Auto Insurance Coverage Types: What You Need To Know in 2023
The most common auto insurance coverage types are liability coverage and full coverage. Liability auto insurance rates are $45 per month, while full coverage costs $123 per month. Most states require minimum liability insurance coverage, but, other car insurance types can provide additional protection.
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Eric Stauffer
Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
Licensed Insurance Agent
UPDATED: Jul 27, 2023
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: Jul 27, 2023
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
- Full coverage includes liability, collision, and comprehensive coverage
Car insurance protects you from paying out of pocket after a collision or auto theft. After an accident or collision, you file a claim with your insurance company to help pay for repairs or medical bills. Your policy limits determine how much auto insurance covers.
The most common auto insurance coverage types provide financial protection against accident liability, property damage, and personal injury. Other types of car insurance coverage 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 auto insurance is the type of auto insurance required in most states in order 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 insurance. Pays for injuries sustained by the other driver and passengers. Some auto insurance companies call it personal liability insurance.
- Property damage liability insurance. 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.
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.
Minimum Liability Auto Insurance Coverage Requirements by State
| 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.
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.
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.
Monthly full coverage rates cost around $123, but quotes increase if you choose more coverage.
Personal Injury Protection Insurance
Personal injury protection car 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.
PIP is mandatory, 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.
Minimum PIP Requirements by State
| 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 costs | Arkansas | $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 services | South 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 wages | Washington, 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.
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.
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.
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.
20 states require uninsured motorist insurance. Find your state below to see if you need coverage.
State Requirements for Uninsured Motorist 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.
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.
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 car insurance coverage types?
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 are the most common types of 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.
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Eric Stauffer
Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
Licensed Insurance 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.