How Much Car Insurance Do I Need?

Q: Is car insurance per person or by car?

Car insurance follows the car , not the driver. Your insurance covers anyone who drives your vehicle with permissive use.

The car insurance you need includes the highest liability coverage you can afford. A 100/300/100 policy is ideal for most drivers and offers solid protection.

Find out if you're overpaying for car insurance below.

By Mark Fitzpatrick

Reviewed by Mark Friedlander

Edited by Venus Zoleta

Updated: April 16, 2025

Advertising & Editorial Disclosure

Key Takeaways

Most drivers will need 100/300/100 full coverage car insurance. This includes liability coverage if you damage other cars or property and comprehensive and collision which protect your car.

Each state has minimum insurance requirements. However, most states require far less coverage than you need to protect yourself and your assets.

You may need extra coverages for better financial protection, including gap coverage for leased vehicles, roadside assistance, new car replacement, personal injury protection, and uninsured motorist coverage. Read about these extra policies below for more details.

Determine How Much Car Insurance You Need

Take our four-step quiz to learn the required and optimal level of car insurance for you.

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What Is the Recommended Car Insurance Coverage?

At a minimum, you need to meet your state's liability requirements. But that's rarely enough to fully protect you. We recommend:

Liability coverage: This coverage protects against damage you do to other cars or properties. At least 100/300/100 ($100K per person, $300K per accident for injuries, $100K for property damage) to avoid paying out of pocket in serious accidents.
Full coverage (comprehensive and collision): This coverage protects your car. If your car is financed or worth more than a few thousand dollars, we recommend comprehensive and collision to cover your vehicle.
Uninsured/underinsured motorist coverage: Protects you if the at-fault driver lacks enough insurance.
Medical payments (MedPay) or personal injury protection (PIP): Helps with medical costs, especially in no-fault states.

Your ideal coverage depends on your financial situation and risk tolerance, but higher limits can prevent costly gaps.

How Much Liability Insurance Do You Need?

Secure the highest liability coverage you can reasonably afford. You'll be responsible for the other party's expenses if you're at fault in an accident. Insufficient coverage means you could still be held liable, and the courts could seize your assets or garnish your wages.

The best way to protect yourself financially is to purchase recommended car insurance coverage of $100,000 per person and $300,000 per accident in bodily injury liability, and $100,000 per accident in property damage liability.

But what do 100/300/100 car insurance policy limits mean?

$100K in bodily injury liability per person

The first number in your liability coverage represents the maximum amount your insurer will pay for bodily injury to one person. In this case, 100 means $100,000 in coverage.

$300K in bodily injury liability per accident

The second number in your liability coverage is the maximum your insurer will pay for all bodily injury claims in a single accident.

However, it doesn’t override the per-person limit. For example, if one person’s medical costs total $126,000, you'd be responsible for $26,000 beyond the $100,000 per-person limit, even with a $300,000 per-accident maximum.

$100K in property damage liability

The third number in your liability coverage represents the maximum your insurer will pay for property damage in an at-fault accident. In this case, 100 means $100,000 in coverage.

MONEYGEEK EXPERT TIP

Auto insurance policies offer various liability limits, ranging from as low as 15/30/5 to as high as 250/500/250. Some states, like California and Pennsylvania, require only $5,000 for property damage coverage.

If you're comparing coverage options, we recommend 100/300/100 if it's within your budget. If that's too expensive, opt for the highest level you can afford, such as 50/100/50, instead of settling for the state minimum.

How Much Full Coverage Car Insurance Do You Need?

How much full coverage car insurance you need depends on your car’s value, financial situation and risk tolerance.

Full coverage includes:

Liability: Covers injuries and property damage you cause to others
Collision: Pays for damage to your car in a crash
Comprehensive: Covers non-crash events like theft, fire or weather

If your car is new, financed or leased, full coverage is strongly recommended — and often required. A good rule of thumb for older vehicles is the 10% rule: if your annual premium for collision and comprehensive exceeds 10% of your car's value, it may not be worth it.

Choose liability limits that match or exceed the value of your assets to avoid paying out of pocket if you're at fault in a serious accident. You can also adjust deductibles to lower your premium — just be sure you can afford the out-of-pocket cost if you need to file a claim.

Additional Car Insurance Coverage

Full coverage policies include collision and comprehensive insurance to fix or replace your car. But if you want more protection, you can add other types of coverage.

Besides the usual options, you can get special types of insurance to meet your vehicle's specific coverage needs.

