State minimums leave most drivers dangerously underinsured. Here's how to find the right coverage for your situation — without overpaying.
$100K per person, $300K per accident (bodily injury), $100K property damage. State minimums like 15/30/5 won't cover a serious accident.
$500 if you want lower out-of-pocket at claim time. $1,000 if you want lower premiums and can absorb a larger expense. Only you know your cash cushion.
Add collision + comprehensive for any car worth more than $4,000. Below that threshold, the math usually doesn't favor full coverage.
Pays for damage and injuries you cause to others. Split into bodily injury (per person / per accident) and property damage. This is the one coverage you legally must carry.
$15K per person — not enough for a single ER visit. Dangerous for anyone with assets.
A safer floor. Covers most accidents without tapping into savings.
Covers serious multi-person accidents. Industry standard recommendation for homeowners.
Pays to repair or replace your car after a collision — regardless of fault. Required by lenders if you're financing or leasing.
Covers non-collision damage: theft, hail, fire, flooding, vandalism, hitting an animal. Comprehensive is typically cheaper than collision and worth keeping longer on older vehicles.
Protects you if you're hit by a driver who has no insurance or not enough. Given that 12.6% of US drivers are uninsured, this is one of the best-value coverages available.
Pays medical bills for you and your passengers regardless of fault. Required in no-fault states (FL, MI, NJ, NY, PA, and others). Replaces or supplements health insurance for accident injuries.
Pays the difference between your car's ACV and what you still owe on the loan if your car is totaled. Essential for new cars (which depreciate 15–20% in year one) with small down payments.
Use this guide based on your situation:
Recommended: State minimum liability + UM/UIM coverage only. Skip collision and comprehensive — the premium cost won't be worth it given the car's low value.
Estimated cost: $600–$900/year
Recommended: 100/300/100 liability, $500–$1,000 deductible collision + comprehensive, UM/UIM. Full coverage makes sense. $1,000 deductible saves money if you have an emergency fund.
Estimated cost: $1,400–$2,200/year
Recommended: 100/300/100 liability, full coverage (lender requires it), gap insurance if less than 20% down, UM/UIM. Gap insurance is essential — new cars depreciate 15–20% in year one.
Estimated cost: $1,800–$3,000/year
Recommended: 250/500/250 or higher liability, full coverage, UM/UIM, umbrella policy ($1M+ adds only $150–$300/year). People with significant assets can be sued personally beyond their car insurance limits.
Estimated cost: $2,500–$4,000/year + umbrella
Many states still have minimums set decades ago. Here's why they fall short:
California's $5,000 property damage minimum doesn't cover even a modest used car. You'd owe the rest personally.
Florida has some of the lowest minimums ($10K per person) in a state with the 2nd most expensive car insurance. Gap between minimum and real cost is extreme.
Your deductible is what you pay out-of-pocket before insurance kicks in. Higher deductible = lower premium, but more exposure per claim.
| Deductible | Annual Premium Impact | Best For |
|---|---|---|
| $250 | Highest premium | Little cash savings; frequent small claims expected |
| $500 | Mid-range premium | Most popular choice. Good balance for most drivers. |
| $1,000 | 10–15% cheaper than $500 | Drivers with $1K+ emergency fund who file claims rarely |
| $2,000+ | Lowest premium | High net worth, self-insuring small losses, luxury vehicle |
Now that you know what coverage you need, compare quotes to find the best price. Specify 100/300/100 liability when you get quotes.
It means: $100,000 per person for bodily injury, $300,000 per accident total for bodily injury, and $100,000 for property damage. If you cause an accident and injure 3 people, your insurer will pay up to $100K per person, capped at $300K total.
When your combined annual premium for collision + comprehensive exceeds 10% of your car's current market value. For a car worth $3,500, if you're paying $400+ for these coverages, dropping them makes financial sense. Check your car's value at Kelley Blue Book or Edmunds.
For most drivers with a car worth $10,000+ or a car loan: yes. "Full coverage" (liability + collision + comprehensive) adds $800–$1,400/year but protects you from a total loss event. For older cars paid off and worth under $4,000, liability-only often makes more financial sense.
Yes — strongly recommended everywhere. 12.6% of US drivers are uninsured. For ~$50–$100/year, UM/UIM coverage protects you from hit-and-run drivers and underinsured drivers whose minimum coverage can't cover your medical bills.
Going from state minimum to 100/300/100 liability typically adds $200–$400/year. Adding collision and comprehensive adds another $500–$900/year depending on your vehicle. The jump from minimum coverage to full protection typically costs $700–$1,300/year more — but protects against losses that could cost you $50,000+.