Standard car insurance is the base policy an insurer offers for standard-risk drivers. Depending on your state, this usually includes basic liability insurance
, and possibly uninsured motorist coverage
, personal injury protection
(PIP), or medical payments coverage
(MedPay). Collision insurance
and comprehensive insurance
are typically considered additional coverages. Whether you’re leasing, financing, or inheriting a vehicle, you’re held to certain car insurance requirements from your state, lenders, and leasers. But while it’s clear that you must meet your state’s minimum insurance coverages
to legally drive, how much car insurance
is actually “standard” for a driver to have? Here we’ll walk through the many coverage options you have to protect yourself on the road, and narrow down what a standard policy might look like for your situation.
What is standard car insurance?
Standard auto insurance is the lowest level of coverage an insurer offers to a standard-risk driver. Though this basic coverage varies depending on your location, almost every standard insurance policy contains specific minimum liability coverages determined by state law. In most cases, these coverages are necessary to legally operate a vehicle and break down as such:
Bodily injury liability
per person—the maximum amount your insurer will cover in injury-related expenses per person for the other vehicle in an at-fault collision Bodily injury liability per accident—the maximum amount your insurer will cover in third-party injury expenses total
Property damage liability
per accident—the maximum amount your insurer will cover in property damage expenses for other vehicles after an at-fault collision
In certain states, your standard policy will also include uninsured and underinsured motorist coverages. Additionally, many no-fault states
require standard policies to include personal injury protection (PIP) or MedPay to cover medical bills after a car accident. If you’re financing your vehicle, it’s not unusual for a lender to require collision coverage and comprehensive coverage minimums, and for a leasing contract to include gap insurance coverage
. However, these coverages tend to be categorized as “add-ons” to a standard policy by most insurers and will cost extra. RECOMMENDEDNo spam or unwanted phone calls · No long forms
Optional coverages
While standard car insurance for an insurance company usually boils down to the minimum insurance requirements from the state, the average standard-risk driver often includes a little more coverage in their plan.
Here are a few types of coverage
that might not come in your standard policy, and what they can protect you against. | |
---|
| Takes care of damages to your vehicle after an auto accident |
| Handles damages to your vehicle from non-collision events, like vandalism, theft, and weather |
Uninsured/underinsured motorist coverage | Covers your medical bills if you’re in a collision with an uninsured or underinsured driver |
Personal injury protection (PIP) | Pays for medical expenses, lost wages, and rehabilitation costs after an accident—and may be used alongside your health insurance |
| Fills in gaps in your health insurance to cover your medical bills after an accident, along with funeral bills |
| If you ever break down, roadside assistance covers the costs of towing and labor, including jumpstart and locksmith services |
| Covers the difference between your car’s actual cash value and your total loan amount so you don’t have to pay off loans out-of-pocket if you total your new car |
| Takes care of rental car or transportation costs while your car is getting repaired after a valid claim |
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Unlike liability coverage, many additional coverages to a standard policy come with a deductible. Comprehensive and collision insurance, for example, usually have deductibles that you pay out-of-pocket first before your coverage kicks in to pay the rest. When choosing a policy, you can usually adjust how much or how little of a deductible you pay—the lower your deductible, the higher your insurance costs (and vice versa).
Who is eligible for standard auto insurance policies?
If you have a valid driver’s license and a clean driving record
, you generally fall under an average risk profile to insurers—making you eligible for standard automobile insurance. That said, insurance companies still consider additional factors like your age, credit history, and location when determining insurance premiums for any standard policy. Therefore, while two drivers may both have an excellent driving record and no claims in their history, insurance rates can be very different for the same coverages.
Because of this, it’s always a good idea to compare insurance quotes
from at least three different insurers to make sure you have the most affordable rates available to you. Who is not eligible for standard car insurance coverage?
If you have multiple claims, accidents, or serious convictions—like a DUI
or hit-and-run—in your driving history, insurers will label you a high-risk driver
, which makes you ineligible for standard car insurance. In this case, you will need to find high-risk car insurance, or non-standard car insurance, usually from an insurer who specializes in non-standard policies, like The General
or Dairyland. Since higher risk drivers are more likely to cost insurers more, high risk car insurance costs are much more expensive than standard insurance—which is why you’ll want to stick to a standard insurer if you’re a standard risk driver. What are the most popular standard auto insurance companies?
The best insurer for your standard car insurance policy will vary depending on certain individual factors like your location, your vehicle type, your age, and your discount eligibility. Here are a few of the more popular standard car insurance names out there, though:
If you don’t qualify for standard car insurance, some of these major insurers still offer non-standard auto insurance coverage on a case-by-case basis. As always, check with an insurance agent for your coverage (and discount) options if you’re ever unsure!
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blew my mind, honestly. From start to finish, using the app took me 10 minutes and I ended up with $100 of savings a month. Best of all, customer service answered all my questions about rental car reimbursement and roadside assistance.” —Savanna R.