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CNBC
30-06-2025
- Automotive
- CNBC
What are the state minimum car insurance requirements in 2025?
Car insurance isn't one-size-fits-all: Your budget, risk profile and other factors will determine what kind of policy you get and how much you spend on it. However, every state but one requires drivers to get a minimum amount of liability coverage to legally get behind the wheel. It's intended to pay for injuries and damages to others if you are found at fault for an accident. Many drivers add collision and comprehensive coverage to protect their own vehicles and passengers, but that can add to your premiums substantially. In 2025, the average annual cost of a liability-only car insurance policy was around $736, less than a third of the $2,680 average for full coverage. All U.S. states except New Hampshire require drivers to have a minimum amount of liability car insurance,. The specific amount varies by state but, keep in mind these limits are not adjusted for years at a time and may not be high enough to cover your fully if you're responsible for a collision. (California, Utah and North Carolina all raised their minimums in 2025.) Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent auto coverage is available in all 50 states and Washington, D.C. It offers 16 discounts and a variety of optional add-ons, like roadside assistance, rental car reimbursement and mechanical breakdown offers an array of riders, including rental car reimbursement, rideshare insurance and a Deductible Savings Bank that deducts $50 from your deductible each policy period you go without a claim. As a rule of thumb, you should have enough liability insurance to cover your net worth, or the sum of your assets minus your debts and liabilities. If you have a high net worth, an umbrella insurance policy can increase your liability coverage to $1 million or more. Each state sets its own minimum limit: In New York, for example, the minimum is $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident and $10,000 in property damage liability per accident. This is often expressed as "25/10/10" Here are the minimum amounts of liaibility car insurance required in each U.S. state and Washington, D.C.:About half of U.S. states have other policy requirements, mainly to offset the cost of underinsured and uninsured drivers. Twenty-two states require drivers to have some sort of coverage to account for uninsured (UM) or underinsured (UIM) motorists. No-fault states also require personal injury protection (PIP) or medical payment (MedPay) coverage, both of which cover medical expenses for you and your passengers after an accident, regardless of who is at fault. If you're considering a state minimum car insurance policy, here are some potential benefits and drawbacks you should be aware of. State minimum car insurance is the least amount of liability coverage you can have and legally drive in your state. Some states have other requirements, like personal injury protection, MedPay coverage and coverage for uninsured or underinsured motorists. States with "no-fault" laws requires drivers to have personal injury protection (PIP) or MedPay to cover the cost of medical expenses for themselves and their passengers, regardless of who is responsible for the accident. New Hampshire doesn't have a blanket auto insurance requirement, though it still does require that drivers demonstrate proof of financial responsibility. You can do that with a insurance policy, a bond or a cash deposit with the he state treasurer. If you opt for insurance, the requirement is 25/50/25. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
CNBC
13-06-2025
- Automotive
- CNBC
13 things car insurance doesn't cover
Full coverage car insurance protects you and your vehicle in many situations, from fender benders and fallen tree branches to vandalism and theft. But there are a surprising number of things most basic policies won't cover, like personal items in your car, roadside assistance, custom parts and collisions outside the U.S. Here are 13 scenarios not covered by standard auto insurance and how you can ensure you're protected. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent auto coverage is available in all 50 states and the District of Columbia. It offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown offers an array of riders, including rental car reimbursement, rideshare insurance and a Deductible Savings Bank that deducts $50 from your deductible each policy period you go without a claim. Not even full coverage will reimburse you for an oil change, tire rotation or getting new air filters. But you can often get a prepaid maintenance plan or a set period of mileage from your dealership, garage or a third-party provider. It won't cover all the necessary tuneup work, but, by and large, you'll get a better rate and know in advance how much routine care will cost. Some plans are transferable if you sell your vehicle. Standard car insurance won't cover damage caused by routine wear and tear. So, If your brake pads wear out or the transmission gives up the ghost, you're out of luck. A mechanical breakdown policy, however, will cover parts and labor for repairs to the engine, transmission, drive axle, suspension, steering, brakes, HVAC and other systems. One of the best in the business, Good Sam's Extended Service Plan is available for cars up to 15 model years old or with up to 100,000 miles on them. The Good Sam Extended Service Plan is mechanical breakdown insurance available for vehicles worth up to $60,000 for sudden and unexpected issues not related to normal wear and tear. If your vehicle is unusable due to a covered