Types of Auto Insurance
The main types of auto insurance include comprehensive, collision, and liability. Comprehensive covers theft and weather-related damage, while collision pays for vehicle repairs after a claim. Liability covers others' injuries and damage and is the cheapest type of car insurance, starting at $32 a month.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, bus...
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UPDATED: Sep 25, 2025
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We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Sep 25, 2025
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes should be easy. This doesn’t influence our content. Our opinions are our own.
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Drivers have access to various types of auto insurance, including liability, collision, and comprehensive insurance. Optional types of coverage include personal injury protection (PIP), uninsured motorist (UM/UIM) coverage, and gap insurance. These protections can help pay for medical bills, property damage, car repairs, and unforeseen incidents like theft or extreme weather.
- Liability, collision, and comprehensive are the main types of auto insurance
- Each state requires different types of auto insurance policies
- The cheapest types of car insurance start at $32 per month
Rates vary by provider, vehicle, and driving history, with some plans starting as low as $32 per month. When you compare quotes and coverage options, you can find the best type of car insurance that balances protection with costs that fit your budget. Start saving today by entering your ZIP code and comparing quotes.
The Most Common Types of Auto Insurance Explained
The best types of car insurance coverage depend on the driver and vehicle, so it’s key to compare liability vs. full coverage auto insurance. New drivers often need liability, collision, and UM/UIM coverage, while new car owners benefit from comprehensive and gap insurance. Older cars can pair liability-only with UM/UIM.
Best Auto Insurance Coverage by Driver & Vehicle Profile| Status | Coverage Suggested |
|---|---|
| New Driver / Teen Driver | Liability + Collision + UM/UIM |
| Owner of a New Car | Collision + Comprehensive + Gap |
| Owner of an Older Car | Liability + UM/UIM + Roadside Assistance |
| Driver in No-Fault State | PIP + Liability + UM/UIM |
| Low-Income Driver | Liability (higher limits) + MedPay |
| Daily Commuter | Comprehensive + UM/UIM + Collision |
| Occasional Driver | Liability + Roadside Assistance |
| Family With Kids | PIP + Comprehensive + Liability |
| Leased/Financed Car Owner | Gap + Collision + Comprehensive |
| Rural Area Driver | Comprehensive + UM/UIM + Roadside Assistance |
| Classic / Collector Car Owner | Classic/collector + Comprehensive |
| Retiree / Low Mileage Driver | Liability + UM/UIM + Roadside Assistance |
Full coverage auto insurance is a policy that covers both liability, collision, and comprehensive protection to provide broader financial security than liability-only plans. It includes the damage or injuries you cause others, repairs for your own car after an accident, and losses from non-collision incidents like theft or weather.
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The term refers to the combined protection of liability, collision, and comprehensive coverage. This type of auto insurance cover offers financial security for accidents, repairs, and unexpected events, making it a smart choice, especially for newer or financed vehicles.
The best coverage balances driving habits with vehicle value. For example, city drivers may need stronger comprehensive protection against theft and vandalism.
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Families should carry PIP, liability, and comprehensive, leased or financed cars require gap plus the types of full coverage car insurance, rural drivers benefit from comprehensive and roadside help, and retirees or low-mileage drivers can save with liability, UM/UIM, and roadside assistance.
Liability Coverage
Liability insurance is the most basic form of car insurance, and it’s required by law in almost every state. It provides financial protection for you. If you are found liable after an accident, it will pay for the other party’s injuries and property damage.
Liability auto insurance covers bodily injury costs, legal fees, and property damage you cause to others. It does not cover your own injuries or vehicle damage. This protection ensures financial security and helps you meet legal requirements if you’re at fault in an accident.
Comprehensive Coverage
Comprehensive auto insurance protects your vehicle from non-collision damage such as theft, vandalism, fire, natural disasters, and animal strikes. It covers repair or replacement costs up to the car’s actual cash value, minus the deductible, and pays the market value if the vehicle is totaled.
This coverage can be particularly helpful for newer or more valuable cars, or drivers who live in high-theft areas with bad weather, although it may not make financial sense if you have an older car. It is not legally mandated, but lenders may impose it for financed or leased vehicles, so it’s a wise bet for wider protection and peace of mind.
Collision Coverage
Collision auto insurance can help pay for repairs or the replacement of your vehicle if it’s involved in an accident, no matter who is at fault. It applies when you hit another car or object, such as a tree, guardrail, or pole, so that you aren’t then left with out-of-pocket repair expenses.
