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Flood insurance is designed to help homeowners, renters, and business owners cover losses caused by a flood. You can buy it to protect a building, the possessions in that building, or both.

Most standard homeowners policies don’t cover flood damage. So this separate insurance coverage is your best option for repairing or replacing property after rising water rises enters your home. In some areas, mortgage lenders can make buying flood insurance mandatory. Even if your lender doesn’t require flood insurance, you may want to consider it.

Read on for information that can help you decide if a flood policy should be part of your insurance coverage.

What Is Flood Insurance?

According to the Federal Emergency Management Agency (FEMA), just one inch of floodwater can cause up to $25,000 in damage. And that damage probably won’t be covered by your homeowners or renters insurance. You can, however, purchase a standalone flood insurance policy to help cover your losses.

A flood insurance policy is meant to cover losses directly caused by flooding or, as FEMA describes it, “an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties.”

If your sewer backed up after heavy rainfall, or rising inland or tidal waters flooded your property, the damage would likely be covered by flood insurance. But if the backup wasn’t caused by flooding, the damage wouldn’t be covered by flood insurance. (Whether it’s covered by your homeowners insurance depends on your individual policy.)

Most people get their flood policy through the National Flood Insurance Program (NFIP), which is managed by FEMA and works with a network of insurance companies across the country. But some private insurance companies also offer their own flood policies, which are not government-backed.

Recommended: Mortgage & Homeowners Insurance Definitions

What Is Included in Standard Flood Insurance?

The NFIP offers two types of flood insurance coverage: one that covers buildings and another that covers the owner’s or renter’s personal contents.

A policy purchased through the NFIP can reimburse up to $250,000 in building damage and typically covers:

•   Foundation walls, anchoring systems, and staircases

•   Detached garages

•   Electrical and plumbing systems

•   Furnaces and water heaters

•   Fuel tanks, well water tanks and pumps, and solar energy equipment

•   Appliances, including refrigerators, stoves, and built-in dishwashers

•   Permanently installed cabinets, paneling, and bookcases

•   Permanently installed carpeting and window blinds

An NFIP policy can provide up to $100,000 in personal property damage, and typically covers:

•   Personal belongings, such as clothing, furniture, and electronic equipment (TVs, computers, etc.)

•   Valuables (like original artwork and furs) up to $2,500

•   Portable and window air conditioners

•   Washers and dryers

•   Microwave ovens

•   Carpets that may not be included under building coverage

•   Curtains and other window coverings

What Doesn’t Flood Insurance Cover?

There are a few things NFIP flood insurance doesn’t cover, even if the damage is directly caused by flooding. Items that aren’t covered include:

•   Any property that’s outside the insured building (such as a well, septic system, deck or patio, fences, seawall, hot tub or pool, and landscaping)

•   Cars and most other self-propelled vehicles and their parts

•   Cash, coins, precious metals, stock certificates, and other valuable paperwork

•   Damage from mold or mildew that could have been prevented by the property owner

•   Financial losses caused by an interruption in business

Flood insurance also doesn’t cover costs incurred if you have to live in temporary housing because of damage to your property. Unfortunately, neither will the “loss of use coverage” you may have through your homeowners policy. (Loss of use coverage pays those expenses only when the reason you’ve been displaced is covered by your homeowners policy.)

What Does Flood Insurance Cover in the Basement?

The NFIP’s coverage for flood damage in the basement is limited to some specific (usually permanent or attached) items and cleanup. Some examples of what should be covered include:

•   Central air conditioners

•   Fuel tanks and the fuel in them

•   Furnaces and water heaters

•   Sump pumps, heat pumps, and well water tanks and pumps

•   Electrical outlets, switches, and junction and circuit breaker boxes

•   Elevators, dumbwaiters, and related equipment

•   Unfinished drywall for walls and ceilings

•   Attached stairways and staircases

•   Foundation elements and anchoring systems required for building support

Most personal property kept in the basement isn’t covered, including clothing, computers, TVs, and furniture.

Where Can You Get Flood Insurance?

Federal flood insurance isn’t sold directly by the federal government. Instead, you can buy NFIP policies through private insurance companies, under what’s known as a Write Your Own (WYO) program.

The NFIP partners with more than 50 insurance companies, so you may be able to work with the same insurance agent or broker who helped you purchase your home and auto policies to get flood coverage.

