The Core Coverages
Liability (Required)
Pays for damage and injuries you cause to others. This is legally required in almost every state. Coverage is described in three numbers like 50/100/50: $50K per person bodily injury, $100K per accident bodily injury, $50K property damage. Higher is always better here because it protects your personal assets in a lawsuit.
Collision (Optional but Recommended)
Pays to repair or replace your car after an accident regardless of fault. Required if you have a car loan. Costs more for expensive cars. Consider dropping it once your car is worth less than $5,000.
Comprehensive (Optional but Recommended)
Covers non-accident damage to your car: theft, vandalism, hail, falling trees, animal strikes, flood. Usually cheap relative to collision. Worth keeping unless your car has very low value.
Uninsured/Underinsured Motorist
Covers you if hit by a driver with no insurance or not enough insurance. About 13%% of drivers are uninsured nationally, and many more are underinsured. This is some of the cheapest and most valuable coverage you can add.
Estimate your insurance cost.
Open Insurance Estimator →What Affects Your Rate
- Age — under 25 pays the most, rates drop through your 30s-50s, rise slightly after 65
- Driving record — accidents and tickets increase rates 20-50%% for 3-5 years
- Credit score — in most states, better credit = lower rates
- Vehicle — expensive, high-performance, and frequently stolen cars cost more to insure
- Location — urban areas, high-crime areas, and states with high uninsured rates cost more
- Annual mileage — less driving = lower risk = lower rates
How to Save
Shop around every 12 months. Prices change frequently and the cheapest insurer this year may not be cheapest next year. Bundle with home or renters insurance. Raise your deductible from $500 to $1,000. Ask about every available discount. Pay the full 6-month or annual premium instead of monthly to avoid installment fees.
The minimum legal coverage is almost never enough. If you cause an accident with $25K in liability and the other person has $100K in medical bills, you are personally responsible for the $75K difference. Carry at least 100/300/100 if you can afford it.