loss, you may be reimbursed for food and lodging and meals (up to $100 a day for five days) and for a rental car (up to $60 a day for five days). Cars under 15 model years old or driven under 100,000 miles. RVs under 20 models years old or driven under 150,000 miles. Trucks, trailers, fifth wheels and motorhomes also covered. Engine, transmission, drive axle, suspension, steering assembly, brakes, HVAC Choose your deductible and monthly or annual payment terms. Good Sam pays garages and dealerships directly for pre-authorized claim Fully transferable to new owner for free Comprehensive car insurance pays out if your vehicle is stolen, but not if someone breaks in and grabs your laptop, phone, purse or other belongings. If you have homeowners or renters insurance, though, your stuff is protected, whether it's at home, in your car or a hotel room. One of our top picks for home insurance, Amica offers optional replacement cost coverage, so you can get reimbursed enough to buy brand-new items without worrying about depreciation. The best way to estimate your costs is to request a quote Not disclosed Yes Amica offers two tiers of homeowners insurance coverage — a standard policy and the brand's unique Platinum Choice homeowners insurance. The latter offers extended coverage for jewelry, liability and covers more situations than a standard homeowners insurance policy. Add-on options include computer coverage, sump pump backup coverage, and dwelling replacement coverage. Are you a renter? Lemonade's rental policies let you schedule coverage for jewelry, bikes and other valuables. Lemonade renters insurance is available in 28 states and Washington, D.C. Personal property coverage: $250,000, personal liability: $500,000, medical payments: $500,000, loss of use: $200,000 $250 to $2,500 Extra coverage for jewelry and other valuables, no-deductible claims, coverage for accidental damage and mysterious loss Terms apply. You can generally let someone else drive your car without them being on your policy. This is for infrequent use, though, like a neighbor going on a one-off grocery run. Typically, though, any licensed driver who lives with you — whether that's a spouse, a roommate or your teenage son — needs to be on your policy or they're excluded from coverage. If they use your car and cause an accident, any damages won't be covered. Roadside assistance is a lifesaver if you run out of gas, get a flat tire or hit a snow bank. But most car insurance companies charge extra for it. Lemonade auto insurance comes with free nationwide roadside assistance, however, including towing, winching, jump starts, tire changes and lockout services. You can even initiate a request and get real-time progress from your mobile app. The best way to estimate your costs is to request a quote Yes Lemonade offers coverage for a variety of scenarios, including: car crashes, highway stalls, damage from fire, vandalism and weather, damaged glass and windshield, if you're sued for liability and if your car gets stolen Terms apply. No matter what state you live in, your car insurance is valid across the U.S. Once you cross the border, however, it's a different story. Many providers extend coverage into Canada, but Geico is one of only a few that offers liability coverage in Mexico that is comparable to what you'd have at home. The best way to estimate your costs is to request a quote Yes Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance. Terms apply. Read our Geico Auto Insurance review. Dairyland issues policies in 38 states, but only California drivers get automatic coverage within 25 miles of the U.S.-Mexico border. The best way to estimate your costs is to request a quote Yes Founded in 1953, Dairyland offers auto insurance in 38 states and specializes in high-risk drivers. Offerings include non-owner car insurance policies, coverage for motorcycles and off-road vehicles and limited Mexico coverage on all California policies. If you're a driver for Uber, Lyft or DoorDash, your vehicle is only covered when you have a fare. A ridesharing endorsement from Progressive ensures you're protected when you're on the clock but haven't picked up a customer yet. The best way to estimate your costs is to request a quote Yes Progressive offers a number of lines of insurance to allow for bundling, and convenient tools to help you keep your coverage in your budget. Terms apply. Read our Progressive Auto Insurance review. If your personal automobile pulls double-duty as a work vehicle, you might need commercial auto insurance, which covers business use. BiBerk has some of the cheapest rates in the industry and offers free certificates of insurance instantly. BiBerk's commercial auto insurance covers a variety of vehicles, from limousines to motorcycles. Its known for affordability, with prices as much has 20% less than other providers. Options for commercial auto insurance include personal injury protection (PIP) coverage Depending on the issue, the garage's schedule and the availability of parts, car repairs can take days or even weeks to complete. Standard car insurance won't pay for a loaner car, but with a full coverage policy from Allstate, you can add a rental car reimbursement benefit and be covered for $30 a day for up to 30 days. The best way to estimate your costs is to request a quote Yes Allstate offers auto insurance customers a total of 14 discounts in addition to a pay-per-mile car insurance program. It offers quotes by phone, through an agent, or online. The company also offers a number of other insurance products to bundle your coverage and save. Most auto insurance policies only cover up to $1,000 for modifications, which is barely enough