It depends on your car’s value and how much you need your car. If you drive an old rust bucket that would be cheaper to replace than repair, you probably only need liability. (Because your premiums could be higher than actual repair costs.)
On the other hand, if you absolutely must have your car for work, dropping off your kids, or other mission-critical tasks, consider adding the other types (especially rental car coverage). They’ll help you cover bills and other expenses to get you back on the road.
How Much Does Car Insurance Cost?
An average driver with a good record will likely pay about $800 a year for full coverage for one car. If they choose liability coverage only, costs could be as low as $600.
Auto insurance costs are based mostly on the coverage you choose, the value of your car and your driving history. Driving a luxury car and getting DUIs or other violations will push costs higher. Your rates will drop as you get older, especially after turning 25.
Who Is Included in My Car Insurance Policy?
Car insurance costs are based on your record as a driver, but insurance coverage follows your car. That means that anyone driving your car is technically covered, including friends and family who borrow it.
Family members who live at your address and share your car (such as a spouse, partner or teenage kids) should be explicitly covered by your policy. If they have a bad driving record, it can drive up your costs.