Car insurance, explained without the sales pitch, including when to drop coverage.
Most drivers carry the wrong limits: state minimums that a single crash blows past, and collision coverage on a car that is barely worth the premium. Here is how to size your policy to what you could actually lose, and where to stop paying.
Open the auto calculator →What this is
Car insurance is legally required in almost every state, so nearly everyone buys it, and nearly everyone buys it the way the quote engine nudges them, not the way the numbers say they should. We are not an agent and we do not sell policies, which frees us to say the unprofitable thing: raise your liability, and drop the coverage that no longer earns its keep. Every recommendation here traces to a rule you can check.
What car insurance covers
Liability (bodily injury & property damage)
Pays for the other party when you are at fault: their injuries, their car, and your legal defense. This is the coverage that protects everything you own from a lawsuit, and it is the one most people carry too little of. State minimums are dangerously low; your limit should be at least as large as your net worth.
Collision
Pays to repair or replace your own car after a crash, up to its value minus your deductible. Genuinely useful on a newer car, but once the yearly premium climbs past roughly 10% of what you would actually collect, it stops being a good deal.
Comprehensive
Covers your car for the non-crash events: theft, fire, hail, flood, a deer, a cracked windshield. Priced separately from collision and usually cheaper, but subject to the same value test on an older vehicle.
Uninsured / underinsured motorist
Pays your costs when the at-fault driver has no insurance or not enough. Plenty of drivers on the road carry little or none, so this coverage matters more than its low price suggests. Match it to your liability limits.
Medical payments / PIP
Covers medical bills for you and your passengers regardless of fault. Required in no-fault states; optional and often redundant with good health insurance elsewhere.
Free calculators
Run your own numbers: no account, no email, nothing stored. Every tool is open source and shows the method it uses.
Car Insurance Coverage Calculator
Size your liability limits to your assets, then use the 10% rule to decide whether collision & comprehensive still pay off.
Read next
How much liability do you actually need?
Size your limits to your net worth, decode the 100/300/100 numbers, and know when to add an umbrella policy.
When to drop collision & comprehensive
The 10% rule: the simple math that tells you when full coverage stops being worth the premium.
How car insurance deductibles work
The one number on your policy you control: how to pick the deductible that fits your finances.
Full coverage vs. liability only
What "full coverage" really means, and the car-value math that tells you when liability-only is smarter.
Do you need uninsured motorist coverage?
The coverage that pays when the other driver has none: why it is often the best value on the policy.
Do you need gap insurance?
The new-car loan trap: why you can owe more than the car is worth, and when to buy (and drop) gap coverage.
Does car insurance cover rental cars?
Your own policy usually follows you into a rental, up to your limits. When the counter waiver is still worth it.
How much does car insurance go up after an accident?
What raises your rate, for how long, and the levers that soften the increase.
How we’re different
Most insurance sites exist to sell you a policy, so every page ends in “get a quote.” We are not licensed agents and we do not sell coverage, which frees us to say the unprofitable thing, including when to carry less:
- On a car worth only a few thousand dollars, dropping collision and comprehensive and banking the premium often beats insuring it.
- The cheapest quote is usually the state-minimum policy, the one most likely to leave you personally on the hook after a serious crash.
- Higher deductibles lower your premium; if you have the savings to cover one, that is usually money better kept than spent.
Common questions
- How much liability car insurance do I actually need?
- Enough to cover what a lawsuit could reach, roughly your net worth (home equity, savings, investments). For most households that means limits well above the state minimum, commonly 100/300/100 or 250/500/100. If you have significant assets, add a personal umbrella policy on top.
- Should I drop collision and comprehensive?
- Consider it once the annual premium for both tops about 10% of your car's value minus the deductible, the most you could ever collect. Below that they are usually worth keeping. The car insurance calculator runs the exact math for your vehicle.
- Is full coverage worth it on an old car?
- Often not. "Full coverage" just means liability plus collision and comprehensive. As a car ages and its value falls toward your premium, the collision and comprehensive portion pays less and less. At some point liability-only is the rational choice.
- Does a higher deductible really save money?
- Yes, raising your deductible lowers the premium, because you are self-insuring the first slice of a claim. It only makes sense if you keep enough cash to actually pay that deductible after a loss.
Run your numbers
See what the coverage math says for your situation: free, instant, and nothing stored.
Open the auto calculator →Method: net-worth liability sizing · the 10% collision/comprehensive rule of thumb
Requirements by state
Car insurance is state law, so the mandatory minimums and whether you’re in a no-fault state depend on where you drive. Pick your state for its minimum limits, and an honest read on why that floor is usually far less coverage than you need.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Explore other insurance
Same approach, every line: real math, no sales pitch, and a straight answer on when to carry less.