This protection requires you to pay a deductible before your insurer covers repair or replacement costs. The payout is based on your vehicle’s actual cash value at the time of the accident. It’s best suited for financed or recent vehicles and may not be favorable for an old car with limited market value.
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Mandatory vs. Optional Types of Auto Insurance Coverage
Auto insurance in the U.S. has different coverage requirements. Liability is mandatory in most states, while certain states require MedPay or PIP insurance for medical costs. However, they can both be optional add-ons in some places.
Auto Insurance Coverage Options: Key Details & U.S. Requirements| Coverage Type | What It Covers | Required? |
|---|---|---|
| Liability Insurance | Injury and property damage you cause | Required in most states |
| Collision Coverage | Repairs after a traffic accident | Optional, often lender required |
| Comprehensive Coverage | Theft, fire, weather, vandalism, animals | Optional, covers non-collision risks |
| Personal Injury Protection | Medical bills, lost wages, services | Required in some states |
| Medical Payments (MedPay) | Medical bills for you and passengers | Optional, extra medical coverage |
| Uninsured/Underinsured Motorist | Injury & damage from uninsured driver | Required in some states |
| Gap Insurance | Gap between car value and loan amount | Optional, for financed or new cars |
| Roadside Assistance | Towing, flat tires, fuel, lockouts, jumps | Optional, for emergency services |
| Rental Reimbursement | Rental car during vehicle repairs | Optional, for rental expenses |
| Classic/Collector Car Insurance | Agreed value for vintage or rare cars | Optional, for classic cars |
UM/UIM coverage, required in some states, helps if you’re hit by an uninsured or underinsured driver, but only 7% of drivers carry it. Most people have liability insurance, while only a fifth of drivers on the road carry full coverage with comprehensive and collision insurance.
Drivers can add extra safeguards for broader protection. Roadside assistance helps with breakdowns, and gap insurance protects financed or new cars by covering the difference between the loan balance and the vehicle’s value if totaled.
Rental coverage provides a temporary car during repairs, and classic insurance protects rare vintage rides. These options let drivers pick what fits their needs and budget for better protection and peace of mind.
Comparing Costs for Different Types of Auto Insurance
Auto insurance rates vary widely by provider, with the national average around $61 per month for basic car insurance coverage and $165 monthly for full coverage. USAA has the best monthly rates of $32 for basic coverage and $84 for full, but it’s only available to military families.
Auto Insurance Monthly Rates by Provider & Coverage Level| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
 | $87 | $228 |
 | $62 | $166 |
 | $76 | $198 |
 | $43 | $114 |
 | $96 | $248 |
 | $63 | $164 |
 | $56 | $150 |
 | $47 | $123 |
 | $53 | $141 |
 | $32 | $84 |
U.S. Average | $61 | $165 |
Geico and State Farm have the lowest auto insurance rates, with minimum coverage for less than $50 per month. Midrange options like Nationwide, American Family, Progressive, and Travelers stay closer to national averages. See our American Family vs. Travelers auto insurance review for a detailed comparison.
Driving Record & Auto Insurance Rates
No matter what type of car insurance coverage you buy, your driving record will have the biggest impact on your rates. Drivers with accidents or DUIs pay the most, even for minimum liability insurance. Auto insurance costs $61 a month for a clean driving record, $91 per month after an accident, $112 monthly after a DUI, and $76 per month after a ticket.
Auto Insurance Monthly Rates by Provider & Driving Record| Company | Clean Record | One Accident | One DUI | One Ticket |
|---|---|---|---|---|
| $87 | $124 | $152 | $103 |
| $62 | $94 | $104 | $73 |
| $76 | $109 | $105 | $95 |
| $43 | $71 | $117 | $56 |
| $96 | $129 | $178 | $116 |
| $63 | $88 | $129 | $75 |
| $56 | $98 | $75 | $74 |
| $47 | $57 | $65 | $53 |
| $53 | $76 | $112 | $72 |
| $32 | $42 | $58 | $36 |
U.S. Average | $61 | $91 | $112 | $76 |
USAA and State Farm offer the most affordable rates, while Allstate and Liberty Mutual are the priciest. A clean record keeps premiums low, but violations can cause steep increases depending on the insurer (Learn More: Cheap Auto Insurance for High-Risk Drivers).
Vehicle Type & Auto Insurance Rates
The cost of car insurance for the 20 best-selling vehicles is determined by safety, repair costs, and risk factors. Trucks like the Ford F-Series at $63, the Chevrolet Silverado at $66, and the Ram 1500 at $65 are midrange, while compact SUVs such as the Toyota RAV4 at $55 and the Honda CR-V at $58 are among the most affordable.
