How Much Car Insurance Should You Get?

As economic conditions fluctuate, many households continue to feel the strain of rising living costs. One of the most effective ways to manage expenses is by reassessing your car insurance. With premiums spiking in states like California and New York, it’s vital to find the right level of coverage—one that protects your assets without overpaying.

So, how much car insurance should you get? It depends on your financial situation and the value of your vehicle. If you own substantial assets, you’ll need more coverage than someone driving an older, paid-off car. While minimum state coverage may be legally sufficient, it may leave you vulnerable in a serious accident. Compare multiple quotes at our auto insurance comparison page to make an informed decision.

Minimum Insurance Requirements Vary by State

Each state sets its own rules for mandatory coverage. While most require liability insurance, some—like New Hampshire—do not mandate it, and others—like Florida—require personal injury protection (PIP). These requirements can significantly affect your policy costs and what you’re covered for.

Keep in mind that minimum coverage is often inadequate. If you’re in a high-risk state or own property or investments, consider purchasing additional liability protection. Higher limits can shield you from lawsuits or medical claims that exceed the minimum threshold.

Protect Your Assets with Smart Insurance Choices

In today’s litigious environment, even a minor accident can result in costly legal claims. If you own a home or have substantial savings, consider liability limits of at least $100,000 per person and $300,000 per accident. This level of protection is often recommended by financial advisors and insurance experts alike.

If you lack significant assets, focus on safeguarding your health and income. Medical bills and lost wages can still cause financial hardship. In such cases, affordable add-ons like medical payments or PIP can offer a vital safety net.

Top Ways to Reduce Your Car Insurance Premium

Want to pay less for your coverage? Try these strategies:

• Drop full coverage: If your car is older or worth under $6,000, consider switching to liability-only insurance. Learn more on our page about liability-only car insurance.
• Raise your deductible: Increasing your deductible can reduce your monthly premium—just make sure you can afford it in case of a claim.
• Keep a clean driving record: Avoiding accidents and traffic violations can qualify you for significant discounts.
• Compare quotes regularly: Use our comparison tool to check rates every 6–12 months or after major life changes.

Don’t forget to check our detailed guide on car insurance secrets for more money-saving tips and insider insights.

Use Online Tools to Find the Best Rates

Once you determine the level of coverage you need, the fastest way to save is by comparing quotes online. GoodtogoInsurance delivers up to 10 personalized rates with zero pressure and no obligation. It’s fast, free, and tailored to your driver profile. Apply now and lock in a lower premium.

FAQ: Choosing the Right Car Insurance Coverage

What is the minimum required car insurance?

This varies by state but generally includes liability for bodily injury and property damage. Some states also require PIP and uninsured motorist protection.

Is minimum coverage enough for me?

Not necessarily. It meets state law but may not fully protect you in a serious accident. Evaluate your financial risk to determine if you need higher limits.

When should I drop full coverage?

If your vehicle is fully paid off and valued below $6,000, full coverage may cost more than it’s worth. In this case, switching to basic liability coverage could save you money.

How do I get cheaper car insurance?

Shop around using comparison tools like our auto insurance quote engine. Also, ask about discounts for safe driving, bundling, or taking a defensive driving course.