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If you own and drive a car in the U.S., chances are you might be overpaying for car insurance. But the search for a new provider can be time-consuming and overwhelming. That’s where insurance brokers can be helpful.
Check out the table to see how much you can save through Credible’s partner Gabi, and start comparing quotes online for free. Customers who’ve used an auto insurance broker like Gabi have saved hundreds of dollars per year.
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| Perks of working with Gabi |
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Here’s what you need to know about car insurance:
- Do I need auto insurance?
- What does car insurance cover?
- What is a deductible?
- How is car insurance priced?
Do I need auto insurance?
If your state requires auto insurance and you own a vehicle, then you should have auto insurance. The minimum coverage, however, isn’t enough for many drivers.
Below are the state minimums for bodily injury and property damage. Note that some states also require uninsured motorist bodily injury, uninsured motorist property damage, and personal injury protection insurance in addition to these minimums.
Make sure you understand your state’s laws and coverage limits before purchasing a car insurance policy.
Minimum car insurance requirements by state
| State | Bodily injury per person/accident | Property damage per accident |
|---|---|---|
| Alabama | $25,000 / $50,000 | $25,000 |
| Alaska | $50,000 / $100,000 | $25,000 |
| Arizona | $25,000 / $50,000 | $15,000 |
| Arkansas | $25,000 / $50,000 | $25,000 |
| California | $15,000 / $30,000 | $5,000 |
| Colorado | $25,000 / $50,000 | $15,000 |
| Connecticut | $25,000 / $50,000 | $25,000 |
| Delaware | $25,000 / $50,000 | $10,000 |
| Florida | None | $10,000 |
| Georgia | $25,000 / $50,000 | $25,000 |
| Hawaii | $20,000 / $40,000 | $10,000 |
| Idaho | $25,000 / $50,000 | $15,000 |
| Illinois | $25,000 / $50,000 | $20,000 |
| Indiana | $25,000 / $50,000 | $25,000 |
| Iowa | $20,000 / $40,000 | $15,000 |
| Kansas | $25,000 / $50,000 | $25,000 |
| Kentucky | $25,000 / $50,000 | $25,000 |
| Louisiana | $15,000 / $30,000 | $25,000 |
| Maine | $50,000 / $100,000 | $25,000 |
| Maryland | $30,000 / $60,000 | $15,000 |
| Massachusetts | $20,000 / $40,000 | $5,000 |
| Michigan | $50,000 / $100,000 | $10,000 |
| Minnesota | $30,000 / $60,000 | $10,000 |
| Mississippi | $25,000 / $50,000 | $25,000 |
| Missouri | $25,000 / $50,000 | $10,000 |
| Montana | $25,000 / $50,000 | $20,000 |
| Nebraska | $25,000 / $50,000 | $25,000 |
| Nevada | $25,000 / $50,000 | $20,000 |
| New Hampshire1 | $25,000 / $50,000 | $25,000 |
| New Jersey | $15,000 / $30,000 | $5,000 |
| New Mexico | $25,000 / $50,000 | $10,000 |
| New York | $25,000 / $50,000 | $10,000 |
| North Carolina | $30,000 / $60,000 | $25,000 |
| North Dakota | $25,000 / $50,000 | $25,000 |
| Ohio | $25,000 / $50,000 | $25,000 |
| Oklahoma | $25,000 / $50,000 | $25,000 |
| Oregon | $25,000 / $50,000 | $20,000 |
| Pennsylvania | $15,000 / $30,000 | $5,000 |
| Rhode Island | $25,000 / $50,000 | $25,000 |
| South Carolina | $25,000 / $50,000 | $25,000 |
| South Dakota | $25,000 / $50,000 | $25,000 |
| Tennessee | $25,000 / $50,000 | $15,000 |
| Texas | $30,000 / $60,000 | $25,000 |
| Utah | $25,000 / $65,000 | $15,000 |
| Vermont | $25,000 / $50,000 | $10,000 |
| Virginia | $25,000 / $50,000 | $20,000 |
| Washington | $25,000 / $50,000 | $10,000 |
| Washington, D.C. | $25,000 / $50,000 | $10,000 |
| West Virginia | $25,000 / $50,000 | $25,000 |
| Wisconsin | $25,000 / $50,000 | $10,000 |
| Wyoming | $25,000 / $50,000 | $20,000 |
| 1New Hampshire does not require its drivers to carry auto insurance, however, drivers must be able to cover the cost of property damage or bodily injury as a result of an accident in which they are at fault. | ||
What does car insurance cover?
