining these two discounts could result in an even lower premium. The company received one of the highest Bankrate Scores on our list for its low average premiums, accessible mobile app and excellent online policy management. However, if you’re interested in buying accident forgiveness coverage, a State Farm policy wouldn’t be ideal. The company only offers the coverage as a perk earned by having a certain number of claim-free years on your record, which can’t be bought.
PROS
Checkmark
Low average rates for college students added to their parents’ policy
Checkmark
Good student and distant student discounts available
Checkmark
Offers a safe driving program for teens called Steer Clear
CONS
Close X
Gap insurance unavailable
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Accident forgiveness can’t be purchased, only “earned”
Learn more: State Farm insurance review
Progressive
Why we picked this carrier: Progressive’s Snapshot telematics program could be a great savings opportunity for college students who drive safely and infrequently.
Progressive’s average annual cost of full coverage car insurance for 18-year-olds on their parents’ policy is $3,163 with a good student discount. In addition to the standard good student and distant student discounts, Progressive also offers Snapshot, a usage-based car insurance program — which could help lower your rate based on your driving habits. The company earns a high Bankrate Score for its exceptionally wide range of coverage options, plentiful discounts and seamless online policy management. However, the company tends to have lower-than-average customer satisfaction ratings according to J.D. Power.
PROS
Checkmark
Usage-based car insurance available
Checkmark
Good student and distant student discounts available
Checkmark
Offers an automatic teen discount for drivers age 18 and younger
CONS
Close X
Typically ranks lower than the average in J.D. Power customer satisfaction
Close X
Rates may differ between online and agency quotes
Learn more: Progressive insurance review
Farmers
Why we picked this carrier: Farmers offers several discount opportunities to students.
Parents with 18-year-old college students on their policy pay an average of $2,762 for their insurance each year with Farmers with a good student discount applied. Farmers also offers a youthful driver discount for anyone under 25 who is a child or grandchild of a current policyholder. While Farmers scored well in terms of mobile app and policy management, the company doesn’t have 24/7 customer support and is not available nationwide.
PROS
Checkmark
Students who make the dean’s list or honor roll may be able to save
Checkmark
Several student and young driver discounts available, such as the Youthful Driver discount
Checkmark
Offers a telematics program called Signal
CONS
Close X
Not available nationwide
Close X
No 24/7 support
Learn more: Farmers insurance review
Allstate
Why we picked this carrier: Allstate has multiple discount opportunities for college students.
Although Allstate has a high average premium for a student on their parents’ policy, college students may be able to apply discounts to bring down the cost of auto insurance. College students who can maintain a GPA of at least 2.7 may qualify for a good student discount, which is more generous than many other insurers’ good student discount qualifications. The company’s Bankrate Score was impacted by its high premiums. However, it gained points for its A+ (Superior) AM Best financial strength rating and user-friendly policy management.
PROS
Checkmark
Money-saving programs such as Smart Student and teenSMART available
Checkmark
Several student discounts available
Checkmark
Robust digital tools
CONS
Close X
High average premiums
Close X
Fewer additional coverage options than other carriers
How can college students lower their car insurance premium?
Because car insurance rates for young drivers are significantly higher than the national average cost of car insurance, finding ways to save money may be critical. To find cheap car insurance for college students, you may want to get several quotes to give you an idea of what you will pay. Some other ways to save include:
Student discounts
Many car insurance companies offer discounts designed specifically for college students, such as:
Earning good grades in school demonstrates to insurers that you are responsible, making it more likely that you are a responsible driver and often earning you a discount.
Another way to save money on car insurance is to complete a driver’s education course. For example, drivers with a Geico insurance policy could save by completing a defensive driving course to refresh their memory on the rules of the road.
You could save money by leaving your car at home when you are away at school. Most car insurance carriers will discount your rate if you a a certain number of miles away without a car, prorating your premium to reflect the months you are away at school and not using your vehicle.
Students can often save by demonstrating their safe driving practices through insurance programs designed for young drivers. For instance, there are savings programs like American Family’s Teen Safe Driver, for drivers under age 21, and State Farm’s Steer Clear program, for young drivers up to age 25. After completing the program, drivers could get a discount on their car insurance.
Affiliation discounts for students
Many insurance companies also offer discounts for students who participate in certain organizations or associations, such as:
Geico offers car insurance discounts for fraternities, sororities and even honor societies, along with an extensive list of other organizations.
Some companies may offer discounts if you are an alumni of a certain university or even if you’ve simply completed a two- or four-year degree.
If a parent is a veteran or military member, you might save extra money on your car insurance through military discounts. As a military-only provider, USAA is one option for military discounts for your car insurance, but a few other companies offer military discounts, too, such as Geico, The General and Liberty Mutual.
Other ways to save
In addition to student and affiliation discounts, there are other ways college students can help lower car insurance premiums using these additional savings programs:
Lower your mileage: When you spend less time on the road, there’s a lower risk of accidents happening, so many carriers will offer lower car insurance premiums to drivers who rack up fewer miles.
Drive a used car: Newer cars may be more expensive to repair or replace, so rates could be higher. A used car is generally cheaper to fix and may qualify you for lower car insurance premiums than a new car. Driving a vehicle with extra safety features is another way to potentially earn lower premiums, so explore models with safety features like anti-lock brakes, electronic stability control, forward-collision warnings and automatic emergency braking.
Explore pay-as-you-go insurance: Instead of paying full price for car insurance, you might be able to sign up for pay-per-mile insurance, which monitors your driving and charges your car insurance accordingly. It’s a popular option with several car insurance companies: Allstate offers its Milewise program and Nationwide has its SmartMiles program.