20 Top-Selling Vehicles: Auto Insurance Monthly Rates| Make & Model | Rank | Premium | Cost Factors |
|---|---|---|---|
| Ford F-Series | #1 | $63 | Large pickup; big driver pool lowers costs |
| Chevrolet Silverado | #2 | $66 | Full-size truck; slightly less than Ford |
| Toyota RAV4 | #3 | $55 | Compact SUV; strong safety, low claims |
| Honda CR-V | #4 | $58 | Compact SUV; reliable, affordable repairs |
| Ram 1500 Series | #5 | $65 | Full-size pickup; higher liability exposure |
| Tesla Model Y | #6 | $183 | EV; costly parts and repairs |
| GMC Sierra | #7 | $64 | Full-size truck; expensive parts |
| Toyota Camry | #8 | $60 | Midsize sedan; safe, moderate costs |
| Nissan Rogue | #9 | $59 | Compact SUV; affordable, family-friendly |
| Honda Civic | #10 | $57 | Compact car; cheap repairs, safe profile |
| Toyota Corolla | #11 | $56 | Compact sedan; dependable, modest costs |
| Chevrolet Equinox | #12 | $58 | Compact SUV; low repairs, safe profile |
| Jeep Grand Cherokee | #13 | $66 | Midsize SUV; higher theft/repair costs |
| Hyundai Tucson | #14 | $57 | Compact SUV; affordable, safe choice |
| Chevrolet Trax | #15 | $55 | Subcompact SUV; cheap repairs, safe |
| Ford Explorer | #16 | $68 | Midsize SUV; higher liability/repair costs |
| Toyota Tacoma | #17 | $62 | Midsize pickup; moderate premiums |
| Subaru Crosstrek | #18 | $56 | Subcompact SUV; strong safety, low claims |
| Subaru Forester | #19 | $57 | Compact SUV; safe, reliable, affordable |
| Subaru Outback | #20 | $58 | Wagon/SUV; safe, family-friendly |
Sedans like the Toyota Corolla at $56 and the Honda Civic at $57 also stay low, but the Tesla Model Y is the most expensive at $183 due to high repair costs. Overall, compact SUVs and sedans offer the best value, with the best auto insurance for Toyotas providing standout affordability.
Auto Insurance Monthly Rates by Provider & Vehicle Type| Insurance Company | Pickups / Trucks | Sedans / Hatchback | SUVs / Crossovers |
|---|---|---|---|
| $68 | $54 | $63 |
| $67 | $52 | $62 |
| $69 | $55 | $64 |
| $62 | $48 | $56 |
| $71 | $56 | $65 |
| $66 | $51 | $61 |
| $67 | $52 | $62 |
| $64 | $50 | $57 |
| $66 | $51 | $60 |
| $60 | $46 | $54 |
U.S. Average | $66 | $52 | $60 |
Insurance costs an average of $66 a month for pickups, $52 a month for sedans, and $60 monthly for SUVs. USAA has the best rates for military drivers, while Geico and State Farm remain the cheapest for everyone else. Those three providers offer the best value for every type of car insurance on different makes and models.
Providers like American Family, Nationwide, Progressive, and Travelers represent common types of auto insurance companies that stay close to national averages. Liberty Mutual is the priciest at $71 a month for pickups, $56 a month for sedans, and $65 a month for SUVs. At the end of the day, USAA, Geico, and State Farm offer the best value.
Find the Best Auto Insurance Policy Type for Your Car
Knowing the different types of coverage, including the top six types of car insurance, helps drivers choose the right balance of protection and cost. From liability to collision and comprehensive, and all the add-ons like PIP, UM/UIM, and gap, each type of auto insurance is there to protect you from being financially vulnerable after a claim.
Auto Insurance Coverage Options: Pros & Cons| Coverage Type | Pros | Cons |
|---|---|---|
| Liability Insurance | Required by law, affordable | Does not cover your own car |
| Collision Coverage | Pays for your car after accident | Costly, less useful for older cars |
| Comprehensive Coverage | Covers theft, fire, non-collision | Adds cost, includes deductibles |
| Personal Injury Protection | Pays medical bills and wages | Raises cost, may overlap health |
| Medical Payments (MedPay) | Pays medical bills quickly | Low limits, excludes lost wages |
| Uninsured/Underinsured Motorist | Protects if other driver uninsured | May not cover property damage |
| Gap Insurance | Pays loan if car is totaled | Not needed if car is paid off |
| Roadside Assistance | Covers towing and roadside help | Limited use, overlaps other plans |
| Rental Reimbursement | Covers rental during repairs | Daily limits, only certain claims |
| Classic/Collector Car Insurance | Protects vintage cars at set value | Mileage limits and strict rules |
With rates starting at just $32 per month, and the average cost of auto insurance around $61 for minimum coverage, full coverage offers broader security for newer or financed vehicles, while liability-only may suit older or low-mileage drivers. Comparing quotes ensures the best value and policy fit.
