When you’re shopping for car insurance, you may be wondering how much coverage you need and what your options are.
Every state has minimum insurance coverage requirements for different types of insurance, so some of the coverage is optional. If you have a history of accidents or simply want peace of mind that you won’t end up with huge bills in the event of an accident, you might consider higher levels of coverage across all insurance types.
Insurify can help you with car insurance quotes comparison from top-rated national and regional insurance companies. No matter your insurance history or point in your policy period, you can compare quotes, unlock discounts, and save up to hundreds of dollars per year on your car insurance premium.
Though Insurify’s intuitive online application will only take a few minutes, you will get asked some questions about the car insurance coverage you’re seeking. So, here’s what you need to know about how much car insurance you need—and a few ways to save money on car insurance, too.
Many people don’t realize there are a few different types of car insurance. Some are optional and some are mandated by the state you live in. Here’s a quick breakdown of the different types of car insurance you can buy:
You’ll need at least the minimum level of liability insurance to meet your state’s insurance requirements. This amount varies by state and you always have the option to buy more coverage if you feel like you want more benefits.
When you start reviewing car insurance options, you’ll notice that minimum requirements are usually expressed as three numbers: XX/XX/XX. These numbers represent bodily injury liability maximum for one person injured in the accident, bodily injury liability maximum for all injuries in one accident, and property damage liability maximum for one accident, in that order.
All states have these limits but some states also have additional requirements, such as uninsured or underinsured motorist coverage or a PIP requirement. Just remember: liability insurance won’t cover damages to your car.
What many people don’t realize is there’s not a huge difference in the cost of your premium if you go as far as doubling liability coverage. If you only stick to the state minimum requirement, you may find you don’t have enough to cover damages and will have more out-of-pocket costs.
Still, you’ll need to buy at least the minimum liability required by your state to avoid paying fines and big bills if you’re driving without insurance and end up in an accident. In some states, it makes sense to have underinsured or uninsured motorist protection because there may be a bigger population of uninsured drivers in your area.
Collision and comprehensive car insurance are usually bundled together, but some insurance companies let you buy them separately. If you live in a high-risk area, are getting a loan from a bank for a high-priced car, or you just want extra protection for peace of mind, it makes sense to have both types of coverage.
You’ll need to choose a deductible amount for both collision and comprehensive coverage. Ideally, you’ll want to choose a deductible that makes sense with your budget and available savings. If you are still making payments on the car, it might make more sense to choose a lower deductible and save money in case you do get in an accident, then increase the deductible when you own the car.
If you don’t have health insurance coverage or if you don’t think you can afford to live without a loss of income if you got into a serious car accident, it pays to have good PIP coverage. Some states do require PIP so that you’re covered for any medical bills, serious injuries, and loss of wages, no matter who was at fault. Some states require medical payments coverage and those payments can help to pay the high deductible of your health insurance policy if you ended up filing a claim.
If you’re apprehensive about paying more than your minimum liability insurance coverage amount to be properly insured, take some time to get quotes from multiple insurance companies and really consider how much you could save if you were involved in a serious accident.
Many drivers make the mistake of thinking they won’t have to worry about accidents because they have a clean driving record and are very cautious drivers. The truth is, an accident can happen when another driver isn’t paying attention or when inclement weather triggers other drives to cause a collision. This is why having adequate insurance coverage is important—and adding on uninsured motorist coverage or gap insurance doesn’t hurt.
There are several ways to make car insurance affordable, even when you decide to get more than the minimum requirement. Here are some tips:
Just look at the wide range of 6-month car insurance policy quotes that Insurify delivered for the following driver: a 34 year old female living in Peoria, Arizona who owns and drives a 2012 Chevrolet Traverse LT (primarily to drive to work, roughly 10 miles per day), elects for state minimum coverage and $1,000 deductibles for collision and comprehensive coverage, is currently insured, and is a safe driver.
Insurance Company Quote Estimate (monthly cost)
Bristol West $88
Sun Coast $100
Freedom National $179
The General $218
Figuring out how much car insurance you need can be tricky, but you can get an accurate estimate by comparison shopping, doing research, and determining what coverage options work best for you.