How much liability coverage do I need?

State minimums (often 25/50/25) are usually not enough — a serious injury claim can easily exceed $100,000. Most experts recommend at least 100/300/100 if you own a home or have meaningful savings, since plaintiffs can pursue your assets above your policy limit.

Do I need full coverage?

If you have a loan or lease, yes — your lender will require collision and comprehensive. If you own the car outright and it is worth less than ~$4,000, dropping to liability-only often makes sense since the maximum payout would barely exceed your annual premium plus deductible.

What is a deductible and how should I pick one?

A deductible is what you pay out-of-pocket before insurance kicks in on a collision or comprehensive claim. Higher deductibles ($1,000–$2,000) lower your premium 15–30% but require enough savings to cover a claim. Lower deductibles ($250–$500) cost more upfront but are easier on cash flow.

Will filing a claim raise my rates?

At-fault claims typically raise rates 20–40% for 3–5 years. Not-at-fault claims may also raise rates with some carriers but usually less. Comprehensive claims (theft, glass, animal strikes) often have little to no impact.

Coverage

Car insurance, explained

What every coverage type does, how much it typically costs, and the limits worth paying for. Skip to your real quote at any point.

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The 6 core coverages

Average annual costs are 2026 industry benchmarks for a 35-year-old with good credit.

Coverage	What it pays for	Status	Avg. annual cost
Liability (bodily injury + property damage)	Other drivers, passengers, and property you damage in an at-fault accident.	Required in nearly every state	~$650/yr average
Collision	Repairs to your car after a crash, regardless of who is at fault.	Required by lenders on financed cars	~$380/yr average
Comprehensive	Theft, vandalism, weather, fire, animal strikes — non-collision damage to your car.	Required by lenders on financed cars	~$170/yr average
Uninsured / underinsured motorist	Your injuries and damage when the at-fault driver has no insurance or too little.	Required in ~20 states	~$80/yr average
Personal injury protection (PIP) / MedPay	Medical bills for you and your passengers regardless of fault.	Required in no-fault states	~$60/yr average
Roadside, rental reimbursement, gap	Tow trucks, rental cars during repairs, the gap between loan balance and totaled-car value.	Optional add-ons	$20–$80/yr each

How to pick your limits

State minimum

Cheapest premium — typically 25/50/25 liability. Risky if you have any meaningful savings or own a home.

Best for: drivers with no assets, older vehicles, paid-off cars.

Standard (50/100/50)

Mid-tier liability + collision + comprehensive. Covers most typical injury and property claims.

Best for: most drivers with a financed vehicle.

Full / 100/300/100

Higher liability protects net worth. Often paired with $500 deductibles and add-ons like rental reimbursement.

Best for: homeowners, families, drivers with newer vehicles.

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Frequently asked questions

A standard policy bundles several coverages: liability pays for damage you cause to others; collision pays to repair your car after a crash; comprehensive pays for theft, weather, and other non-crash damage; uninsured-motorist protects you when the other driver has no insurance; and PIP or MedPay covers medical bills.

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