You can get help finding an NFIP provider online at floodsmart.gov/flood-insurance-provider or by calling the NFIP at 877-336-2627. You also can also check into any private, non-government-backed flood insurance policies that are offered in your area.

You may want to look at including flood insurance as part of your overall personal insurance planning. Don’t wait until you hear predictions of a storm heading your way to start inquiring about a policy, though. There is typically a 30-day waiting period for a flood insurance policy to go into effect.

How Much Does Flood Insurance Cost?

Like most insurance, the cost of a flood policy can depend on the coverage type (building and/or personal contents), the size and age of the building covered, the risk level in your location (based on your flood zone), and other factors, including whether you’re buying a private or NFIP policy.

According to the Federal Emergency Management Agency (FEMA), the average cost of one year of coverage with an NFIP policy is $786. And though that’s not nearly as much as the average cost of a homeowners policy, it can still be a hit to many household budgets.

You may be able to lower the cost of a flood policy by choosing a higher deductible. You can also elevate your home’s electrical panels, heating and cooling systems, and other utilities so they’re less vulnerable to water damage.

For renters, the NFIP offers contents-only policies for as low as $99 annually.

You can also look for a competitive quote on a private flood policy that isn’t backed by FEMA and the NFIP. Just make sure you’re getting a fair price from a stable company that is capable of paying out claims in the event of a major flood.

When Is Flood Insurance Required?

If you have a government-backed mortgage and your home or business is in a high-risk flood area, you are required to have flood insurance. If you don’t have a government-backed loan, your lender may still require that you purchase a flood policy. Even lenders in moderate- to low-risk locations may make it a loan requirement.

Recommended: Is Homeowners Insurance Required to Buy a Home?

Who Should Buy Flood Insurance?

Knowing your designated flood zone can help you decide whether you want to prioritize purchasing flood insurance. You can find your zone by entering your address at the FEMA Flood Map Service Center at MSC.FEMA.gov.

Structures in zones A and V are at the highest risk, while those in zones B, C, and X are considered at moderate to minimal risk. Keep in mind, though, that you can still experience flood damage even if you don’t live in a high-risk zone. According to NFIP data, more than 20% of all insurance claims come from moderate- to low-risk zones.

If you’re moving to a new area where flood insurance isn’t required, you may want to speak with your real estate agent or neighbors about the area’s history and potential for flooding.

How Much Flood Insurance Do You Need?

In many ways, shopping for flood insurance is similar to how you buy homeowners insurance: Calculating how much you’ll need will depend on what you plan to protect and what it might cost to replace if it’s destroyed.

In fact, whether you go with an online insurance company or a traditional insurer, your homeowners insurance company may give you an idea of what it might cost to rebuild or repair your home if it’s damaged. Then you can add on the value of your furnishings and other personal possessions to decide how much flood insurance you need. (If you’re a renter, you can purchase a policy that covers only your belongings.)

Remember, there are limits to how much coverage you can get through an NFIP policy ($250,000 for a building and $100,000 for the contents). If your needs go beyond those limits, you may want to consider buying excess flood insurance through a private flood policy.

The Takeaway

An average flood insurance policy for homeowners costs $786 a year. But most homeowners insurance policies don’t cover flood damage, which can leave a big gap when it comes to protecting your home and belongings. Purchasing a separate flood insurance policy can help fill that gap, and it can be an important part of your overall insurance planning.

Flood policies can cover the building itself, its contents, or both. Make sure you understand what isn’t covered by your policy, such as personal belongings stored in the basement or outside.

If you’re a new homebuyer, SoFi Protect can help you look into your insurance options. SoFi and Lemonade offer homeowners insurance that requires no brokers and no paperwork. Secure the coverage that works best for you and your home.

FAQ

What losses are covered by flood insurance?

A flood insurance policy covers direct physical losses caused by a flood. That could mean repairing or replacing your home, or the furnishings and other belongings in your home, or both.

How do I know if I’m in a flood zone?

Everyone is in a flood zone, but some areas are at a higher risk than others. You can find your zone by entering your address at the FEMA Flood Map Service Center at MSC.FEMA.gov.

Is flooding covered by homeowners insurance?

Some types of water damage are covered by a standard homeowners policy, but flooding usually is not.

