How do I know if I chose the right coverages?
When shopping for a new car insurance company, choose the right coverage that will protect you and your vehicle. Learning how to balance the coverage you want with your budget will help you determine how much car insurance coverage you need. You can shop online for car insurance quotes.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
UPDATED: Dec 11, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.
UPDATED: Dec 11, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Drivers should shop online to find the best policies
- Drivers shouldn’t buy inadequate coverage
- Drivers can utilize discounts to obtain cheaper rates
It might sound glib to say, “If you need to buy car insurance, choose the right coverage for your vehicle and your needs,” but buying more than what you need can put a serious strain on your bank account.
When you learn how to choose the right car insurance coverage, you’ll be a step ahead of the game the next time you shop for a new insurance policy. Luckily, you can educate yourself on how to choose the right auto insurance coverage right here.
And when you’re ready, you can shop online to find great quotes at any time of day.
When shopping online, you can scour the insurance marketplace for a plethora of car insurance quotes and choose the right coverage for your needs. Keep reading to learn invaluable car insurance information that will help you find the best policy online.
Enter your ZIP code above to receive free car insurance quotes so you can choose the right coverage for you.
What coverage types are available for drivers?
Most drivers know that they need car insurance, but many don’t realize that their insurance is made up of several different types of coverage. In order to know if you’re choosing the right coverage, you need to know what types of coverage are available to you first and what each coverage type specializes in.
Here you can examine the main coverage types that all drivers are heavily encouraged to carry:
- Collision
- Comprehensive
- Liability
You may have heard of some of these coverage types before. Collision and comprehensive are very well known as these work to help pay for repairs or even replace your vehicle.
For example, if you were to open your car door into someone’s shopping cart as they were loading grocery’s up next to you and dented the door, you could file a collision claim to get the door fixed.
Now, if you realized that a hail storm had battered the roof of your roof, you could file a comprehensive claim to restore your vehicle.
Liability, on the other hand, serves to protect you from being legally pursued by individuals if you caused an accident that resulted in injuring other drivers. Drivers are required to carry liability coverage in almost every state; if you’re not sure how much you may pay for liability in your home state or if you are moving, you can take a look at this chart below to get an idea of what your annual liability rates may be.
Average Annual Liability Car Insurance Rates by State
| States | Average Annual LIability Rates |
|---|---|
| North Dakota | $298.18 |
| Iowa | $299.18 |
| South Dakota | $300.22 |
| Wyoming | $321.04 |
| Maine | $338.87 |
| Vermont | $343.12 |
| Idaho | $344.29 |
| Kansas | $358.24 |
| North Carolina | $359.42 |
| Nebraska | $364.64 |
| Wisconsin | $374.37 |
| Indiana | $382.68 |
| Montana | $386.29 |
| Arkansas | $394.13 |
| Alabama | $394.21 |
| Ohio | $397.11 |
| New Hampshire | $400.56 |
| Tennessee | $413.91 |
| Missouri | $415.88 |
| Virginia | $425.61 |
| Illinois | $446.72 |
| Minnesota | $456.82 |
| Hawaii | $458.54 |
| Mississippi | $460.50 |
| Oklahoma | $461.01 |
| New Mexico | $488.03 |
| California | $489.66 |
| West Virginia | $491.83 |
| Utah | $497.53 |
| Pennsylvania | $499.06 |
| Arizona | $508.76 |
| Colorado | $520.04 |
| South Carolina | $527.09 |
| Texas | $528.75 |
| Kentucky | $529.21 |
| Alaska | $539.68 |
| Georgia | $557.38 |
| Oregon | $584.13 |
| Washington | $596.67 |
| Massachusetts | $606.04 |
| Maryland | $609.74 |
| District of Columbia | $628.82 |
| Connecticut | $650.94 |
| Nevada | $681.56 |
| Rhode Island | $759.80 |
| Louisiana | $775.83 |
| Michigan | $795.32 |
| Delaware | $799.30 |
| New York | $804.51 |
| Florida | $857.64 |
| New Jersey | $869.57 |
| U.S. Average | $538.73 |
While each state has its minimum auto insurance requirement, this minimum is typically not set at a limit that will provide you adequate financial protection if you were to cause an accident. This is why knowing how to choose the right liability coverage limit is very important.