Coverage Add-On	What It Covers
Umbrella policy	Consider an umbrella policy if the highest levels of bodily injury and property damage liability don’t feel sufficient to protect your assets in a severe accident. These policies provide at least $1 million in additional liability coverage beyond your standard auto insurance limits.
Gap insurance	Gap insurance covers the difference between your car's value and the remaining balance on your loan if your vehicle is totaled. This prevents you from paying for a car you can no longer use. Many lenders require it when you finance a vehicle.
Accident forgiveness	This coverage stops your premium from going up after your first at-fault accident.
Non-owner insurance	If you don’t own a car but drive occasionally, a non-owner insurance plan can provide liability coverage in case of an accident.
Usage-based/pay-as-you-drive insurance	Your car insurance company can track driving data like speed and mileage and may offer discounts for safe driving. Research potential drawbacks before opting in.
Classic car insurance	This specialized insurance is for vintage and classic cars, typically those at least 25 to 30 years old. It covers the car's agreed-upon value, not its current market value, offering protection for collectible vehicles.
Comprehensive-only insurance	This insurance covers non-collision damage to your vehicle, such as theft, vandalism or natural disasters like floods and fires. It's often chosen for stored rather than driven cars, providing protection against risks other than accidents.
Nonstandard auto insurance	Nonstandard auto insurance is for drivers who may not qualify for standard coverage due to factors like a poor driving record or lack of experience. It provides basic liability coverage but is usually more expensive and offers limited options.

What Full Coverage Deductible Should You Choose?

Full coverage offers thorough protection, but that doesn't mean it can't be affordable. You can find cheap full coverage car insurance. The price of such a policy differs for each driver, influenced by factors such as age, location and driving record. Check the table below for some of the lowest rates and their providers.

While 100/300/100 coverage is recommended, you can customize your policy to fit your budget. For instance, raising your deductible or bundling policies with the same insurer can help reduce costs. Shopping around and comparing quotes from multiple providers is essential to finding the best deal.


Travelers	$97	$106	$88
GEICO	$100	$111	$84
Nationwide	$105	$115	$103
State Farm	$109	$120	$97
Progressive	$111	$118	$98
Farmers	$124	$138	$108
Allstate	$133	$144	$119

Minimum Car Insurance Requirements by State

Nearly every state in the U.S. requires minimum liability coverage. Among these, 13 states — including Delaware (a tort state) — require personal injury protection (PIP) to cover medical expenses. Additionally, 23 states, including Washington, D.C., require uninsured/underinsured motorist coverage, ensuring protection when another driver has no or insufficient insurance.