for high-end rims. State Farm has supplemental parts and equipment coverage that pays for custom paint jobs, stereos, lift kits, spoilers and other upgrades and aftermarket parts. The best way to estimate your costs is to request a quote Yes State Farm is one of the largest auto insurers in the U.S. based on market share. It has an excellent reputation for customer satisfaction and offers discounts for safe driving and young drivers. Terms apply. Read our State Farm Auto Insurance review If you have a collectible ride, you'll need classic car insurance, which has stringent storage requirements and mileage limits but pays out based on a predetermined value. Available nationwide, American Collectors Insurance's Freedom Tier policy offers higher liability limits and more options for deductibles, plus up to $250 to relocate your car during a natural disaster. The best way to estimate your costs is to request a quote American Collectors Insurance offers affordable agreed-value insurance for collector cars. All policies offer the ability to use a repair shop of your choice and basic towing services. The brand also offers optional coverage for expanded towing and transportation services. Terms apply. If your four-legged friend is riding with you when you're in an accident, most car insurance companies won't cover their veterinary bills. Pet insurance can help soften the financial blow. Accident and illness policies from Figo are affordable with generous limits. Customers can customize coverage with preventive care and exam fees and Costco members may be eligible for a discount. Figo offers accident and illness and wellness plans. No upper age limit $5,000, $10,000 or unlimited $100 to $1,500 70%, 80%, 90% or 100% 1 day for accidents, 14 days for illnesses and 6 months for orthopedic injuries to dogs (may be waived by having vet examine your dog) 5% multi-pet discount, 15% discount for Costco members and 5% military discount (in most states). Deductible drops by $50 each year you don't file a claim No Damages caused by racing, joyriding or off-roading aren't covered by standard insurance, though Hagerty provides affordable off-track coverage for race cars, dragsters and race motorcycles. The best way to estimate your costs is to request a quote Hagerty offers coverage for a variety of vintage and collector vehicles, including motorcycles and boats in addition to cars. It offers coverage for vehicles that are in restoration or building, and can also cover up to $750 worth of tools for your project car. Terms apply. If you're held liable for an accident, your insurer will only pay out to your liability limit. Anything above that comes out of your pocket, so, to protect your assets in a lawsuit, it's recommended to have liability coverage equal to or greater than your net worth. If you have a particularly high net worth, an umbrella insurance policy from American Family can ensure your assets are protected. American Family also has generous discounts, including bundling home and auto insurance. The best way to estimate your costs is to request a quote Undisclosed Yes American Family has a wide variety of umbrella policies available, including personal coverage, commercial coverage and coverage for ranches and farms. It's also highly rated for auto and home insurance. Your car starts depreciating the moment you drive it off the lot. If you get into an accident that totals your vehicle, your insurer may not cut you a check big enough to cover the balance on your car loan or lease. Gap insurance covers the difference and, while you can often get a policy from the dealership, rates from insurance providers are typically the most affordable. Nationwide has gap insurance for cars up to six years old, twice what most companies will cover. The best way to estimate your costs is to request a quote Yes Life insurance policies through Nationwide can come with several benefits, including the ability to keep all of your insurance policies in one place. Nationwide offers term, whole and universal life insurance, and offers a no-exam term life insurance option that can be bought online with coverage up to $1.5 million. Full coverage car insurance averaged $2,680 a year in June 2025, an increase of about 12% from the same time last year. Liability car insurance, meanwhile, averaged about $802 a year. Individual premiums vary greatly based on your location, age, driving record, claims history, credit score and other factors. Liability insurance, the minimum required in most states, only pays for damages or injuries to other drivers. Full coverage car insurance, which adds comprehensive and collision protection, covers the theft or vandalism of your vehicle, but not personal property inside the car. A homeowners or renters insurance policy can protect personal property stolen from your car. If you have comprehensive coverage, your vehicle is covered for water damage caused by flooding, rain or hail. It does not cover water damage due to maintenance or neglect, like a slow leak or leaving your window open during a storm. Your personal liability, collision and comprehensive coverage generally apply if you rent a car within the U.S. or Canada. You may want to consider rental car insurance, however, if you have limited coverage or are outside North America. You may be able to get a policy from the rental car company through your credit card company. If you're using the rental car for business, however, your personal policy likely won't cover it. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance guide is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
CNBC
12-05-2025
- Automotive
- CNBC
The 10 largest car insurance companies in the U.S.