Photo credit: iStock/onurdongel

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q424-007

If you’re considering buying your first truck, you may be wondering how much the insurance is going to run. While the cost of insuring a truck varies based on a few factors, the national average is $2,160 per year. (By comparison, the national average for car insurance is $2,790.)

Keep reading for more insight into how much truck insurance costs, and how to lower your premiums.

Differences Between Auto, Truck, and Commercial Truck Insurance

There are really only two types of auto insurance. The type of auto insurance you need depends on what purpose you’ll use your vehicle for.

•   Personal auto insurance. If someone wants to buy or lease a truck for personal use, then they’ll need a personal auto insurance policy. This may be referred to as auto insurance or truck insurance.

•   Commercial auto insurance. Companies that use cars and trucks for business purposes need this policy instead.

Both types cover property damage, bodily injury, and legal expenses related to auto accidents. Commercial auto insurance takes coverage a step further, usually featuring higher claim amounts and protection against more complex legal issues.

Keep in mind that each state has its own rules about car insurance and what it should cover. If you’re unsure what the minimum requirements are where you live, you can check your state’s DMV site.

Recommended: Does Auto Insurance Roadside Assistance Cover Keys Locked in a Car?

How Much Does It Cost to Insure a Truck?

Exactly how much is insurance for a pickup truck? The average annual cost of personal auto insurance for a truck is $2,160.

The typical cost of commercial truck insurance depends on the type of business. Transport truckers haul general freight, such as automobiles, food, and products for retail stores. Specialty truckers cover a single type of freight, like logs or garbage. The average monthly premium for commercial insurance is around $1,000 for specialty truckers, and $650 for transport truckers.

Does It Cost More to Insure a Truck or Automobile?

It isn’t necessarily more expensive to insure a truck over a car. In fact, it’s generally cheaper to insure a truck than some other types of cars, such as electric vehicles or luxury SUVs.

One exception is the age of the driver. College students may have a harder time finding affordable car insurance for their truck.

Average Cost of Car Insurance for Truck by Make and Model

How much is insurance for a new truck? Below are the average monthly rates for 10 of the least (and most) expensive trucks to insure, per Insure.com. You may figure out at a glance whether it’s worth switching car insurance companies.

Make and model aren’t the only things that determine auto insurance prices. For example, first-time drivers are more likely to pay more for auto insurance.

What Is the Cheapest Pickup Truck to Insure?

Many factors can impact the cost of car insurance, such as the type of deductible you choose and the make and model of your car. Generally, the Ford Maverick is one of the more inexpensive pickup trucks to insure with an annual average full coverage rate of $1,746, according to Insure.com.

It’s important to note that even if someone chooses a model that is known to be inexpensive to insure, their personal driving history impacts the insurance rate they’re offered. A driver with a clean record typically will get a better rate, whereas the same insurance goes up after an accident.

Recommended: How to Calculate Expected Rate of Return

Cheapest Car Insurance Companies for Trucks

It’s always a good idea to shop around to get several quotes. You can include traditional insurers and online insurance companies. This will give you a good idea of which companies offer the most complete coverage and affordable rates.

There are several ways to lower your car insurance, but the easiest may be to choose a higher deductible. The following companies offer the lowest annual rates for car insurance, per U.S. News:

Before shopping for quotes, it’s helpful to brush up on car insurance terms to better understand what type of coverage each provider is offering.

Truck Features That Impact Insurance Costs

Truck features don’t directly impact the cost of insuring the vehicle — unless they increase the overall cost of the car. Generally speaking, the more expensive a truck is, the more it costs to insure.

Any features that increase the likelihood of theft or the cost of maintenance and repairs can also drive up the price of insurance for trucks.

The Takeaway

The average annual rate for personal car insurance (as opposed to commercial) for a truck is $2,160 per year. The overall cost of the truck can impact the price of insurance. In general, the more expensive a truck is, the more it costs to insure it. For this reason, special features may also increase your cost. Perhaps surprisingly, truck insurance is not more expensive than car insurance. In fact, pickups are relatively less expensive to insure than other types of vehicles.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

Do trucks cost more to insure than cars?

