Car Insurance: What to Buy, What It Costs, How to Compare

What car insurance do I actually need?

Almost every state requires one kind of coverage, and you cannot skip it: liability. Florida’s rule differs, as explained below. Liability pays other people when you cause a crash. It covers their medical bills and their car repairs. It does not pay for your own car or your own injuries, and that surprises many drivers.

Three other coverages are worth knowing about:

• Collision repairs your car after a crash, no matter who caused it.
• Comprehensive covers damage that is not a crash, such as theft, fire or a storm.
• Uninsured motorist coverage pays you when the driver who hit you has no insurance, or too little.

Beyond liability, most of these are your choice. The big exception is a car loan, because your lender will usually require collision and comprehensive until you pay it off. A lease usually has the same rule, so check your contract. A few states add their own rules. Connecticut requires uninsured-motorist coverage, and Florida requires coverage for your own medical bills.

In a hurry? The seven-step checklist near the bottom, “What to do next”, tells you what to do.

What does my state require?

Each state sets its own minimum, and the gaps are wide. Limits are written as three numbers. A policy of 25/50/25 pays up to $25,000 for each injured person, $50,000 for all injuries in one crash, and $25,000 for property damage.

Here is how far apart the states we cover in depth can be:

• Florida has no injury requirement for ordinary registration. It asks for a small property-damage limit and for personal injury protection (PIP), which pays your own medical bills.
• Virginia is the highest at 50/100/25, for policies that start on or after January 1, 2025.
• Texas is 30/60/25. A 2025 push to raise it did not pass.
• Pennsylvania is the lowest with an injury requirement, at 15/30/5, plus medical benefits for you.
• Mississippi, Connecticut and Missouri sit near the middle, and the table below shows each.

Some charts online are out of date. One we checked still showed Virginia’s old limits. Confirm your state’s rule with its insurance department or DMV, or use our state minimum lookup.

Is the state minimum enough?

Usually not. Mississippi’s own insurance department warns that its minimum may not be enough. Here is an example with invented numbers, so you can see how it plays out.

Say you live in Mississippi and carry 25/50/25. You run a stop sign and hit another car. Two people are hurt and their SUV is wrecked:

• The first person’s medical bills are $40,000. Your policy pays $25,000, so you owe $15,000.
• The second person’s bills are $35,000. Your policy pays $25,000, so you owe $10,000.
• The SUV costs $52,000 to replace. Your policy pays $25,000, so you owe $27,000.

That is $52,000 out of your savings or future paychecks. A court judgment can reach both. Ask for quotes at the minimum and at two higher steps, then compare the extra price with the hole a crash like this would leave.

Do I need “full coverage”?

“Full coverage” is not a legal term. It usually means liability plus collision plus comprehensive, and the last two protect your own car.

Keep them if you owe money on the car, because the lender usually requires them. Check your contract if you lease. Keep them too if you could not replace the car from savings. Think about dropping them on an older, paid-off car that is not worth much, because you may pay more in premiums than a claim would ever return. Mississippi’s regulator makes the same point. Remember that any payout is reduced by your deductible, the amount you pay before insurance pays.

Here is what each piece cost in 2024, as a countrywide average per insured vehicle: about $813 for liability, $516 for collision and $283 for comprehensive. These are averages, not quotes. For a quick test, price your policy with and without collision and comprehensive. The difference is what you pay each year to protect the car. Weigh that against the car’s value and your deductible.

Our full coverage vs liability-only guide walks through the choice. If you owe more than the car is worth, read about gap insurance.

Is uninsured motorist coverage worth it?

Often, yes. The Insurance Research Council estimates that 15.4 percent of drivers were uninsured in 2023, which is more than one in seven. It works that out from claims data, so treat it as an estimate. By state it runs from 5.7 percent in Maine to 28.2 percent in Mississippi.

Even an insured driver may carry only the state minimum, which may not cover your bills. Uninsured and underinsured coverage lets you claim through your own insurer instead. About 20 states and D.C. require it, including Connecticut. In Texas, insurers must offer it and you can decline in writing, so check what you signed.

Our uninsured motorist guide explains limits and hit-and-run claims.

How much does car insurance cost?

The national average for 2024 was $1,431 per insured vehicle. That blends liability, collision and comprehensive across every insured vehicle. A policy with all three averaged $1,612. Use these as benchmarks. Neither predicts your own quote.

Where you live matters a lot. State averages run from $907 in North Dakota to $2,018 in Florida. The NAIC, the group of state insurance regulators, cautions against comparing states head to head, because laws, cars and coverage limits differ. It lists weather, traffic, theft, repair costs and medical and legal costs among the reasons.

