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Understanding what each type of car insurance covers helps you choose the right protection at the right price. Here are the 8 main coverage types.
Covers bodily injury and property damage you cause to others in an accident. Required in nearly every state.
Typical limits: Varies by state and provider
$620/yr
avg cost
Pays to repair or replace your vehicle after an accident regardless of fault. Required by lenders for financed vehicles.
Typical limits: $500 or $1,000 deductible
$430/yr
avg cost
Covers medical expenses for you and passengers regardless of fault. Required in no-fault states.
Typical limits: Varies by state and provider
$210/yr
avg cost
Covers non-collision damage including theft, vandalism, weather events, and animal strikes.
Typical limits: $250 to $1,000 deductible
$190/yr
avg cost
Protects you if hit by a driver with no insurance or insufficient coverage. Required in many states.
Typical limits: Varies by state and provider
$160/yr
avg cost
Covers the difference between what you owe on a car loan and the vehicle's actual cash value if totaled.
Typical limits: Varies by state and provider
$60/yr
avg cost
Pays medical bills for you and passengers after an accident, regardless of fault. Simpler than PIP with no wage-loss benefit.
Typical limits: Varies by state and provider
$45/yr
avg cost
Covers towing, tire changes, lockout service, and fuel delivery. Usually a low-cost add-on.
Typical limits: Varies by state and provider
$25/yr
avg cost
The right coverage depends on your vehicle value, financial situation, and risk tolerance. At minimum, you need your state's required liability coverage. Beyond that, consider adding collision and comprehensive if your car is worth more than a few thousand dollars, and uninsured motorist coverage if you live in a state with high uninsured rates.