Auto Insurance Coverage Types: What You Need To Know in 2023
State laws require liability insurance, but other car insurance types can provide the additional coverage you need.
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Cynthia Lanctot
Licensed Agent
Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.
Licensed Agent
UPDATED: Dec 10, 2022
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Dec 10, 2022
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- The most common type of auto insurance is minimum liability, which 48 states require
- Some states require drivers to carry personal injury protection or medical payments coverage alongside liability insurance
- Full coverage includes liability, collision, and comprehensive coverages
What does car insurance do? It protects you from paying out of pocket after a collision or auto theft.
How does auto insurance work? You file a claim with your insurance company after an accident or collision to help pay for repairs or medical bills. Your policy limits determine how much auto insurance covers.
What does car insurance cover? The most common types of car insurance coverages provide financial protection against accident liability, property damage, and personal injury. Other types can pay for rental cars, auto loans, or mechanical breakdowns and replacement parts.
State insurance laws determine the required coverages and policy limits, and the minimum auto insurance required by each state varies. Driving without the right auto insurance can cost you, so keep reading to learn about the most common types of car insurance required in most states.
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The Most Common Types of Auto Insurance
The two most common types of car insurance are liability and full coverage, but more policies exist. Scroll down to learn more about the different types of auto insurance and which states require coverage.
Liability Insurance
Liability car insurance is the required coverage amount necessary to drive legally. It doesn’t cover any of your vehicle damage or medical bills but protects other drivers from damages you cause in an accident.
Basic liability insurance includes two different coverage types:
- Bodily injury liability. Pays for injuries sustained by the other driver and passengers. Some auto insurance companies call it personal liability insurance.
- Property damage liability. Pays for damage you cause to another vehicle or personal property in an accident or collision.
Depending on your policy, coverage may apply to legal fees if the other driver sues you.
Do I need liability insurance?
Yes, nearly every state requires drivers to carry a specific amount of liability auto insurance. Use the table below to find out how much car insurance you need.
States Insurance Coverage Required Minimum Liability Limits
Alabama Bodily injury and property damage liability 25/50/25
Alaska Bodily injury and property damage liability 50/100/25
Arizona Bodily injury and property damage liability 15/30/10
Arkansas Bodily injury and property damage liability, Personal injury protection (PIP) 25/50/25
California Bodily injury and property damage liability 15/30/5
Colorado Bodily injury and property damage liability 25/50/15
Connecticut Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/20
Delaware Bodily injury and property damage liability, Personal injury protection (PIP) 25/50/10
Washington, D.C. Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/10
Florida Bodily injury and property damage liability, Personal injury protection (PIP) 10/20/10
Georgia Bodily injury and property damage liability 25/50/25
Hawaii Bodily injury and property damage liability, Personal injury protection (PIP) 20/40/10
Idaho Bodily injury and property damage liability 25/50/15
Illinois Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/20
Indiana Bodily injury and property damage liability 25/50/25
Iowa Bodily injury and property damage liability 20/40/15
Kansas Bodily injury and property damage liability, Personal injury protection (PIP) 25/50/25
Kentucky Bodily injury and property damage liability, Personal injury protection (PIP), uninsured motorist, underinsured motorist 25/50/25
Louisiana Bodily injury and property damage liability 15/30/25
Maine Bodily injury and property damage liability, uninsured motorist, underinsured motorist, medical payments (MedPay) 50/100/25
Maryland Bodily injury and property damage liability, Personal injury protection (PIP), uninsured motorist, underinsured motorist 30/60/15
Massachusetts Bodily injury and property damage liability, Personal injury protection (PIP) 20/40/5
Michigan Bodily injury and property damage liability, Personal injury protection (PIP) 20/40/10
