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What Type of Coverage Do I Need? 

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What type of car insurance do I need?

Searching for the right auto insurance can be confusing, especially when there are many coverage options available. The answer to the question, “what coverage do I need?”, depends on a number of factors including the state that you live in, the kind of vehicle you have, how many cars and drivers you need to insure, and whether you own your home or rent it. 

This resource will give you a better idea of what kinds of coverage are available to you and which will likely be the best fit for your situation.

Types of auto insurance coverage 

Auto insurance protects you from unforeseen costs if your vehicle is ever in an accident. However, different types of auto insurance coverage protect against different expenses you may incur related to accidents or damage to your vehicle. Depending on where you live, your lifestyle, and the type of vehicle you own or lease, you’ll need one or more of the six common types of auto insurance.

  • Auto liability coverage – this type of coverage helps you pay for another person’s property damage and medical costs if you are responsible for an accident.

  • Uninsured and underinsured motorist coverage – this type of coverage helps you pay for your own property damage and injury costs if another person is responsible for your accident but is not insured or has a low level of liability insurance.

  • Collision coverage- coverage helps you pay to repair or replace your vehicle if you damage it by hitting another vehicle or an object such as a pole, a fence, a mailbox, etc.

  • Comprehensive coverage- comprehensive coverage helps you pay to repair or replace your vehicle if it is damaged by circumstances beyond your control such as vandalism, theft, storm damage, or fire.

  • Medical payments coverage- this type of coverage helps cover the medical costs of the driver and passengers of the insured vehicle including hospital or doctor’s visits and certain treatments and diagnostics.

  • Personal injury protection –  personal injury protection helps cover the costs of injuries, and also includes loss of income, childcare, and other associated expenses. 

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Factors to consider when deciding on car insurance

When deciding what kind of auto insurance coverage you should get, there are many factors to consider. Ask yourself the following questions to determine what coverage will best fit your needs. 

What does my state require?

Most states require their residents to maintain a certain level of auto insurance coverage. Check your state requirements to make sure you know what kind and level of coverage you need. Most states require you to have liability insurance, and some require uninsured motorist and/or personal injury protection. 

Who are the drivers I need to insure?

Ask yourself who will be driving the car you are insuring and what kind of coverage would be appropriate for them. Will it only be you driving your vehicle? What about your friends or relatives? Will your kids be driving your vehicle? For example, it’s often a good idea to insure new drivers with collision coverage, even if you personally wouldn’t typically get that kind of coverage for yourself. 

What kind of car am I insuring?

The type of car you’re insuring also informs your coverage decision. How new is your car? For example, if you bought an expensive, brand-new car, you might want to consider insuring it with comprehensive coverage so you can afford to repair it if it gets damaged in a storm or hit-and-run. 

Compare auto insurance quotes

Knowing what you’re looking for in your auto insurance coverage is a good first step in finding the right policy and saving money on your premium. The next step is to start comparing auto insurance quotes. If you are still undecided, an agent at your preferred insurance provider may be able to help you decide on the right coverage for your needs. 

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results 

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you. 

Rate Retriever is an independent company that is not owned by an insurance provider, nor do we provide insurance ourselves. This independence allows us to be your free and impartial insurance research tool, helping you make the best decisions for your insurance needs.  

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide. 

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