12 Essential Car Insurance Types Every Driver Needs

1. Liability Coverage

Liability coverage is required in 49 states (all save New Hampshire) for your car insurance policy. This important protection has two parts: bodily injury liability, which pays for medical bills if you hurt someone else, and property damage liability, which pays for damage you do to other people's cars or property.

2. Collision Coverage

Collision coverage covers to fix or replace your car if it gets damaged in an accident with another car or object, no matter who is at fault. This coverage is not required by law in many jurisdictions, but lenders and leasing businesses usually need it until your loan is paid off.

3. Comprehensive Coverage

Comprehensive coverage protects you from almost everything except accidents. This includes theft, vandalism, fire, natural catastrophes, falling items, and even hitting an animal. This coverage is quite important for people who live in areas where cars are often stolen or where the weather is really bad.

4. Uninsured/Underinsured Motorist Coverage

Uninsured motorist coverage protects you if you're hit by a driver who doesn't have insurance. Underinsured coverage comes in when the at-fault driver's insurance isn't enough to pay for your costs.

5. Personal Injury Protection (PIP)

Personal Injury Protection pays for your and your passengers' medical bills, no matter who caused the accident. Usually, the coverage is between $10,000 and $50,000 per person. Strong PIP coverage is a great way for families with high-deductible health insurance plans to protect their finances after an accident.

6. Medical Payments Coverage

Medical payments coverage, or MedPay, helps pay for your and your passengers' medical bills following an accident, no matter who was at fault. MedPay only pays for medical bills, unlike PIP, which also pays for lost earnings and other costs.

7. Gap Insurance

If your car is totaled or stolen, gap insurance will pay the difference between what you owe on your auto loan and its real cash value. In the first year, new cars usually lose 20–30% of their value, which might mean you owe thousands more than what your insurance will pay after a total loss.

8. Rental Reimbursement Coverage

Rental reimbursement coverage pays for a rental automobile while your car is being fixed after a claim that is covered. This coverage keeps you from having to pay for more repairs when things are already difficult, since the average repair takes 15 days in 2025.

9. New Car Replacement Coverage

If your automobile is totaled within a certain amount of time, new car replacement coverage will pay for a brand-new car of the same make and model. This coverage is different from regular policies because it makes sure you may replace your car without losing money.

10. Rideshare Coverage

Rideshare coverage fills in important gaps for Uber, Lyft, and other gig drivers when the app is active but you haven't taken a ride yet. Most personal auto insurance policies don't cover you while you're using your car for business, but ridesharing company insurance only covers you for a short time during this waiting period.

11. Roadside Assistance Coverage

When your car breaks down, roadside assistance coverage will help you with things like towing, battery jumps, changing a flat tire, getting into your car, and getting gas. Modern insurance frequently come with useful smartphone apps that let you ask for support and track your location with GPS to get faster response.

12. Classic Car Insurance

Classic car insurance covers vintage, antique, and collectible cars based on their agreed worth instead of how much they lose value over time. These specialized plans know that historic cars typically go up in value instead of down, which is not the case with regular policies.