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How much insurance coverage do I need?

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  • Full coverage includes liability, comprehensive, and collision coverage
  • Most states require drivers to carry liability coverage
  • Drivers can shop online to find the best coverage amount at the best rate

 

Have you ever wondered, “How much insurance do I need?”

What car insurance actually provides for drivers and how much you should carry can be a little confusing. That’s why some drivers simply aim to buy the cheapest amount of coverage possible. Of course, there are others who are willing to pay top dollar for coverage they may not necessarily need. Now, how much insurance coverage you need can be determined by the age of your vehicle, your driving habits, and your own risk levels.

Of course, if you’re looking to buy car insurance, “How much insurance do I need?” is an excellent question to be asking yourself. You can compare car insurance quotes online and request quotes at different coverage limits to find the policy that provides you with the most protection while still remaining at a reasonable rate.

Enter your ZIP code to get free quotes from insurance companies near you if you’ve ever thought, “How much insurance do I need?”

How much coverage should drivers carry?

The amount of coverage that a driver needs is dependent upon a few factors like your car’s age, how much you’re willing to risk in the case of an accident, and your personal budget. For example, if you caused an accident and the ensuing damages exceeded your liability coverage limits, you would be on the hook for any amount that was left remaining.

Now if you’re looking for affordable car insurance, “How much insurance do I need?” may not be the first thing you think about, but it still should be high on the list because how much you’re willing to pay for another person’s vehicle isn’t the only thing you need to consider. You also need to ask yourself, “How much car insurance coverage do I need to protect my car?”

For instance, if the thought of hail doing damage to your vehicle makes your blood run cold, you may want to invest in full coverage; full coverage is made up of three parts:

  • Liability Coverage
  • Comprehensive Coverage
  • Collision Coverage

Of course, before you begin searching for the best full coverage policy, you should know what these three different overages provide you with. Let’s take a look at them in greater detail.

Liability Coverage

In the United States, you are legally required to have liability insurance except in various areas of Alaska and in the state of New Hampshire. This type of coverage reimburses the medical payments and vehicle repair costs incurred by other people if you are found to be at fault in an accident.

The states that require every driver to carry liability coverage each have a set limit. You can examine your state’s limits here:

State
Bodily Injury (Person)
Bodily Injury (Accident)
Property Damage
Alabama
$25,000
$50,000
$25,000
Alaska
$50,000
$100,000
$25,000
Arizona
$15,000
$30,000
$10,000
Arkansas
$25,000
$50,000
$25,000
California
$15,000
$30,000
$5,000
Colorado
$25,000
$50,000
$15,000
Connecticut
$20,000
$40,000
$10,000
Delaware
$15,000
$30,000
$10,000
District of Columbia
$25,000
$50,000
$10,000
Florida
$10,000
$20,000
$10,000
Georgia
$25,000
$50,000
$25,000
Hawaii
$20,000
$40,000
$10,000
Idaho
$25,000
$50,000
$15,000
Illinois
$20,000
$40,000
$15,000
Indiana
$25,000
$50,000
$10,000
Iowa
$20,000
$40,000
$15,000
Kansas
$25,000
$50,000
$10,000
Kentucky
$25,000
$50,000
$10,000
Louisiana
$15,000
$30,000
$10,000
Maine
$15,000
$30,000
$10,000
Maryland
$30,000
$60,000
$15,000
Massachusetts
$30,000
$60,000
$15,000
Michigan
$20,000
$40,000
$10,000
Minnesota
$20,000
$40,000
$10,000
Mississippi
$25,000
$50,000
$25,000
Missouri
$25,000
$50,000
$10,000
Montana
$25,000
$50,000
$10,000
Nebraska
$25,000
$50,000
$25,000
Nevada
$15,000
$30,000
$10,000
New Hampshire
$25,000
$50,000
$25,000
New Jersey
$15,000
$30,000
$5,000
New Mexico
$25,000
$50,000
$10,000
New York
$25,000
$50,000
$10,000
North Carolina
$30,000
$60,000
$25,000
North Dakota
$25,000
$50,000
$25,000
Ohio
$12,500
$25,000
$7,500
Oklahoma
$25,000
$50,000
$25,000
Oregon
$25,000
$50,000
$20,000
Pennsylvania
$15,000
$30,000
$5,000
Rhode Island
$25,000
$50,000
$25,000
South Carolina
$25,000
$50,000
$25,000
South Dakota
$25,000
$50,000
$25,000
Tennessee
$25,000
$50,000
$15,000
Texas
$30,000
$60,000
$25,000
Utah
$25,000
$65,000
$15,000
Vermont
$25,000
$50,000
$10,000
Virginia
$25,000
$50,000
$20,000
Washington
$25,000
$50,000
$10,000
West Virginia
$20,000
$40,000
$10,000
Wisconsin
$25,000
$50,000
$10,000
Wyoming
$25,000
$50,000
$20,000
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Bear in mind that the limits set by the state are not really enough to protect you. Remember, any dollar amount that exceeds your policy’s limits falls on your shoulders to pay. In today’s world, medical bills can stack up quickly so it’s best that you take a good look at your limits for this type of coverage and make sure that you have enough to protect yourself from a potential lawsuit.

