We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Our content is backed by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
- Share this article on Facebook Facebook
- Share this article on Twitter Twitter
- Share this article on LinkedIn LinkedIn
- Share this article via email Email
- Common types of car insurance
- Required car insurance: liability coverage
- Optional car insurance: physical damage coverage
- Other types of car insurance coverage
- How to find the best car insurance coverage
- Frequently asked questions
Checkmark Expert verified
Bankrate logoHow is this page expert verified?
At Bankrate, we take the accuracy of our content seriously.
“Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced.
Their reviews hold us accountable for publishing high-quality and trustworthy content.
Quick citation guide Select a citation to automatically copy to clipboard.APA: Hawley, R. (2024, June 05). What are the different types of car insurance coverage? Bankrate. Retrieved September 05, 2024, from https://www.bankrate.com/insurance/car/coverage-types/
Copied to clipboard!MLA: Hawley, R.E.. "What are the different types of car insurance coverage?" Bankrate. 05 June 2024, https://www.bankrate.com/insurance/car/coverage-types/.
Copied to clipboard!Chicago: Hawley, R.E.. "What are the different types of car insurance coverage?" Bankrate. June 05, 2024. https://www.bankrate.com/insurance/car/coverage-types/.
Copied to clipboard!Written by
Senior Writer, Insurance- • Property and Casualty
- • Auto insurance
- • Home insurance
R.E. Hawley is a senior writer for Bankrate. Prior to joining Bankrate’s insurance editorial team in 2024, they worked as senior writer for a popular car ownership and insurance comparison app, leading a team of over a dozen writers in creating customer-focused financial advice content on topics ranging from insurance to vehicle reliability and auto loan refinance. R.E. holds a personal lines insurance license.
Edited by
Jessa ClaeysEditor, Insurance- • Personal Lines
- • Auto insurance
- • Homeowners insurance
Jessa Claeys is an insurance editor for Bankrate with over a decade of experience writing, editing and leading teams of content creators. She currently covers auto, home and life insurance with the goal of helping others secure a healthy financial future. Her work has been published by several insurance, personal finance and investment-focused publications, including Jerry, BiggerPockets, 401(k) Specialist, BP Wealth and more.
Reviewed by
Mark FriedlanderDirector of corporate communications, Insurance Information InstituteMark Friedlander is director of corporate communications at III, a nonprofit organization focused on providing consumers with a better understanding of insurance.
- Connect with Mark Friedlander on Twitter Twitter
- Connect with Mark Friedlander on LinkedIn LinkedIn
The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation of how we make money . Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure .
Bankrate logoThe Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you.
- We guide you throughout your search and help you understand your coverage options.
- We provide up-to-date, reliable market information to help you make confident decisions.
- We reduce industry jargon so you get the clearest form of information possible.
All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first.
Bankrate logoEditorial integrity
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
Bankrate logoHow we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
Bankrate logoInsurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Key takeaways
- Most states require drivers to carry liability coverage, including bodily injury liability and property damage liability.
- Uninsured/underinsured motorist, personal injury protection and medical payments coverage are optional in some states and required in others.
- Collision and comprehensive coverage are optional, but if you finance or lease your vehicle, you may be required to carry them.
- Depending on the carrier, other optional coverage types may include roadside assistance, rental car reimbursement, new car replacement, gap insurance and accident forgiveness.
Car insurance can be broken down into many individual types of coverage, and not every driver needs to buy each type. The most basic auto insurance types are bodily injury and physical damage liability coverage, which transfers your financial responsibility for accidents you cause to your insurance company, and optional collision and comprehensive coverages, which pays for damage to your insured vehicle if you hit another vehicle or stationary object, as well as theft, vandalism and severe weather. Bankrate’s insurance editorial team broke down the various types of car insurance coverage to help drivers make informed decisions when buying a policy.
Common types of car insurance
The most common types of car insurance can be broken down into two broad categories: required coverage and optional coverage.
In nearly every state, required coverage begins with liability insurance, including bodily injury and property damage liability coverage. In addition to liability insurance, some states require drivers to carry first-party medical coverage, such as personal injury protection or medical payments (MedPay) coverage, and/or uninsured/underinsured motorist coverage.
Optional car insurance coverage focuses on the policyholder’s insured vehicle. Collision and comprehensive coverage are both optional, but may be required by lenders for financed or leased vehicles. About 80 percent of U.S. drivers carry collision and comprehensive, according to the Insurance Information Institute (III).