Best car insurance in the United States in 2025
- How does car insurance work in the United States?
- What does car insurance cover?
- What is not covered by car insurance?
- How much does car insurance cost in the US?
- Best car insurance plans in the USA
- How to lower the cost of your car insurance?
- FAQ
Getting behind the wheel without car insurance is a costly mistake—medical and property damage from a single accident can easily exceed $20,000, and legal penalties for uninsured drivers can mean steep fines or even license suspension. In nearly every state, having at least liability coverage is mandatory, yet many drivers find that minimum policies fall short when they face theft, weather disasters, or uninsured motorists. Common limitations include high deductibles, exclusions for custom vehicle parts, and policy caps that may not cover all expenses in a serious crash. Comparing policies and choosing the right provider makes a significant difference by giving you access to tailored coverage, peace of mind, and genuine savings over time. At HelloSafe, our mission is to deliver a fully independent, expert comparison—equipping you to confidently select the best car insurance for your needs with transparency and trust.
How does car insurance work in the United States?
Car insurance in the US operates as a contract between the driver and an insurer, providing financial protection for damages, injuries, and liabilities arising from vehicle use. Every state except New Hampshire requires at least basic liability coverage, while additional options like collision and comprehensive insurance can be added to cover your own vehicle, theft, or natural disasters. Premiums, coverage limits, and policy add-ons vary widely, allowing drivers to tailor protection to their needs and budgets.
Choosing a car insurance plan ensures legal compliance, shields you from high out-of-pocket costs after an accident, and provides access to flexible coverage levels. Many providers offer plans that reflect your driving habits, vehicle type, and even international travel requirements, so you can secure the right coverage for any situation. Comparing different policies lets you maximize reimbursement, benefit from discounts, and enjoy peace of mind behind the wheel.
What does car insurance cover?
Car insurance in the US starts with basic legal coverage known as liability insurance, which is required in most states and covers injury or property damage you cause to others.
Optional add-ons include comprehensive, collision, uninsured or underinsured motorist coverage, medical payments, and extra benefits such as rental reimbursement or roadside assistance.
The difference is that basic coverage only fulfills legal requirements and protects others, while optional add-ons help protect your own vehicle, medical expenses, and offer broader financial security.
Reimbursement is based on what is covered under your selected policy, with insurers paying for damages or losses after you pay any applicable deductibles.
Deductibles apply mostly to your own repairs or claims, and coverage or waiting periods for certain types of claims may differ based on your chosen plan.
| Type of cover | Basic Legal Coverage | Mid-range | Full coverage |
|---|---|---|---|
| Bodily Injury | ✅ | ✅ | ✅ |
| Property Damage | ✅ | ✅ | ✅ |
| Uninsured/Underinsured Motorist (UM/UIM) | Optional | ✅ | ✅ |
| Theft | ❌ | ✅ | ✅ |
| Vandalism | ❌ | ✅ | ✅ |
| Natural Disasters | ❌ | ✅ | ✅ |
| Fallen Objects | ❌ | ✅ | ✅ |
| Animal Collisions | ❌ | ✅ | ✅ |
| Broken Glass | ❌ | ✅ | ✅ |
| Collision | ❌ | ❌ | ✅ |
| Medical Payments (MedPay) | Optional | Optional | Optional |
| Personal Injury Protection (PIP) | Optional | Optional | Optional |
| Roadside Assistance | ❌ | Optional | Optional |
| Rental Reimbursement | ❌ | Optional | Optional |
| Gap Insurance | ❌ | Optional | Optional |
| Custom Parts & Equipment Coverage | ❌ | Optional | Optional |
| Ride-sharing Coverage | ❌ | Optional | Optional |
| New Car Replacement or Better Car Replacement | ❌ | Optional | Optional |
| Accident Forgiveness | ❌ | Optional | Optional |
What is not covered by car insurance?
