How Much Coverage Do You Need?

There is no single right answer — the ideal policy depends on your car, your finances, and your state. Use this framework to land on the right level of protection.

AD SLOT [BANNER]

#	Your Situation	Suggested Coverage	Why
1	New / financed car	Full coverage	A lender usually requires it, and a total loss would otherwise leave you paying for a car you can no longer drive.
2	Older paid-off car	Liability + UM	Once collision/comprehensive premiums approach the payout you would receive, dropping them often makes sense.
3	Young / teen driver	Higher liability + good-student discount	Teens are higher risk; raising liability protects assets while discounts keep the premium manageable.
4	High-asset household	High liability limits (+ umbrella)	State minimums rarely cover a serious crash; higher limits shield your savings and home.
5	EV owner	Full coverage + gap	Battery and repair costs are high, and rapid depreciation early on makes gap insurance valuable.

Two Rules That Always Apply

First, carry liability limits high enough to protect your assets — minimums are often far too low. Second, once you have chosen your coverage level, compare it across at least three insurers, because price varies dramatically for the exact same protection.

Compare Quotes Coverage Types