Auto Insurance Basics

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Auto Insurance 101: What You Need to Know

Every state requires drivers to carry some form of minimum auto insurance. The law is designed to protect you and other drivers on the road. But when you buy car insurance what exactly are you buying?

It’s important to understand your options when you’re looking for an insurance policy as well as how you can get the best car insurance rates. That includes knowing what kinds of insurance options are out there, what you need to purchase a policy, and how your driving history could impact what your insurance may cover if you need to file a claim. 

At Humble Eagle, we believe that everyone should be able to make an informed decision about their auto insurance coverage. That’s why we created this complete guide to understanding the basics of auto insurance.

Already know the auto insurance basics? Get your free quote now. 

What Auto Insurance Can Cover

In general, there are three areas that insurance can cover: 

  • Liability: This type of insurance is mandatory. It covers the financial costs toward another driver if you are found at fault for causing an accident. 
  • Physical Damage: This will pay for damage that happens to your car after an accident. It also covers theft or damages that result from something other than a collision like, say, a runaway baseball. 
  • Medical Payments: The name kind of says it all. Medical payments coverage covers medical expenses for those who are hurt in your vehicle. It could also cover the cost of lost wages or funeral expenses. 

Not so hard, right? Well, don’t get too excited. There are still the six basic types of auto insurance that can be built into one policy. Each of these types fall within one of the three areas listed above. Basically, an insurance policy can be built using the following parts: 

  • Bodily Injury Liability
  • Property Damage
  • Medical Payments or Personal Injury Protection (PIP)
  • Collision 
  • Comprehensive
  • Uninsured Motorist Coverage

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How Long It Takes Before You Can Use Insurance

After they purchase their policy, many buyers wonder: “How fast does insurance kick in?” Most insurers offer same-day coverage for their insurance policies. That means that after you get your quote and make your down payment, you’ll be covered instantly. 

What Documents You Need to Get Insurance 


When you purchase a new policy, you’ll usually need to provide some standard information, even if you buy car insurance online. So you should keep the following information handy: 

  • Driver’s license
  • Proof of insurance
  • Bank information 
  • Social Security Number (SSN)
  • Vehicle registration/information

What High-Risk Drivers Need to Know 

A driver might be labeled as high risk for multiple reasons such as: 

  • Receiving too many speeding tickets. 
  • Getting a DUI conviction. 
  • Having a suspended license. 
  • Fatal accident history. 
  • Reckless driving history. 

If you’ve been labeled a high-risk driver, you may find it difficult to find cheap car insurance.  In some cases, you may also have to file an SR-22, which essentially verifies that you have auto insurance with the DMV. If you do need an SR-22, Humble Eagle can help you find an insurance provider who will file one for you.

As a high-risk driver, your chance for the best car insurance rate will be with a provider that works with all kinds of drivers, like Humble Eagle. Many of these providers offer car insurance online so you can easily compare car insurance quotes to get the best coverage. 

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Used or New Car Auto Insurance

Sometimes, the type of car that you drive will determine whether or not you’ll be able to find cheap auto insurance. 

In general, used cars come with slightly cheaper policies in comparison to new cars. However, this isn’t a fool-proof rule. Some new cars come with safety features that lower the cost of the insurance while some used cars may have higher premiums because of risks associated with driving them.

The best way to determine whether you will get a cheap car insurance rate or not is to get a quote.

Humble Eagle’s Policies 

Humble Eagle offers cheap car insurance policies to drivers with a wide range of backgrounds. In fact, we’ll work with most drivers to find a coverage option that works best for them. So whether you’re tight on cash or have been labeled a high-risk driver, we can work with you. Get a quick car insurance quote today.

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