Comprehensive Coverage

Have you ever thought to yourself, “Will my car insurance cover a lightning strike?” Well, if you have comprehensive coverage, it will.

Comprehensive coverage protects your vehicle from all kinds of harm. With this type of coverage, you’ll be protected from:

  • Theft
  • Fire Damage
  • Storm Damage
  • Falling Tree Branches

While comprehensive coverage isn’t required if you own your car, it’s highly advisable that you invest in this type of protection. Drivers who have a loan on their vehicle or who are leasing it will be required to carry this type of coverage because you’ll be able to repair or replace your vehicle as long as you weren’t in a collision if you carry comprehensive coverage.

Collision Coverage

Collision coverage is very important as it will help you repair or replace your vehicle if you were to collide with someone else’s car or even an object like a fence no matter if you were at fault. Like comprehensive, this type of coverage isn’t required if you own your car outright; however, if you don’t think you would have funds readily available to purchase a replacement vehicle, you should seriously consider carrying collision coverage.

Why do drivers need car insurance?

There’s nothing more exhilarating than hitting the open road, but if the rubber meets the road and you don’t have an active insurance policy, you could face some serious repercussions that could put a stop to your driving for quite a while.

Driving without insurance is illegal. Below are a few of the outcomes you could face if you were to drive without an active insurance policy. You may:

  • Face fines up to $5,000
  • Have your driver’s license suspended
  • Have your vehicle registration suspended
  • Face license and registration reinstatement fees
  • Serve jail time
  • Be ordered to conduct community service
  • Have your vehicle impounded

Not only does driving without insurance put yourself at risk of lawsuits, but you will have no financial cushion to lean on if your car is totaled in an accident. You will have to pay for every penny of damage yourself.

How much does car insurance cost?

If you were to ask a car insurance company, “How much insurance do I need?” you would most likely be told to purchase what you think you plus a little extra just in case. Car insurance can add up though to quite a tidy sum.

On average, drivers across the nation pay about $100 per month for full coverage, but car insurance rates will be different for every driver. There are a multitude of factors that feed into your insurance rate calculation. Your rates will be impacted by:

  • Your policy type
  • Your vehicle’s make and model
  • Your coverage limits
  • Your deductibles
  • Where you live
  • Your age
  • Your gender
  • Your driving history
  • Your credit score

Not to mention, if you have racked up a lot of speeding tickets your insurance company may consider you to be a high-risk driver and charge you a higher rate. You can also keep your rates down if you limit how many claims you file per year.

Drivers who are pondering, “How much insurance do I need?” and car insurance rates should take a look at this breakdown of rates offered by some major insurance companies. This information can give you a good idea of what you may pay for insurance:

Average Annual Car Insurance Rates Based on Driving Record and Company
CompaniesRates with a Clean Driving RecordRates with One AccidentRates with One DUIRates with One Speeding Ticket
USAA$1,933.68$2,516.24$3,506.03$2,193.25
Geico$2,145.96$3,192.77$4,875.87$2,645.43
American Family$2,693.61$3,722.75$4,330.24$3,025.74
Nationwide$2,746.18$3,396.95$4,543.20$3,113.68
State Farm$2,821.18$3,396.01$3,636.80$3,186.01
Progressive$3,393.09$4,777.04$3,969.65$4,002.28
Travelers$3,447.69$4,289.74$5,741.40$4,260.80
Farmers$3,460.60$4,518.73$4,718.75$4,079.01
Allstate$3,819.90$4,987.68$6,260.73$4,483.51
Liberty Mutual$4,774.30$6,204.78$7,613.48$5,701.26
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As you can see, driving with a clean record is one of the most effective ways to keep your insurance rates low.

Car Insurance: What You Need to Know

Driving without car insurance is illegal. You need it to not only protect yourself from paying out of pocket to repair or replace your car but also to help other drivers cover their repair or medical costs if you were found to be at fault in an accident. Without insurance, you could be on the hook for all these payments yourself.

When you begin comparing insure policies consider how much you would be willing to pay yourself and how much it would be to replace your vehicle before you sign anything on the dotted line.

If you’re still wondering, “How much insurance do I need?” car insurance quotes are a click away. Shopping online makes the insurance buying process quick and easy.

Enter your ZIP code to get free quotes that can help you answer, “How much insurance do I need?” once and for all.