Types of Auto Insurance

Liability, collision, and comprehensive coverage are the types of auto insurance that drivers can access. 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.

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. Begin 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.

Full coverage auto insurance is a policy that covers both liability, collision, and comprehensive protection to provide broader financial security than liability-only plans. That includes the damage or injuries you might cause others, repairs to your own car after an accident and losses from non-collision problems like theft or weather.

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.

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 safeguards your car from non-collision damages, including theft, vandalism, fire, weather events and animal collisions. It pays the repair or replacement cost, up to the car’s actual cash value, less a deductible, and it pays 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 vehicle or object, like a tree, guardrail or pole, preventing you from having to pay out-of-pocket for repairs afterward.

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.

Some states mandate that you buy UM/UIM coverage, to protect yourself if you’re hit by an uninsured or underinsured driver, but only 7% of drivers have 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 defends financed or new cars by accounting for the difference between loan balance and vehicle value if totaled.

Rental coverage provides you with a temporary ride while your car is in the shop, so you’re never left without a mode of transportation. Classic car insurance offers specialized coverage that you won’t find in a standard auto policy. That these are options means that car owners can customize their insurance to provide the security and freedom they’re looking for.

Comparing Costs for Different Types of Auto Insurance

Auto insurance rates vary significantly among providers, the national average is roughly $61 a month for minimum coverage and full coverage costs an average of $165 per month. USAA has the lowest monthly rates at $32 for basic policies and $84 for full coverage, but it’s limited to military families.

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.

Insurance 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 auto insurance for the 20 best-selling vehicles is calculated by safety, cost of repair, and other risk factors. Trucks are midrange, with the Ford F-Series at $63, the Chevrolet Silverado at $66, and the Ram 1500 at $65; compact S.U.V.s like the Toyota RAV4 at $55 and Honda CR-V at $58 are among the least expensive.

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.

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.

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.