Enter your ZIP code below to compare car insurance company rates.
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What coverage limits are advisable for drivers?
In the search for affordable car insurance, choose the right coverage to protect yourself but not more than you need. While it might seem like a good idea to splurge on extra insurance coverage, your financial situation plays a big role in determining how high to set your coverage limits.
For example, it’s typically advisable to set your liability limits at $100,000 per person, $300,000 per accident, and $100,00 for damaged property; however, you have to pay for that amount of coverage. If you are worried that paying for those limits will hinder you from paying your insurance rates, you can purchase a lower amount of coverage.
Drivers on a budget will be excited to hear that car insurance is very customizable. You don’t have to buy full coverage. You can buy just liability if that makes sense for you; however, you should also get rates for both full coverage and just liability because a score of factors determines an individual’s rates. You may be able to afford more coverage than you think. Just take a look at these average rates for different coverage amounts throughout the United State.
Location plays a huge role in rate calculation so you may find that your state empowers you to buy quite a bit of insurance coverage:
Average Annual Car Insurance Rates by Coverage Level By State
| State | Full Coverage Average Annual Rates | Comprehensive Coverage Average Annual Rates | Collision Coverage Average Annual Rates | Liability Coverage Average Annual Rates |
|---|---|---|---|---|
| Alabama | $868.48 | $156.31 | $317.96 | $394.21 |
| Alaska | $1,027.75 | $137.26 | $350.81 | $539.68 |
| Arizona | $972.85 | $186.12 | $277.96 | $508.76 |
| Arkansas | $906.34 | $190.41 | $321.80 | $394.13 |
| California | $986.75 | $100.54 | $396.55 | $489.66 |
| Colorado | $981.64 | $174.61 | $287.00 | $520.04 |
| Connecticut | $1,151.07 | $131.62 | $368.51 | $650.94 |
| Delaware | $1,240.57 | $122.49 | $318.77 | $799.30 |
| District of Columbia | $1,330.73 | $233.24 | $468.67 | $628.82 |
| Florida | $1,257.13 | $116.53 | $282.96 | $300.22 |
| Georgia | $1,048.40 | $159.18 | $331.83 | $857.64 |
| Hawaii | $873.28 | $101.56 | $313.17 | $557.38 |
| Idaho | $679.89 | $116.55 | $219.05 | $458.54 |
| Illinois | $884.56 | $128.13 | $309.71 | $344.29 |
| Indiana | $755.03 | $122.06 | $250.29 | $446.72 |
| Iowa | $702.46 | $183.53 | $219.75 | $382.68 |
| Kansas | $862.93 | $267.91 | $263.33 | $299.18 |
| Kentucky | $938.51 | $141.39 | $267.91 | $358.24 |
| Louisiana | $1,405.36 | $215.17 | $414.36 | $529.21 |
| Maine | $703.82 | $104.98 | $259.98 | $775.83 |
| Maryland | $1,116.45 | $152.72 | $353.99 | $338.87 |
| Massachusetts | $1,129.29 | $134.96 | $388.28 | $609.74 |
| Michigan | $1,364.00 | $154.85 | $413.83 | $606.04 |
| Minnesota | $875.49 | $184.27 | $234.40 | $795.32 |
| Mississippi | $994.05 | $210.33 | $323.22 | $456.82 |
| Missouri | $872.43 | $181.27 | $275.28 | $460.50 |
| Montana | $863.52 | $211.91 | $265.32 | $415.88 |
| Nebraska | $831.02 | $229.25 | $237.13 | $386.29 |
| Nevada | $1,103.05 | $117.63 | $303.86 | $364.64 |
| New Hampshire | $818.75 | $110.77 | $307.42 | $681.56 |
| New Jersey | $1,382.79 | $131.35 | $381.86 | $400.56 |
| New Mexico | $937.59 | $172.57 | $276.98 | $869.57 |
| New York | $1,360.66 | $171.12 | $385.02 | $488.03 |
| North Carolina | $789.09 | $136.08 | $293.59 | $804.51 |
| North Dakota | $773.30 | $231.04 | $244.09 | $359.42 |
| Ohio | $788.56 | $121.61 | $269.84 | $298.18 |
| Oklahoma | $1,005.32 | $225.84 | $318.47 | $397.11 |
| Oregon | $904.83 | $93.87 | $226.83 | $461.01 |
| Pennsylvania | $970.51 | $144.21 | $327.24 | $584.13 |
| Rhode Island | $1,303.50 | $132.19 | $411.51 | $499.06 |
| South Carolina | $973.10 | $180.94 | $265.07 | $759.80 |
| South Dakota | $766.91 | $258.11 | $208.58 | $527.09 |