Generally, trucks don’t cost more to insure than other types of cars. They’re actually relatively cheaper to insure than some types of vehicles. How much it costs to insure a car is usually based more on the overall cost of the car than the type of car someone chooses to drive. So an inexpensive truck may cost much less to insure than a luxury SUV or sedan.

Is insurance high on a pickup truck?

Insurance isn’t necessarily high on a pickup truck. Trucks usually cost less to insure than other types of cars. That said, high-value pickups can cost a lot to insure. The higher a truck’s (or any car’s) price, the higher the insurance premiums tend to be.

Photo credit: iStock/JMichl

Insurance not available in all states.
Gabi is a registered service mark of Gabi Personal Insurance Agency, Inc.
SoFi is compensated by Gabi for each customer who completes an application through the SoFi-Gabi partnership.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q424-001

The average cost of insuring a 2024 model sports car will vary based on the model. For instance, full coverage on a Ford Mustang costs around $2,172 a year, which is a relative bargain compared to the $4,116 annual bill you’ll pay to insure a BMW i8.

What’s more, the cost difference between insuring a sports car and a standard vehicle can range from a couple hundred dollars to a few thousand dollars. The average cost of full coverage for a conventional car is around $2,064 a year.

To help you decide if purchasing a hot new ride makes sense, we’ll provide details about how much insurance costs for a sports car, and the factors that can raise or lower your premiums.

What Is Sports Car Insurance?

“Sports car” is a common term used for small, low-built cars designed for performance at high speeds. Sports car insurance then refers to typical auto insurance for a sports model. Drivers generally have to pay more to insure a sports car because of the higher sticker price and greater perceived risk.

Sports cars usually have top-of-the-line engines that drivers can easily push to high speeds, upping the likelihood of an accident or speeding ticket. Sports cars tend to be more expensive to repair and replace because their parts are costly to manufacture. As a result, insurers often charge drivers more to cover sports cars.

Need to brush up on your vehicular vocabulary? Check out our roundup of car insurance terms.

How Much Does Insurance Cost for a Sports Car?

Sports car insurance can range from $2,400 for a Mazda Miata to $6,166 for a Maserati Quattroporte. Keep in mind that these numbers are averages. Your costs will depend on many factors, such as your age and the age of the car, security features installed in the vehicle, the state you live in, and how much you drive.

Parents and teens alike may benefit from our insurance tips for first-time drivers.

Average Cost of Insuring a Sports Car

See below for the average cost of insuring a sports car, by make and model:

What Do Insurance Companies Consider to Be Sports Cars?

While insurance companies don’t have a strict, universal definition for sports cars, they typically have powerful engines with more horsepower but weigh less than sedans. Sports cars get their name from the sport of racing, which inspires their engine specs and body shape. Manufacturers design sports cars to be small, fast, and maneuverable.

Car enthusiasts and connoisseurs appreciate the expertise and craft that go into making sports cars. But anyone can get behind the wheel of these thrilling and potentially dangerous vehicles. Those dangers have financial implications, so insurance companies tend to charge increased premiums. Still, it’s possible to find affordable car insurance for many sports models.

What Coverage Do You Need for a Performance Car?

Because of a sports car’s higher value, drivers tend to choose maximum vehicle coverage over minimum car insurance. Full coverage can vary but tends to include the following:

Liability Insurance

If you’re at fault for an accident, liability insurance covers the cost of injuries and property damage to the other people involved. It can also cover legal fees and court costs if someone sues you after an at-fault accident. Most states require some level of liability insurance.

Comprehensive and Collision

This coverage provides complete damage coverage for your vehicle, whether it’s beat up by a storm or after an accident. If you lease or finance your sports car, your leasing agent or lender will likely require this coverage.

Uninsured / Underinsured Motorist

UM coverage protects you if you collide with someone with limited or no auto insurance. In an accident where someone else is at fault and they don’t have enough insurance, UM will cover your medical bills up to policy limits. Some states require UM coverage.

Recommended: How Much Car Insurance Do I Need?

Personal Injury Protection

PIP insurance covers medical bills, lost wages, and funeral expenses after an accident, no matter who caused it. Some states require this type of coverage.

Gap Insurance

When a newer car is totaled, standard insurance will reimburse you the car’s actual cash value (ACV), which may be less than the amount left on your loan or lease. Gap insurance covers the gap between the vehicle’s ACV and the amount you owe, minus the deductible.

