include liability insurance, comprehensive coverage, collision coverage, uninsured/underinsured motorist coverage (UM/UIM), personal injury protection (PIP), and medical payments coverage (MedPay).
The 6 primary types of car insurance coverage
When you buy car insurance, your policy will start with the minimum liability coverage required by your state. Your policy will also include any additional coverages required in your state, including UM/UIM, MedPay, and PIP.
You can also add full coverage insurance to your policy—it’s not mandatory in any state, but if your car is financed, your lender may require you to carry it as part of your lending terms.
1. The bare minimum: Liability insurance
In almost every state, drivers are required to carry liability insurance to legally drive.
, which covers damage to vehicles and other types of property.
How much does it cost? On average, state-minimum liability insurance costs around $77 a month—but your rate will depend largely on your carrier, the limits required by your state, and personal factors like your driving record.
Jerry’s experts analyzed thousands of real policies purchased by our customers to learn more about what drivers pay for insurance. Based on those findings, here’s what drivers pay on average each month for minimum liability insurance with some of the nation’s top insurance providers.
is the only state that doesn’t require liability insurance, but it’s still a good idea. In all other states, you must have liability insurance to legally be on the road.
2. Protection from accidents: Collision coverage
When you’re shopping for insurance, you’ll likely come across the term “full coverage.” Also known as physical damage protection, full coverage is made up of collision and comprehensive coverage, which help protect your vehicle against various types of damage.
pays for damage to your vehicle after an accident with another vehicle or stationary object. It’s one part of a full-coverage insurance policy.
How much does it cost? Collision insurance is usually included as part of a full-coverage policy, but some drivers opt to exclude comprehensive coverage.
Our experts found that on average, drivers pay around $140 a month for a policy that includes liability and collision coverage, without comprehensive coverage. Based on those findings, this table shows how that breaks down across several of the nation’s top insurers:
Who needs it: If you lease or finance your vehicle, your lender will require you to carry collision coverage. But even if you own your vehicle outright, carrying collision insurance is a good idea if your vehicle is new or holds its value.
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pays for damage to your vehicle that isn’t the result of a collision—such as from a severe weather event, vandalism, or theft. It’s also included in a full-coverage insurance policy.
How much does it cost? Although comprehensive coverage is usually included in full-coverage insurance, some drivers do opt to purchase it as a standalone add-on to their liability coverage.
Our experts found that on average, a policy with liability insurance and comprehensive coverage costs around $132 a month. This table shows what those averages look like across several top insurance companies.
Who needs it: Lenders will require comprehensive coverage on leased or financed vehicles. As with collision insurance, if your vehicle hasn’t yet depreciated significantly, it’s usually a good idea to carry this coverage.
How much does full coverage cost?
Full-coverage costs an average of $165 a month—but your costs will depend on factors like where you live, the vehicle you drive, your driving record and claims history, and more.
Based on our experts’ analysis, here’s what drivers pay on average for full coverage insurance with some of the nation’s top providers.
pays for your costs if you’re involved in an accident with a driver who doesn’t carry an auto insurance policy. Underinsured motorist coverage (UIM) protects you if the other driver has insurance but the coverage limits aren’t high enough to cover your expenses.
UMBI VS UMPD
In most states, uninsured/underinsured motorist coverage is only available for bodily injury claims (UMBI/UIMBI). However, in some states, uninsured/underinsured motorist coverage is also available for property damage (UMPD/UIMPD).
How much does it cost? Jerry’s experts analyzed data from thousands of real drivers to determine the average monthly cost of insurance by provider in states that require uninsured/underinsured motorist coverage, personal injury protection, and medical payments coverage. They found that on average, a policy that includes UM/UIM costs around $202 a month.
Based on those findings, this table shows the average monthly cost of policies containing uninsured and underinsured motorist coverage.
Who needs it: UM is required in 20 states, while only 14 require UIM. But even if your state doesn’t require this coverage, it’s a good idea if you live in an area with a high percentage of uninsured drivers.
UM is required in these states: CT*, DC†, IL*, KS*, ME*, MD*†, MA, MN*, MO, NE*, NH*†, NY*, NC*†, ND*, OR*, SC†, SD*, VT*†, VA*†, WV, WY†
* Also requires UIM, † Requires UMPD
Find out whether your state has a higher-than-average rate of uninsured drivers:
pays for medical expenses after a car accident for the policyholder and any injured passengers, even if they don’t have health insurance. In addition, PIP will pay for lost income, childcare expenses, and funeral expenses related to the accident.
How much does it cost? Our experts found that drivers pay an average of $214 a month for coverage that includes personal injury protection. Based on that analysis, this table shows what drivers pay for policies with PIP across some of the nation’s top insurance providers.
supplements your health insurance and covers medical expenses for you, your passengers, and any injured pedestrians after an accident—whether you’re the at-fault driver or not. It covers doctor and hospital visits, ambulance expenses, rehab and nursing care, and even some medical equipment.
