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BUSN235; Personal Finance Week 5 Vehicle Insurance Coverage

Your assignment this week focuses on vehicle insurance coverage in your current (or your home) state (or country) and one other state of your choosing. The following elements should be thoroughly researched and reported on in this essay:

  • What personal and state factors are used to decide vehicle insurance coverages and rates?

  • What minimum auto insurance must you carry by law in your state and one additional state? You will find state-by-state minimum car insurance data at The Balance Website.

  • Have you decided to carry any insurance over the minimum requirements, and why or why not?

  • How do average annual vehicle insurance rates (costs per vehicle) in your state compare the other state you have chosen?

  • Vehicle insurance rates are partially based on the rates of accidents, injuries, and deaths in your state. Report on your and one other state's statistics. A good resource to use is the National Highway Traffic Safety Administration.

  • What optional insurance coverages are available to purchase, and which have you chosen and why?

  • What do you pay for car insurance per month, and have you learned any ways to reduce your premium?

Vehicle Insurance Overview

Have you ever thought about becoming a car owner, and once you made that decision on which vehicle you chose to purchase, would it simply be it? However, that is just the beginning of determining which insurance is best for you. My reasons for specific vehicle insurance coverage and rates depend on the state I’m currently stationed at or the home state I am originally from. In this essay, I will be going over the following topics: Factors Affecting Insurance Rates, Comparison of Coverage and Costs, My Coverage, and Ways to Save.

Factors Affecting Insurance Rates

My personal and state factors for my personal preference will always go by the location for myself and my family. Instead, living in a big city or a small town will play a significant role in determining the best insurance coverage I will choose. For example, New York City will require a higher coverage rate due to the busy city life New York presents. The two states I decided to use are North Carolina which I am originally from, and Alaska is, where I am currently stationed. The information I retrieved from the accident statistics on the state of North Carolina occupants killed in fatal crashes from 2016-to 2020 was a total of 6,087. In Alaska, occupants killed in fatal crashes from 2016-to 2020 were 6,393.

North Carolina and Alaska have different minimum insurance required and the average costs per vehicle. From The Balance Sheet worksite, North Carolina’s minimum insurance coverage of bodily injury liability is 30k per person/60k per accident, property damage liability 25k per accident, uninsured motorist coverage per person 30k/60k per accident, and uninsured motorist property damage coverage 25k per accident. Alaska’s minimum bodily injury liability is 50k per person/100k per accident, and property damage liability is 25k per accident. (ARAUJO, 2021) I believe the difference between North Carolina and Alaska’s minimum coverage amount diff is because Alaska is entirely different from the lower 48 states below, even with winter being terrible. Population and tourists don’t explore Alaska as much compared to North Carolina.

My Coverage

The type of coverage I have for my vehicle is full coverage on my primary family vehicle and just liability for my work vehicle only for work and back home. For my 2021 Chevy Traverse, my range is $587.96, and my 2013 Hyundai Sonata is $392.27, and both are a 6-month premium. For my Chevy Traverse, it is a must that I have full coverage due to my family using the vehicle daily, and for my Hyundai, due to me just going to work and back, liability is the best option to have. I have additional insurance added to my coverage, such as extended transportation expenses for both vehicles; for example, having a vehicle break down and not having another car to drive can be very costly in rental car purchases out of pocket. I also have towing and labor in case of any vehicle breakdowns.

Ways to Save

Being in the military gives us a lot of rates to provide additional discounts, and I enjoy every penny it has to offer. To receive the deal, we must set up an automatic payments plan, daytime running lights discount, multi-car discount, passive restraint discount, premier driver discount, and new vehicle discount. I’m always looking for more ways to save money, so I will find more if they’re out there.


In conclusion, having a vehicle is very important and fun, but finding the right insurance can be the real challenge. Determining the affecting insurance rates, your coverage, and many ways to save are all ways to help make the right choice in helping you choose the best insurance rate for you and or your family. Remember, every penny is worth saving.


Minimum Car Insurance Requirements by State (ARAUJO, 2021).

National Highway Traffic Safety Administration

FIRST Queried Data (

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