Learn more about how gap insurance works.

New Car Replacement

New car replacement operates similarly to gap insurance by covering the cost of purchasing the same make and model vehicle that was damaged — after the deductible.

Which Sports Car Has the Cheapest Insurance?

The sports car that’s cheapest to insure is the Mazda Miata, with an $2,400 average annual premium, per ValuePenguin. That may be because Mazda is known as one of the safest car brands on the market. In 2024, five of its cars earned the Insurance Institute for Highway Safety’s Top Safety Pick+ award.

For a deep dive into the process, read this take on how to get car insurance.

Which Sports Car Is the Most Expensive to Insure?

According to Insure.com, the Maserati Quattroporte is one of the most expensive sports cars to insure, costing $6,166 annually on average. Maserati is a renowned exotic car manufacturer whose vehicles are both expensive and exclusive. The Quattroporte is a supercharged luxury sports sedan.

Recommended: How to Save on Car Maintenance Costs

How Can You Save Money on Sports Car Insurance Rates?

Although sports cars are expensive to own, you can lower the cost of car insurance with the following tips:

Take Advantage of Discounts

Insurance companies reward drivers with discounts for various efforts, such as avoiding tickets and driving less. As a sports car driver, you can do the following to reduce insurance costs:

•   Install an anti-theft device.

•   Do the bulk of your driving with another car. For example, you could commute with an economy car and take your sports car out on weekends.

•   Keep a clean driving record free of accidents and tickets.

•   If you have multiple vehicles, insure both with the same company for a potential price reduction.

•   Purchase your homeowners or renter’s insurance from the same company providing your auto policy to receive a discount.

•   Pass a driver safety test.

•   Install a tracking device to record your driving habits.

Increase your Deductible

Deductibles and premiums have an inverse relationship. If you choose a high deductible (what you pay before your insurance covers the remaining costs), your monthly premiums fall. Therefore, you can change your policy to take on more of a financial burden if you get into an accident, making your policy more affordable on a monthly basis.

Shop Around

You don’t know what you don’t know, and that is very true of insurance costs. Requesting quotes from multiple insurance companies allows you to compare insurance packages and find the best price. Regular personal insurance planning sessions can make sure you’re saving money on all of your policies.

Switching car insurance may seem counterintuitive if you think you have an excellent price, but it doesn’t hurt to check. Bundling is often helpful in reducing insurance costs, but you might find an outstanding deal with an insurer that beats the discount your current insurance company offers. Specifically, online insurance may offer lower rates than traditional insurers.

The Takeaway

Sports cars are fast, fun vehicles that make driving exciting — and expensive. While their agility and speed are enjoyable, their insurance costs can be prohibitive, especially for younger drivers.
However, you can reduce insurance costs by avoiding the most expensive sports cars, such as Maseratis and Audis, and driving more modestly priced models like the Mazda Miata or Nissan Z. Also, older “classic” sports cars don’t have the same insurance upcharge as newer models. And of course, it pays to keep a clean driving record.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

Is it more expensive to insure a sports car?

Generally speaking, yes, it costs more to insure a sports car than a conventional car. For example, full coverage on a BMW i8 costs $4,116 a year. But it only costs around $2,064 a year for full coverage on the average conventional car.

Does insurance go up when you buy a sports car?

Since sports cars tend to be faster than standard cars (which increases the probability of an accident), it usually costs more to insure one.

How can I lower my insurance on my sports car?

You can lower your insurance on your sports car by building a favorable credit score, maintaining a clean driving record, bundling multiple types of insurance, and fulfilling specific conditions from your insurance company. For example, you might install a car alarm or reduce your monthly miles driven to receive discounts on your premium. Also, shopping among insurance companies for the best deal could help you find a lower rate.

Photo credit: iStock/Arand

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q424-002

Defensive driving courses aren’t just for motorists hoping to shave points off their driving record. For some people — especially teens and seniors — taking a defensive driving class can earn them discounts on their car insurance premiums.

But what is defensive driving? In this guide, we’ll look at what these courses have to offer, who might benefit from them, and what kind of insurance discounts may be available to course participants.

What Is a Defensive Driving Course?

It isn’t the same thing as driver’s ed. In defensive driving, drivers learn strategies specifically designed to keep them safer on the road.