Car additions: Some additions and upgrades may make your car safer and help you save money on car insurance premiums.
Dash cams: Dash cameras could help reduce car insurance rates by reducing the likelihood of crime involving your vehicle and also protecting you against false liability claims that could cost your insurer money. Discounts for dash cams aren’t common, but you may find a carrier that offers one.
Navigation systems: A GPS navigation system can help keep you feel more prepared when driving, helping you drive slower and more safely, which could translate to lower rates.
Anti-theft device: A car alarm or other anti-theft device may earn you extra discounts by lowering the risk of theft or vandalism.
Ways to save on driving
Driving can be expensive, especially so for college students on tight budgets. Keeping transportation costs low can help students afford to keep their cars and maintain insurance on the vehicle. Here are some ways to save on gas and vehicle maintenance.
How to save on gas
Gas can be pricey, especially if you drive often. Here are some ways to lower your gas costs:
Choose a car with good gas mileage: College students often commute between home and school, so a car with excellent gas mileage can easily save hundreds of dollars each year.
Use a rideshare service: Using rideshare services like Uber and Lyft can help you save on gas costs, and may be especially cost-effective if you opt for group ridesharing, where you split the cost with others.
Utilize public transportation: Public transportation can almost entirely eliminate transportation expenses. Buses, trains or subways are often a fraction of the cost of driving and are usually accessible at most colleges or universities.
Invest in a bicycle: A bicycle can be an even better substitute for public transportation, especially for students in urban areas. Using a personal bicycle is free after purchase, and there are also typically lots of options for low-cost bike sharing or rentals in more populated areas.
Carpool with your classmates or colleagues: If you must drive, consider setting up a carpool or car-sharing arrangement with classmates or colleagues who live along your route. They will probably appreciate the opportunity to save money and it gives you the added benefit of some company during the commute. Just be sure to talk to your insurer if you’re exchanging money for gas and maintenance, to make sure you’re still covered.
How to save on maintenance
Maintenance costs should be factored into buying a vehicle as well, as they can be a large portion of your car budget. Here are some tips to save on maintenance:
Find car deals for new graduates: Many car manufacturers offer special purchase deals for current college students or recent graduates to buy a new car. There may also be short-term leasing specials available for students for those not ready to purchase a vehicle.
Ask about student savings programs for oil changes: Another potential place to save is regular oil changes. College students can burn through many miles and require more frequent oil changes, but many of the larger chains, such as Jiffy Lube, offer students discounts.
Utilize free tire and air fill-up services: To save extra money on diagnostic and professional services, check your tire pressure yourself. Most gas stations offer free or cheap stations to check tire pressure and add air if necessary.
Research DIY repairs: There are several basic car repairs that can be done at home. Learning how to do essential maintenance can save money on parts and high labor costs. It will also save time to repair the car on your own schedule. These basic repairs are easy to learn and can save hundreds of dollars. Before attempting them, it’s worth researching potential safety hazards so that you can avoid complications:
Change the battery.
Change the oil.
Change your spark plugs.
Replace tail lights or headlights.
Swap out windshield wipers.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Age: Rates were calculated by evaluating our base profile with age 18 (base: 40 years) applied. The 18-year-old driver on their own policy is a renter. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
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At a glance
3.5
Rating: 3.5 stars out of 5
Bankrate Score
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Auto
Rating: 3.8 stars out of 5
3.8
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Cost & ratings
Rating: 4 stars out of 5
4.0
Coverage
Rating: 3.5 stars out of 5
3.5
Support
Rating: 3.5 stars out of 5
3.5
Home
Rating: 3.1 stars out of 5
3.1
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Cost & ratings
Rating: 2.8 stars out of 5
2.8
Coverage
Rating: 4 stars out of 5
4.0
Support
Rating: 2.3 stars out of 5
2.3
About Bankrate Score
Bottom Line
If you live in Erie’s 12-state service area, the company could be a great choice for robust coverage and affordable premiums. Erie’s digital tools are lacking compared to its competitors, though, so it may not be the best choice for tech-focused customers.
Affordable average premiums for both homeowners and car insurance policies compared to the national average
Strong customer satisfaction rankings from J.D. Power
Erie’s home insurance offers guaranteed replacement for dwelling coverage in most states
Erie auto and home insurance is only available in 12 states and Washington D.C.
No usage-based auto insurance program available
Only a few homeowners endorsements available
Avg. annual auto insurance premium for full coverage: $1,356
Avg. annual auto insurance premium for min coverage: $486
Avg. annual home insurance premium for $250k dwelling coverage: $957
Answer a few questions to see personalized rates from top carriers
Info
What’s new with Erie?
In August 2022, Erie Insurance established Erie Strategic Ventures to help fund entrepreneurs who create innovative products and services for customers and Erie’s independent agents. The company also recently announced the addition of optional extended water coverage for homeowners policies.
Erie car insurance
Founded in 1925, Erie Insurance Group started in Pennsylvania but has since expanded to 12 states and Washington D.C. The company offers coverage options that may be difficult to find among its competitors. Its standard auto insurance policies feature a diminishing deductible, first accident forgiveness for eligible policyholders and Erie Rate Lock, depending on the state. Additional coverage options include roadside assistance, auto glass repair and personal item coverage.
Erie car insurance earned a Bankrate Score of 3.8 out of 5. This Score reflects the company’s coverage options, financial strength, customer satisfaction and available discounts. Erie lost points due to its regional availability and limited digital tools (for example, the mobile app doesn’t have a claims filing option). Erie earned an A+ (Superior) AM Best financial strength rating and placed third in J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study.