Minnesota Bodily injury and property damage liability, Personal injury protection (PIP), uninsured motorist, underinsured motorist 30/60/10
Mississippi Bodily injury and property damage liability 25/50/25
Missouri Bodily injury and property damage liability, uninsured motorist 25/50/25
Montana Bodily injury and property damage liability 25/50/20
Nebraska Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/25
Nevada Bodily injury and property damage liability 25/50/20
New Hampshire Financial responsibility only 25/50/25
New Jersey Bodily injury and property damage liability, Personal injury protection (PIP), uninsured motorist, underinsured motorist 15/30/5
New Mexico Bodily injury and property damage liability, 25/50/10
New York Bodily injury and property damage liability, Personal injury protection (PIP), uninsured motorist, underinsured motorist 25/50/10
North Carolina Bodily injury and property damage liability, uninsured motorist, underinsured motorist 30/60/25
North Dakota Bodily injury and property damage liability, Personal injury protection (PIP), uninsured motorist, underinsured motorist 25/50/25
Ohio Bodily injury and property damage liability 25/50/25
Oklahoma Bodily injury and property damage liability 25/50/25
Oregon Bodily injury and property damage liability, Personal injury protection (PIP), uninsured motorist, underinsured motorist 25/50/20
Pennsylvania Bodily injury and property damage liability, Personal injury protection (PIP) 15/30/5
Rhode Island Bodily injury and property damage liability, Personal injury protection (PIP) 25/50/25
South Carolina Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/25
South Dakota Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/25
Tennessee Bodily injury and property damage liability 25/50/15
Texas Bodily injury and property damage liability, Personal injury protection (PIP) 30/60/25
Utah Bodily injury and property damage liability, Personal injury protection (PIP) 25/65/15
Vermont Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/10
Virginia Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/20
Washington Bodily injury and property damage liability 25/50/10
West Virginia Bodily injury and property damage liability, uninsured motorist, underinsured motorist 25/50/25
Wisconsin Bodily injury and property damage liability, uninsured motorist, medical payments (MedPay) 25/50/10
Wyoming Bodily injury and property damage liability 25/50/20
New Hampshire and Virginia are the only states without mandatory auto insurance laws. Local drivers are completely responsible for any liability costs in an accident and must prove they can afford to opt out of coverage.
How much does liability insurance cost?
On average, liability auto insurance rates are the cheapest. Drivers with good records pay around $45 monthly — or $541 per year — for coverage.
Full Coverage Car Insurance
Full coverage auto insurance includes your state minimum liability insurance with additional collision and comprehensive coverages.
- Collision insurance. Collision coverage pays for your property damage in an accident.
- Comprehensive insurance. Comprehensive covers damage from non-collision events like weather damage, auto theft, and vandalism.
Don’t assume you’re completely covered — the full coverage moniker can be deceiving since insurance pays out based on your chosen policy limits and deductibles.
For example, you must pay an auto insurance deductible before collision or comprehensive insurance applies. Lower deductibles mean higher monthly rates but less out-of-pocket costs when filing a claim. Additionally, it’s not worth filing a full coverage insurance claim if the repair costs are less than your deductible.
Do I need full coverage car insurance?
State laws don’t require full coverage, but you may need the additional insurance to meet the agreements in your auto loan or lease. It’s also a good idea to carry full coverage if you can’t afford to repair or replace your vehicle.
How much does full coverage car insurance cost?
Monthly full coverage rates cost around $123, but quotes increase if you choose more coverage.
Personal Injury Protection
Personal injury protection insurance, or PIP, pays for medical costs, lost wages, and accidental death benefits after a collision. It will also cover child care and housekeeping costs if you can’t work due to your injuries.
Is PIP mandatory?
Yes, but only if you live in a no-fault state. No-fault insurance laws prohibit drivers from suing one another after accidents, and PIP coverage ensures you aren’t paying out of pocket after serious injuries.
The table below lists personal injury requirements in no-fault insurance states.