Start comparing full coverage auto insurance rates today by simply entering your ZIP code. Get personalized quotes, review options from top providers, and find the best types of auto insurance in just a few minutes.
Frequently Asked Questions
Which type of car insurance is best?
The best car insurance will be tailored to your needs. Liability-only insurance is the most affordable option for older and paid-off vehicles, while full coverage provides extra protection for newer or financed cars. Optional add-ons, like uninsured motorist (UM), PIP, and gap insurance, give you even more peace of mind.
Which type of auto insurance is required by law?
The only type of car insurance required by law in nearly every state is liability insurance. It covers injuries and property damage you cause to others in an accident, ensuring you meet legal and financial responsibilities. Other coverages like collision or comprehensive are optional but provide added protection.
Stop overpaying for auto insurance by entering your ZIP code now in our free comparison tool to instantly compare and unlock the cheapest rates available in your area.
What is the minimum cost of car insurance?
Car insurance costs start at about $32 per month, with average minimum liability coverage around $61 monthly. Actual rates vary based on state laws, driving record, provider, and the type of car you drive. Compare auto insurance rates by vehicle to see how it impacts your premium.
Can I insure myself to drive any car?
Yes, but not with standard insurance. You’ll need special add-ons like “Drive Other Car” or non-owner insurance, which often only provide third-party cover. For full protection, you must arrange extra coverage or be a named driver.
What is the cheapest type of car insurance to get?
Cheapest car insurance is liability-only coverage, starting around $32 per month, which fulfills state minimums but only covers damages or injuries you cause to others, not your own vehicle.
How much is insurance for a new driver?
Auto insurance for a new driver averages $200–$450 per month for full coverage. USAA offers rates around $210 per month, Geico about $230 per month, and State Farm roughly $245 per month, while Allstate and Liberty Mutual can exceed $300–$400 per month. Find the full list in our USAA insurance review.
What are the three limits of car insurance policies?
The three limits of insurance policies are bodily injury per person, bodily injury per accident, and property damage per accident, which cap how much the insurer pays in each category.
Which gender pays more for car insurance?
On average, men pay more for car insurance than women. Young male drivers face the steepest rates. The gap shrinks with age, and in some states, gender can’t be used to set rates. Enter your ZIP code now to compare free quotes and start saving instantly.
What car insurance do most people have?
Most people carry liability car insurance because it is legally required in almost every state. Many also add collision vs. comprehensive auto insurance, often called full coverage, especially for newer or financed cars. Liability makes up about 43% of policies, with collision and comprehensive close behind as the most common choices.
What is the lowest form of auto insurance?
The lowest form of auto insurance is liability coverage, which only pays for injuries and property damage you cause to others, not your own car. It’s the minimum required by most states and is the cheapest option, with rates starting around $32 per month and averaging about $61 per month nationwide.
Can I drive a car if I am not the owner?
Yes, you can drive a car you don’t own if the owner gives permission. Their insurance usually covers you under permissive use, though coverage may be limited. If you drive borrowed cars often, consider non-owner car insurance. Always check the owner’s policy for restrictions.
What is the best age for cheap car insurance?
The best age to secure the cheapest car insurance is typically between 30 and 60, when drivers often pay $32–$60 per month for minimum coverage with a clean record, while those under 25 face higher costs from inexperience and rates rise again after 65 due to accident risk.
What is usually covered by insurance?
Insurance usually covers financial losses from unexpected events such as medical expenses, car accidents, property damage, theft, natural disasters, and in some cases death or travel interruptions, depending on the policy type.
What is recommended for car insurance coverage?
The optimal car insurance typically provides liability, collision and comprehensive coverage for newer or financed cars. You can also opt for additional protections, such as uninsured motorist coverage or personal injury protection, and take out gap insurance if you wish. Liability is the absolute minimum, but wrapping it in with other coverages will put your mind at ease.
How many types of insurance do you need?
Most people need health, auto, home, or renters, and life insurance to stay financially protected, with options from the best renters insurance companies offering added peace of mind. Additional coverage like disability, long-term care, or specialized insurance depends on your lifestyle and responsibilities.
Enter your zip code below to view companies that have cheap insurance rates.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, bus...
Licensed Insurance Agent & Agency Owner
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