Most US car insurance policies exclude coverage for intentional damage to your vehicle or someone else’s property, as well as routine maintenance or normal wear and tear. Claims are also denied if the driver was under the influence of drugs or alcohol, or if an unapproved or excluded driver was behind the wheel. Personal belongings stolen or damaged from the car are typically not covered. Insurance won’t pay for damages above your coverage limits or for accidents occurring outside the policy’s geographic scope. In some cases, waiting periods or additional conditions may apply before new coverage or certain claims are accepted.
| Exclusion type | Example | Good to know |
|---|---|---|
| Intentional Acts | Purposely damaging your own car | Deliberate acts are always excluded from standard coverage. |
| Vehicle Condition & Use | Routine maintenance, mechanical breakdown, rideshare driving | Normal wear/tear and unauthorized use (like paid ridesharing) not covered. |
| Legal/Administrative | Driving under the influence, unapproved driver, driving without license | Claims are denied if violations of law or policy terms are involved. |
| Geographical/External Risks | Accidents outside policy area, war, nuclear events | Out-of-area incidents and extreme situations are typically excluded. |
| Property & Coverage Limits | Theft of personal items from car, exceeding policy limits | Personal belongings and costs over your limit are not reimbursed. |
How much does car insurance cost in the US?
Car insurance pricing in the US is influenced by a variety of factors, including the driver’s age, driving record, location, type of vehicle, annual mileage, and the level of coverage chosen. Young and inexperienced drivers typically pay much higher premiums, while mature drivers with clean records enjoy lower rates. Premiums can also increase following an at-fault accident, traffic violations, claims history, or by opting for a lower deductible or more comprehensive coverage. Living in areas with high accident rates, car theft, or expensive repairs, as well as driving a newer or high-performance vehicle, will also lead to higher costs. Ultimately, adding more coverage or insuring luxury vehicles significantly raises the monthly premium, making it essential to compare options and understand which factors carry the most weight for your profile.
| Driver's Age | Coverage Level | Monthly premium (low-risk location) | Monthly premium (high-risk location) |
|---|---|---|---|
| 25 | Liability only | $85 | $145 |
| 25 | Full coverage | $180 | $305 |
| 45 | Liability only | $60 | $110 |
| 45 | Full coverage | $130 | $215 |
| 65 | Liability only | $72 | $127 |
| 65 | Full coverage | $140 | $225 |
Best car insurance plans in the USA
Best for everyday commuting (school/work)
Progressive “Snapshot” is an excellent fit for daily commuters, providing liability, comprehensive, and collision coverage, with optional extras like rental car reimbursement and roadside assistance. The Snapshot program rewards safe driving behavior with personalized discounts, making it a strong value for those with regular routines and predictable travel. Fast online quotes and an easy claims process suit the convenience needs of busy commuters.
Best for families with multiple vehicles
Allstate “Multi-Car Discount” policy is well-suited for families owning two or more vehicles. This plan bundles cars under a single policy, offering comprehensive, collision, and liability coverage for each vehicle, and enabling accident forgiveness and new car replacement coverage for added peace of mind. Multi-car discounts can substantially lower the overall premium, maximizing savings while ensuring broad protection.
Best for tight budgets
GEICO “Minimum Coverage” policy is ideal for those seeking the lowest legal cost, covering required state minimum liability and property damage. With highly competitive rates and substantial discounts for good driving records, bundled policies, or safety features, it keeps monthly premiums affordable. GEICO’s digital app and self-service tools also lower administrative hassle for budget-focused users.
Best for expats or international drivers
State Farm “International Driver Insurance” assists newcomers or expats in the US who may not have domestic driving history. It combines standard liability, collision, and comprehensive coverage, plus flexible payment plans and bilingual support. State Farm’s broad agent network helps international drivers get insured quickly without excessive paperwork, making the transition easier.
Best for senior drivers
The Hartford “AARP Auto Insurance Program” is tailored specifically for drivers aged 50+, offering benefits such as RecoverCare assistance, new car replacement, lifetime renewability, and deductible reductions for each claim-free year. Full coverage options with roadside assistance and accident forgiveness make it an attractive, worry-free solution for retirees or senior citizens.
Best for students or young drivers
Nationwide “SmartRide” program provides robust liability and collision coverage plus discounts up to 40% for safe driving behaviors tracked through their mobile app. It specifically benefits young and student drivers, who pay higher premiums by default, by offering good student and accident-free discounts. The digital tools and user-friendly claims process suit the always-connected younger demographic.