Pros and cons of Erie car insurance
Erie’s coverage options and customer satisfaction scores make it one of the best car insurance companies in states where it writes policies. Comparing pros and cons of Erie auto insurance may help you decide if the company could be a good fit for your needs.
PROS
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Roadside assistance and rental car reimbursement available
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Erie Rate Lock may help keep rates stable over time
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Auto policies include pet coverage
CONS
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Available in just 12 states and the District of Columbia
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No telematics or usage-based insurance program available
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Mobile app does not enable policyholders to file a claim from their mobile devices
Erie car insurance cost
Erie is one of the cheapest car insurance companies based on our research of average premiums analyzed from Quadrant Information Services. Erie’s full coverage car insurance costs an average of $1,356 per year, while minimum coverage averages $486 per year.
Comparatively, the national average cost of car insurance for both coverage levels is higher, at $2,014 per year for full coverage and $622 per year for minimum coverage. Actual rates may vary based on car insurance rating factors, but the premium data below may be a useful comparison tool.
Erie car insurance rates by driving history
Bankrate bases the following average rates on data provided by Quadrant Information Services. This may not represent the price you will pay for car insurance. We do not include average rates for drivers with a history of driving under the influence (DUI) because some insurers may not write policies for motorists with a DUI conviction. If you have a DUI conviction, you may contact your insurance agent to find out how it could impact your car insurance premium.
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Erie average monthly full coverage premium
Erie average annual full coverage premium
National average annual full coverage premium
Clean driving history
$113
$1,356
$2,014
Speeding ticket conviction
$123
$1,476
$2,427
At-fault accident
$134
$1,607
$2,854
Erie average monthly minimum coverage premium
Erie average annual minimum coverage premium
National average annual minimum coverage premium
Clean driving history
$41
$486
$622
Speeding ticket conviction
$44
$527
$748
At-fault accident
$49
$592
$892
Erie car insurance quotes by age
Young drivers typically pay some of the highest average car insurance rates. Teens and other young drivers may save by remaining on their parents’ auto insurance policy until they’ve established their own households. The following average rates are based on a motorist on their parents’ policy with a clean driving record, as well as drivers listed on their own policies.
Average cost of car insurance for drivers on their parent’s policy
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Erie average monthly full coverage premium
Erie average annual full coverage premium
National average annual full coverage premium
Age 16
$240
$2,876
$4,392
Age 17
$225
$2,700
$4,102
Age 18
$219
$2,630
$3,837
Age 19
$209
$2,512
$3,345
Age 20
$205
$2,456
$3,149
Erie average monthly minimum coverage premium
Erie average annual minimum coverage premium
National average annual minimum coverage premium
Age 16
$86
$1,035
$1,470
Age 17
$81
$970
$1,362
Age 18
$79
$944
$1,261
Age 19
$74
$892
$1,070
Age 20
$73
$876
$995
Average cost of car insurance for drivers on their own policy
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Erie average monthly full coverage premium
Erie average annual full coverage premium
National average annual full coverage premium
Age 18
$249
$2,988
$6,110
Age 25
$136
$1,630
$2,473
Age 30
$122
$1,461
$2,125
Age 40
$113
$1,356
$2,014
Age 60
$107
$1,279
$1,824
Erie average monthly minimum coverage premium
Erie average annual minimum coverage premium
National average annual minimum coverage premium
Age 18
$90
$1,081
$1,967
Age 25
$48
$579
$747
Age 30
$43
$520
$647
Age 40
$41
$486
$622
Age 60
$39
$462
$578
Your deductible may be reduced by $100 for each claim-free policy year, up to a $500 maximum. This discount is only available to policyholders who purchase the Auto Plus endorsement, and its availability may vary by state.
Erie may extend both bundling and multi-policy discounts to policyholders who carry more than one insurance policy with the company.
Vehicles equipped with safety and security devices, such as airbags, anti-lock brakes and anti-theft devices, may qualify for a discount.
Erie may extend a discount to policyholders who pay their annual car insurance premium in one lump sum, rather than monthly installments.
Erie car tools and benefits
Erie extends a coverage option for non-owned autos including cars, moving vans and trailers that you use but do not own. This may be ideal for Erie drivers who do not own a vehicle but do drive on occasion.
Erie also sells boat, class car and motorcycle insurance, along with coverage for ATVs, golf carts and snowmobiles.
Erie home insurance
Erie home insurance receives high customer satisfaction scores from J.D. Power as well as 24/7 support for policyholders and a variety of coverage options. Erie offers guaranteed replacement cost coverage as part of its standard homeowners policies as well as additional living expenses.
Although Erie does not allow policyholders to file a claim through their mobile app, the company has more than 13,000 local agents and advertises a 90 percent customer retention rate year over year.
Pros and cons of Erie homeowners insurance
If you’re considering Erie for your homeowners insurance needs, it may be helpful to compare perks and drawbacks you may experience with the carrier. Here are a few of the key pros and cons Bankrate’s editorial team identified:
PROS
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Guaranteed dwelling replacement cost coverage included in standard homeowners policies
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Ranked 7th in J.D. Power’s 2022 U.S. Home Insurance Study
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Standard home insurance policies include up to $500 in pet coverage
CONS
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Only a few discounts available
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Few optional coverages available
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Not available in all states
Dwelling coverage limit
Erie average annual premium
National average annual premium
$150,000
$659
$975
$250,000
$957
$1,428
$350,000
$1,269
$1,879
$450,000
$1,601
$2,343
$750,000
$2,597
$3,761
Erie home insurance discounts
Home insurance discounts may help you save on your premium. Advertised home insurance discounts with Erie include:
You may earn a discount if your home is equipped with safety features like smoke alarms, security systems and an automatic sprinkler system.