| Tennessee | $871.43 | $148.45 | $309.07 | $413.91 |
| Texas | $1,109.66 | $206.42 | $374.49 | $528.75 |
| Utah | $872.93 | $109.50 | $265.90 | $497.53 |
| Vermont | $764.02 | $125.48 | $295.42 | $343.12 |
| Virginia | $842.67 | $136.54 | $280.52 | $425.61 |
| Washington | $968.80 | $106.38 | $265.74 | $596.67 |
| West Virginia | $1,025.78 | $204.28 | $329.67 | $491.83 |
| Wisconsin | $737.18 | $136.81 | $226.00 | $374.37 |
| Wyoming | $847.44 | $247.57 | $278.83 | $321.04 |
| Countrywide | $1,009.38 | $148.04 | $322.61 | $538.73 |
As made evident by the chart above, various levels of coverage are available with a variety of rates. After reviewing this information, it’s vital that you remember that a cheap rate shouldn’t be your deciding factor when shopping for insurance. There are ways to keep your rates low even if you want to purchase a high amount of coverage.
How can drivers reduce their car insurance rates?
Even if you’re balking at the car insurance rates, choose the right coverage for your needs. Failing to do so could carry severe consequences down the road, but you don’t need to fret just yet. There are many strategies you can utilize to reduce your rates like setting your deductibles higher than you had originally had them.
You see, when you raise your deductibles, your rates drop because you are telling the insurance company that you are willing to pay more upfront to get your car fixed if you need to file a claim. This saves the insurance company money so your rates are lowered as a result.
Of course, if you don’t want to risk paying a lot of money out of pocket to get repairs for your vehicle, you should see what types of discounts your insurance company has to offer you. You can examine this chart to see what discounts you could potentially be awarded by your insurance company:
Car Insurance Discounts Available by Company
| Discounts | 21st Century | AAA | Allstate | American Family | Ameriprise | Amica | Country Financial | Esurance | Farmers | Geico | Liberty Mutual | MetLife | Nationwide | Progressive | Safe Auto | Safeco | State Farm | The General | The Hanover | The Hartford | Travelers | USAA |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Adaptive Cruise Control | x | x | x | x | ||||||||||||||||||
| Adaptive Headlights | x | x | x | x | x | x | x | x | ||||||||||||||
| Anti-lock Brakes | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x |
| Anti-Theft | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x |
| Claim Free | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x |
| Continuous Coverage | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | |||||||
| Daytime Running Lights | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | ||||
| Defensive Driver | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x |
| Distant Student | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | |||||||
| Driver's Ed | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | ||
| Driving Device/App | x | x | x | x | x | x | x | x | x | x | x | x | x | x | ||||||||
| Early Signing | x | x | x | x | x | x | x | x | x | x | x | x | x | x | ||||||||
| Electronic Stability Control | x | x | x | x | x | x | x | x | x | |||||||||||||
| Emergency Deployment | x | |||||||||||||||||||||
| Engaged Couple | x | |||||||||||||||||||||
| Family Legacy | x | x | x | x | x | x | ||||||||||||||||
| Family Plan | x | x | x | x | x | |||||||||||||||||
| Farm Vehicle | x | x | x | x | ||||||||||||||||||
| Fast 5 | x | |||||||||||||||||||||
| Federal Employee | x | x | x | x | ||||||||||||||||||
| Forward Collision Warning | x | x | x | x | x | x | x | |||||||||||||||
| Full Payment | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | |||||
| Further Education | x | x | x | x | x | x | x | x | x | |||||||||||||
| Garaging/Storing | x | x | x | x | x | x | ||||||||||||||||
| Good Credit | x | x | x | x | ||||||||||||||||||
