Auto Insurance Coverage Options
Several auto insurance coverage options are available at every auto insurance company. For most drivers, your car insurance rates are determined by where you live, what you drive, and what you can afford. The mandatory car insurance coverage is liability and comprehensive and collision auto insurance is optional unless you have a loan. Shop around and compare companies to secure cheap car insurance rates.
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Rachael Brennan
Licensed Insurance Agent
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 in...
Licensed Insurance Agent
UPDATED: Apr 11, 2022
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- Auto insurance options can give you various roads to cheap auto insurance rates.
- In most states, you are required to carry the minimum state requirements for car insurance.
- Liability-only coverage is the cheapest auto insurance option.
- Additional coverage options can provide lower deductibles, rental car coverage, and accident forgiveness.
If you drive a car, you need auto insurance coverage options for automobile insurance. Your options will vary, but there are many ways to get the cheapest car insurance rates possible without succumbing to mistruths such as buy now pay later car insurance.
Searching for the best auto insurance coverage options can lead you to find rates as low as $60 car insurance per month. We get that understanding auto insurance coverage options and the facts and figures can be overwhelming. That’s why we will go through insurance coverage details step by step to figure out whether you are getting a fair rate.
We’ll teach you how to search for cheap auto insurance rates and tell you the pros and cons of cheap car insurance. How can I find cheap car insurance?
Use our free tool above by entering your ZIP code to find car insurance coverage types near you.
The Different Flavors of Automobile Insurance Coverage
Some states have what are known as “No-Fault” rules and regulations. Policies under these rules are required to insure policyholders regardless of fault in an accident. This is also referred to as personal injury protection or PIP. Be sure to ask your insurance agent if you live in a no-fault state and how it will affect your policy.
You may be asking, “What are the different kinds of car insurance I can buy?” There are many different types of automotive insurance coverage that you can choose from, and some you must purchase no matter what to drive legally. Below are the standard types of coverage which you can choose from in most areas.
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Liability Coverage
What is liability coverage? Liability covers any damages you are liable for, and it covers others if you are at fault in an accident. This insurance does not cover you and your car. This is required by all states, though exceptions can be made in certain states for individuals who can show that they can pay the state requirement out of pocket.
Did you know your credit score can affect your liability coverage? According to Experian, auto insurance companies issue lower rates to policyholders with good credit because they’re less likely to file a claim.
Let’s compare car insurance rates for liability coverage in each state in the data presented below.
| States | Average Annual Liability Rates |
|---|---|
| North Dakota | $282.55 |
| South Dakota | $289.04 |
| Iowa | $293.34 |
| Wyoming | $323.38 |
| Maine | $333.92 |
| Idaho | $337.17 |
| Vermont | $340.98 |
| Kansas | $342.33 |
| Nebraska | $349.07 |
| North Carolina | $357.59 |
| Wisconsin | $359.84 |
| Indiana | $372.44 |
| Alabama | $372.57 |
| Ohio | $376.16 |
| Arkansas | $381.14 |
| Montana | $387.77 |
| New Hampshire | $393.24 |
| Tennessee | $397.73 |
| Missouri | $399.41 |
| Virginia | $413.12 |
| Illinois | $430.54 |
| Mississippi | $437.38 |
| Minnesota | $439.58 |
| Oklahoma | $441.57 |
| Hawaii | $458.49 |
| New Mexico | $462.21 |
| California | $462.95 |
| Utah | $471.26 |
| Colorado | $477.10 |
| Arizona | $488.59 |
| Georgia | $490.64 |
| Pennsylvania | $495.02 |
| South Carolina | $497.50 |
| Texas | $498.44 |
| West Virginia | $501.44 |
| Kentucky | $518.91 |
| Alaska | $547.34 |
| Oregon | $553.43 |
| Washington | $568.92 |
| Massachusetts | $587.75 |
| Maryland | $599.48 |
| District of Columbia | $628.09 |
| Connecticut | $633.95 |
| Nevada | $647.07 |
| Rhode Island | $720.06 |
| Michigan | $722.04 |
| Louisiana | $727.15 |
| Delaware | $776.50 |
| New York | $784.98 |
| Florida | $845.05 |
| New Jersey | $865.55 |
| U.S. Average | $516.39 |
As you can see, average liability premiums escalate by a narrow margin year by year. How does your current rate compare to your state’s average? You see how some states have more expensive auto insurance rates than others, but those rates can change under the right circumstances.
