Which Car Insurance Coverages Do I Need?
The coverages that make sense depend on whether you own, finance or lease your car, how old it is, and how much you have to protect. Answer the questions below to see a suggested coverage set and what each part pays for.
Car Insurance Coverage Checker
How this works
An auto policy is a bundle of separate coverages, and each one responds to a different situation. Liability pays for injuries and property damage you cause to others. Collision and comprehensive are physical damage coverages that repair or replace your own vehicle after a crash or a non-collision event such as theft, fire or weather.
Whether collision and comprehensive are required depends mostly on how the car is owned. A lender or lessor generally requires both while a vehicle is financed or leased, because the car is collateral for the loan. Once the car is paid off, those coverages become optional, and the decision comes down to the vehicle's value versus the cost of the coverage.
The suggested liability limit in this tool is based on a rule of thumb: carry enough to protect your net worth, because a serious at-fault accident can lead to a judgment beyond a low limit. It rounds your net worth up to a common coverage tier and never suggests less than your state's minimum. It is a starting point, not a recommendation from a licensed agent.
Frequently asked questions
Is liability coverage required?
Yes. Nearly every state requires drivers to carry a minimum amount of liability coverage. The required limits differ by state, and the minimum is often far below the cost of a serious injury.
Do I need collision and comprehensive if I own my car outright?
Not legally. They are optional once the car is paid off, but they still make sense for a newer or valuable vehicle. For an older, low-value car, weigh the annual premium against what the insurer would actually pay after a claim.
What does comprehensive cover that collision does not?
Comprehensive covers non-collision events such as theft, fire, severe weather, vandalism and animal strikes. Collision covers damage from hitting or being hit by another vehicle or object, and from a rollover.
Why carry uninsured motorist coverage?
Because the driver who causes an accident may have no insurance or only the state minimum. Uninsured and underinsured motorist coverage can pay for your injuries when the at-fault driver cannot.
When is gap insurance worth considering?
It is most relevant when a vehicle is financed or leased and could be worth less than the loan balance. If the car is totaled, gap coverage can pay the difference between the actual cash value and what is still owed.
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