How do I know if I chose the right coverages?
I started Insurance Blog by Chris™ because I have a passion for insurance. Here at the blog, our job is to educate and inform people about the best insurance for them.
Since then, we have grown into national brands with a large team of researchers helping people understand all forms of insurance.
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Written by
Chris Huntley
Founder of Huntley Wealth & Insurance Services
Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states.
After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insu…
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Reviewed by
Rachael Brennan
Licensed Insurance Agent
UPDATED: Feb 4, 2022
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Here’s the Scoop
Drivers can use their budget and the age of their vehicle to determine how much insurance they need
Liability limits should always be high enough to protect your financial assets
You can shop online to find free insurance quotes
Drivers everywhere are trying to stay safe these days and part of staying safe on the road means having the right insurance coverage. When you shop online to buy car insurance, choose the right coverage that will keep you and your vehicle protected.
Every driver will need different coverages as no two people are the same and no two people drive the same car; however understanding how each type of car insurance coverage works can give you a better idea of what you need to stay safe.
Keep reading to learn how to find online car insurance quotes, choose the right coverage, and how to keep your rates cheap.
If you’re eager to choose the right coverage, enter your ZIP code to receive free insurance quotes right away.
What kinds of car insurance coverage are there?
There are many different kinds of insurance coverage that you can purchase, and you should know what these coverages can do for you before you purchase a policy.
Now, there are five main types of insurance coverage which include:
Liability
Collision
Comprehensive
Uninsured and underinsured motorist
Medical coverage or personal injury protection
Liability insurance is very important as it provides financial assistance for other drivers’ medical expenses or for repairs to another driver’s vehicle if you were to cause an accident. It is typically recommended that you set your limits to at least 100/300/100. This way, if an accident were your fault, you would have $100,000 per person, $300,000 per accident, and $100,000 in property damage to give to any injured parties.
Next on the list is collision coverage which would empower you to get financial assistance if your vehicle incurred damage during an accident while comprehensive coverage, on the other hand, would help you be reimbursed for damage caused to your vehicle because of events like hail or theft.
Uninsured and underinsured motorist coverage is typically sold as a package deal; however, you should always verify that when you get free quotes. This coverage helps you bear the cost of an accident if you were struck by a driver who had too little insurance coverage or none at all.
In addition to these main coverage types, you may also have a wide range of additional coverages you could purchase if you wanted to like glass breakage or roadside assistance. These add-ons will vary from company to company though so you should also request at least three to five quotes when you shop online so you can find the best coverage options for you, but how can you recognize if you’ve bought the best coverage for your needs?
Enter your ZIP code below to view companies that have cheap insurance rates.
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How do you choose the right coverage?
When searching for a new car insurance company, don’t choose the right coverage for your budget alone. Examine the coverage that you need and the constraints of your budget. When you use both factors as your guide, you’ll find that this can be a winning combination.
While you shouldn’t be paying exorbitant car insurance rates, choose the right coverage that will serve to protect your financial resources. For example, if you have a lot of assets, it might behoove you to increase your liability coverage so your resources aren’t left in a vulnerable position, which can happen if your liability limits are too low.
You’ll also need to take your car’s age into account when deciding how much coverage you need. If you have a car that is getting older, you may not need to purchase full coverage. It often makes more financial sense to only buy liability coverage if you have a car that is getting older and losing value.
Now that you know what coverages might be the best for you, it’s time to start shopping.
How can drivers shop for a new insurance policy?
As long as you have an internet connection, you can shop for a new insurance policy from your smartphone or personal computer at any time of day that is easier for you.
Shopping online for insurance is incredibly efficient but you must remember that every car insurance company has its own underwriting process that produces a unique rate for every applicant so you’ll need to be ready to share some personal details about yourself.
Before you start to shop for quotes, be sure to have the following information ready:
Your car’s VIN
Your car’s make and model
Your driver’s license number
Your address
Your full name
Your age
Your marital status
Your gender
But this isn’t all that insurance companies use to calculate your rates. Most insurance companies will run a check on your credit score. Now, these checks are known as “soft hits” because your credit doesn’t drop when such checks occur. Insurance companies will also check your driving history to see if you have any moving violations or have caused any accidents.
If you’re concerned that your driving history could cause your rates to be too high, there’s no need to worry. Most insurance companies offer tools that you can use to reduce the cost of your insurance.
How can drivers lower their insurance rates?
There are quite a few ways you can reduce your insurance rates but one of the easiest is to make sure that you are getting every discount that you deserve. If you’re not sure which discounts may be applicable to you, you can always refer back to this list of common discounts offered by some of the best car insurance companies:
Low annual mileage
Good student
Distant student
Defensive driver course
Multi-policy
Multi-car
VIN etching
Anti-theft device
In addition to using discount to obtain cheaper rates, you can also raise your deductibles. When you increase your deductibles, your rates go down. Of course, this may not be a wise choice if you trying to reduce the amount of money you could potentially spend from your own bank account.
Enter your ZIP code below to view companies that have cheap insurance rates.
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Do drivers need to have car insurance?