Experienced drivers can think of it as a refresher course or a tune-up of the skills they already have. They may even learn that some traffic laws are different from when they first got their license. New drivers, meanwhile, can pick up strategies that reinforce and improve on what they recently learned, with a focus on staying alert to potential hazards.

Drivers often take a defensive driving course (sometimes referred to as “traffic school”) to remove violation points from their driving record and keep their insurance costs from going up. Other drivers may be able to use a defensive driving course to lower their car insurance costs.

These days, anything that offsets high gas prices and car maintenance costs is welcome.

Recommended: How to Get Car Insurance

Who Is Eligible for a Defensive Driver Training Discount?

Eligibility requirements for a defensive driver training discount vary from one insurance company to the next, and from state to state. Insurers may limit discounts to older drivers (starting at age 50 or 55), but some make discounts available to drivers younger than 25.

Many people sit down for a personal insurance planning session once a year. That’s a great time to ask your insurance agent if there’s a defensive driver discount you might qualify for. Or check the list of available discounts on your insurer’s website.

An insurer may want you to take a particular driving course that it has pre-approved. If you’re looking for a discount, be sure you’re familiar with all the requirements before signing up for a class. As anyone familiar with how car insurance works can tell you, it pays to read the fine print.

Recommended: Auto Insurance Terms, Explained

Defensive Driving Insurance Discount Exclusions

Don’t count on getting a discount if you’re taking a court-ordered defensive driving course or hope to have points removed from your driving record. Taking a defensive driving class can help keep your premiums from increasing (and/or lower your fine) if you got a ticket, but you probably won’t see an additional reduction.

Your age can also exclude you from receiving a discount. Some states require insurers to offer discounts to older drivers who take a course. But if it isn’t state-mandated, a company may not offer this discount to any of its customers, regardless of age or driving experience.

How Much Can You Save with a Defensive Driving Insurance Discount?

Defensive driving discounts can vary depending on the state you’re in and the insurance company you choose. But generally, if an insurer offers a discount, it’s between 5% and 20%, and typically lasts three to five years.

How Can You Renew a Defensive Driving Insurance Discount?

Be sure to find out how long your discount will stay in effect and mark that anniversary on your calendar. You’ll have to take another defensive driving course before that time is up, or you may lose your discount and your premiums could increase.

What Happens in a Defensive Driver Training Class?

Defensive driving is generally defined as using skills that can help minimize risk and avert car accidents. The focus in a defensive driving course is your safety — and that of your passengers and the people (and critters) on the roads you travel.

State course requirements vary, but you can expect the class to last about six to 10 hours and cover topics like speeding, common distractions, anger management, reaction times, driving under the influence, crash prevention, passing and parking techniques, and your state’s traffic laws.

And yes, there will be a test. It might be a comprehensive final exam or quizzes on each separate unit, but you’ll have to pass to complete the course.

Online vs In-person Driver Training Classes

Defensive driver courses are available in-person or online, so you can choose the style that suits you best. Some states and insurance companies require you to take a specific pre-approved class to get a discount (or have points removed), so if that’s your goal, make sure you’re meeting those requirements.

Beyond that, it’s really a matter of preference. There are pros and cons to both types of classes. Taking an online course offers convenience and flexibility: You can take the class whenever it works for your schedule. And an online course may be less expensive. But with an in-person class you may be able to engage with the instructor and your classmates in a way that makes the information more meaningful — and memorable.

Recommended: How Much Does Insurance Go Up After an Accident?

Why Take a Defensive Driving Course?

There are a few good reasons why someone might take a defensive driving course:

•   Earn an insurance discount. Even with just a 10% discount every month for three years, the savings can be significant.

•   Improve driving skills. If you’re a newbie behind the wheel, you may learn some techniques and behaviors that can help keep you safe. And if you’ve been driving for decades, you might be surprised at what you’ve forgotten — or never learned.

•   Shave points from your record. Taking a class may reduce the cost of a traffic ticket or remove points from your record. And that can keep your insurance premiums from increasing. (Each insurance company has its own method for deciding how your driving record affects your rate.)

•   Because you have to. If you’re convicted of a DUI or another serious offense, your course may be court-ordered.