State	Requirements
Alabama	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident
Alaska	$50,000 bodily injury liability per person $100,000 bodily injury liability per accident $25,000 property damage liability per accident
Arizona	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $15,000 property damage liability per accident
Arkansas	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident
California	$30,000 bodily injury liability per person $60,000 bodily injury liability per accident $15,000 property damage liability per accident
Colorado	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $15,000 property damage liability per accident
Connecticut	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident
Delaware	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident $15,000 personal injury protection per person $30,000 personal injury protection per accident
District of Columbia	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $5,000 uninsured/underinsured motorist property damage coverage (subject to $200 deductible)
Florida	$10,000 property damage liability per accident $10,000 personal injury protection per person
Georgia	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident
Hawaii	$20,000 bodily injury liability per person $40,000 bodily injury liability per accident $10,000 property damage liability per accident $10,000 personal injury protection per person
Idaho	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $15,000 property damage liability per accident
Illinois	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident
Indiana	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident
Iowa	$20,000 bodily injury liability per person $40,000 bodily injury liability per accident $15,000 property damage liability per accident
Kansas	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident Personal Injury Protection per Person: $4,500 per person for medical expenses $900 a month for a up to a year of disability or loss of income coverage $25 a day for in-home services $4,500 for rehabilition-related expenses $2,000 for funeral, burial or creamation expenses Other: Survivors benefits including up to $900 per month for a year for disability or loss of income and $25 per day for in-home services
Kentucky	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $10,000 personal injury protection per person
Louisiana	$15,000 bodily injury liability per person $30,000 bodily injury liability per accident $25,000 property damage liability per accident
Maine	$50,000 bodily injury liability per person $100,000 bodily injury liability per accident $25,000 property damage liability per accident $50,000 uninsured/underinsured motorist coverage per person $100,000 uninsured/underinsured motorist coverage per accident $2,000 medical payments coverage
Maryland	$30,000 bodily injury liability per person $60,000 bodily injury liability per accident $15,000 property damage liability per accident $30,000 uninsured/underinsured motorist coverage per person $60,000 uninsured/underinsured motorist coverage per accident
Massachusetts	$20,000 bodily injury liability per person $40,000 bodily injury liability per accident $5,000 property damage liability per accident $20,000 uninsured/underinsured motorist coverage per person $40,000 uninsured/underinsured motorist coverage per accident $8,000 personal injury protection per accident
Michigan	$20,000 bodily injury liability per person $40,000 bodily injury liability per accident $10,000 property damage in another state Unlimited personal injury protection per person Unlimited personal injury protection per accident $1 million property protection
Minnesota	$30,000 bodily injury liability per person $60,000 bodily injury liability per accident $10,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $40,000 personal injury protection per person
Mississippi	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident
Missouri	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident
Montana	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident
Nebraska	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident
Nevada	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident
New Hampshire	Car insurance is optional in this state, but if you do buy it it must have these limits. $25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $25,000 uninsured/underinsured motorist property damage coverage $1,000 medical payments coverage
New Jersey	$5,000 property damage liability per accident $15,000 personal injury protection per person, per accident
New Mexico	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident
New York	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $50,000 personal injury protection per person Other: $50,000 liability for death per person. $100,000 liability for death per accident.
North Carolina	$30,000 bodily injury liability per person $60,000 bodily injury liability per accident $25,000 property damage liability per accident $30,000 uninsured/underinsured motorist coverage per person $60,000 uninsured/underinsured motorist coverage per accident $25,000 uninsured/underinsured motorist property damage coverage
North Dakota	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $30,000 personal injury protection per person
Ohio	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident
Oklahoma	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident
Oregon	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $15,000 personal injury protection per person
Pennsylvania	$15,000 bodily injury liability per person $30,000 bodily injury liability per accident $5,000 property damage liability per accident $5,000 medical payments coverage
Rhode Island	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident *or $75,000 combined single limit
South Carolina	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured motorist coverage per person $50,000 uninsured motorist coverage per accident
South Dakota	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident
Tennessee	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $15,000 property damage liability per accident
Texas	$30,000 bodily injury liability per person $60,000 bodily injury liability per accident $25,000 property damage liability per accident
Utah	$30,000 bodily injury liability per person $65,000 bodily injury liability per accident $25,000 property damage liability per accident $3,000 personal injury protection per person $30,000 uninsured motorist coverage per person $65,000 uninsured motorist coverage per accident
Vermont	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident $50,000 uninsured/underinsured motorist coverage per person $100,000 uninsured/underinsured motorist coverage per accident $10,000 uninsured/underinsured motorist property damage coverage
Virginia	$50,000 bodily injury liability per person $100,000 bodily injury liability per accident $25,000 property damage liability per accident
Washington	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident
West Virginia	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $25,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident $25,000 uninsured/underinsured motorist property damage coverage
Wisconsin	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $10,000 property damage liability per accident $25,000 uninsured/underinsured motorist coverage per person $50,000 uninsured/underinsured motorist coverage per accident
Wyoming	$25,000 bodily injury liability per person $50,000 bodily injury liability per accident $20,000 property damage liability per accident

*Note: Full coverage insurance, which includes comprehensive and collision coverages, isn’t required by law in any state. However, if you finance or lease your vehicle, your lender or leasing company may require you to maintain full coverage.

STATES THAT REQUIRE ADDITIONAL PIP AND UM COVERAGE

Twenty-two states and Washington, D.C., require uninsured or underinsured motorist (UM/UIM) coverage.

While New Hampshire doesn’t mandate liability insurance, drivers must prove financial responsibility, often through insurance that may include UM coverage.

Standard policies include your state's minimum liability limits, which most states require to register a car. The DMV typically receives notification if your coverage lapses or falls below the minimum.

List of States Requiring PIP and UM Coverage

States with uninsured motorist and/or underinsured motorist coverage requirements:

Connecticut
Illinois
Kansas
Maine
Maryland
Massachusetts
Minnesota
Missouri
Nebraska
New Hampshire
New Jersey
New York
North Carolina
North Dakota
Oregon
Rhode Island
South Carolina
South Dakota
Vermont
Virginia
West Virginia
Wisconsin
D.C.

Thirteen states require personal injury protection:

Delaware
Florida
Hawaii
Kansas
Massachusetts
Michigan
Minnesota
New Jersey
New York
North Dakota
Oregon
Utah
Pennsylvania

When Is State Minimum Car Insurance Coverage Enough?

Some situations make opting for minimum coverage more cost-effective. This approach works well if you drive a low-value car or can afford repairs or replacements without insurance.

Scenario	Description
You drive an old or low-value car	Minimum coverage may suffice since the cost to replace or repair your car might not justify the higher premium of full coverage.
You can pay for a new car out-of-pocket	Minimum car insurance might be enough if you can replace your car without financial hardship.
You rarely drive	You're at a lower risk of getting into an accident if you're not on the road often. This makes minimum coverage a reasonable choice.
You live in a low-traffic area with low accident risk	Fewer cars on the road often means less risk, so minimum coverage might be sufficient.