Obtain an Erie homeowners insurance quote seven to 60 days before your current policy’s renewal date and you might earn a discount.
Customers who purchase a life insurance policy in addition to a car or homeowners insurance policy with Erie could earn a multi-policy discount.
Erie home tools and benefits
Erie’s home insurance coverage comes with unique options not found with other carriers. Its home insurance pet coverage extends coverage to up to $500 for animals, including birds and fish.
Erie offers gift card and gift certificate reimbursement coverage for its ErieSecure Home policies. Customers may receive reimbursement for up to $250 per gift card purchased from businesses within 100 miles of their home, with a maximum of $500 per policy period.
Erie life insurance
Erie offers four life insurance products: term life, whole life, universal life and Erie’s exclusive ERIExpress Life. Erie’s term life insurance may be a good option for those who want a fixed coverage term and intend for the policy to pay for expenses that may be burdensome to loved ones, such as funeral costs and mortgage or credit card debt. Whole and universal life have no fixed terms, but universal life offers the most flexible death benefit. Erie’s unique ERIExpress Life policy may be ideal for people looking for a simplified application and fast approval.
Pros and cons of Erie life insurance
The best life insurance company may be different for everyone, and each policy type serves a different purpose. The following pros and cons may help you decide if Erie life insurance is right for you.
PROS
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Multi-policy discounts available for policyholders with a life and home or auto policy.
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ERIExpress may be available without a medical exam.
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Variety of policy types to choose from
CONS
Close X
Only one rider advertised to customize coverage.
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Online quoting is not available
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Only writes policies in 12 states and the District of Columbia
Erie life insurance endorsements
Life insurance endorsements, also called riders, may modify and extend your life insurance coverage. Erie’s life insurance coverage only offers one rider, a long-term care rider. Erie’s long-term care rider is only available for universal and whole life insurance policies. The long-term care rider provides an accelerated death benefit, which pays a portion of your policy’s death benefit to help pay medical expenses incurred following a covered accident or illness that requires long-term care.
Erie life tools and benefits
Erie provides a life insurance calculator on its website to help customers decide which type of policy may best fit their needs. From there, customers can request to be paired with an independent Erie agent to get a quote.
Erie customer satisfaction
Researching third-party ratings may help you decide which insurer best fits your needs. J.D. Power produces annual car insurance and home insurance studies that rate and rank insurers based on their customer satisfaction. These include the national U.S. Auto Claims Satisfaction Study and more regional U.S. Auto Insurance Study.
Agencies such as AM Best, Moody’s and Standard and Poor’s analyze the financial strength of insurers and produce ratings that may indicate the financial strength of individual companies. Erie has earned an A+ (Superior) AM Best financial strength rating.
Lastly, the National Association of Insurance Commissioners (NAIC) produces an annual complaint index report to track the prevalence of complaints lodged against insurance companies. The index employs a baseline of 1.0. Scores below 1.0 indicate that a provider had fewer complaints than expected for a company its size and vice versa.
Erie auto satisfaction
In J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study, Erie ranked third in the market, with an overall customer satisfaction score of 893 out of 1,000. More regionally, Erie came in first for overall customer satisfaction in the mid-Atlantic and North Central regions. Erie has an NAIC Complaint Index of 0.56 for its private passenger policies, indicating fewer customer complaints than expected for a company its size.
Erie homeowners satisfaction
Erie ranked above average in J.D. Power’s 2022 U.S. Home Insurance Study, earning an overall customer satisfaction score of 827 out of 1,000. Erie’s homeowner policies have an impressive NAIC Complaint Index of 0.09, indicating very few complaints from policyholders.
Erie life satisfaction
Erie wasn’t rated in the annual life insurance study conducted by J.D. Power, potentially due to the company’s small size when compared to national life insurance carriers. However, the Erie Family Life company, which underwrites Erie’s life insurance products, has an NAIC Complaint Index of 0.46, which is less than half of the 1.00 baseline. Based on this data, Erie’s life insurance customers may be satisfied with the service they receive, since fewer-than-average complaints were filed.
How to file a claim with Erie
Erie gives auto and home insurance policyholders two ways to file a claim. They can contact their Erie agent or call the 24/7 claims center at 800-367-3743. Life insurance customers can file a claim by contacting their Erie agent or by calling 800-458-0811.
Erie availability
Erie writes car and home insurance policies in the District of Columbia and the following states:
Illinois
Indiana
Kentucky
Maryland
New York
North Carolina
Ohio
Pennsylvania
Tennessee
Virginia
West Virginia
Wisconsin
Erie sells life insurance in the District of Columbia and all of the aforementioned states, except New York.
Other Erie perks worth considering
Erie also offers business insurance including business automobile insurance. Business policies may protect a variety of businesses, including breweries, contractors, religious organizations, retailers and veterinarians.
Erie also offers a long list of other insurance and financial products for customers, including:
Financial services: Erie offers Medicare supplemental coverage (Medigap) and retirement accounts, including annuities and individual retirement accounts (IRAs).
Renters, condo and mobile home insurance: Erie offers a variety of insurance policies for other dwellings and living situations.
Flood insurance: Erie sells standalone flood insurance policies for homeowners and business owners.
Personal valuables insurance: This coverage may be purchased to financially protect jewelry, art, sports equipment, collections, musical instruments and more.
