For anyone signing car paperwork

Car loans, car insurance and extended warranties, explained in plain English

Car Bills Explained helps you read the three stacks of paper that come with a car: the auto loan, the insurance policy and any service contract. Every guide links to the official source (the CFPB, the FTC, the NAIC and state insurance departments), state rules are labeled by state, and nothing here is insurance, legal or financial advice. We are not an insurer, lender, broker or agent, and we don’t sell insurance, loans or service contracts.

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What should you check on car paperwork?

Most surprises are written down before you sign. We break the paperwork into four parts.

  1. Read the loan.

    Find the APR, the amount financed, the term and the total of payments on an auto loan offer, and compare offers the way the CFPB suggests.

  2. Read the insurance.

    What liability, collision, comprehensive and uninsured motorist coverage each pay for, and the minimum your state requires.

  3. Read the add-ons.

    Service contracts (often called extended warranties), GAP and credit insurance: what they are, why they are generally optional, and how cancellation works.

  4. Get help when something goes wrong.

    Where to file a complaint about an insurer or a lender, and how to handle calls saying your car warranty is about to expire.

Each part links to guides that cite the Consumer Financial Protection Bureau, the Federal Trade Commission, the National Association of Insurance Commissioners and state agencies, with the date we checked them.

State by state

Why does the answer depend on your state?

Car insurance is regulated by each state, so minimum coverage, required add-ons such as personal injury protection, and the agency that takes complaints all change at the state line. Auto loan disclosures come mostly from federal law, but states license lenders and service contract sellers too. So we explain the federal rules once, show you where to find your state’s rules, and label every state-specific item with the state’s name.

Start with the paperwork overview

California example: since January 1, 2025, California’s minimum liability coverage is $30,000 per person and $60,000 per accident for injury or death, and $15,000 for property damage. Income-eligible drivers may qualify for the state’s Low Cost Auto Insurance Program.

California’s Low Cost Auto Insurance Program

What we are not: we are not an insurance company, lender, broker, agent or dealer. We don’t sell policies, loans or service contracts, we don’t sell your information as leads, and we can’t tell you which one fits your situation. We may earn money from labeled ads and from some labeled links; that never changes our facts or sources. For advice on your own situation, talk to a licensed insurance agent, your lender, a consumer attorney or your state insurance department.

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Education only: general information, not insurance, legal or financial advice for your situation. Car Bills Explained is not an insurance company, lender, broker, agent or dealer, and we don’t sell policies, loans or service contracts. Rules, prices and coverage vary by state and by company, so read your own documents, check the official agency we link, or ask a licensed professional before you act. We may earn money from labeled ads and labeled affiliate links; that never changes our facts or sources.