Auto insurance policies are very specific about what is and isn’t covered. Before choosing a policy, it’s important that you read about the coverage, limits, and any exclusions.
Once you’ve decided on the type of coverage you want, shop around for quotes. You can do this easily by using a car insurance broker, like Gabi.
Here are some of the most common types of coverage you’ll find on car insurance policies:
- Liability coverage
- Comprehensive coverage
- Collision coverage
- Medical payments
- Uninsured motorist bodily injury and property damage
- Gap coverage
- Other insurance benefits
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| Perks of working with Gabi |
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Liability coverage
Liability coverage will pay for damage or personal injury you cause behind the wheel.
Comprehensive coverage
Comprehensive coverage pays for damage to your vehicle caused by things other than collisions.
Collision coverage
Collision insurance covers the cost to repair or replace your own car if you hit another vehicle or object.
Most states require you to carry liability insurance, but collision insurance is not required by law. If your car is under a loan, however, it’s common for lenders to require both comprehensive and collision insurance.
Medical payments
Medical coverage on an auto insurance policy covers you and anyone else in your vehicle at the time of a collision. With this medical coverage, the costs fall to the insurer up to policy limits.
Uninsured motorist bodily injury and property damage
While we would hope every driver is an upstanding member of society who carries at least the minimum required auto insurance, in reality, many people head to the nation’s roadways every day without coverage. As a result, nearly half of all U.S. states require some form of uninsured motorist coverage.
Gap coverage
Gap coverage is an optional add-on to your auto insurance policy that pays for the difference to replace your totaled or stolen vehicle, often up to the original purchase price.
Other insurance benefits
Auto insurance policies typically offer more specialized features and benefits to help customers through additional challenges.
What is a deductible?
Deductibles are a common feature of insurance policies. A deductible is how much you have to pay out of pocket before your insurance benefits start. You can typically choose between several deductible options, with a lower deductible requiring a higher monthly payment.
If you have an accident with just $400 in damage, you would have to pay the entire cost, as it’s lower than the $500 deductible.
While it may be tempting to choose a higher deductible to save on premiums, it’s important to budget for the potential cost of paying up to your deductible if you do wind up in a fender bender.
How is car insurance priced?
Car insurance costs are somewhat complex, but it’s easy to break down the various factors that determine your rates.
Here are some of the major factors that go into insuring a car and its driver:
- Driver age: Younger drivers typically pay more than older drivers. Teens typically pay higher rates while middle-age drivers get lower rates.
- Driving history: If you have either a history of accidents or tickets, you can expect to pay more for insurance. Drivers with more experience and a good record typically get the lowest rates.
- Driver credit score: Your credit score plays a role in auto insurance rates. Drivers with higher credit scores generally get lower rates.
- Driver gender: Men and women pay different rates for driving, particularly younger drivers. Male teen drivers will usually pay more than females.
- Car location: Your home and work locations can influence auto insurance rates. If you tend to park in areas with more claims, insurers may charge higher rates.
- Insurance history: Your insurance history plays a major role in your rates. If you have a continuous insurance history with few or zero claims, you may qualify for better rates.
- How much you drive: The number of miles you put on your car in a typical month can drive your rates up or down. Some insurers offer per-mile insurance where you pay less for driving less.
- Marital status: Married drivers tend to be less risky than singles. While the rate difference is minimal, married drivers tend to pay a little less.
- Coverage choices: When you choose your deductible and coverage levels, your insurance premiums will go up or down with your selections.
- Vehicle: The quality, cost, type, and age of the car you drive plays a role in your rates. Someone with a fancy new red sports car will probably pay a lot more than a similar driver with a boring 10-year-old sedan.
- Discounts: Every insurance company has its own rules around discounts. There are common discounts for multiple policies at the same insurer, a good driving history, a low claim history, adding vehicle safety and anti-theft features, automatic payments, good students, and others.
- Insurer: Last but certainly not least is the insurance company you choose. Every insurer has its own proprietary rates and formulas for deciding what customers pay. Shopping around can help you save a small fortune in some cases.
What to do if I can’t afford car insurance?
If you can’t afford car insurance, you shouldn’t just drive without it, as it can be both illegal and a huge risk to your finances. Your best option is to shop around for an insurer that specializes in drivers like you.
Why can’t my car be insured?
In some cases, you may be turned down for car insurance. Again, your best option here is to shop around for an insurer that would take you and your vehicle. If it is an issue with the vehicle, consider changing cars to one that’s easier to cover.