| Good Student | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x |
| Green Vehicle | x | x | x | x | x | x | x | |||||||||||||||
| Homeowner | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | ||||
| Lane Departure Warning | x | x | x | x | ||||||||||||||||||
| Life Insurance | x | x | ||||||||||||||||||||
| Low Mileage | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | |||
| Loyalty | x | x | x | x | x | x | x | x | x | x | x | x | ||||||||||
| Married | x | x | x | x | x | x | x | x | x | x | x | x | x | x | ||||||||
| Membership/Group | x | x | x | x | x | x | x | x | x | x | x | |||||||||||
| Military | x | x | x | x | x | x | x | x | x | x | x | |||||||||||
| Military Garaging | x | |||||||||||||||||||||
| Multiple Drivers | x | x | ||||||||||||||||||||
| Multiple Policies | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | |
| Multiple Vehicles | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | |
| New Address | x | |||||||||||||||||||||
| New Customer/New Plan | x | x | x | |||||||||||||||||||
| New Graduate | x | |||||||||||||||||||||
| Newer Vehicle | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | ||||||
| Newly Licensed | x | |||||||||||||||||||||
| Newlyweds | x | |||||||||||||||||||||
| Non-Smoker/Non-Drinker | x | |||||||||||||||||||||
| Occasional Operator | x | |||||||||||||||||||||
| Occupation | x | x | x | x | x | x | x | x | x | x | x | x | ||||||||||
| On Time Payments | x | x | x | x | ||||||||||||||||||
| Online Shopper | x | x | ||||||||||||||||||||
| Paperless Documents | x | x | x | x | x | x | x | x | ||||||||||||||
| Paperless/Auto Billing | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | |||||
| Passive Restraint | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x |
| Recent Retirees | x | x | ||||||||||||||||||||
| Renter | x | x | x | |||||||||||||||||||
| Roadside Assistance | x | x | ||||||||||||||||||||
| Safe Driver | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | |||
| Seat Belt Use | x | |||||||||||||||||||||
| Senior Driver | x | x | x | x | x | x | x | x | x | |||||||||||||
| Stable Residence | x | x | x | x | ||||||||||||||||||
| Students & Alumni | x | x | x | x | x | x | ||||||||||||||||
| Switching Provider | x | x | x | x | x | x | x | x | x | x | x | |||||||||||
| Utility Vehicle | x | x | x | x | ||||||||||||||||||
| Vehicle Recovery | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | x | |
| VIN Etching | x | x | x | x | x | x | x | x | x | x | ||||||||||||
| Volunteer | x | |||||||||||||||||||||
| Young Driver | x | x | x | x | x | x |
It’s important to remember that no two companies have the same approach to discounts so when you shop online for quotes, review at least 3 – 5 quotes before you make a decision.
Luckily when you shop for insurance quotes online, you can play around with different coverage amounts and deductibles to find a policy that works best for your budget while still providing you with all the protection you need.
Choosing the Right Coverage: What You Need to Know
The next time you start shopping for a new car insurance company, choose the right coverage that provides you with ample protection if you were ever to be in an accident. You should also review how much you can afford to spend on car insurance.
By recognizing how much coverage you need and how much you can safely spend on insurance, you’ll be able to find just the right policy for you. Shopping online can also most this process incredibly simple. With the internet, you’ll have scores of quotes at your fingertips to compare all from the comfort of your own home.
This way you’ll be able to take your time and find the best policy for you.
Enter your ZIP code now to start comparing free quotes from insurance companies near you that can help you choose the right coverage today.
Enter your ZIP code below to compare car insurance company rates.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.