Every driver needs car insurance, but not everyone needs the same type or amount of coverage.
The policy that’s right for you depends on many factors, including the age of your car, how you paid for it, and where you live.
Take CNBC Select‘s six-question quiz to see how much car insurance you really need.
Paying too much for car insurance? Check out these options to save.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Geico auto coverage is available in all 50 states and the District of Columbia. It offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
How much car insurance do you need?
1. Where do you live?
All U.S. states except New Hampshire require drivers to have some level of liability car insurance to pay for damage or injuries to others. The amount of bodily injury and property liability coverage, however, is different from state to state.
The 12 states with no-fault insurance laws also require drivers to get personal injury protection (PIP) or medical payment (MedPay), which cover medical expenses for you or your passengers after an accident, regardless of who is found to be at fault.
Twenty-two states and Washington, D.C., require drivers to have uninsured/underinsured motorist (UM/UIM) coverage, which protects you financially if you’re in a collision with someone who doesn’t have enough insurance or no insurance at all.
State minimum car insurance requirements
| Bodily injury liability per person/per accident | Property damage liability | Other coverage requirements | |
|---|---|---|---|
| Alabama | $25,000/$50,000 | $25,000 | None |
| Alaska | $50,000/$100,000 | $25,000 | None |
| Arizona | $25,000/$50,000 | $15,000 | None |
| Arkansas | $25,000/$50,000 | $25,000 | None |
| California | $30,000/$60,000 | $15,000 | None |
| Colorado | $25,000/$50,000 | $15,000 | None |
| Connecticut | $25,000/$50,000 | $25,000 | Uninsured/underinsured bodily injury: $25,000 per person, $50,000 per accident |
| Delaware | $25,000/$50,000 | $10,000 | PIP: $15,000 per person, $30,000 per accident |
| Florida | None | $10,000 | PIP: $10,000 per person |
| Georgia | $25,000/$50,000 | $25,000 | None |
| Hawaii | $20,000/$40,000 | $10,000 | PIP: $10,000 per person |
| Idaho | $25,000/$50,000 | $15,000 | None |
| Illinois | $25,000/$50,000 | $20,000 | Uninsured bodily injury: $25,000 per person, $50,000 per accident |
| Indiana | $25,000/$50,000 | $25,000 | None |
| Iowa | $20,000/$40,000 | $15,000 | None |
| Kansas | $25,000/$50,000 | $25,000 | PIP: $4,500 per person; Uninsured bodily injury: $25,000 per person, $50,000 per accident |
| Kentucky | $25,000/$50,000 | $25,000 | Alternative combined limit for bodily injury and property damage liability: $60,000 total; PIP: $10,000 per person |
| Louisiana | $15,000/$30,000 | $25,000 | None |
| Maine | $50,000/$100,000 | $25,000 | Alternative combined limit for bodily injury and property damage liability: $125,000 total; MedPay: $2,000 per person; Uninsured bodily injury: $50,000 per person, $100,000 per accident |
| Maryland | $30,000/$60,000 | $15,000 | Alternative combined limit for bodily injury and property damage liability: $75,000 total; Uninsured/underinsured bodily injury: $30,000 per person, $60,000 per accident; Uninsured/underinsured property damage, $15,000 |
| Massachusetts | $20,000/$40,000 | $5,000 | PIP: $8,000 per person; Uninsured bodily injury: $20,000 per person, $40,000 per accident |
| Michigan | $50,000/$100,000 | $10,000 | Property protection: $1 million in Michigan; PIP: $0 to unlimited |
| Minnesota | $30,000/$60,000 | $10,000 | PIP: $40,000 ($20,000 for medical and $20,000 for non-medical expenses); Uninsured/underinsured bodily injury: $25,000 per person, $50,000 per accident |
| Mississippi | $25,000/$50,000 | $25,000 | None |
| Missouri | $25,000/$50,000 | $25,000 | Uninsured bodily injury: $25,000 per person, $50,000 per accident |
| Montana | $25,000/$50,000 | $20,000 | None |
| Nebraska | $25,000/$50,000 | $25,000 | Uninsured/underinsured bodily injury: $25,000 per person, $50,000 per accident |