Erie corporate sustainability
Through The Giving Network, Erie and its employees volunteer time and money with organizations focussed on community building, environmental responsibility and safety. These initiatives include partnering with United Way and American Red Cross, as well as supporting other culture and arts organizations, entrepreneurship, education and environmental responsibility. In November 2022, the provider’s The Giving Network awarded $50,000 in grants to 10 northwest Pennsylvania environmental organizations.
With the company’s ERIE Service Corps, employees are encouraged to use a full work-day volunteering in their local community. The Corps also has a matching donation program and established the H.O. Hirt Scholarship Fund and the F.W. Hirt Employee Emergency Fund to more immediately meet the financial needs of their community.
Not sure if Erie is right for you?
Erie offers a variety of auto, home and life insurance products, but it does not write policies in all states. If you live outside Erie’s service area or need an insurer that offers a more diverse portfolio of products, you might consider one of these carriers:
Erie vs. Allstate
Allstate sells car and homeowners policies in the District of Columbia, Puerto Rico and all states except New Jersey. While Erie extends a multi-policy discount to policyholders, Allstate offers more ways to potentially reduce your premium. For instance, if you switch to Allstate, you might earn up to a 10 percent discount, plus an additional 10 percent savings each time you renew your policy. Allstate also offers a robust mobile app that allows policyholders to file claims virtually.
Learn more: Allstate insurance review
Erie vs. Travelers
Unlike Erie, Travelers offers optional rideshare coverage and gap insurance. Travelers extends many potential home insurance discounts including potential discounts for purchasing a new home and owning a LEED-certified green home. However, Travelers ranks lower than Erie in the 2022 U.S. Home Insurance Study and does not sell life insurance products.
Learn more: Travelers Insurance review
Erie vs. AAA
AAA Life Insurance Company sells term life, universal life and whole life insurance policies. AAA’s traditional term life policies offer coverage up to $5 million and give you the option to add a child term endorsement, which provides up to $20,000 in coverage for each eligible child. AAA’s roadside assistance program is robust and enables you to request battery, flat tire, emergency fuel delivery, locksmith, mechanical first aid and towing services from the convenience of the AAA mobile app. Bear in mind that AAA coverages, discounts and optional coverages may vary by location.
Learn more: AAA insurance review
Is Erie a good insurance company?
Erie has excellent financial strength ratings and earned high marks in J.D. Power’s customer and claims satisfaction studies. Additionally, the provider has NAIC Complaint Indexes that are far lower than baseline.
While Erie includes some perks in its standard auto insurance policies, like roadside assistance and rental car reimbursement, the carrier falls behind in the market by not offering a comprehensive mobile app or telematics program.
Erie’s standard homeowners policies feature guaranteed dwelling replacement cost coverage, which most insurers only offer as an endorsement, but they extend few optional coverages and discounts. Overall, Erie offers a solid portfolio of auto, home and life insurance products, but the provider only writes policies in a handful of states.
Clock Wait
46
years of industry expertise
122
carriers reviewed
20.7K
ZIP codes examined
Dollar Coin
1.2M
quotes analyzed
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
Auto
$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our sample drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
Age: Rates were calculated by evaluating our base profile with the ages 16-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts.
The rates for drivers ages 16–20 added to their parent’s policy reflect the good student and driver’s training discounts applied. The rates for drivers aged 16-20 on their own policy do not include the good student and driver’s training discounts. Additionally, 25-year-old rates are based on the driver as a renter and 30+ on the driver as a homeowner.
Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), single speeding ticket and single at-fault accident.
Homeowners
Coverage A, Dwelling: $150,000, $250,000, $350,000, $450,000, $750,000
Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000, $75,000
Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000, $375,000
Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000, $150,000
Coverage E, Liability: $300,000, $300,000, $300,000, $300,000, $500,000
Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
Bankrate Scores
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
Tier 3 (Support): To encompass the many ways an auto and home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company’s true score in each category out of a possible five points.
You May Be Eligible to Save Over $10K in an HSA in 2024 After Largest-Ever Contribution Limit Increase
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People with health savings accounts (HSAs) got some good news this week when the IRS rolled out the largest contribution limit increases in history.
In 2024, an individual with self-only coverage can save up to $4,150 in an HSA, while a family can sock away up to $8,300. Catch-up contributions still allow people 55 and older to save an extra $1,000 per year, meaning some married couples will soon be allowed to save more than $10,000 in an HSA.
A financial advisor can help you plan for retirement, including your future healthcare costs. Find an advisor today.
HSAs are tax-advantaged savings vehicles that help people enrolled in high-deductible health plans (HDHPs) save for annual medical expenses. But unlike flexible spending accounts (FSAs), funds in an HSA can be carried over from year to year, making these accounts an important component of long-term financial plans.
Largest Increases on Record
Next year’s HSA contributions limit increases will be the largest on record since HSAs were first introduced in 2003. The IRS adjusts these limits each year to keep pace with inflation.
For individuals, the savings cap will rise 7.8% from $3,850 in 2023, while families will see their limit increase 7.1% from $7,750. A year ago the limits rose 5.5% and 6.2%, respectively. However, persistent inflation is pushing these caps even higher on Jan. 1, 2024.
HSA contribution limits for an individual with single, self-coverage:
2023: $3,850
2024: $4,150
HSA contribution limits for an individual with family coverage:
2023: $7,750
2024: $8,300
The changes will also affect what constitutes an HDHP. In 2024, health plans will qualify for HSAs if their deductibles are at least $1,600 for self-only coverage and $3,200 for family coverage.