Your own price also depends on:

• your driving record
• the car you drive
• the deductible you pick
• discounts you qualify for
• in some states, credit-based scoring (Texas allows it, with consumer protections)

Our cost guide compares more published figures. The rate guide explains how insurers work out a price.

Why are my quotes so different?

Because each insurer builds its own pricing formula, the same driver can land in a different price tier at each one. Missouri’s insurance department points out that the state does not set rates. Companies base them on claims, costs and profit.

The other reason is easier to fix. Quotes differ when the limits, deductibles, add-ons or listed drivers are not the same. A cheap quote often just covers less. Match those details first, then compare prices.

What if I need an SR-22?

If you have not had a DUI or an uninsured-driving conviction, you can skip this section.

An SR-22 is a certificate that your insurer files with the state. It proves you carry the required liability coverage. It is not a type of policy. States usually ask for one after a DUI or an uninsured-driving conviction. It sounds serious, but it is paperwork your insurer handles. Not every insurer files them, so ask before you buy.

The rules differ by state:

• Texas: usually two years, filed with the Department of Public Safety.
• Vermont: the state’s DMV and insurance regulator say three years. The statute we read sets one year in most cases and three after a second DUI or a fatal crash, so ask the DMV which applies. The certificate must come from the insurance company, not an agent.
• Connecticut: only when the DMV orders proof of coverage, with no fixed length.
• Florida: after a DUI conviction you must carry 100/300/50 for at least three years. Drivers call the certificate for that level an FR-44, though the statute does not use the name.
• Virginia: after a DUI-type conviction, each limit must be at least double the standard minimum for three years. On current figures that is 100/200/50, by our arithmetic.

Do not let the policy lapse. In Texas and Vermont your insurer tells the state, and a suspension can follow. Our SR-22 explainer covers the details. See also the high-risk guide, the non-owner SR-22 guide and the FR-44 guide.

Where can I find the rules for my state?

Start with the table below, then open your state’s page. Average spend is NAIC’s 2024 figure per insured vehicle. It mixes coverages and is not a quote.

Every state and D.C. has its own hub. Pennsylvania and Texas also have deeper pages:

• Pennsylvania: minimum, SR-22, uninsured drivers
• Texas: minimum, SR-22, cheap insurance

For other states, use the state-by-state minimums guide.

What to do next

1. Read your current policy. The first page, called the declarations page, lists your limits and deductibles. Compare the limits with your state’s minimum.
2. Pick your liability limits. Think about what a lawsuit could reach: savings, home equity, future pay. Ask for quotes at the minimum and at two higher steps.
3. Decide on collision and comprehensive. Keep them if you owe on the car or could not replace it. If it is paid off and cheap, run the quick test above.
4. Add uninsured and underinsured coverage where you can choose. In Texas the limit can go up to your own liability limits. In Connecticut it matches your injury limits unless you lower it in writing, and it cannot go below 25/50.
5. Get several quotes with identical coverage. Use the same limits, deductibles, drivers, cars, mileage, start date and term. Six-month and twelve-month prices do not compare. List every licensed household member unless that person has separate coverage. Ask about discounts, then check they show up on the final quote. Try insurers that sell direct, independent agents (who sell for several companies) and captive agents (who sell for one).
6. Check the company. Your state insurance department can confirm it is licensed. Missouri also publishes a complaint index for auto insurers.
7. Switch cleanly. Keep the old policy until the new one is confirmed in writing. A gap can cause trouble with your registration and your loan.

Review it all at every renewal, and again after a move, a new car or a new driver. CompareRatesHQ is not an insurer or agent. Some links lead to partners that pay us, as our advertising disclosure explains.

Common mistakes

• Buying the legal minimum because it is “enough to be legal.” It covers the other side only, and only up to the limits.
• Comparing quotes with different limits or deductibles, then picking the cheapest.
• Declining uninsured-motorist coverage without knowing what you give up.
• Letting a policy lapse. Missouri tracks lapses and can suspend your registration and possibly your license. Pennsylvania can suspend your registration for three months after a lapse.
• Reading an old chart for your state’s limits. Check the regulator.

Bottom line

If you have savings, a home or steady pay that a lawsuit could reach, then buy liability limits above your state’s minimum and add uninsured-motorist coverage. If you owe money on the car, then keep collision and comprehensive. If you own an older car outright and could replace it, then price them against the car’s value and decide. Either way, compare identical quotes from several sources.

This page is general information, not legal or financial advice. Your state insurance department can answer questions about your own policy.