| Nevada | $25,000/$50,000 | $20,000 | None |
| New Hampshire | Optional: Those who choose to purchase must get $25,000/$50,000 | Optional: Those who choose to purchase must get $25,000 | Optional: Those who choose to purchase must get uninsured bodily injury coverage of $25,000 per person, $50,000 per accident |
| New Jersey | $25,000/$50,000 ($0 for basic policy) | $25,000 ($5,000 for basic policy) | PIP: $15,000; Uninsured/underinsured bodily injury: $25,000 per person, $50,000 per accident; Uninsured/underinsured property damage |
| New Mexico | $25,000/$50,000 | $10,000 | None |
| New York | $25,000/$50,000 ($50,000 if one person dies, $100,000 if two or more people die) | $10,000 | Uninsured/underinsured bodily injury: $25,000 per person, $50,000 per accident |
| North Carolina | $30,000/$60,000 | $25,000 | None |
| North Dakota | $25,000/$50,000 | $25,000 | PIP: $30,000; Uninsured/underinsured bodily injury: $25,000 per person, $50,000 per accident |
| Ohio | $25,000/$50,000 | $25,000 | None |
| Oklahoma | $25,000/$50,000 | $25,000 | None |
| Oregon | $25,000/$50,000 | $20,000 | PIP: $15,000; Uninsured/underinsured bodily injury: $25,000 per person, $50,000 per accident |
| Pennsylvania | $15,000/$30,000 | $5,000 | PIP: $5,000 per person |
| Rhode Island | $25,000/$50,000 | $25,000 | Alternative combined limit for bodily injury and property damage liability: $75,000 total |
| South Carolina | $25,000/$50,000 | $25,000 | Uninsured bodily injury: $25,000 per person, $50,000 per accident |
| South Dakota | $25,000/$50,000 | $25,000 | Uninsured bodily injury: $25,000 per person, $50,000 per accident |
| Tennessee | $25,000/$50,000 | $25,000 | None |
| Texas | $30,000/$60,000 | $25,000 | None |
| Utah | $30,000/$65,000 | $25,000 | PIP: $3,000 |
| Vermont | $25,000/$50,000 | $10,000 | Uninsured/underinsured bodily injury: $50,000 per person, $100,000 per accident; Uninsured/ underinsured property damage: $10,000 |
| Virginia | $50,000/$100,000 | $25,000 | None |
| Washington | $25,000/$50,000 | $10,000 | None |
| Washington, D.C. | $25,000/$50,000 | $10,000 | Uninsured/underinsured bodily injury: $50,000 per person, $100,000 per accident; Uninsured/ underinsured property damage: $5,000 |
| West Virginia | $25,000/$50,000 | $25,000 | Uninsured/underinsured bodily injury: $25,000 per person, $50,000 per accident; Uninsured/ underinsured property damage: $25,000 |
| Wisconsin | $25,000/$50,000 | $10,000 | Uninsured bodily injury: $25,000 per person, $50,000 per accident |
| Wyoming | $25,000/$50,000 | $20,000 | None |
Source: Data from Experian as of April 2025
2. Do you have a car loan?
Collision coverage pays to repair or replace your car if it hits another car or object, regardless of who is at fault.
Comprehensive coverage covers non-collision events, like theft, vandalism, hail, failing tree branches and fire.
While comprehensive and collision coverage aren’t mandated by law, most lenders require borrowers to have them if they’re still making payments on a loan or lease.
3. Is your car new?
If your car is totaled or stolen, a standard insurance policy will only reimburse you for the actual cash value of the vehicle, which takes depreciation into account. (New cars can lose as much as 20% of their value in their first year.)
If you’re still paying off your car, especially if you made a small down payment, gap insurance can cover the difference between the vehicle’s value and the amount you still owe on it.
According to the Insurance Information Institute, gap insurance is a good idea if you:
- Made a down payment of less than 20%
- Financed for at least 60 months
- Leased your car
- Purchased a car that depreciates faster than usual
- Rolled over negative equity from a previous car loan
Adding gap insurance only increases full coverage premiums by about $20 to $60 a year, according to the III.
Your dealership may offer gap insurance, but it’s usually cheaper through an insurance company. Travelers is known for its affordable rates and offers discounts if your car is no more than three model years old.
