An individual who resides in the United States will need more than likely need to obtain an auto insurance at one point in their lives if they plan on operating an automobile legally; unfortunately many consumers look to find out how much does car insurance cost and never fully understand what will affect what they will ultimately end up paying for coverage. All though many factors that are used by insurers to calculate premiums may be out of the control of individuals, there are several factors that are use to rate drivers that have a big impact on rates which motorists can make sure to take care of instead of having to pay inflated premiums. The average consumer is aware that when they apply for coverage the insurer will usually evaluate them pretty closely to assess the risk that they pose as a potential policyholder. Although many are aware that their driving record will play a big role in what they may end up paying for a policy, there are several other factors used which individuals may not be aware of. Many are unaware that a person's place of residence can make the price of premiums substantially; if a person lives in an area that has a high number of traffic accidents than their premiums can reflect this and the same applies with crime rate if a motorist is purchasing comprehensive coverage. Another unfamiliar factor is credit, many states allow a consumer's credit report to be used when rating driver's and in some cases the carriers will raise rates for those with bad credit or even deny coverage.

Individuals who reside in almost any state including the District of Columbia will be mandated to be financially responsible to compensate for expenses that arise from a traffic accident in which they cause. While some states require motorists to obtain policies covering third parties and others requiring that the insured cover their own injuries all will require coverage for damage caused to another person's property and many cases individuals will need to prove that they are covered; although many states may allow proof of with cash deposits or bonds posted with the state’s motor vehicle authority the most common method of satisfying this requirement is by purchasing an auto insurance policy. In addition to purchasing coverage, many states require that motorists carry proof of insurance at all times while behind the wheel of a vehicle and failure to do so can end in some unneeded expenses. Documentation proving that an automobile is insured may be necessary when requested by a law enforcement officer following a traffic stop and will more than likely be needed following an accident. Not having the ability to furnish the proper documentation can result in fines, suspension of the driver’s license and in some states an officer may even have the vehicle impounded; fees resulting from having a vehicle impounded can be extremely expensive, all of which can be avoided by simply carrying the necessary documents while driving a car.

Motorists who intend on owning and/or operating a vehicle will most likely be in need of an automobile policy, but in some cases many do not fully understand their coverage options or what may be needed to obtain the right policies. There are a number of individuals who become insured solely to satisfy a state's particular requirements while others may purchase a policy consisting of options which may not be needed and can become over insured. In both cases, the wrong coverage may have been obtained and either a person would not be properly protecting assets or they are paying more than what is necessary. The most common car insurance recommendations from industry professionals and government consumer guides alike is to obtain a policy which will protect an individual's assets and avoid purchasing products that would not be worth the premium. For example, if a person resides in a state which only requires basic liability, it should be determined whether the minimum limits required will be adequate or if higher limits will be needed. States such as Ohio require very low liability limits of $12,500 for bodily injury per person and $25,000 for bodily injury per accident which are among the lowest in the country; a motorist in Ohio will need to make the determination whether these amounts would provide sufficient protection for their assets should an accident be caused in which medical care exceeds these amounts.