Car Insurance Coverage Basics
What each part of a car insurance policy does, how much coverage you need, how deductibles work and how to pay less.
A car insurance policy is really a bundle of separate coverages. Some pay for damage you cause to other people, some pay for your own car and some pay for your medical bills. State law makes some of them mandatory, your lender may require others, and the rest are up to you.
These guides explain each coverage in plain English, help you decide how much you need and show you the legitimate ways to lower your premium. Start with the types of car insurance coverage, then read full coverage vs. liability.
All Coverage Basics guides
Coverage Basics
Types of Car Insurance Coverage, Explained
Liability, collision, comprehensive, uninsured motorist, PIP and more: what each type of car insurance coverage pays for, which ones are required and which are optional.
Coverage Basics
Full Coverage vs. Liability Insurance: What's the Difference?
Liability-only insurance covers damage you cause to others. Full coverage adds collision and comprehensive for your own car. Here is what each costs and how to decide.
Coverage Basics
How Much Car Insurance Do You Need?
State minimums are a legal floor, not a recommendation. Here is how to choose liability limits, whether you need collision and comprehensive, and which extras are worth it.
Coverage Basics
How Car Insurance Deductibles Work (and How to Choose One)
Your deductible is what you pay before insurance pays on a collision or comprehensive claim. Here is how it works, how it affects your premium and how to pick the right amount.
Coverage Basics
Uninsured Motorist Coverage: What It Pays For and Do You Need It?
About one in seven U.S. drivers is uninsured. Uninsured and underinsured motorist coverage pays your bills when they hit you. Here is how it works and the states where it matters most.
Coverage Basics
What Is GAP Insurance and Do You Need It?
GAP insurance covers the difference between what you owe on your car loan and what your insurer pays if the car is totaled or stolen. Here is when it is worth it and when to skip it.
Coverage Basics
How to Lower Your Car Insurance: 12 Ways That Actually Work
Practical, legitimate ways to cut your car insurance bill: comparing quotes the right way, deductibles, discounts, credit, coverage choices and more, with tips from insurance regulators.
Coverage Basics
Why Did My Car Insurance Go Up? 9 Common Reasons
Your car insurance can rise because of your own record or because of costs across the market. Here are the common reasons, what the latest price data shows and what you can do about it.