Travelers Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Travelers auto insurance policies are affordable and backed by the sixth largest company for car insurance by market share according to the NAIC. The company also offers a number of discounts to customers, including discounts for bundling, owning a hybrid or electric car, and good student discounts.
Nationwide allows drivers to purchase gap coverage on cars that are up to six years old.
Nationwide Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you.
If you’re leasing, check your lease agreement before adding gap insurance: It may already be included in the lease price.
If you own your car outright, you don’t need gap insurance.
4. How much is your car worth?
Full coverage is a good idea for most car owners and is usually required if you have a loan or lease. But if you own your car outright and it’s only worth a few thousand dollars, a full coverage policy might be overkill.
The rule of thumb is to drop collision and comprehensive coverage if your car is worth less than 10 times your annual premiums.
If, for example, you have a car worth $5,000 and your comprehensive and collision coverage costs more than $500 for the year, it may not be worth keeping comprehensive and collision coverage.
You can check the value of your car with Kelley Blue Book, the industry standard for pricing.
5. What’s your net worth?
Your net worth is the sum of all of your assets minus all your debts. Determining this amount will give you a good indicator of how much liability coverage you need.
The minimum insurance requirement in many states may not be enough to cover all the expenses you could accrue after an accident: In Connecticut, for example, drivers need $25,000 in bodily injury liability per person and $50,000 total per accident, as well as $25,000 property damage per accident.
Let’s say you’re held liable for a crash that seriously injures four people and totals their $50,000 SUV. If their medical expenses are $20,000 per person, you’ve already exceeded your $50,000 per accident limit for bodily injury liability by $30,000 and your property damage limit by $25,000.
You could be sued for the balance, as well as pain and suffering, and would have to pay for it out of pocket. Depending on where you live, that could involve emptying your bank account, liquidating your investments and even selling your car or house. But having adequate liability coverage protects your assets.
If your net worth is higher than the limits your car insurance company offers, umbrella insurance can cover you for liability claims up to millions of dollars.
One of our top picks for umbrella insurance is American Family Insurance, which has coverage of up to $5 million.
American Family Umbrella Insurance
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Cost
The best way to estimate your costs is to request a quote
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Maximum coverage
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App available
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Policy highlights
American Family has a wide variety of umbrella policies available, including personal coverage, commercial coverage and coverage for ranches and farms. It’s also highly rated for auto and home insurance.
Pros
- Wide variety of coverage options available.
Cons
- Not available in all 50 states.
6. What kind of credit card do you have?
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus.
Rewards
- Enjoy 5% cash back on travel purchased through Chase TravelSM, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more
- 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service
- 1.5% on all other purchases
Balance transfer fee
Intro fee of either$5or3%of the amount of each transfer, whichever is greater, in the first 60 days. After that, either$5or5%of the amount of each transfer, whichever is greater.
Foreign transaction fee
3%of each transaction in U.S. dollars
If your card does, buying it from your insurer is redundant.(If you have AAA or belong to another motor club, you also probably already have access to roadside assistance.)
Mechanical breakdown insurance (MBI) acts like an extended warranty, paying for unexpected engine issues, transmission failures and faulty electrical systems.An MBI add-on to a full coverage policy averages between $30 and $100 a year.
These policies have strict requirements regarding the age, mileage and condition of covered vehicles. They don’t generally cover routine maintenance, normal wear-and-tear or cosmetic repairs.
And if your car is still under warranty, it covers much of the same territory.
Car insurance FAQs
What does 100/300/100 mean in car insurance?
This number breaks down the amount of bodily injury coverage a policy has per person, per accident and the amount of property damage it covers per accident. A 100/300/100 covers up to $100,000 of bodily injury coverage per person at up to $300,000 per accident, and up to $100,000 of property damage per accident.
What is a good amount of coverage for car insurance?
A good liability limit for car insurance is one that meets your net worth, which is the sum of all of your assets minus any debts you owe.
What is full coverage car insurance?
Full coverage car insurance is a package that includes liability, comprehensive and collision car insurance. While it is more expensive than just getting liability coverage on its own, getting all three coverages is often required by loans and lease terms.
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