Tools

Personal car insurance coverage checklist

Quick answer

The right car insurance starts with what your state requires, then adds protection for what you could not afford to lose: your savings, your car and your health. Answer the questions below to get a checklist sorted into coverage your state requires, coverage to strongly consider, coverage worth pricing and coverage you may not need.

Key facts

FactDetail
Required almost everywhereLiability insurance, in 49 states and the District of Columbia
Drivers who were uninsured (2023)15.4%
Drivers uninsured or underinsured (2023)33.4%
Usually required by lenders and lessorsCollision and comprehensive
What the checklist usesYour state, loan, car, savings, health cover, passengers, rideshare, rentals and roadside

Build your coverage checklist

Answer what you can; every question is optional and nothing is stored.

Do you have a loan or lease on the car?
Could you pay to repair or replace the car yourself if it were wrecked tomorrow?
How old is the car?
Do you have savings, a home or income that a lawsuit could reach?
Do you have health insurance?
Do you often carry passengers?
Do you drive for Uber, Lyft or a delivery app?
Would you need a rental car while yours is in the shop?
Do you already have roadside help (auto club, new-car program or credit card)?

The four questions behind every policy

  1. What does the law require? Every state but New Hampshire requires liability insurance, and some also require personal injury protection or uninsured motorist coverage. The state minimum lookup shows your state's rules.
  2. What could a lawsuit take from you? Liability pays for injuries and damage you cause. If you have savings, a home or a good income, limits well above the minimum protect them. See liability coverage.
  3. Could you replace your car? If not, or if you have a loan or lease, collision and comprehensive pay to repair or replace it. Gap insurance covers what you still owe after a total loss.
  4. Who pays your medical bills? Health insurance, medical payments, personal injury protection and uninsured motorist coverage each play a part, especially if you carry passengers.

Coverages people often forget

CoverageWho usually needs it
Uninsured and underinsured motoristAlmost everyone, because many drivers carry no or too little insurance
Gap insuranceDrivers who owe more on a loan or lease than the car is worth
Rideshare endorsementAnyone who drives for Uber, Lyft or a delivery app
Rental reimbursementHouseholds that cannot manage without a car during repairs
Roadside assistanceDrivers without an auto club, new-car or credit card roadside program

Coverages you might be paying for twice

Look for overlaps. If your credit card, auto club or car maker already gives you roadside help, you may not need roadside coverage on your policy. If you would not use a rental car during repairs, rental reimbursement may not be worth it. On an older car worth little, collision may cost more over a few years than the car is worth. See reviewing your coverage for a yearly check.

Frequently asked questions

What car insurance coverage do I really need?

At minimum, what your state requires. Most people also need higher liability limits than the minimum, uninsured motorist coverage, and collision and comprehensive if their car would be hard to replace or is financed.

Is full coverage worth it on an older car?

It depends on the car's value and your savings. If the yearly cost of collision and comprehensive is a large share of what the car is worth and you could replace it yourself, dropping them can make sense. See full coverage explained.

Does my insurance cover a rental car?

Your own policy's coverage often extends to a car you rent for personal use, but limits and rules vary. Check your policy before you rent; see rental reimbursement and rental cars.

Do I need uninsured motorist coverage if I have health insurance?

Health insurance pays medical bills, but uninsured motorist coverage can also pay for lost wages, pain and suffering and, in some states, damage to your car. With 15.4% of drivers uninsured, it is worth pricing.

Does personal car insurance cover driving for Uber or Lyft?

Often not while the app is on. You may need a rideshare endorsement; see rideshare insurance.

Is this checklist advice?

No. It is general information based on your answers. A licensed agent can check it against your exact policy and state rules.

Sources

Last reviewed by the StateCover Guide editorial team. See our editorial policy. Spotted an error? Tell us.