What does village car insurance mean?

Village car insurance companies are small businesses that offer personalized customer service. These companies will provide the minimum amount of coverage required by your state, and often supplemental coverage options as well. Learn how to find the right company for your needs.

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UPDATED: Jun 10, 2022

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Written By: Laura BerryReviewed By: Joel OhmanUPDATED: Jun 10, 2022Fact Checked

Here's what you need to know...

  • Village insurance companies include a collection of small, local car insurance companies rather than a specific type of car insurance policy 
  • Legally, village insurance is just as legitimate as car insurance from larger auto insurance companies 
  • As with many small businesses, village insurance companies may offer more costly services compared to larger companies 

Hundreds of auto insurance companies and policies exist. It is best to understand all your options before committing to a policy, including village auto insurance.

With a quick internet search, you will find that many companies go by “Village” auto insurance. Usually, companies that go by “Village” auto insurance simply use the word for company branding. However, village car insurance, by definition, does not refer to a specific company or insurance policy. Instead, the term refers to smaller, more local auto insurance companies compared to some of the most well-known auto insurance companies available.

Village Auto Insurance in Detail 

The concept of village auto insurance is relatively simple. However, you may have plenty of questions to research before you commit to a village auto insurance policy. You will find that although smaller, village auto insurance functions similarly to larger auto insurance companies.

The main factor that sets village auto insurance companies apart from other insurance companies is that they operate as small businesses. Village auto insurance companies are famous for providing excellent, personal customer service compared to their larger counterparts. However, this customer service comes with slightly higher rates than other insurance companies.

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Will village insurance adequately meet state auto insurance laws? 

Village auto insurance coverage will usually meet state minimum requirements and laws without any issue. The majority of states in the U.S. require all drivers to obtain auto insurance from a legitimate, licensed auto insurance company. Village auto insurance companies are almost always licensed and legitimate.

Generally, most states also require a minimum for insurance coverage to legally operate a motorized vehicle. For example, no matter if you buy village car insurance or car insurance from a well-known company, your home state may require you to have auto insurance coverage for:

Auto insurance policies for uninsured or underinsured motorists will cover physical injuries or property damages that ensue after an accident happens with a driver who does not have enough auto insurance coverage. Coverage for accidents that result in damages to property will help pay for damages to another’s vehicle or parts of another’s home. In the case of accidents that result in physical injury, you must have auto insurance coverage that will pay for any doctoral expenses on behalf of yourself or other parties involved in the collision.

Of course, before investing in any auto insurance coverage plan, make sure that you research your state’s laws to determine the minimum coverage required to legally operate your car. Every state will be different.

This table shows you the average cost difference in high, medium, and low coverages.

Average Annual Car Insurance Rate Based on Type of Coverage
CompaniesAverage Annual Car Insurance Rate for Low CoverageAverage Annual Car Insurance Rate for Medium CoverageAverage Annual Car Insurance Rate for High Coverage
Allstate$4,628.03$4,896.81$5,139.02
American Family$3,368.49$3,544.37$3,416.40
Farmers$3,922.47$4,166.22$4,494.13
GEICO$3,001.91$3,213.97$3,429.14
Liberty Mutual$5,805.75$6,058.57$6,356.04
Nationwide$3,394.83$3,449.80$3,505.37
Progressive$3,737.13$4,018.46$4,350.96
State Farm$3,055.40$3,269.80$3,454.80
Travelers$4,223.63$4,462.02$4,619.07
USAA$2,404.11$2,539.87$2,667.92
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Though the prices are higher for full coverage, your risk is lessened since you are covered for more damages.

Do village insurance companies calculate insurance rates differently? 

Village auto insurance companies calculate car insurance rates like any other auto insurance company. For example, all legitimate auto insurance companies determine an individual’s insurance rates by considering a motorist’s driving history, car model, demographics of the motorist in question, and where the motorist lives.

Let’s look at how age, gender, and marital status affect your rates.