The National Association of Insurance Commissioners' 2025 report on the largest car insurance companies in the U.S. reveals the industry is continuing to consolidate: The top five insurers held a cumulative market share of 63.59% in 2024, up from 62.49% in 2023. The top two providers, State Farm and Progressive, account for more than 35% of the market by themselves. Liberty Mutual tumbled from the sixth to seventh place, with direct written premiums dropping from over $13 billion in 2023 to $11.7 billion in 2024. Nationwide, meanwhile, fell out of the top 10 entirely, slipping from No. 10 to No. 13. The report also reinforces how car insurance rates continue to outpace the cost of living: While inflation increased 3% between 2023 and 2024, direct written premiums shot up more than 13%. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent auto coverage is available in all 50 states and the District of Columbia. It offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown offers an array of riders, including rental car reimbursement, rideshare insurance and a Deductible Savings Bank that deducts $50 from your deductible each policy period you go without a claim. The best way to estimate your costs is to request a quote Yes State Farm is one of the largest auto insurers in the U.S. based on market share. It has an excellent reputation for customer satisfaction and offers discounts for safe driving and young drivers. Terms apply. Read our State Farm Auto Insurance review The largest private passenger insurer in the U.S. since the 1940s, State Farm had nearly $68 billion in direct written premiums in 2024, up from about $58 billion in 2023. Its market share also increased, from 16.84% to 18.87%. The best way to estimate your costs is to request a quote Yes Progressive offers a number of lines of insurance to allow for bundling, and convenient tools to help you keep your coverage in your budget. Terms apply. Read our Progressive Auto Insurance review. Holding onto the No. 2 spot, Progressive reported more than $60 billion in direct written premiums last year, with a market share of 16.73%. The best way to estimate your costs is to request a quote Yes Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance. Terms apply. Read our Geico Auto Insurance review. A wholly owned subsidiary of Berkshire Hathaway, Geico kept the No. 3 slot this year, although its share of the market dipped from 12.3% to 11.63%. The Chevy Chase, Maryland-based company reported nearly $41.8 billion in direct written premiums in 2024. The best way to estimate your costs is to request a quote Yes Allstate offers auto insurance customers a total of 14 discounts in addition to a pay-per-mile car insurance program. It offers quotes by phone, through an agent, or online. The company also offers a number of other insurance products to bundle your coverage and save. Allstate's market share remained fairly static at 10.19%, while direct written premiums increased to $36.58 billion in 2024 from $32.85 billion in 2023. The best way to estimate your costs is to request a quote Yes USAA's auto insurance is limited to service members, veterans and their families but it is available in all 50 states and Washington D.C. In addition to low rates and outstanding customer service, it has coverage options for unique circumstances, such as active deployment. Terms apply. While only available to active duty service members, veterans and their families, USAA still nabbed the No. 5 spot and 6.17% of the auto insurance market. It reported $22.13 billion in written premiums in 2024. The best way to estimate your costs is to request a quote Yes Farmers Insurance offers 23 discounts for auto insurance and issues policies in every state except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, West Virginia and Washington, D.C. Terms apply. Read our review of Farmers car insurance Farmers Insurance rose from seventh to sixth place and reported close to $13.5 billion in written premiums in 2024. Its market share declined, however, from 4.18% to 3.76%. The best way to estimate your costs is to request a quote Yes Liberty Mutual offers auto insurance policies that are available nationwide and customizable to fit your wants and needs. It also has several discounts to help drivers save, including a discount for bundling home and auto insurance, as well as discounts for students and military members. Liberty Mutual fell from sixth to seventh place, with its market share declining from 4.20% in 2023 to 3.27% in 2024. The Boston-based company reported $11.74 billion in direct written premiums last year, down from $13.31 billion the year before. The best way to estimate your costs is to request a quote Yes Travelers auto insurance policies are affordable and backed by the sixth largest company for car insurance by market share according to the NAIC. The company also offers a number of discounts to customers, including discounts for bundling, owning a hybrid or electric car, and good student discounts. Travelers moved up from ninth to eighth place in 2025, although its market declined from 2.08% to 2.00%. It reported $7.18 billion in direct written premiums last year, up from $6.58 billion in 2023. The best way to estimate your costs is to request a quote The American Automobile Association (AAA) is a nationwide network of motor clubs offering car insurance underwritten by third parties, so coverage options and customer service may vary by state. Membership in AAA provides access to benefits like roadside assistance, identity theft protection and discounts on travel, dining and shopping. AAA provides a variety of services to members across the U.S., including auto insurance through third-party underwriters