The minimum amount of liability car insurance coverage your state requires is a good starting point.
However, most state minimums aren’t enough to fully protect you if you cause an accident that injures one or more people severely, or if the crash causes a lot of car or property damage.
To fully protect yourself, consider upping your bodily injury liability limits to $100,000 per person and $300,000 per accident. And increase your property damage liability limit to $100,000 as well.
Do you need collision and comprehensive car insurance?
You’ll likely need both comprehensive and collision car insurance coverages if you finance or lease your vehicle.
If you bought your vehicle with cash or have paid it off, you don’t need either of these coverage types. You should still think about buying them if your car is new or newer, though. The same is true if your car still has a high value.
Don’t forget: Liability car insurance coverage only covers other people or vehicles. It won’t cover damage to your own vehicle. For that, you need collision and/or comprehensive coverage.
What other car insurance should you consider?
Some other types of car insurance you should consider as you estimate and calculate your costs include uninsured motorist coverage, gap insurance and rental reimbursement insurance.
Uninsured motorist coverage
Uninsured motorist car insurance coverage protects you if someone without any car insurance causes an accident that injures you or damages your car.
You can also buy underinsured motorist coverage, which protects you from drivers who don’t have enough car insurance to pay your medical or repair bills.
Personal injury protection
Personal injury protection, or PIP, helps pay your medical bills and those of passengers in your car if you’re injured in an accident. It does this no matter who caused the crash.
PIP covers other costs, too, like lost income, some housekeeping or childcare bills and funeral expenses.
If your financed or leased vehicle is totaled or stolen, gap insurance pays the difference between what it’s worth and what you still owe on it.
Rental reimbursement coverage
If a covered peril damages your vehicle, rental reimbursement insurance may pay for a rental car while yours is repaired.
This coverage can help in many ways if you find yourself stuck on the side of the road. It often pays for towing, jump-starts, replacing a flat tire — even bringing you fuel when you run out. Some plans pay for battery replacement, too.