Average Annual Car Insurance Rates by Age, Gender, and Marital Status
CompaniesAverage Annual Rates for a
Single 17-Year-Old Female
Average Annual Rates for a
Single 17-Year-Old Male
Average Annual Rates for a
Single 25-Year-Old Female
Average Annual Rates for a
Single 25-Year-Old Male
Average Annual Rates for a
Married 35-Year-Old Female
Average Annual Rates for a
Married 35-Year-Old Male
Average Annual Rates for a
Married 60-Year-Old Female
Average Annual Rates for a
Married 60-Year-Old Male
USAA$4,807.54$5,385.61$1,988.52$2,126.14$1,551.43$1,540.32$1,449.85$1,448.98
GEICO$5,653.55$6,278.96$2,378.89$2,262.87$2,302.89$2,312.38$2,240.60$2,283.45
Nationwide$5,756.37$7,175.31$2,686.48$2,889.04$2,360.49$2,387.43$2,130.26$2,214.62
State Farm$5,953.88$7,324.34$2,335.96$2,554.56$2,081.72$2,081.72$1,873.89$1,873.89
American Family$5,996.50$8,130.50$2,288.65$2,694.72$2,202.70$2,224.31$1,992.92$2,014.38
Farmers$8,521.97$9,144.04$2,946.80$3,041.44$2,556.98$2,557.75$2,336.80$2,448.39
Progressive$8,689.95$9,625.49$2,697.73$2,758.66$2,296.90$2,175.27$1,991.49$2,048.63
Allstate$9,282.19$10,642.53$3,424.87$3,570.93$3,156.09$3,123.01$2,913.37$2,990.64
Travelers$9,307.32$12,850.91$2,325.25$2,491.21$2,178.66$2,199.51$2,051.98$2,074.41
Liberty Mutual$11,621.01$13,718.69$3,959.67$4,503.13$3,802.77$3,856.84$3,445.00$3,680.53
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You can see that older married females pay less than younger single males.

Overall, the main goal of a village auto insurance company and large insurance companies is to determine all the risks a driver poses before insuring them. Any insurance company seeks to maximize profit by making sure it pays the least amount possible for any insurance claims.

To illustrate, if you are a driver with high-risk factors, you are more likely to get into an accident that will require an insurance company to pay more in claims. So, you as a driver will likely have higher insurance rates compared to other drivers.

This table shows you just how much money one traffic ticket can cost you.

Average Annual Car Insurance Rates by Driving History
CompaniesAverage Rates With a Clean RecordAverage Rates With 1 AccidentAverage Rates With 1 DUIAverage Rates With 1 Speeding Violation
USAA$1,933.68$2,516.24$3,506.03$2,193.25
GEICO$2,145.96$3,192.77$4,875.87$2,645.43
American Family$2,693.61$3,722.75$4,330.24$3,025.74
Nationwide$2,746.18$3,396.95$4,543.20$3,113.68
State Farm$2,821.18$3,396.01$3,636.80$3,186.01
Progressive$3,393.09$4,777.04$3,969.65$4,002.28
Travelers$3,447.69$4,289.74$5,741.40$4,260.80
Farmers$3,460.60$4,518.73$4,718.75$4,079.01
Allstate$3,819.90$4,987.68$6,260.73$4,483.51
Liberty Mutual$4,774.30$6,204.78$7,613.48$5,701.26
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A traffic violation can cost you thousands in fines and higher insurance rates. Obeying traffic laws is an easy way to save money on your car insurance.

What types of village auto insurance policies exist? 

Village auto insurance policies include the same types of car insurance policies as other auto insurance companies. In a nutshell, three main auto insurance policies are available to drivers. These insurance policies include comprehensive insurance coverage plans, liability plans, and collision plans.

Comprehensive auto insurance coverage pays for any damages that do not result from a collision. For example, a comprehensive plan will cover damages caused by natural disasters, vandalism, or even windshield damage. Liability coverage policies cover any damage or injury that another driver experiences if you are at fault for a collision. Lastly, collision coverage plans will pay for any damages or injury that you or your passengers experience if you also cause a collision.

Additionally, you may invest in a full coverage auto insurance plan through village auto insurance companies or any other insurance companies if you wish to include all three main types of car insurance coverage.

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Do village auto insurance companies offer any discounts? 

Like well-known auto insurance companies, most village auto insurance companies will offer discounts that you may qualify for, especially if your insurance rates are high. The most common auto insurance rate markdowns apply if you or your child are a student with good grades, you have a multi-vehicle insurance policy, take a defensive driving course, or serve in any branch of the military. In order to qualify for an auto insurance discount, you must provide proof that you do in fact qualify for whichever auto insurance policy discount you apply for.

No discount will be the same everywhere as most auto insurance companies will offer discounts unique to their company policies. As such, contact any village auto insurance company to determine if you qualify for any of the discounts they offer.

Defining Village Auto Insurance 

Village insurance refers to auto insurance companies that are small and locally owned rather than big corporations. Besides the fact that village auto insurance companies provide excellent customer service and usually require higher rates, not many differences exist between village auto insurance companies and larger auto insurance companies. Some drivers may be willing to pay slightly higher rates for a more personal touch.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

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