like the Automobile Club of Southern California and the Automobile Club Group. It broke into the top 10 for the first time this year, reporting $6.47 billion in written premiums in 2024, up from $4.83 billion in 2023. AAA's market share increased slightly, as well, from 1.53% to 1.80%. The best way to estimate your costs is to request a quote American Family offers affordable car insurance with more than a dozen discounts to further lower your premium. While its not available nationwide, American Family offers quotes online or through an agent, depending on your preference. Yes American Family Insurance dropped from eighth to tenth place in 2025, reporting $6.17 billion in written premiums and a 1.72% market share. Shop around: There can be huge differences among insurance companies for the same basic policy. Get rate quotes from at least three providers every time you're up for renewal to ensure you're getting the best deal. Pay your whole premium upfront: Most companies charge a fee for dividing your premium into monthly payments. You can often receive a discount for setting up autopay, as well. Bundle home and auto insurance: Getting multiple lines of insurance from the same carrier doesn't just simplify your life, it can result in discounts of up to 25%.Take advantage of other discounts: Rate reductions are often available to safe drivers, good students, homeowners, members of the military and others. The nation's largest car insurance company, State Farm has a discount of up to 30% if you use its Drive Safe & Save mobile app to track your pay-per-mile insurance: If you don't drive often, a pay-per-mile policy can save you more than 40% over traditional insurance. You're charged a daily flat rate plus a few cents per your credit score: In most states, insurance companies can use your credit history when calculating your rates. Paying off debts, lowering your credit utilization ratio and reporting errors or fraud are all ways to boost your FICO score. Select a higher deductible: Raising your deductible from $200 to $500 can reduce the cost of collision and comprehensive coverage by as much as 30%, according to the Insurance Information Institute, while upping it to $1,000 can save you 40% or more. Just make sure you have adequate savings to cover the difference. State Farm is the largest car insurance company in the U.S., with nearly $68 billion in direct premiums written in 2024 and a 18.87% market share. Progressive is the second largest, followed by Geico in third place. Most car insurance is paid on a monthly, biannual or annual basis. Typically, if you cancel a policy you've already paid for, you'll get a prorated refund. There may be a cancellation fee, however. The amount you'll pay for car insurance varies greatly depending on where you live, your age, your driving record and many other factors. The nationwide average for full coverage car insurance in April 2025 was $2,685 a year. For a liability-only policy, it was $800 a year. Your car insurance deductible is the amount you're responsible for paying for repairs or replacement of your vehicle before your insurer contributes anything. Drivers can select their deductible when buying a policy and, typically, a higher deductible means lower premiums. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance article is based on rigorous reporting by our team of expert writers and editors. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties and we pride ourselves on our journalistic standards and ethics.
CNBC
29-04-2025
- Automotive
- CNBC
Ask yourself these 6 questions to see how much car insurance you need
Every driver needs car insurance, but not everyone needs the same type or amount of coverage. The policy that's right for you depends on many factors, including the age of your car, how you paid for it, and where you live. Take CNBC Select's six-question quiz to see how much car insurance you really need. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent auto coverage is available in all 50 states and the District of Columbia. It offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown offers an array of riders, including rental car reimbursement, rideshare insurance and a Deductible Savings Bank that deducts $50 from your deductible each policy period you go without a claim. All U.S. states except New Hampshire require drivers to have some level of liability car insurance to pay for damage or injuries to others. The amount of bodily injury and property liability coverage, however, is different from state to state. The 12 states with no-fault insurance laws also require drivers to get personal injury protection (PIP) or medical payment (MedPay), which cover medical expenses for you or your passengers after an accident, regardless of who is found to be at fault. Twenty-two states and Washington, D.C., require drivers to have uninsured/underinsured motorist (UM/UIM) coverage, which protects you financially if you're in a collision with someone who doesn't have enough insurance or no insurance at all. Collision coverage pays to repair or replace your car if it hits another car or object, regardless of who is at fault. Comprehensive coverage covers non-collision events, like theft, vandalism, hail, failing tree branches and fire. While comprehensive and collision coverage aren't mandated by law, most lenders require borrowers to have them if they're still making payments on a loan or lease. If your car is totaled or stolen, a standard insurance policy will only reimburse you for the actual cash value of the vehicle, which takes depreciation into account. (New cars can lose as much as 20% of their value in their first year.) If you're still paying off your car, especially if