Best for rideshare drivers (Uber/Lyft)
Farmers “Rideshare Insurance” extension is specifically created for rideshare or delivery drivers. This add-on to a standard policy fills the coverage gap between personal and commercial insurance, providing liability, collision, and comprehensive protection throughout all phases of rideshare activity. Reimbursement options and roadside assistance ensure peace of mind for drivers working across multiple platforms.
Best for electric/hybrid vehicle owners
Liberty Mutual “EV/Hybrid Insurance” is designed for owners of electric or hybrid cars, with coverage for specialized parts, battery, and home charging equipment, in addition to traditional liability and collision. Eco-discounts, replacement coverage, and expert claims handling for advanced vehicles make this a strong choice for eco-conscious and tech-savvy drivers.
How to lower the cost of your car insurance?
Here are some practical strategies to help you lower your car insurance premiums in the United States:
- Compare offers: Use our HelloSafe comparison tool at the top of the page to find the best car insurance rates and coverage for your needs.
- Increase your deductible: Opting for a higher deductible reduces your monthly premium, though you'll pay more out of pocket if you file a claim.
- Maintain a clean driving record: Safe driving helps you avoid surcharges and makes you eligible for good driver discounts.
- Bundle policies: Purchasing auto insurance along with home, renters, or other policies from the same insurer can qualify you for a multi-policy discount.
- Choose your vehicle wisely: Cars with high safety ratings and low repair costs are usually cheaper to insure, so factor insurance costs into your next vehicle purchase.
- Limit annual mileage: If you drive fewer miles per year, some insurers offer significant savings through low-mileage discounts.
- Install anti-theft and safety devices: Adding security systems or advanced safety features can reduce the risk of claims and lower your premium.
- Take a defensive driving course: Many insurers reward drivers who complete an approved driver safety or defensive driving course with an additional discount.
FAQ
What types of car insurance coverage are available in the US?
The main car insurance coverage types in the United States are liability, collision, and comprehensive. Liability insurance covers damages and injuries to others, collision covers damage to your own car from accidents, and comprehensive covers non-collision events like theft or weather damage. Many insurers also offer add-ons such as roadside assistance and rental reimbursement. Each type covers different risks and has its own limitations.
Is car insurance mandatory in every state?
Car insurance is required by law in almost every US state, except New Hampshire. Most states mandate at least a minimum level of liability insurance to protect others in case you cause an accident. Being caught without insurance can result in fines, license suspension, or even legal penalties. It's important to know your state's specific requirements.
How are car insurance premiums determined?
Your car insurance premium depends on factors such as your driving history, age, the type of car you drive, where you live, your annual mileage, and your credit score. Drivers with clean records, older age, and safer vehicles typically pay less. Insurers also consider previous claims and whether the car is used for business or personal purposes. Comparing quotes helps find the best rate for your profile.
What is the difference between comprehensive and collision coverage?
Comprehensive coverage pays for damage to your vehicle from non-collision events like fire, theft, vandalism, or natural disasters. Collision coverage handles repair or replacement of your car after an accident, regardless of who is at fault. While both are optional, many lenders require them for financed cars, and each serves a different set of risks.
When should you file a car insurance claim?
You should file a claim when damage or loss falls within your policy's coverage and the repair or replacement costs are significant. For minor damages below your deductible, it may be better to pay out of pocket to maintain a lower premium. Filing unnecessary claims can lead to higher future rates. Always review your policy before submitting a claim.
What is a deductible and how does it affect your policy?
A deductible is the out-of-pocket amount you pay before your insurer covers the rest of a covered loss. A higher deductible lowers your monthly premium but increases your share of the costs after an incident. Choosing the right deductible depends on your financial situation and risk tolerance. Make sure you can afford to pay the deductible in case of a claim.
How can you lower your car insurance premium?
There are several ways to reduce your car insurance premium, such as maintaining a clean driving record, improving your credit score, bundling policies, or opting for higher deductibles. Safe drivers and those with anti-theft devices or low annual mileage often qualify for discounts. Regularly comparing offers helps ensure you are paying a competitive rate.