States Where PIP Insurance is Required Minimum PIP Requirements States Where PIP Insurance is Optional Minimum PIP Requirements
Delaware $15,000 per person
$30,000 per accident
$5,000 in funeral costsArkansas $5,000
Florida $10,000 per person Kentucky $4,500 per person
$2,000 burial benefit
$10,000 in lost wages and rehabilitation
Hawaii $10,000 per person Maryland $2,500
Kansas $4,500 per person for medical costs and rehabilitation
$2,000 in funeral costs
$900/mo for lost wages
$25/day for household servicesSouth Dakota $2,000 per person
$10,000 in death benefits
$60/week in disability
Massachusetts $8,000 per person, per accident Texas $2,500 per person
Michigan $250,000-$500,000 per person Virginia $2,000 per person
$100/wk for lost wages
Minnesota $20,000 medical coverage
$20,000 for lost wagesWashington, D.C. $50,000 per person
$12,000 for lost wages
$4,000 in funeral costs
New Jersey $15,000 per person, per accident Washington $10,000 per accident
New York $50,000 per person
$2,000 in death benefits
$2,000/mo for lost wages (or 80% of income)
$25/day for household services
North Dakota $30,000 per person
Oregon $15,000 per person
Utah $3,000 per person
$1,500 in funeral costs
$3,000 in death benefits
$250/wk for lost wages (or 85% of income)
$20/day for household services
PIP insurance is optional in Arkansas, Kentucky, Maryland, South Dakota, Texas, Virginia, and Washington.
What are PIP costs?
PIP auto insurance rates are relatively cheap and average between $5 and $50 per month. These insurance costs apply to your minimum liability rates if you live in a no-fault state.
Medical Payments Coverage
Medical payments insurance, or MedPay, covers emergency medical costs and hospital bills.
No-fault states that don’t require PIP have mandatory MedPay minimums instead:
- Maine. $2,000
- Pennsylvania. $5,000
- New Hampshire. $1,000
MedPay won’t pay for lost wages or provide death benefits, unlike PIP.
Do I need MedPay insurance?
No, unless you live in Maine, Pennsylvania, or decide to buy auto insurance in New Hampshire. MedPay is optional in other states but will supplement your full coverage and health insurance plans in the event of an accident.
How much does MedPay cost?
MedPay costs less than $5 per month. It’s more affordable than PIP but doesn’t offer nearly as much coverage.
Uninsured/Underinsured Motorist Coverage
Does insurance cover hit and run? Yes, if you carry uninsured/underinsured motorist coverage. This type of auto insurance pays for vehicle repairs and medical bills if you’re in an accident with an uninsured driver or someone who doesn’t carry adequate liability insurance.
Uninsured motorist coverage includes two insurance types: bodily injury and property damage. Some states only require bodily injury, while others require both.
Do I need uninsured motorist coverage?
20 states require uninsured motorist insurance. Find your state below to see if you need coverage.
States Requiring Uninsured Motorist Insurance UM Minimum Insurance
Connecticut UMBI: $25,000/$50,000
Illinois UMBI: $25,000/$50,000
Kansas UMBI: $25,000/$50,000
Maine UMBI: $50,000/$100,000
Maryland UMBI: $30,000/$60,000
UMPD: $15,000
Massachusetts UMBI: $20,000/$40,000
Minnesota UMBI: $25,000/$50,000
Missouri UMBI: $25,000/$50,000
Nebraska UMBI: $25,000/$50,000
New Hampshire UMBI: $25,000/$50,000
UMPD: $25,000
New York UMBI: $25,000/$50,000
North Carolina UMBI: $30,000/$60,000
UMPD: $25,000
North Dakota UMBI: $25,000/$50,000
Oregon UMBI: $25,000/$50,000
South Carolina UMBI: $25,000/$50,000
UMPD: $25,000
South Dakota UMBI: $25,000/$50,000
Vermont UMBI: $50,000/$100,000
UMPD: $10,000
Virginia UMBI: $25,000/$50,000
UMPD: $20,000
Washington, D.C. UMBI: $25,000/$50,000
UMPD: $5,000
West Virginia UMBI: $25,000/$50,000
UMPD: $25,000
Wisconsin UMBI: $25,000/$50,000
According to the Insurance Information Institute, even if it’s not legally necessary, nearly 13% of drivers are uninsured, and you can save a lot of money after an accident with this additional coverage.