you made a small down payment, gap insurance can cover the difference between the vehicle's value and the amount you still owe on it. According to the Insurance Information Institute, gap insurance is a good idea if you: Adding gap insurance only increases full coverage premiums by about $20 to $60 a year, according to the III. Your dealership may offer gap insurance, but it's usually cheaper through an insurance company. Travelers is known for its affordable rates and offers discounts if your car is no more than three model years old. The best way to estimate your costs is to request a quote Yes Travelers auto insurance policies are affordable and backed by the sixth largest company for car insurance by market share according to the NAIC. The company also offers a number of discounts to customers, including discounts for bundling, owning a hybrid or electric car, and good student discounts. Nationwide allows drivers to purchase gap coverage on cars that are up to six years old. The best way to estimate your costs is to request a quote Yes Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you. Terms apply. If you're leasing, check your lease agreement before adding gap insurance: It may already be included in the lease price. If you own your car outright, you don't need gap insurance. Full coverage is a good idea for most car owners and is usually required if you have a loan or lease. But if you own your car outright and it's only worth a few thousand dollars, a full coverage policy might be overkill. The rule of thumb is to drop collision and comprehensive coverage if your car is worth less than 10 times your annual premiums. If, for example, you have a car worth $5,000 and your comprehensive and collision coverage costs more than $500 for the year, it may not be worth keeping comprehensive and collision coverage. You can check the value of your car with Kelley Blue Book, the industry standard for pricing. Your net worth is the sum of all of your assets minus all your debts. Determining this amount will give you a good indicator of how much liability coverage you need. The minimum insurance requirement in many states may not be enough to cover all the expenses you could accrue after an accident: In Connecticut, for example, drivers need $25,000 in bodily injury liability per person and $50,000 total per accident, as well as $25,000 property damage per accident. Let's say you're held liable for a crash that seriously injures four people and totals their $50,000 SUV. If their medical expenses are $20,000 per person, you've already exceeded your $50,000 per accident limit for bodily injury liability by $30,000 and your property damage limit by $25,000. You could be sued for the balance, as well as pain and suffering, and would have to pay for it out of pocket. Depending on where you live, that could involve emptying your bank account, liquidating your investments and even selling your car or house. But having adequate liability coverage protects your assets. If your net worth is higher than the limits your car insurance company offers, umbrella insurance can cover you for liability claims up to millions of dollars. One of our top picks for umbrella insurance is American Family Insurance, which has coverage of up to $5 million. The best way to estimate your costs is to request a quote Undisclosed Yes American Family has a wide variety of umbrella policies available, including personal coverage, commercial coverage and coverage for ranches and farms. It's also highly rated for auto and home insurance. In some cases, insurers may try to upsell you on coverage you don't need, like roadside assistance or protection for mechanical breakdowns. Many credit cards offer roadside assistance, including the Chase Sapphire Reserve® (see rates and fees), Chase Freedom Unlimited® (see rates and fees) and Capital One Platinum Secured Credit Card. On Chase's site On Chase's site New cardholders receive a 0% intro APR for 15 months from account opening on purchases and balance transfers. Good to Excellent670–850 18.99% - 28.49% variable $0 Earn $250 cash back See rates and fees. Terms apply. Member FDIC. Read our Chase Freedom Unlimited® review. The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater. 3% of each transaction in U.S. dollars If your card does, buying it from your insurer is redundant. (If you have AAA or belong to another motor club, you also probably already have access to roadside assistance.) Mechanical breakdown insurance (MBI) acts like an extended warranty, paying for unexpected engine issues, transmission failures and faulty electrical systems. An MBI add-on to a full coverage policy averages between $30 and $100 a year. These policies have strict requirements regarding the age, mileage and condition of covered vehicles. They don't generally cover routine maintenance, normal wear-and-tear or cosmetic repairs. And if your car is still under warranty, it covers much of the same territory. This number breaks down the amount of bodily injury coverage a policy has per person, per accident and the amount of property damage it covers per accident. A 100/300/100 covers up to $100,000 of bodily injury coverage per person at up to $300,000 per accident, and up to $100,000 of property damage per accident. A good liability limit for car insurance is one that meets your net worth, which is the sum of all of your assets minus any debts you owe. Full coverage car insurance is a package that includes liability, comprehensive and collision car insurance. While it is more expensive than just getting liability coverage on its own, getting all three coverages is often required by loans and lease terms. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
