It seems simple enough that if you’re going to drive a car, you need to have car insurance. But you’re probably wondering, “How much car insurance do I need?” Well, you need enough car insurance so that you’re covered in case something bad happens. You also need to be sure you have the amount required in your state, because every state has different minimum coverage limits.
There are several factors to help you decide how much coverage you need, and the right insurance company will help you figure that out. The Hartford will work with you to you decide what limits you need to be protected if you’re in an accident or your car is damaged. For example, typical coverage amounts may include:
There are many things to consider when asking yourself “How much car insurance coverage do I need?” Think about:
There are three types of basic auto insurance coverage: liability, collision and comprehensive insurance. Not all states require you to have all three types of insurance coverage. However, each one protects you in a unique way, so you’ll want to have enough of each to be fully covered if you’re in an accident.
Most states have a minimum amount of basic liability coverage required by law. Even if your state doesn’t require liability coverage, it’s still a good idea to have it. Liability insurance protects your assets in case you’re in an accident that is your fault.
If you don’t have liability insurance, you could have to pay out of pocket to fix another driver’s car or for their medical bills. You could also have to pay out of pocket if the other person’s expenses are high and you only have the minimum coverage required by your state.
There are two types of liability insurance:Liability insurance protects you from having to pay out of pocket for other people’s expenses, but to make sure you’re fully covered, you should also have collision insurance. Collision coverage helps you pay for damages from:
Since collision insurance covers damage to your car, the cost will depend on your car’s value and your deductible amount. Even if collision insurance is optional in your state, your lender may require it if you’re leasing or financing your car.
Car accidents aren’t the only risk to your car. A lot can happen, even when you’re not on the road. This is why you also need comprehensive insurance.
Comprehensive coverage is for non-accident related claims. For example, if hail dents your hood, or if your car is vandalized, comprehensive insurance covers damage to your car. The car insurance even covers theft. This coverage is usually optional, but if you lease or finance your car, your lender will likely require you have it.
Also known as no-fault insurance, personal injury protection (PIP) helps pay for your medical expenses no matter who causes the accident. Many states with no-fault insurance laws require you to buy personal injury protection (PIP) coverage. Some at-fault states also require this coverage, but in other states it’s optional.
Whether you’re required to purchase PIP coverage or not, you’ll want to seriously consider its benefits. It can cover the cost of things for you and your passengers, like:
This optional insurance covers you and any passengers in your car during an accident. It can even help protect you as a pedestrian, or if you’re injured as a passenger in another car. Medical payments coverage can help pay for many types of medical bills including:
Hopefully, if you’re in a car accident that’s not your fault, the other person’s insurance will pay to fix or replace your car. But what if that person doesn’t have car insurance? Consider adding uninsured/underinsured motorist coverage to your policy, so you’re covered if this happens.
You’ve probably heard the saying “a new car starts losing value as soon as you drive it off the lot.” Your regular car insurance coverage helps you pay to replace or repair your car based on the actual cash value. But what if you owe more on your loan than your car is worth? Gap insurance will help you pay that difference if your car is stolen or totaled, and your regular insurance isn’t enough to pay off your car loan.
When deciding how much car insurance you need, first you’ll have to find out what is required where you live. All states’ car insurance minimum requirements are different. Liability, collision and comprehensive insurance may each be required in your state at certain minimum amounts.
Some states have additional coverage requirements for personal injury protection (PIP), uninsured/underinsured motorist, medical payments and gap insurance. These also vary by state. While you need to purchase at least the minimum, it is wise to buy additional coverage based on your assets and needs.
The amount of coverage each driver needs is unique. Your decision is based on your personal financial situation, how much your car is worth and what your state requires. You can use a car insurance calculator to help you choose the right coverages and amount your insurance covers. If you’re comparing car insurance quotes, make sure the car insurance companies are providing you with the same liability limits and amounts of coverage and benefits, such as roadside assistance or rental reimbursement.
To learn more, get a quote from The Hartford today. You can also call The Hartford’s representatives at 888-413-8970. They can help you be sure you have the amount of coverage you need to protect your assets.
Last Updated: July 8, 2024** Average savings amounts based on information reported by customers who switched to The Hartford from other carriers between 9/1/22 and 8/31/23. Your savings may vary. Average auto insurance savings is $577 and average home insurance savings is $236. Rate differences for AARP members and non-members vary by state and AARP membership tenure. Auto/Home discount is available only to policyholders who have both their auto and home (or condo or renters) insurance through the AARP Auto & Home Insurance Program from The Hartford. The Hartford does not write new business in all areas, including the states of CA and FL.
§ Availability of RecoverCare benefit and benefit levels vary by state. The Hartford RecoverCare Advantage ® is a registered mark of The Hartford.
§§ Terms and conditions apply.‡ Terms and conditions apply. Accident Forgiveness and the Disappearing Deductible are not available to CA policyholders.
‡‡ Terms and conditions apply. Availability varies by state.‡‡‡ Based on one car and driver; individual rate/premium/savings will vary based on actual coverage selections and characteristics of vehicle(s)/driver(s).
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Summaries of coverages and policy features are for informational purposes only. In the event of loss, the actual terms and conditions set forth in your policy will determine your coverage.
AARP and its affiliates are not insurers. Paid endorsement. The Hartford pays royalty fees to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP. AARP membership is required for Program eligibility in most states.
The AARP Auto Insurance Program from The Hartford is underwritten by Hartford Fire Insurance Company and its affiliates, One Hartford Plaza, Hartford, CT 06155. It is underwritten in AZ, MI and MN by Hartford Insurance Company of the Southeast; in CA, by Hartford Underwriters Insurance Company; in WA, by Hartford Casualty Insurance Company; in MA, by Trumbull Insurance Company; and in PA, by Nutmeg Insurance Company and Twin City Fire Insurance Company. The AARP Home Insurance Program from The Hartford is underwritten by Hartford Fire Insurance Company and its affiliates, One Hartford Plaza, Hartford, CT 06155. It is underwritten in AZ, MI and MN by Hartford Insurance Company of the Southeast; in CA by Property and Casualty Insurance Company of Hartford; in WA, by Trumbull Insurance Company; in MA, by Trumbull Insurance Company, Sentinel Insurance Company, Hartford Insurance Company of the Midwest, and Hartford Accident and Indemnity Company; and in PA, by Nutmeg Insurance Company. Home product is not available in all areas, including the state of FL. Savings, benefits and coverages may vary and some applicants may not qualify. The Program is currently unavailable in Canada and U.S. Territories or possessions.
1 In Texas, the Auto Program is underwritten by Redpoint County Mutual Insurance Company through Hartford of the Southeast General Agency, Inc. Hartford Fire Insurance Company and its affiliates are not financially responsible for insurance products underwritten and issued by Redpoint County Mutual Insurance Company. The Home Program is underwritten by Hartford Insurance Company of the Southeast.
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