Why HSA Contribution Limits Matter
Higher contribution limits not only mean that people can save more for qualified medical expenses, but they also provide an even larger potential tax break for HSA owners. Since contributions are tax-deductible, higher caps mean a person with an HSA will be able to reduce his taxable income by several hundred dollars more in 2024 than in 2023.
Of course, that’s not the only tax advantage of an HSA. Money that’s kept in this type of account also grows tax-free and can be withdrawn free of tax, provided it’s used to pay for qualified expenses.
And since HSA funds carry over each year, they’re a great way for pre-retirees to save up for the onerous healthcare expenses they may encounter in retirement.
A recent study from the Employee Benefit Research Institute found that despite the coverage offered by Medicare, retirees should prepare to pay significant out-of-pocket costs for their healthcare. These costs include a wide range of expenses, including insurance premiums, program deductibles and prescription drug treatments.
In fact, even with supplemental Medicare gap insurance, men will need an average of $166,000 in savings to pay for their healthcare needs in retirement. Since women have longer expected lifespans, that number is even higher: $197,000. Meanwhile, the average two-person household should anticipate needing $318,000, according to EBRI.
Bottom Line
With inflation remaining elevated, the IRS has increased the amount of money that individuals and families can save in their HSAs in 2024. The contribution limit increases are the largest on record. People with self-only coverage will be able to sock away $4,150 in 2024, while families will be permitted to save $8,300. The $1,000 catch-up contribution remains unchanged, meaning married couples can save $10,300 in an HSA in 2024.
Tips for Contributing to an HSA
Some HSAs allow you to invest your contributions in mutual funds and other financial products. Be sure to read our latest HSA investment guide to help you determine how you should invest your HSA funds. Our asset allocation calculator can also help you find an investment mix that suits your tolerance for risk.
A financial advisor can help you integrate your HSA savings into a comprehensive financial plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Patrick Villanova, CEPF®
Patrick Villanova is a writer for SmartAsset, covering a variety of personal finance topics, including retirement and investing. Before joining SmartAsset, Patrick worked as an editor at The Jersey Journal. His work has also appeared on NJ.com and in The Star-Ledger. Patrick is a graduate of the University of New Hampshire, where he studied English and developed his love of writing. In his free time, he enjoys hiking, trying out new recipes in the kitchen and watching his beloved New York sports teams. A New Jersey native, he currently lives in Jersey City.
While price is important to many people, you might also want to consider other factors when choosing an auto insurance company. The best car insurance policy looks different for everyone and will depend on your needs, lifestyle and financial responsibilities. To see which car insurance company might provide the best fit and options for you, here are some steps you can take.
Consider minimum insurance requirements in California
California requires drivers to carry at least minimum levels of liability insurance coverage on their vehicles to drive legally in the state. This includes the required minimum amounts of bodily injury liability and property damage liability coverage. According to the California Department of Motor Vehicles, all California motorists must carry at least:
$15,000 in bodily injury liability coverage per person
$30,000 in bodily injury liability coverage per accident
$5,000 in property damage liability per accident
California also requires that insurance companies offer you uninsured and underinsured motorist bodily injury coverage, along with uninsured motorist property damage, but you can decline in writing if you do not want to have them. Understanding California’s car insurance laws can help you understand if you need additional coverage or higher limits.
Consider lender requirements
If you finance or lease your vehicle, you may need to purchase a car insurance policy that complies with your financial institution’s requirements. For example, collision and comprehensive insurance are typically optional coverage types, but if your car is financed, most lenders will require you to purchase them. This is commonly known as a “full coverage” policy. Your financial institution may also require you to purchase higher liability limits, especially if you lease your vehicle. You might also want to consider gap insurance, which is designed to pay the difference between your vehicle’s actual cash value and the loan or lease amount if your car is totaled or stolen. According to the Insurance Information Institute (Triple-I), it is typically cheaper to purchase gap insurance from your insurer instead of from an auto dealer.
Consider your individual needs
Every driver has a different set of auto insurance considerations. You might live in an area where traffic and tourism are heavy, like Los Angeles or San Francisco, have a teen driver to insure or maybe have a few accidents or moving violations on your driving record. Based on your unique needs, it could make sense to have collision coverage and comprehensive coverage, uninsured motorist coverage or towing and rental reimbursement. Understanding your individual coverage needs might help you narrow down the companies you request quotes from. Households with teen drivers might look for companies with specialized young driver discounts, for example.
The average cost of car insurance in New Jersey is $1,754 per year for full coverage, according to 2022 data obtained from Quadrant Information Services. Minimum coverage costs an average of $782 each year. This means that New Jersey’s minimum coverage is above the national average of $622, while full coverage is well below the national average of $2,014. The higher minimum rate may be related to the high number of urban areas there are in the state, where you will often see elevated rates to reflect the increased possibility of accidents. Additionally, New Jersey has just implemented Phase I of a two-phased approach to raising the minimum levels of liability coverage required to drive legally in the state. You should keep in mind that your rates will likely differ from the averages based on your individual rating factors.
Also, compared to the rates of nearby states, New Jersey’s premiums come in below average. Take Pennsylvania, for instance. Although Pennsylvania and New Jersey are neighbors, the average cost for a full coverage policy in Pennsylvania is $2,040 per year, more than $200 higher than New Jersey. New York, one of the most expensive states for car insurance in the country, is even higher, averaging a whopping $3,139 annually for full coverage.
