Everything You Need to Know About Car Insurance in the U.S.

Most states require liability coverage with minimum limits typically expressed as three numbers (e.g., 25/50/25). This means $25,000 bodily injury per person, $50,000 per accident, and $25,000 property damage. However, requirements vary significantly by state. Check our state-by-state guide above for exact requirements.

You can save by shopping around annually, raising your deductible, bundling policies, maintaining good credit, taking defensive driving courses, asking for all available discounts, using telematics programs, and comparing rates every 6-12 months. See our 15 tips section above for detailed strategies.

Major factors include your age, driving record, credit score, location (state and ZIP code), vehicle type and year, annual mileage, coverage limits and deductibles, claims history, marital status, and even your occupation in some states.

Full coverage is typically worth it if your car is worth more than $3,000, you have a loan or lease, or you couldn't afford to replace your car out-of-pocket. For older, paid-off vehicles, liability-only may be sufficient.

Experts recommend shopping around every 6-12 months, or after major life changes like moving to a new state, marriage, buying a new car, or adding a teen driver. Rates change frequently and loyalty rarely pays.

Liability coverage only pays for damage you cause to others. Full coverage includes liability plus collision (damage to your car from accidents) and comprehensive (theft, weather, animals). Full coverage costs more but protects your vehicle too.

In most states, yes. Insurers use credit-based insurance scores to predict risk. Better credit typically means lower rates. However, California, Hawaii, and Massachusetts prohibit using credit scores for insurance pricing.