Types of Car Insurance Policies

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By Ava Lynch

Updated October 25, 2021

What is an auto insurance policy?

Your car insurance policy determines your coverage and your premium. In short, it is a way to organize car insurance coverage options to meet your needs. In this article, we’ll outline some popular car insurance policy types as well as some popular policies that may not exist exactly as advertised.

Popular car insurance policy types

Below are some popular and standard car insurance policy classifications. You can purchase these policies from national and local insurance providers.

6-Month Car Insurance	Car Insurance for Renters
12-Month Car Insurance	Car Insurance for Condo Owners
6-vs-12-Month Car Insurance	Car Insurance for Homeowners
Car Insurance for Multiple Drivers	Car Insurance for Shared Vehicles
Car Insurance for Multiple Vehicles	Car Insurance with Kids
Named Driver Policy	Car Insurance with a Nanny

Company and state-specific policies

Below are policies often subject to state and company-specific requirements. These are not always available.

Car Insurance with Telematics	AARP Car Insurance
Pay-Per-Mile Car Insurance	AARP vs. AAA Car Insurance
Car Insurance for Commuters	Costco Car Insurance
Car Insurance for Pleasure Use Drivers	GEICO vs. Costco Car Insurance
Pleasure vs. Commuting Car Insurance	State Farm vs. Costco Car Insurance

Commonly advertised policies

There are many policies that are advertised by insurance companies that don’t actually exist as marketed. Below are some policy types worth being aware of. If you're interested in these policies, follow the link to learn more about alternative options.

If you’re looking for other auto insurance policies, see the additional resources below!

Ready to shop for insurance? See the following to get started.

Can I remove a vehicle from my policy if it is broken down?

If the vehicle isn't being driven then you don't have to insure it. However, Florida requires any registered vehicle to be insured so you may need to suspend the vehicle registration as well if you decide to remove it from your policy.

Jul 13, 2017 Pensacola, FL

Will Erie reinstate my policy after non-payment?

It's very likely they will reinstate your policy if you pay the amount past due and any potential fees associated with the cancellation. Because each company has their own administrative rules regarding reinstatement, it's very likely for you to be able to get your policy active again.

Jan 18, 2018 Greensburg, Pennsylvania

I live with mom and we have an umbrella policy and a car insurance policy. I want to switch companies but mom says I can't.

When it comes to having an umbrella policy, anyone is able to purchase one. However, there are certain qualifications you are going to need in order to purchase one.

Jul 13, 2021 Danville, CA

Is it possible to insure three vehicles with two different companies?

You should be able to find a company that would only insure the other vehicle, if that's what you want to do. However, since there is a base cost associated with each policy it's normally recommended that you combine all of your vehicles on one policy since it's usually cheaper.

Nov 3, 2016 Los Angeles, CA

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