In nearly every state drivers are required to have an active insurance policy that provides liability coverage at the very least. Below, you can see how much insurance you’ll need to purchase if you want to legally drive in your state:
StatesCoverage Requirements
Florida$10k property damage liability per accident
$10k personal injury protection
California$15k bodily injury liability per person
$30k bodily injury liability per accident
$5k property damage liability per accident
Delaware$15k bodily injury liability per person
$30k bodily injury liability per accident
$10k property damage liability per accident
Pennsylvania$15k bodily injury liability per person
$30k bodily injury liability per accident
$5k property damage liability per accident
$5k medical benefits
Arkansas, Delaware, Nevada$15k bodily injury liability per person
$30k bodily injury liability per accident
$10k property damage liability per accident
New Jersey$15k bodily injury liability per person
$30k bodily injury liability per accident
$5k property damage liability per accident
$15k personal injury protection
Louisiana$15k bodily injury liability per person
$30k bodily injury liability per accident
$25k property damage liability per accident
Michigan$20k bodily injury liability per person
$40k bodily injury liability per accident
$10k property damage liability per accident
Iowa$20k bodily injury liability per person
$40k bodily injury liability per accident
$15k property damage liability per accident
Hawaii$20k bodily injury liability per person
$40k bodily injury liability per accident
$10k property damage liability per accident
$10k personal injury protection
Indiana, Montana, New Mexico, Washington$25k bodily injury liability per person
$50k bodily injury liability per person
$10k property damage liability per accident
Colorado, Idaho, Tennessee$25k bodily injury liability per person
$50k bodily injury liability per accident
$15k property damage liability per accident
Kentucky$25k bodily injury liability per person
$50k bodily injury liability per accident
$10k property damage liability per accident
$10k personal injury protection
Wyoming$25k bodily injury liability per person
$50k bodily injury liability per accident
$20k property damage liability per accident
Alabama, Arizona, Georgia, Mississippi, Ohio, Oklahoma, Rhode Island$25k bodily injury liability per person
$50k bodily injury liability per accident
$25k property damage liability per accident
Maryland$30k bodily injury liability per person
$60k bodily injury liability per accident
$15k property damage liability per accident
Utah$25k bodily injury liability per person
$65k bodily injury liability per accident
$15k property damage liability per accident
$3k personal injury protection
Texas, North Carolina$30k bodily injury liability per person
$60k bodily injury liability per accident
$25k property damage liability per accident
Connecticut$20k bodily injury liability per person
$40k bodily injury liability per accident
$10k property damage liability per accident
$20k uninsured/underinsured motorist coverage per person
$40k uninsured/underinsured motorist coverage per accident
Kansas, Wisconsin$25k bodily injury liability per person
$50k bodily injury liability per accident
$10k property damage liability per accident
$25k uninsured/underinsured motorist coverage per person
$50k uninsured/underinsured motorist coverage per accident
WA, District of Columbia$25k bodily injury liability per person
$50k bodily injury liability per accident
$10k property damage liability per accident
$25k uninsured/underinsured motorist coverage per person
$50k uninsured/underinsured motorist coverage per accident
$5k uninsured/underinsured
Illinois$25k bodily injury liability per person
$50k bodily injury liability per accident
$20k property damage liability per accident
$25k uninsured motorist coverage per person
$50k uninsured motorist coverage per accident
Massachusetts$30k bodily injury liability per person
$60k bodily injury liability per accident
$15k property damage liability per accident
$20k uninsured motorist coverage per person
$40k uninsured motorist coverage per accident
$8k personal injury protection
Missouri$30k bodily injury liability per person
$60k bodily injury liability per accident
$10k property damage liability per accident
$25k uninsured motorist coverage per person
$50k uninsured motorist coverage per accident
Nebraska, South Dakota$25k bodily injury liability per person
$50k bodily injury liability per accident
$25k property damage liability per accident
$25k uninsured motorist coverage per person
$50k uninsured motorist coverage per accident
Alaska$50k bodily injury liability per person
$100k bodily injury liability per accident
$25k property damage liability per accident
Oregon$25k bodily injury liability per person
$50k bodily injury liability per accident
$20k property damage liability per accident
$25k uninsured motorist coverage per person
$50k uninsured motorist coverage per accident
$15k personal injury protection
Minnesota$25k bodily injury liability per person
$50k bodily injury liability per accident
$10k property damage liability per accident
$25k uninsured motorist coverage per person
$50k uninsured motorist coverage per accident
$40k personal injury protection
South Carolina, West Virginia$25k bodily injury liability per person
$50k bodily injury liability per accident
$25k property damage liability per accident
$25k uninsured motorist coverage per person
$50k uninsured motorist coverage per accident
$25k uninsured motorist property damage coverage
North Dakota$25k bodily injury liability per person
$50k bodily injury liability per accident
$25k property damage liability per accident
$25k uninsured/underinsured motorist coverage per person
$50k uninsured/underinsured motorist coverage per accident
$30k personal injury protection
Vermont$25k bodily injury liability per person
$50k bodily injury liability per accident
$10k property damage liability per accident
$50k uninsured motorist coverage per person
$100k uninsured motorist coverage per accident
$10k uninsured motorist property damage coverage per accident
Maine$50k bodily injury liability per person
$100k bodily injury liability per accident
$25k property damage liability per accident
$50k uninsured motorist coverage per person
$100k uninsured motorist coverage per accident
$2k medical payments coverage
New York$25k bodily injury liability per person
$50k bodily injury liability per accident
$50k liability for death per person
$100k liability for death per accident
$10k property damage liability per accident
$50k personal injury protection
$25k uninsured motorist coverage per person
$50k underinsured motorist coverage per accident
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You should never drive without insurance. If you do, you could face harsh consequences like high fines and even jail time. Plus, if you were in an accident you would have no financial assistance available to get your car repaired.
What You Need to Know About Choosing the Right Coverage
Knowing how to choose the right auto insurance coverage is incredibly important. You may think that your primary goal should be to find affordable car insurance but choose the right coverage for your needs and you’ll find that the rewards far outweigh the costs. Knowing how to choose the right liability coverage is particularly vital because setting your limits too low could put your assets at risk if you were to cause an accident.
Taking your budget and the value of your car into account can help you choose the right coverage.
Now that you know how to choose the right coverage, enter your ZIP code to get free quotes from insurance companies near your city.
