Coverage explained
Car Insurance by Coverage Type
From state-minimum liability to full coverage and specialty policies, here’s what each type of car insurance covers and who needs it.
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Quick answer
The main types of car insurance are liability (injuries and damage you cause), collision and comprehensive (damage to your own car), and specialty coverages like SR-22. Full coverage combines liability with collision and comprehensive.
Types of coverage
Liability Insurance
Covers injuries and property damage you cause to others. Required in most states.
Full Coverage
Adds comprehensive and collision to repair or replace your own vehicle.
Cheap Car Insurance
Strategies to find the lowest legitimate rate for the coverage you need.
SR-22 Insurance
A certificate of financial responsibility required after certain violations.
High-Risk Driver Insurance
Coverage for drivers with accidents, tickets, or lapses on their record.
Teen Driver Insurance
How to insure a new or teen driver and keep premiums manageable.
Rideshare Insurance
Fills the gap between personal auto and commercial coverage for drivers.
Commercial Auto Insurance
Protects vehicles used for business use and work purposes.
How much coverage do you need?
State minimums keep you legal but rarely protect you fully. If you have assets to protect or a financed vehicle, higher liability limits and full coverage are usually worth it. Use our Coverage Match tool and insurance calculator to find the right balance, then compare quotes.
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Coverage type FAQs
Should I raise my deductible to lower my monthly bill?
A higher deductible lowers your premium, but you pay more out of pocket at claim time. It can make sense if you have savings to cover the deductible and rarely file claims. Make sure the premium savings justify the added risk.
What happens if I unbundle my home and auto insurance?
Unbundling means you lose the multi-policy discount, so each policy may cost more individually. Sometimes separate insurers still beat a bundled price, so compare the total of standalone policies against the bundled rate before switching.
What is the difference between full coverage and liability only?
Liability-only covers damage and injuries you cause to others. Full coverage adds comprehensive and collision, which pay to repair or replace your own vehicle. Lenders usually require full coverage on financed or leased cars.
Do I need collision and comprehensive on an older car?
If your car’s value is low, the annual cost of collision and comprehensive can exceed the potential payout. A common guideline is to drop them when the yearly premium approaches roughly 10 percent of the car’s value, but weigh your own risk tolerance.
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