Let’s move on to the next coverage type, personal injury protection (PIP).
Personal Injury Protection (PIP)
Personal injury protection covers you, passengers, and others listed in the policy. It does not safeguard your vehicle but does pay for your medical expenses.
In specific policies, it will also cover lost wages and other forms of damages. It is available to you regardless of who was at fault and is mandatory in individual states.
If you need more protection for medical bills, you should consider medical payments (MedPay). MedPay gives you a little more coverage for medical bills that PIP won’t pay.
This table details PIP averages in each state where information is available.
| States | Average Annual PIP Rates |
|---|---|
| District of Columbia | $19.99 |
| Connecticut | $23.12 |
| Utah | $29.84 |
| Kansas | $31.75 |
| Massachusetts | $34.79 |
| North Dakota | $42.05 |
| Maryland | $54.86 |
| Pennsylvania | $55.75 |
| Hawaii | $56.69 |
| Washington | $70.53 |
| Oregon | $71.31 |
| Kentucky | $73.16 |
| Minnesota | $100.82 |
| Delaware | $143.42 |
| New York | $162.4 |
| Florida | $188.12 |
| New Jersey | $203.46 |
| Michigan | $391.56 |
| U.S. Average | $139.79 |
The annual rates are much cheaper than liability car insurance rates. Now that we’ve covered PIP, let’s move on to uninsured/underinsured coverage.
Uninsured/Underinsured Motorist Protection
Uninsured motorist and underinsured motorist insurance policies are frequently lumped together, as they perform a similar function. However, they must be purchased separately. Both of these cover you, passengers, and household members in the policy for bodily injury if the other driver is at fault.
Uninsured motorist coverage protects you if the other driver has no insurance, while underinsured motorist coverage safeguards you if the guilty party has inadequate insurance. You can learn more about underinsured motorist coverage here.
Let’s look at a breakdown of the percentage of uninsured and underinsured drivers by state.
| States | Uninsured | Rank |
|---|---|---|
| Florida (3) | 26.70% | 1 |
| Mississippi | 23.70% | 2 |
| New Mexico | 20.80% | 3 |
| Michigan | 20.30% | 4 |
| Tennessee | 20% | 5 |
| Alabama | 18.40% | 6 |
| Washington | 17.40% | 7 |
| Indiana | 16.70% | 8 |
| Arkansas | 16.60% | 9 |
| D.C. | 15.60% | 10 |
| Alaska | 15.40% | 11 |
| California | 15.20% | 12 |
| Rhode Island | 15.20% | 13 |
| New Jersey | 14.90% | 14 |
| Wisconsin | 14.30% | 15 |
| Texas | 14.10% | 16 |
| Missouri | 14% | 17 |
| Illinois | 13.70% | 18 |
| Colorado | 13.30% | 19 |
| Louisiana | 13% | 20 |
| Oregon | 12.70% | 21 |
| Ohio | 12.40% | 22 |
| Maryland | 12.40% | 23 |
| Arizona | 12% | 24 |
| Georgia | 12% | 25 |
| Kentucky | 11.50% | 26 |
| Minnesota | 11.50% | 27 |
| Delaware | 11.40% | 28 |
| Nevada | 10.60% | 29 |
| Hawaii | 10.60% | 30 |
| Oklahoma | 10.50% | 31 |
| West Virginia | 10.10% | 32 |
| Montana | 9.90% | 33 |
| Virginia | 9.90% | 34 |
| New Hampshire | 9.90% | 35 |
| Connecticut | 9.40% | 36 |
| South Carolina | 9.40% | 37 |
| Iowa | 8.70% | 38 |
| Utah | 8.20% | 39 |
| Idaho | 8.20% | 40 |
| Wyoming | 7.80% | 41 |
| South Dakota | 7.70% | 42 |
| Pennsylvania | 7.60% | 43 |
| Kansas | 7.20% | 44 |
| North Dakota | 6.80% | 45 |
| Nebraska | 6.80% | 46 |
| Vermont | 6.80% | 47 |
| North Carolina | 6.50% | 48 |
| Massachusetts | 6.20% | 49 |
| New York | 6.10% | 50 |
| Maine | 4.50% | 51 |
The uninsured/underinsured percentage is part of why some states have higher than average car insurance.