How much does it cost? Policies with MedPay cost an average of $199 a month. Based on our experts’ analysis, here’s what you’ll pay for MedPay coverage with several top insurance companies:
Who needs it: If you can’t afford out-of-pocket costs for the items that MedPay will cover, investing in MedPay is a good idea. It can also complement PIP coverage. For example, PIP often excludes driving under the influence but MedPay doesn’t have that exclusion.
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Optional coverage add-ons
Most insurance companies offer a range of optional types of coverage that you can add to your policy. These add-ons allow you to customize your policy to get exactly the coverage you need.
: If your vehicle is totaled or stolen, gap coverage pays the difference between your actual cash value insurance payout and your car loan or lease balance.
: After a total loss, new car replacement will cover the cost of replacing your vehicle with the same make or model that you previously had—but you’ll need to pay a deductible first.
: If you drive for a rideshare company or a food delivery service, you’re likely not covered by your regular insurance policy. Ask your insurance agent if your provider offers rideshare coverage.
How to get the right type of insurance
How much liability coverage do I need?
When you’re shopping for car insurance, your policy will automatically include the state minimum where you live. But for the best protection, consider raising your liability limits to $100,000 of bodily injury liability per person, $300,000 of bodily injury liability per accident, and $100,000 of property damage liability per accident.
, you can easily adjust your coverage limits to include higher amounts of liability. In an instant, you’ll be able to see what you would pay for additional liability protection—higher limits are often surprisingly affordable.
VP Insurance Operations, 18+ Years Experience in Insurance
A general rule that I recommend is to carry enough coverage to protect your current and future assets – at least $100,000/$300,000 of liability coverage is recommended, but you may need more coverage depending on your financial situation.
Do I need full coverage?
If your car is less than 10 years old, buying comprehensive and collision coverage is a good idea. If your vehicle is leased or financed, full coverage will be a requirement.
Do I need any optional coverages?
Insurance add-ons are personal and you’ll be able to tailor your coverage to your situation.
If you have a brand new vehicle, new vehicle replacement coverage is a good idea for at least the first few years
If your vehicle is financed, gap insurance is a smart purchase until you owe less on your loan the the vehicle is worth
Unless you belong to an auto club like AAA, roadside assistance is an affordable add-on for unexpected situations
If you’re driving for a rideshare or food delivery company, you’ll probably need to purchase rideshare insurance
Compare quotes from multiple insurers to find the best rate for the coverage you need and the add-ons that make sense for you.
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FAQ
What type of car insurance is required?
All states except New Hampshire require drivers to purchase at least minimum liability insurance, which includes both bodily injury liability and property damage liability. Some states also mandate uninsured motorist coverage, PIP, and/or MedPay.
If you’re leasing or financing your vehicle, your lender will require you to purchase collision and comprehensive coverage. You may also have to increase your liability limits to 100/300/50.
What is the cheapest type of car insurance?
Minimum liability insurance will give you the lowest car insurance rates—but cheap car insurance can cost a lot more in the long run. If you get into an accident with state minimum insurance, your limits might not be enough to cover the damages and medical bills. You’ll be responsible for the difference out of pocket.
To find the best car insurance quotes, shop around with at least 3-5 insurance providers.
What are the benefits of liability insurance?
Liability insurance ensures that you won’t be liable for out-of-pocket costs after an at-fault accident—but only if you carry enough of it. Accident costs can run up quickly, so it’s best to purchase higher limits than the state minimum coverage—ideally 100/300/100 if you can afford it.
What type of car insurance is best?
It’s always a good idea to purchase full-coverage insurance. This protects you from personal liability if you cause an at-fault accident where someone else is injured or has property damage, plus it covers damage to your vehicle.
Expert insurance writer and editor Amy Bobinger specializes in car repair, car maintenance, and car insurance. Amy is passionate about creating content that helps consumers navigate challenges related to car ownership and achieve financial success in areas relating to cars.
Amy has over 10 years of writing and editing experience. After several years as a freelance writer, Amy spent four years as an editing fellow at WikiHow, where she co-authored over 600 articles on topics including car maintenance and home ownership. Since joining Jerry’s editorial team in 2022, Amy has edited over 2,500 articles on car insurance, state driving laws, and car repair and maintenance.
Sarah Gray
Licensed Insurance Agent — Expert Insurance Writer and Editor
Sarah Gray is an insurance writer with nearly a decade of experience in publishing and writing. Sarah specializes in writing articles that educate car owners and buyers on the full scope of car ownership—from shopping for and buying a new car to scrapping one that’s breathed its last and everything in between. Sarah has authored over 1,500 articles for Jerry on topics ranging from first-time buyer programs to how to get a salvage title for a totaled car.
Prior to joining Jerry, Sarah was a full-time professor of English literature and composition with multiple academic writing publications.
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