Insurance Curator Choosing the best auto insurance means balancing legal requirements, financial risk, vehicle value, and personal circumstances. This guide explains coverage types, common exclusions, and useful riders (endorsements) so you can compare options and pick a policy that protects you — not just meets the state minimums.
At a glance: What this guide covers
- Key auto coverage types and what they pay
- Typical policy exclusions and how to manage them
- High-value riders and when they make sense
- Practical buying tips and recommended limits
- Links to deeper reading on related insurance topics for bundling and gaps
Coverage types (what you actually buy)
Liability (Bodily injury & Property damage)
- What it pays: Injuries to others and damage to their property if you're at fault.
- Why it's essential: Required in nearly every U.S. state; protects your assets from legal judgments.
- Tip: Select limits well above state minimums to avoid out-of-pocket exposure.
Collision
- What it pays: Repairs or replacement of your vehicle after a collision (regardless of fault), minus your deductible.
- Best for: Financed or newer vehicles where repair/replacement costs are high.
Comprehensive
- What it pays: Non-collision losses — theft, vandalism, fire, hail, falling objects, animal strikes.
- Best for: Areas with higher theft or weather risk, or vehicles you want fully protected.
Uninsured / Underinsured Motorist (UM/UIM)
- What it pays: Your costs if the at-fault driver has no insurance or insufficient coverage.
- Why to add: High rates of uninsured drivers in many states; essential protection for your medical bills and vehicle repairs.
Medical Payments / Personal Injury Protection (MedPay / PIP)
- What it pays: Medical expenses for you and passengers, regardless of fault (PIP may include lost wages).
- State note: Some states mandate PIP; others offer it optional.
Gap Insurance
- What it pays: The difference between loan/lease balance and actual cash value if your car is totaled.
- When to buy: Financed or leased vehicles, especially when you owe more than the car’s depreciated value.
Rental Reimbursement & Roadside Assistance
- What they pay: Rental car costs during repairs; towing, battery jump, lockout, fuel delivery.
- Why useful: Small added cost for big convenience.
Quick comparison table
| Coverage Type | What it Covers | Typical Exclusions | When to Choose |
|---|---|---|---|
| Liability | Others' injury/property | Your injuries, your vehicle | Mandatory; increase limits if assets at risk |
| Collision | Your vehicle after crash | Wear & tear, racing | New/financed vehicles |
| Comprehensive | Theft, weather, animals | Mechanical breakdown | Areas with theft/ weather risk |
| UM/UIM | When other driver lacks enough insurance | Intentional acts by insured | If many uninsured drivers in your area |
| MedPay / PIP | Medical bills, lost wages (PIP) | Long-term disability | If you lack good health coverage |
| Gap Insurance | Loan/lease balance gap | Voluntary depreciation | Leased or highly financed cars |
| Riders (glass, OEM parts) | Specific add-on coverage | Not standard on base policy | When you want extras |
Common exclusions — watch for these
Insurance policies commonly exclude:
- Intentional acts (damage you intentionally cause)
- Racing or stunt driving
- Commercial use (delivery drivers, ride-hailing without endorsement)
- Regular maintenance and wear-and-tear (brakes, tires, engine failure)
- Non-permitted drivers (drivers not listed on policy or not authorized)
- Driving under the influence (DUI-related claims often denied)
How to manage exclusions:
- Add a rideshare endorsement if you drive for Uber/Lyft.
- Consider a commercial policy for business use.
- Purchase glass or OEM parts endorsements to avoid denials for windshield or new-parts replacement.
Riders / Endorsements worth considering
- New car replacement: Replaces totaled new car with comparable new vehicle (usually within first 1–2 years).
- Gap insurance: Protects owners who owe more than the car’s value.
- Accident forgiveness: Prevents first at-fault accident from raising rates.
- Glass coverage: Covers windshield repair without deductible.
- OEM parts coverage: Ensures original manufacturer parts used in repairs.
- Rideshare endorsement: Keeps you covered while waiting for or transporting rideshare passengers.
- Roadside assistance: Towing, lockout, battery jump, fuel delivery.
Table of select riders:
| Rider | What it Adds | Typical Cost |
|---|---|---|
| New car replacement | Full replacement for totaled new vehicle | Moderate |
| Accident forgiveness | No surcharge on first at-fault accident | Low–Moderate |
| Rideshare endorsement | Maintains coverage during gig driving | Low |
| OEM parts | Original parts used in repairs | Small % added |
| Glass coverage | No deductible windshield repair | Small fixed fee |
Recommended limits by situation
- Minimum state limits are often insufficient. Consider these baseline recommendations:
- Liability: 100/300/100 (Bodily injury per person / per accident / property damage) or higher if you have assets.
- Comprehensive & Collision: Keep if vehicle value exceeds ~2–3x your deductible.
- UM/UIM: Match your liability limits when possible.
- MedPay/PIP: $5,000–$10,000 depending on health coverage.
Sample scenarios:
- Young driver with older car: Liability 100/300/100, skip collision/comprehensive if repair cost exceeds car value.
- New financed car: Full coverage (liability + collision + comprehensive) + gap insurance + new car replacement.
- High-net-worth individual: High liability limits (consider umbrella policy) — see Best Insurance for Umbrella Policies: How Much Liability Coverage Do You Need and Typical Exclusions.
How to shop smart — step-by-step
- Start with your declarations page — confirm limits, deductibles, listed drivers, covered vehicles. For a guide: Policy-Type Deep Dive: How to Read a Declarations Page, Identify Exclusions, and Choose Riders.
- Get multiple quotes from insurers and compare not just price but coverages, exclusions, and complaint ratios.
- Bundle policies (homeowners, renters, life) to save — see options in Best Insurance for Homeowners: Comparing HO-3, HO-5, and Endorsements — What’s Covered and What’s Not.
- Ask about discounts: safe driver, multi-policy, good student, low mileage, defensive driving.
- Use a Buyer’s Checklist for questions to ask agents and compare policies: Buyer’s Checklist: Questions to Ask for Each Policy Type (Auto, Home, Life, Health, Renters, Umbrella, Disability, Pet).
- Review annually — life changes, new vehicles, or moving states may require adjustments.
Bundling & cross-policy considerations
- Bundling with homeowners or renters often yields discounts and simplifies claims. See Best Insurance for Renters: Coverage Limits, Personal Property Valuations, and Common Exclusions Explained and the homeowners guide above.
- If you’re self-employed, drive for work, or have medical concerns, coordinate auto coverages with business, health, and disability policies: Best Insurance for Health: Understanding Plans, Network Types, Pre-Existing Conditions, and State Mandates and Best Insurance for Disability: Short-Term vs Long-Term, Own-Occupation vs Any-Occupation, and Claim Triggers.
Final checklist before you buy
- Confirm state minimums and choose limits above them.
- Ensure your declarations page lists all household drivers.
- Add UM/UIM and gap insurance when appropriate.
- Compare deductibles vs. premium savings — higher deductible lowers premium but raises out-of-pocket risk.
- Ask about exclusions for rideshare or business use.
- Consider an umbrella policy for asset protection.
For more on customizing policies and answering buyer questions across insurance types, consult our related resource on life insurance decisions: Best Insurance for Life: Term vs Whole vs Universal — Riders, Tax Rules, and Buyer Questions.
Choosing the best auto insurance is about aligning protection with risk. Use this guide to prioritize coverages, watch for exclusions, and pick riders that remove costly gaps — then verify your choices on the declarations page and with a licensed agent.