MONEYGEEK EXPERT TIP

Young drivers may choose minimum coverage to save money but are more likely to have accidents. Full coverage provides better financial protection.

Families with teen drivers face similar risks and should consider higher liability limits, especially when teens are on parents' policies. First-time drivers should also get more than minimum coverage to ensure proper protection.

Cheapest Minimum Coverage Insurance

The cost of minimum car insurance varies widely based on your driving history. Below are the cheapest insurers for different driver types, including those with clean records, accidents, poor credit and more. Comparing rates by driver profile can help you find the most affordable option for your situation.


Overall	Travelers	$93	$639
Seniors	Travelers	$91	$652
After a speeding ticket	State Farm	$121	$787
After an accident	State Farm	$132	$947
DUI	Progressive	$139	$1,081
Bad credit	Nationwide	$139	$1,105
Military	USAA	$69	$601

How Much Car Insurance Should I Carry: Bottom Line

The amount of car insurance you need depends on your budget, assets and risk tolerance. This guide explains how to select the right liability limits, optional coverages and factors for comprehensive protection.

Car Insurance Coverage Policies: FAQ

Choosing the right car insurance can be overwhelming. Here are answers to common questions to help you decide how much coverage you need.

Is basic car insurance enough?

State minimum liability insurance often fails to provide adequate financial protection. MoneyGeek suggests opting for 100/300/100 liability coverage. Full coverage insurance may be required if you're leasing or financing your car.

Is car insurance per person or by car?

Car insurance follows the car, not the driver. Your insurance covers anyone who drives your vehicle with permissive use.

How many cars can you have on your insurance policy?

Most insurance companies allow adding up to four or five cars to a multi-car policy if they're all kept at the same address. While each vehicle needs liability insurance, you can choose which cars get collision or comprehensive coverage.

What’s the recommended car insurance coverage for new cars?

Your lender will likely require full coverage insurance if you're still financing your car. But if you drive a high-value vehicle, you might want to keep full coverage even after paying off your car to maintain maximum financial protection.

Auto Insurance Recommended Coverage: Our Review Methodology

Study Overview

MoneyGeek determined car insurance costs using quotes from various locations with a sample driver profile. We analyzed state liability coverage limits, average costs and policy coverage types.

Data Sources and Depth

We sourced data from Quadrant Information Services and state insurance departments. Our analysis includes 83,056 quotes across 46 providers and 473 ZIP codes.

Driver Profile

To estimate average annual auto insurance rates, we used this sample driver:

40-year-old male
Toyota Camry LE
Clean driving record
12,000 miles driven annually

MoneyGeek adjusted the profile based on coverage type, amount and location to determine rates for different driving backgrounds.

Coverage Levels and Deductibles Explained

We used different liability limits for national and state averages and assessed state minimum and full coverage policy costs.

Full coverage car insurance provides more financial protection than minimum coverage because it includes comprehensive and collision coverages, which cover damage to your vehicle. Comprehensive and collision each have a deductible — what you pay before insurance covers your claim. Minimum coverage has no deductible.

For the national average, MoneyGeek used full coverage with 100/300/100 liability limits and a $1,000 deductible for both comprehensive and collision. This means:

$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$100,000 property damage liability per accident

For state averages, MoneyGeek used full coverage with 50/100/50 liability limits and a $1,000 deductible for comprehensive and collision. This means:

$50,000 bodily injury liability per person
$100,000 bodily injury liability per accident
$50,000 property damage liability per accident

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About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.

Read Full Bio »

How Much Car Insurance Do I Need?

Key Takeaways

Compare Auto Insurance Rates

Determine How Much Car Insurance You Need

Enter Your ZIP Code

What Is the Recommended Car Insurance Coverage?

How Much Liability Insurance Do You Need?

$100K in bodily injury liability per person

$300K in bodily injury liability per accident

$100K in property damage liability

MONEYGEEK EXPERT TIP

How Much Full Coverage Car Insurance Do You Need?

Additional Car Insurance Coverage

What Full Coverage Deductible Should You Choose?

Minimum Car Insurance Requirements by State

STATES THAT REQUIRE ADDITIONAL PIP AND UM COVERAGE

When Is State Minimum Car Insurance Coverage Enough?

MONEYGEEK EXPERT TIP

Cheapest Minimum Coverage Insurance

Compare Insurance Rates

How Much Car Insurance Should I Carry: Bottom Line

Car Insurance Coverage Policies: FAQ

Is basic car insurance enough?

Is car insurance per person or by car?

How many cars can you have on your insurance policy?

What’s the recommended car insurance coverage for new cars?

Auto Insurance Recommended Coverage: Our Review Methodology

Suggest Car Insurance Coverage: Related Articles