Car Insurance Companies That Offer Defensive Driving Discounts

Many traditional and online insurance companies offer defensive driving discounts, but the eligibility requirements and discount amount vary by state. Here’s a look at what some insurers offer:

States that Offer Defensive Driving Discounts

Some states encourage or mandate insurance discounts for motorists who take a defensive driving course. Here’s a sampling of what’s available across the country:

California

Older drivers can qualify for reduced insurance premiums after successfully completing an approved course. California law allows insurers to determine the reduction amount. Customers with a poor driving record can be refused the discount.

Delaware

Drivers who complete a Delaware DMV-approved course are eligible to receive an insurance discount of up to 10% for three years. If they take a refresher course within 180 days of the end of that period, they may be eligible to receive a discount of up to 15% for the next three years.

Florida

Florida drivers 55 and older can qualify for a discount of up to 10% a year for three years. The state’s mandated discount applies to all insurance companies; contact your insurance agent for your discount amount and eligibility requirements.

New Jersey

New Jersey drivers who complete a defensive driving course approved by the New Jersey Motor Vehicle Commission can receive a discount that applies for up to three years. The discount does not apply to the state’s Driver Improvement Plan (DIP) or Probationary Driver Program (PDP) course.

New York

The state of New York has a mandatory three-year, 10% insurance discount for motorists who complete a defensive driving course.

Texas

Texas does not require insurers to provide a defensive driving course discount, but many insurers in the state do offer them for motorists who take a state-approved class.

Virginia

Insurance providers in Virginia must offer a discounted rate to drivers who are 55 and older who complete an approved driving course.

The Takeaway

Defensive driving courses can be a (relatively) painless way to get a discount on your auto insurance premiums of between 5% and 20%. And it could make you a better, safer driver. But before you sign up for a class, make sure it’s approved by the state and/or your insurer. Most insurance companies offer several different types of discounts to customers, so if you’re looking to lower your premiums, shop around and compare auto insurance quotes.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

Is an advanced driving course worth it?

Defensive driving courses typically cost $25-$100. If you can get an insurance discount for taking a class, you might be able to make that back in savings in less than a year. And many defensive driving course discounts are good for two or three years after taking a class. Another plus: You’ll likely come away with some improved driving skills.

Does a defensive driving course lower insurance in California?

Yes, older drivers in California can qualify for reduced insurance premiums after successfully completing a state-approved defensive driving course.

How hard is the advanced driving test?

If you pay attention in class, your defensive driving exam (or unit quizzes) shouldn’t be too difficult. But if you’re concerned, there are practice tests available online that can give you an idea of what a test might look like.

Photo credit: iStock/ljubaphoto

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Renters insurance can cover your personal belongings against things like fire damage or theft when renting a home. In exchange for that protection, you pay a premium to the insurance company.

Finding affordable renters insurance might be a priority if you’re living on a tight budget. Numerous companies offer affordable renters insurance for apartments that can provide you with the coverage you need for less money.

What Is Renters Insurance and How Does It Work?

What is renters insurance? Simply put, renters insurance is a type of coverage that’s designed for people who rent, rather than own, their homes. If you live in an apartment, the rental property owner may have separate insurance for the structure itself. Renters insurance, meanwhile, offers protection to you as a tenant.

This type of insurance is also referred to as tenant insurance. You’re typically not obligated to purchase a renters policy unless your landlord requires renters insurance as part of your lease agreement. If you live with roommates, each of you can individually decide if you want to have this coverage.

Personal insurance planning is important for protecting yourself financially. Having renters insurance is a good idea if you’re concerned about your personal possessions being damaged or stolen, or about other situations that could result in financial losses.

Recommended: What Does Renters Insurance Cover?

What’s Included in Renters Insurance Coverage?

If you’re paying for renters insurance, it’s important to know what’s covered and what’s not. What renters insurance covers varies depending on the insurer and your level of coverage. Generally, renters insurance is designed to offer three layers of protection:

•   Personal property

•   Liability

•   Additional expenses

The personal property coverage in a renters insurance policy is designed to protect your belongings against certain dangers. That can include things like wind damage, smoke or fire damage, vandalism, theft, explosions, and water damage relating to septic backups. You may need to purchase separate coverage for flood and earthquake damage.

Personal liability coverage protects you against lawsuits related to any injuries sustained on your property. So if you host a party at your apartment, for example, and someone trips and injures their ankle, your liability protection could pay for their medical bills.