Next, we’ll look at collision and comprehensive coverage.
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Collision and Comprehensive
Collision and comprehensive are also mainstays of many policies. These coverages target vehicle repair costs and compensate you for property damage regardless of fault.
What is collision coverage?
Collision covers your car in the event of a car crash, be it with another vehicle, structure, or object. Regardless of who’s at fault, your car insurance company will pay for any damage caused by a collision.
The cost of collision auto insurance varies by state. Here is a table showing state averages for collision coverage.
| States | Average Annual Collision Coverage Rates |
|---|---|
| Alabama | $299.10 |
| Alaska | $360.18 |
| Arizona | $259.31 |
| Arkansas | $304.87 |
| California | $364.56 |
| Colorado | $263.36 |
| Connecticut | $348.70 |
| Delaware | $296.60 |
| District of Columbia | $449.27 |
| Florida | $251.30 |
| Georgia | $320.45 |
| Hawaii | $297.75 |
| Idaho | $209.00 |
| Illinois | $284.92 |
| Indiana | $237.19 |
| Iowa | $207.10 |
| Kansas | $251.46 |
| Kentucky | $255.33 |
| Louisiana | $391.03 |
| Maine | $249.00 |
| Maryland | $331.72 |
| Massachusetts | $358.68 |
| Michigan | $383.21 |
| Minnesota | $214.02 |
| Mississippi | $302.96 |
| Missouri | $259.65 |
| Montana | $254.90 |
| Nebraska | $223.50 |
| Nevada | $293.78 |
| New Hampshire | $281.70 |
| New Jersey | $365.23 |
| New Mexico | $267.48 |
| New York | $358.45 |
| North Carolina | $264.58 |
| North Dakota | $227.44 |
| Ohio | $252.21 |
| Oklahoma | $298.21 |
| Oregon | $212.47 |
| Pennsylvania | $307.31 |
| Rhode Island | $377.06 |
| South Carolina | $247.62 |
| South Dakota | $200.10 |
| Tennessee | $290.39 |
| Texas | $340.51 |
| Utah | $254.41 |
| Vermont | $278.38 |
| Virginia | $264.70 |
| Washington | $250.13 |
| West Virginia | $319.10 |
| Wisconsin | $209.93 |
| Wyoming | $270.48 |
| U.S. Average | $299.73 |
Collision car insurance quotes are a little cheaper than liability car insurance quotes.
What is comprehensive coverage?
Comprehensive covers you for damages resulting from vandalism, theft, or acts of God. These two are usually purchased together and include a deductible.
A deductible is the dollar amount you are willing to pay before the insurance covers you up to the fair market value of your car.
Are you currently paying too much in your state for these coverages? This table, meanwhile, details state averages for comprehensive coverage.
| States | Average Annual Comprehensive Coverae Rates |
|---|---|
| Oregon | $89.66 |
| Maine | $96.66 |
| California | $99.29 |
| Hawaii | $100.09 |
| New Hampshire | $103.03 |
| Washington | $104.11 |
| Utah | $106.57 |
| Florida | $110.12 |
| Idaho | $110.78 |
| Ohio | $112.74 |
| Delaware | $113.23 |
| Indiana | $115.02 |
| Nevada | $116.79 |
| Illinois | $117.98 |
| Vermont | $118.31 |
| Rhode Island | $122.17 |
| North Carolina | $123.00 |
| New Jersey | $123.18 |
| Connecticut | $126.02 |
| Wisconsin | $126.34 |
| Massachusetts | $128.92 |
| Virginia | $129.89 |
| Kentucky | $130.15 |
| Pennsylvania | $132.01 |
| Tennessee | $135.62 |
| Alaska | $141.08 |
| Alabama | $146.28 |
| Maryland | $146.77 |
| Michigan | $147.02 |
| Georgia | $153.61 |
| New York | $156.66 |
| Colorado | $158.34 |
| South Carolina | $165.38 |
| Missouri | $166.34 |
| New Mexico | $166.89 |
| Iowa | $171.58 |
| Minnesota | $173.04 |
| Arkansas | $183.36 |
| Arizona | $184.20 |
| Texas | $186.70 |
| Mississippi | $194.74 |
| West Virginia | $195.04 |
| Montana | $199.87 |
| Oklahoma | $201.56 |
| Nebraska | $206.24 |
| Louisiana | $208.59 |
| Wyoming | $222.86 |
| North Dakota | $227.64 |
| South Dakota | $228.59 |
| District of Columbia | $230.25 |
| Kansas | $230.65 |
| U.S. Average | $138.87 |
Compared to liability and collision, comprehensive auto insurance rates are much cheaper.