How to find the best car insurance in New Jersey
Drivers in New Jersey must maintain continuous coverage to avoid potential hefty fines and suspensions to their driver’s licenses and vehicle registrations. In addition to complying with the law, a sufficient car insurance policy could provide essential financial protection if you are involved in a car accident. Since every driver has their own needs when it comes to auto insurance, no one company will be best for all. For this reason, it may be a good idea to shop around and request quotes from multiple companies. We’ve compiled some things you might want to keep in mind while you’re shopping so that you can find auto insurance in New Jersey that fits your needs.
Consider minimum insurance requirements in New Jersey
New Jersey car insurance laws are unique, and it is a no-fault state. There are two options for minimum required coverage: the basic policy and the standard policy. Basic policies include just a required level of property damage liability per accident and personal injury protection (PIP) coverage and come with the option to purchase bodily injury liability coverage. If you choose a basic policy, your ability to add other coverage types could be limited.
Standard policies include bodily injury liability, property damage liability and PIP, and also come with a broader range of optional endorsements to choose from. Understanding New Jersey’s car insurance laws could help you decide if you need to purchase more coverage than just the minimum required. In 2023 and again in 2026, the minimum liability levels required to drive legally are increasing, which will likely mean a corresponding increase in your premium if you opt for minimum coverage car insurance.
Consider lender requirements
Drivers with loans or leases may have additional car insurance requirements to consider. Financing and leasing companies want financial protection for their asset (your vehicle) until it is paid off and in your name. They often do this by imposing insurance requirements that you must meet to comply with your financing or leasing agreement. To satisfy lender requirements, you may need to have full coverage insurance, which includes comprehensive coverage and collision coverage on your car insurance. Although not required, you could also consider gap insurance, which helps pay the difference between your loan balance and your vehicle’s cash value if your car is totaled.
Consider your individual needs
Auto insurance is a highly personalized product. Each driver has their own needs, but you might find that not every company offers what you are looking for. If you have a youthful driver in your home, you may need to tailor your search toward companies that offer cheap car insurance rates for teens. Those who work remotely may find savings by purchasing pay-per-mile insurance. If you drive for a ridesharing company like Uber or Lyft, you may need to find a company that offers rideshare insurance. Before you shop, it can be helpful to list your priorities and use this as a guide while requesting car insurance quotes.
Save more, spend smarter, and make your money go further
Finding an insurance policy can be a tedious process, especially dealing with the jargon involved. Insurance policies are, after all, legal contracts between you and your insurer. These contracts have to navigate the conditions of a wide range of claims, for a wide range of scenarios. They tell you who is and isn’t covered, and what is and isn’t covered.
Insurance policies become so abstract that even everyday words we take for granted — like “you” and “we” — need to be clearly defined. Doing so leaves no ambiguity, no snags. At least, that’s the idea.
But because you have a life, you probably don’t speak insurance. That’s not a problem. We’ll outline car insurance terms that don’t usually come up during family dinners or on a first date. And “we’ll” do so (meaning, I’ll do so) in plain English. That way “you” (as in you, the reader) can be a savvier shopper.
Deductibles
Your deductible is what you pay out of pocket before coverage kicks in. Say someone careens into your car while it’s parked. They cause $3,000 worth of damage and your deductible is $500. You’d first pay the deductible toward repairs, and your insurer would pay the remaining $2,500.
Whether you choose a higher or lower deductible is up to you. Higher deductibles usually mean lower premiums because you’re taking on more of the financial risk. A lower deductible means a higher premium, but you’d pay less out of pocket for a claim.
Binder
To put it simply, a binder is a temporary insurance policy. It can come in handy when you need proof of insurance on-the-spot.
If, for example, you’re getting a car loan, your loan company will likely ask for proof of insurance. Your insurer can provide you with an insurance binder so that you’re not waiting for your insurance policy to be processed. A binder is typically good for 30 or 60 days and falls off once your formal insurance policy is produced.
Full Coverage Car Insurance
It’s a phrase used frequently, but truth be told, there’s actually no such thing as “full coverage.” When people use this term, they’re likely referring to comprehensive and collision. Together, these guard your ride against an array of perils.
Comprehensive helps cover you for most damages not caused by collisions. That means vandalism, falling trees, theft, fires and mudslides, to name a few.
Collision coverage helps pay for damages caused by — you guessed it — collisions, be they with another car or an object. In order to add collision to your policy, many insurers require you to have comprehensive coverage, too.
Gap Insurance
Financing or leasing a car? This coverage could help pay the difference — or the gap — between what you owe on it and how much it’s worth when you have an accident.
Especially if you’re leasing, your contract will likely require you to have gap coverage. What’s more, it might be included automatically.
If it isn’t, however, you may want to seriously consider adding it ASAP. There’s a good chance the gap will be there for at least a couple years. You’d be responsible for the difference, and it could save you from being thousands of dollars in the red.
It’s also important to note that comprehensive and collision are typically required in order to add gap insurance. If you’re unsure about that, you can always check the declaration page on your policy.
What’s the declaration page, you ask? Perfect segue.
Declaration Page
Also simply called “dec,” this is typically the first page of an auto insurance policy. It provides the who, what, where and when of your insurance plan. You’ll find pertinent info like:
The names of everyone listed on your policy
Excluded drivers
Your policy number
The start and end dates of your policy term
Your address
Your insurer’s address
You’ll also find info on your coverages, limits and deductibles, which can be especially helpful. The dec doesn’t provide all-encompassing detail, but it is an easy-to-read summary.
Loss Payees
You might notice another individual listed on the dec page — the loss payee. This is either a person or an institution that has a stake in your vehicle.