Additional living expenses coverage can pay your costs if your apartment is damaged and becomes unlivable. Your policy can reimburse you for hotel expenses, meals, or temporary rentals until you can move back in.

Renters insurance can cover you at home and away. If you take personal belongings on a trip, for example, and they’re damaged by a covered danger, you can get reimbursed for them through your policy.

How Much Does Renters Insurance Cost?

If you’re searching for affordable renters insurance for apartments, it’s important to understand the costs involved. But just how much is renters insurance?

There are two costs to consider: premiums and deductibles. Your renters insurance premium is the amount you pay to the insurance company, typically monthly, just for having coverage. Your premiums are based on the amount of coverage you have.

According to the Insurance Information Institute, the average renter pays $174 per year for renters insurance premiums. That works out to $14.50 per month. Costs can vary widely by state, with renters paying the most for coverage in Louisiana, averaging $409 per year, and the least in New Hampshire, North Dakota, and Maine, where premiums average $144 annually.

If you need to file a claim for damages, you’ll also pay a renters insurance deductible. That’s the amount you pay before the insurance company will pay anything toward your covered damages. In that sense, renters insurance is no different from auto insurance, health insurance, or homeowners insurance.

There are different types of deductibles, in terms of how much they cost. Opting for a higher deductible typically results in a lower monthly premium.

For example, you might find a renters insurance policy that charges a $500 deductible while another has a $1,000 deductible. The deductible you choose should be easily affordable on your budget if you need to file a claim.

Most Affordable Renters Insurance Policies

Some renters insurance policies are more budget-friendly than others. When evaluating affordability, it’s important to consider the premiums and deductibles, as well as the coverage you’re getting in return.

To help you in your search, we requested quotes from eight major insurers to find the most affordable renters policy. Companies were selected based on brand reputation, policy options, and ease of application.

Quotes are based on a townhome located in central Virginia with fire alarms, no pets or children, and no bicycles or valuable jewelry. All quotes assume a $500 deductible and the minimum coverage amounts recommended by the insurer. Quotes are accurate as of August 6, 2024.

As you can see, none of these policies cost more than $30 per month. There is some variation in the coverage amounts for personal property, medical payments, and loss of use, but $100,000 is usually the baseline for personal liability coverage.

Remember that these are baseline quotes generated using a hypothetical scenario. Your actual quotes will depend on where you live, who lives with you, if you have pets, the type of home you live in, and the individual coverage amounts you choose. Your insurance company may also consider your credit score when calculating your premiums. Adding optional coverage can raise your premium costs.

How Do You Find Affordable Renters Insurance?

Finding affordable renters insurance for apartments means doing some comparison shopping. You generally have two options for purchasing renters insurance: traditional insurers and online insurance companies.

Purchasing renters insurance through a traditional insurance company can work in your favor if you’re able to bundle it with other insurance. For example, you might be able to bundle it with your auto insurance policy in order to get a discount. If you’re insured through a company locally, you might appreciate being able to stop by their office with questions or to make a policy change.

Getting renters insurance coverage through an online insurance company can also yield some benefits. It may be easier to apply for renters insurance and purchase a policy online. And the amount you pay for coverage might be less than with a traditional insurer.

When comparing your options for affordable renters insurance, ask yourself these questions:

•   How much coverage do I need?

•   What kind of premiums and deductibles will fit my budget?

•   How easy would it be to file a claim if necessary?

•   What kind of customer support is available?

•   Are there any discounts or other incentives that could save me money?

•   What is the insurer’s overall reputation?

Reading online reviews of renters insurance companies can give you a better idea of what people do and don’t like about them. You can also get free quotes online to estimate your total costs before purchasing a policy.

The Takeaway

If you’re renting an apartment and something unexpected happens, having the right renters insurance coverage in place can give you peace of mind. Policies typically have three parts: property coverage in case of damage or theft, liability coverage in case someone is injured on your property, and loss of use in case you need to find housing elsewhere while repairs are made to your rental. The national average premium for renters insurance is $174 annually.

Looking to protect your belongings? SoFi has partnered with Lemonade to offer renters insurance. Policies are easy to understand and apply for, with instant quotes available. Prices start at just $5 per month.

Photo credit: iStock/fizkes

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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