How much is uninsured motorist coverage?
Uninsured motorist rates depend on how much coverage you decide to carry. State laws require different coverage levels, so rates vary depending on where you live. On average, drivers pay between $33 and $133 annually for up to $300,000 per accident.
Usage-Based Insurance (UBI)
Usage-based auto insurance, or pay-per-mile insurance, is a relatively new policy type. It meets minimum liability requirements, providing full coverage and any other kind of coverage you need. Still, you can qualify for lower rates by tracking your driving habits and mileage with a mobile app or in-car telematics device.
With some UBI companies, good driving can save you up to 15%, but poor driving habits could increase rates.
Do I need UBI?
UBI only benefits drivers who have short commutes and live in low-traffic areas. Bad driving habits like hard braking, speeding, and driving at night could all increase your rates, so only sign up for telematics if you know it will save you money. You can compare usage-based car insurance quotes from different companies below to see how much you can save.
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Are there other types of car insurance?
The six types of auto insurance above are the most common policies, but you can buy other kinds.
In addition, most insurance companies allow drivers to customize policies with these different coverages, but availability varies by state:
- GAP insurance. Pays the remaining amount on an auto loan if the insurance company totals your vehicle after a collision.
- Rental reimbursement. Covers the cost of a rental car while your vehicle is in the repair shop for a certain period.
- Roadside assistance. Provides 24/7 towing services, tire changes, locksmith, and more. Coverage availability varies by state and company.
- Mechanical breakdown insurance. Covers repairs and replacement costs for damages not caused by an accident.
- Umbrella insurance. Provides additional limits of coverage to supplement your auto policy.
- Non-owner auto insurance. Liability-only policy for drivers who don’t own a car but borrow or rent vehicles regularly.
- SR-22 insurance. Provides proof of coverage after a driver’s license is revoked for DUI, reckless driving, or driving without insurance.
These insurance policies are optional, except SR-22 insurance. Drivers who lose their license must file SR-22 to reinstate their driving privileges.
What You Need to Know About Different Car Insurance Types
Out of all the different auto insurance types, state law only requires liability coverage. Liability auto insurance is the most common type of car insurance and pays for damages and injuries you cause in an at-fault accident.
Liability-only won’t cover your injuries or property damage, so drivers often opt for full coverage. Full coverage includes collision and comprehensive insurance to cover personal costs after an accident. State law won’t require full coverage insurance, but you might need it if you have a vehicle loan or lease.
Some state laws require additional insurance like PIP, MedPay, and uninsured/underinsured motorist insurance. Additional insurance requirements could raise your monthly insurance rates, so use our free quote comparison tool below to find the most affordable auto insurance in your state.
Frequently Asked Questions
What are the five types of auto insurance?
The five most common types of auto insurance coverage are liability, collision, comprehensive, personal injury protection, and MedPay. State laws and the terms of your auto loan or lease determine the kind of car insurance you need.
What is full coverage insurance?
Full coverage auto insurance includes liability, collision, and comprehensive insurance. So, damages and injuries to both parties are covered in an accident you cause.
What is the most common car insurance?
The most common type of car insurance is minimum liability coverage. Every state requires liability insurance except for Virginia and New Hampshire.
Is comprehensive insurance the same as full coverage?
No, comprehensive insurance is simply a part of full coverage auto insurance. You can only file a comprehensive claim for damages from other incidents that aren’t a collision, such as vandalism, fire, or hail damage.
What is collision coverage on a car?
Collision insurance pays for damages you sustain after a collision. If you’re at fault for an accident, you’ll file a collision claim to pay for any vehicle or personal property damage.
Is it worth having comprehensive insurance on an old car?
Not always. Comprehensive insurance isn’t worth it if repair costs exceed your vehicle’s value. You may end up paying more for coverage than what your old car is worth.
You can buy special auto insurance designed to protect your vehicle’s appreciated value if you have a high-value old car, including classic or collector cars.
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Cynthia Lanctot
Licensed Agent
Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.
Licensed Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.