How Much Car Insurance Do I Actually Need?
Most drivers carry too little — or pay too much for coverage they don't need. Here's exactly how much car insurance you need.
General information, not professional advice — see terms of use.
Legal minimums are almost always too low to protect you financially.
Liability coverage: At least $100,000 per person / $300,000 per accident for bodily injury, and $100,000 for property damage. Medical bills and lawsuits from a serious accident can easily exceed state minimums.
Collision and comprehensive: If your car is worth more than $4,000, these are worth having. Collision pays for damage when you hit another vehicle; comprehensive covers theft, weather, and animals.
Uninsured/underinsured motorist coverage: About 1 in 8 drivers on US roads has no insurance. This coverage protects you if one of them hits you.
Bottom line: A full coverage policy with $100k/$300k liability, collision, comprehensive, and uninsured motorist coverage is the sweet spot for most drivers. If your car is older and paid off, you may drop collision and comprehensive — but never reduce liability below $100k/$300k.
Follow-up questions
What is the cheapest car insurance that still offers real protection?
A liability-only policy with limits of at least $100,000/$300,000 gives meaningful protection. Adding uninsured motorist coverage for a few extra dollars per month is highly recommended. Avoid bare minimum state-required limits — they rarely cover real-world accident costs.
Does car insurance cover a rental car?
Most standard car insurance policies extend your collision and comprehensive coverage to rental cars, meaning you can decline the rental company's expensive collision damage waiver (CDW). Always check your policy before renting.
How can I lower my car insurance premium without reducing coverage?
Bundle your auto and home insurance (saves 10-25%), increase your deductible from $500 to $1,000, ask about usage-based programs if you drive less than 10,000 miles per year, and compare quotes from at least three insurers annually.
More insurance answers
This page is general information, not professional advice, and it may not reflect the latest rules where you live. For your own situation, talk to a qualified adviser. Spotted an error? Email per@upperia.se and we will fix it.