So if you’ve just financed a car, say, then the lender would be listed as the loss payee. Because they’re loaning you money for the purchase, they have an “insurable interest” in it and want to protect their investment. By being listed on your policy, the loss payee can stay up to speed with its status and have peace of mind — just like you — knowing that coverage is still in effect. You’ll also find your loss payee’s name, address and contact info on the dec page.
Anything Amiss? Ask.
If anything’s ever unclear, don’t hesitate to ask your insurer. That’s what they’re there for, after all. Besides, asking questions can be a skillful way to gauge just how top-notch and transparent an insurance company is.
Familiarizing yourself with the basic nomenclature of insurance can not only help remove its otherwise ominous-sounding tone. It can help you fully understand what you’re looking at when it comes time to evaluate your insurance needs — without having to make a day of it. You have better things to do.
Eric Madia is Vice President of Product Design at Esurance, where he is responsible for designing the company’s personal lines products. Eric has 23 years of experience in the insurance industry, focused primarily on underwriting, pricing, and product innovation. You can learn more about Esurance home and auto insurance policies by visiting their website.
*This blog post does not constitute, and should not be considered a substitute for legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.
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Simply put, liability-only car insurance is a type of policy that only provides coverage for damages you cause, not damages you sustain. Full coverage builds on liability-only and adds additional coverage, including coverage for damages to your vehicle from collisions as well as non-collision incidents such as storms and fires. In the U.S., the average cost of car insurance for minimum coverage — the lowest coverage level of insurance that you can purchase — is $622 per year, while full coverage costs an average of $2,014 per year.
Keep in mind, though, that your auto insurance needs will likely change over time. You may find that full coverage is the best option for you now, while in the future, you may be more apt to choose liability-only. Reassessing your needs once in a while, especially if you’ve recently gone through a life change, can help you align your coverage with your circumstances. Below, we delve deeper into the differences between liability-only and full coverage to help you determine which is best for you as you gather car insurance quotes.
Liability-only car insurance
Liability car insurance coverage is the part of your policy that pays for the injuries and damages you cause to someone else in an at-fault auto accident. Most states require drivers to carry at least a minimum car insurance coverage limit, often called “minimum coverage.” However, you can buy higher liability limits than required by your state and still have a “liability-only” policy, as long as you don’t add coverage for damage to your vehicle.
Liability coverage is broken down into two parts:
Bodily injury liability: This coverage pays for the injuries you cause to another party in an at-fault accident.
Property damage liability: This portion of your liability coverage pays for the damages you cause to another’s property, such as another vehicle, a fence or a building.
Liability coverage is often listed as split limits, which are listed in a bodily injury per person / bodily injury per accident / property damage per accident format. However, your liability coverage may also be a “combined single limit,” meaning it’s one number that can be used flexibly to cover the damages and injuries you cause.
Some states also require other coverage types as part of their minimum coverage requirements, including:
Personal injury protection (PIP): This coverage pays for your medical bills and your passengers’ medical bills if you are injured in an accident, regardless of fault. PIP may also pay for lost wages and the costs for household services you can’t perform due to injuries. In no-fault states, PIP is required.
Uninsured and underinsured motorist: These two coverage types pay for injuries you sustain if you are hit by a driver who does not have insurance or does not have enough insurance to cover your bills. This also provides coverage if you are a pedestrian hit by an uninsured motorist or a victim of a hit-and-run accident.
Medical payments: Although only required in a few states, medical payments coverage is similar to PIP. It pays for your injuries and the injuries to your passengers regardless of fault. However, medical payments coverage does not cover lost wages or household services like PIP.
Takeaway: You must purchase a car insurance policy with at least your state’s minimum required coverage types and limits in states where car insurance is required. However, you can purchase higher liability limits and other coverage types, such as medical payments, and still have a “liability-only” policy.
Full coverage car insurance
Full coverage car insurance refers to a policy that has all the state-required coverage types as well as comprehensive and collision coverage, which add coverage for damage to your vehicle. While it’s possible to have a full coverage policy with low liability limits, many full coverage policies have higher limits for liability coverage to offer more robust coverage and greater financial protection for you and your family.
Full coverage policies include:
Collision: This coverage pays for your vehicle’s damages from collisions, such as hitting another vehicle, tree or building. Collision coverage will help cover your vehicle’s repairs in a covered claim, regardless of fault.
Comprehensive: Often called “other-than-collision” coverage, comprehensive pays for non-collision damages, such as damages caused by fire, theft, weather, vandalism or striking an animal.
You may also be able to add some additional coverage types, known as endorsements, to full coverage policies:
Rental reimbursement: This coverage will pay for a rental car if your vehicle is not driveable and is being repaired or replaced by a claim covered under your comprehensive or collision coverage. There is generally a per-day coverage limit and a total maximum amount of coverage limit.
Roadside assistance: This endorsement pays for service calls needed for your vehicle, like a tow, jump start or tire repair service.
Gap insurance: Gap coverage is designed to pay the difference between your new car’s actual cash value and the amount you owe on a loan or lease. If your vehicle is totaled or stolen and you owe more than the car is worth, gap coverage pays the difference.
Takeaway: A full coverage policy is generally more expensive than a liability-only policy, but it provides more financial protection and often has higher liability limits. Full coverage is often required when a vehicle is financed or leased. Additionally, you must have full coverage to qualify for several common endorsements, including car rental coverage and roadside assistance.
The best home and auto insurance bundles Here are some of the best bundle offers from insurance companies: Best Customer Support: Progressive Best Coverage Options: State Farm Best for Discounts: Allstate Best for Military Members: USAA Note that some of these offers may not be available in every state. Some states might also have additional […]
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