Does car insurance cover personal belongings stolen from your car?
Most standard car insurance policies do not cover personal items stolen from your car. Instead, such losses are typically covered under renters or homeowners insurance. If you frequently carry valuable possessions, check your existing policies or consider extra protection. Always read the coverage details to avoid surprises after a break-in.
Can someone else drive my car and still be covered?
Insurance policies usually cover occasional drivers with your permission, but coverage may be limited for people not listed on your policy or for commercial use. Long-term or frequent drivers should be named on your policy to ensure full protection. Policy terms vary, so clarify with your insurer to avoid denied claims.
How does your driving record affect your insurance rate?
A clean driving record with no accidents or violations generally means lower insurance rates. Traffic tickets, at-fault accidents, or DUIs can cause significant premium increases for several years. Insurers use your record to predict risk, so safe driving not only keeps you protected but also saves you money over time.
What types of car insurance coverage are available in the US?
The main car insurance coverage types in the United States are liability, collision, and comprehensive. Liability insurance covers damages and injuries to others, collision covers damage to your own car from accidents, and comprehensive covers non-collision events like theft or weather damage. Many insurers also offer add-ons such as roadside assistance and rental reimbursement. Each type covers different risks and has its own limitations.
Is car insurance mandatory in every state?
Car insurance is required by law in almost every US state, except New Hampshire. Most states mandate at least a minimum level of liability insurance to protect others in case you cause an accident. Being caught without insurance can result in fines, license suspension, or even legal penalties. It's important to know your state's specific requirements.
How are car insurance premiums determined?
Your car insurance premium depends on factors such as your driving history, age, the type of car you drive, where you live, your annual mileage, and your credit score. Drivers with clean records, older age, and safer vehicles typically pay less. Insurers also consider previous claims and whether the car is used for business or personal purposes. Comparing quotes helps find the best rate for your profile.
What is the difference between comprehensive and collision coverage?
Comprehensive coverage pays for damage to your vehicle from non-collision events like fire, theft, vandalism, or natural disasters. Collision coverage handles repair or replacement of your car after an accident, regardless of who is at fault. While both are optional, many lenders require them for financed cars, and each serves a different set of risks.
When should you file a car insurance claim?
You should file a claim when damage or loss falls within your policy's coverage and the repair or replacement costs are significant. For minor damages below your deductible, it may be better to pay out of pocket to maintain a lower premium. Filing unnecessary claims can lead to higher future rates. Always review your policy before submitting a claim.
What is a deductible and how does it affect your policy?
A deductible is the out-of-pocket amount you pay before your insurer covers the rest of a covered loss. A higher deductible lowers your monthly premium but increases your share of the costs after an incident. Choosing the right deductible depends on your financial situation and risk tolerance. Make sure you can afford to pay the deductible in case of a claim.
How can you lower your car insurance premium?
There are several ways to reduce your car insurance premium, such as maintaining a clean driving record, improving your credit score, bundling policies, or opting for higher deductibles. Safe drivers and those with anti-theft devices or low annual mileage often qualify for discounts. Regularly comparing offers helps ensure you are paying a competitive rate.
Does car insurance cover personal belongings stolen from your car?
Most standard car insurance policies do not cover personal items stolen from your car. Instead, such losses are typically covered under renters or homeowners insurance. If you frequently carry valuable possessions, check your existing policies or consider extra protection. Always read the coverage details to avoid surprises after a break-in.
Can someone else drive my car and still be covered?
Insurance policies usually cover occasional drivers with your permission, but coverage may be limited for people not listed on your policy or for commercial use. Long-term or frequent drivers should be named on your policy to ensure full protection. Policy terms vary, so clarify with your insurer to avoid denied claims.
How does your driving record affect your insurance rate?
A clean driving record with no accidents or violations generally means lower insurance rates. Traffic tickets, at-fault accidents, or DUIs can cause significant premium increases for several years. Insurers use your record to predict risk, so safe driving not only keeps you protected but also saves you money over time.
