Compare car insurance quotes
Pick two or more companies to see rates where you live. Free, no obligation.
What car insurance actually covers
A car insurance policy is a bundle of separate coverages. Some are required by law, some by your lender, and some are optional. Knowing which is which is the key to not overpaying or being underinsured.
| Coverage | What it pays for | Required? |
|---|---|---|
| Bodily injury liability | Injuries you cause to other people, including legal defense | Required in almost every state |
| Property damage liability | Damage you cause to other people’s cars and property | Required in almost every state |
| Collision | Repairs to your own car after a crash, whoever is at fault | Optional by law; usually required by lenders |
| Comprehensive | Theft, hail, flood, fire, vandalism and animal strikes | Optional by law; usually required by lenders |
| Uninsured/underinsured motorist | Your injuries (and in some states car damage) when the at-fault driver has no or too little insurance | Required in some states |
| Personal injury protection (PIP) / MedPay | Medical bills for you and passengers regardless of fault | PIP required in no-fault states such as Florida, Michigan, New York and Pennsylvania |
Source: Insurance Information Institute state limits table (July 2024); state requirements change, so check your state insurance department.
“Full coverage” isn’t an official term. It usually means liability plus collision and comprehensive. Our guide to full coverage vs. liability-only insurance explains when dropping the extra cover makes sense.
What drivers pay in 2026
CarInsurance.com’s 2026 data for a 40-year-old driver with a clean record puts the national average at $2,578 a year for full coverage (100/300/100 liability with $500 deductibles), $829 for liability-only cover at 50/100/50, and $738 for a state-minimum policy. Insurify’s October 2026 figures are similar: about $187 a month for full coverage and $99 for liability only.
Location matters enormously. Insurify’s October data shows full coverage averaging $302 a month in Maryland but $85 in New Hampshire. Age, driving record and (in most states) credit move the price just as much. A first DUI raises the average full-coverage premium by about 92%, and an at-fault accident by about 60%. Our 2026 car insurance rates guide breaks down prices by state, age and record.
The good news: after rising about 54% between 2020 and 2024, prices have eased. The Bureau of Labor Statistics’ motor vehicle insurance index was down 5.1% over the 12 months to August 2026, its largest annual fall since 2020, although repair costs are still rising.
How to choose an insurer
Price is only one part of the decision. Three free data sources tell you how an insurer behaves after you pay:
- Financial strength: AM Best ratings show an insurer’s ability to pay claims. State Farm, GEICO, Travelers and USAA are rated A++ (Superior).
- Complaints: The NAIC complaint index compares complaints with an insurer’s size. 1.00 is average; American Family (0.33) and Travelers (0.52) scored well in 2026 data, while Liberty Mutual (2.86) drew far more complaints than expected.
- Satisfaction: J.D. Power’s 2026 study scored the industry 644 out of 1,000, with regional insurers such as Erie, Amica and Shelter leading several regions.
We compare the big national insurers on price, ratings and complaints in our guide to the best auto insurance companies.
Five ways to pay less
- Compare quotes every renewal. CarInsurance.com found a median gap of $1,894 a year between the cheapest and most expensive insurer for the same driver in the same state.
- Raise your deductible if you have savings. Moving from $250 to $1,000 saves about $511 a year on average.
- Stack discounts: multi-policy, multi-car, good student, paid-in-full and safety features. See our auto insurance discounts guide.
- Try a usage-based program if you drive carefully or not much. Our usage-based insurance guide covers the trade-offs.
- Review coverage on older cars. Collision and comprehensive may cost more than they could ever pay out on a low-value car.
Special situations
Some drivers need extra care when buying cover: teens and newly licensed drivers, drivers with a DUI or several tickets, people driving for Uber or Lyft, and anyone with a big car loan. Each has its own guide below, along with what to do after an accident and how electric cars change your premium.
All Auto insurance guides
Frequently asked questions
Is car insurance required in every state?
Almost. Every state except New Hampshire requires liability insurance; New Hampshire instead requires drivers to show they can pay for damage they cause. Minimum limits vary widely, from Florida’s $10,000 property damage requirement to Michigan’s $250,000/$500,000 default bodily injury limits.
How much is car insurance per month?
About $187 a month for full coverage and $99 for liability-only, according to Insurify’s October 2026 averages. Your price can be far higher or lower depending on state, age, record and car.
What does full coverage mean?
It isn’t a legal term, but it usually means liability plus collision and comprehensive, so your own car is protected as well as other people’s.
How often should I shop for car insurance?
At least once a year before renewal, and after big life changes such as moving, marriage, adding a teen driver or a ticket dropping off your record.
Does my credit affect my car insurance?
In most states, yes. California, Hawaii and Massachusetts don’t allow credit to be used in auto rating, and Maryland, Michigan, Oregon and Utah restrict it. Elsewhere, poor credit can roughly double the price.
Sources
- CarInsurance.com – How much is car insurance? (Aug 2026)
- CarInsurance.com – Cheapest car insurance (Sept 2026)
- Insurify – Average car insurance rates, October 2026
- J.D. Power – 2026 U.S. Auto Insurance Study
- CarInsurance.com – Auto insurers ranked by NAIC complaint data (Aug 2026)
- CarInsurance.com – Top financially rated car insurance companies
- Insurance Information Institute – Auto financial responsibility limits by state (July 2024)
- U.S. Bureau of Labor Statistics – Consumer Price Index, August 2026
- USAFacts – Why are car insurance rates increasing?
- Experian – States that restrict credit-based insurance scores
Insurance prices, discounts and rules change often and vary by state. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.