Find Affordable Auto Insurance for Your Automobile: Additional Coverages
You can get other types of coverage from an auto insurance company. Car insurance companies that sell insurance on a national level provide various other coverages, which are:
- Sound System Insurance
- Roadside Assistance
- Rental Car Reimbursement
- Classic Car Insurance
- Modified Car Insurance
- Usage-based Auto Insurance
- Accident-Forgiveness
- Disappearing Deductible
- GAP Insurance
Gap insurance is an excellent supplement to collision and comprehensive.
What is gap insurance? Sometimes, when your car is totaled, your lease or loan is more than the vehicle’s market value. This unexpected expense between what collision and comprehensive will pay, and your car’s market value is insured by gap coverage.
It is also a good idea to have roadside assistance, as it may cover you in many unfortunate situations. If you locked yourself out of your car or need to be towed, this type of coverage will generally dispatch someone to come to your rescue.
Lastly, there is rental reimbursement. This is optional but helpful if your car is being repaired and you are renting a vehicle. This coverage helps reimburse or pay for your rental expenses.
Auto Insurance Coverage Options: The Bottom Line
However, bear in mind that there is usually a time and dollar amount limit imposed on how long and how much the automobile auto insurance will cover you for.
Hopefully, this covers every question you may have about car insurance. If not, we have some FAQs for you. First, though, you may be asking, “Can I easily compare rates on car insurance?” or, “Should I shop for insurance online?”
In short, yes, now that you know your auto insurance coverage options, enter your ZIP code in our FREE auto insurance comparison tool below.
This tool should help answer the questions, “How can I save money on car insurance?” and “What level of coverage is right for me?”
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Frequently Asked Questions: Auto Insurance Coverage Options
We hope we’ve covered everything, but just in case, feel free to check out some common questions below.
#1 – Who offers the cheapest auto insurance, and who has the cheapest auto insurance for seniors?
A Google search will show that USAA car insurance is generally the cheapest. For seniors, Geico auto insurance coverage options are usually the most affordable. Be sure to look up Progressive auto insurance coverage options, Allstate auto insurance coverage options, and other local companies near you.
USAA has cheap car insurance at an average of $444 for a six-month premium. Root Insurance is also seen as a reputable option.
#2 – What is full coverage, and how much should full coverage insurance cost?
Full coverage is the combination of at least collision, comprehensive, and liability coverages. The average for six-months of full coverage policy is about $750.
You should carry collision coverage that is slightly less than 10 percent of the value of your car. Less coverage than that puts you at risk.
#3 – Is 60 dollar auto insurance good?
It is best to check the reviews of insurers offering this rate in your area.
#4 – What will I need when buying insurance, and what should I look for in a policy?
You will need your driver’s license, the vehicle you hope to insure, your registration, and a current declaration page. It would be best if you look for a reputable provider with reasonable rates.
#5 – What kind of auto insurance discounts are available?
Good student discounts are widely available, and safe driving discounts are even more prevalent.
#6 – How do I choose the right amount of auto insurance for me?
Speak with your insurer and don’t buy anything you don’t feel will be necessary for your needs.
#7 – How can I get an affordable deductible?
To get an affordable car insurance deductible, you must hold on to your policy without getting into an accident or filing a claim. Some companies will shrink your deductible cost each year you go without any incidents on the road. Be sure to discuss discounts with your insurer.