The liability insurance you need to drive legally
State minimum liability is what’s legally required to be on the road. But these limits are low and often fall short in a serious accident. Many first time drivers find they need more protection to avoid paying out of pocket for injuries or property damage. Consider at least 100/300/100 in liability insurance to help cover the costs you may cause in an accident. This means you’ll get:
- $100,000 in bodily injury liability, per person.
- $300,000 in bodily injury liability, per accident.
- $100,000 in property damage liability.
Why it matters: Every state except New Hampshire requires state minimum liability insurance, but those limits are typically too low to cover costs after a serious accident. One accident with injuries can cost over $160,000, according to the National Safety Council.
Other coverage first-time buyers need
Also consider full coverage, which adds comprehensive and collision coverage, to cover damage to your car, regardless of who was at fault.
Here are the main types of insurance coverage you can choose from, as well as a recommendation for when you might want to consider each of them.
| Coverage type | What it covers | Do you need it? |
|---|---|---|
| Liability | Others’ medical bills and property damage when you’re at fault. | Required by law, except in New Hampshire. |
| Collision | Your car repairs after hitting another vehicle or object. | Required if financing/leasing. Recommended for cars worth more than $5,000. |
| Comprehensive | Damage to your car from theft, vandalism, weather and accidents with animals. | Required if financing/leasing. Recommended for cars worth more than $5,000. |
| Uninsured/underinsured motorist | Your costs when hit by uninsured or underinsured drivers. | Required in some states. Strongly recommended everywhere. |
| Personal injury protection (PIP) | Medical bills, lost wages, childcare after an accident. | Required in no-fault states. |
| Medical payments (MedPay) | Medical expenses after an accident. | Optional in most states, but may be worthwhile if you don’t have health insurance. |
Key takeaway: State minimums may not cover a serious accident. Consider 100/300/100 liability, plus full coverage, to protect your finances and your own car.
Learn more: Guide to getting car insurance for a new car
Do you need full coverage?
Here’s what to consider if you’re unsure if full coverage is right for you.
Consider full coverage if:
- You financed or leased your car.
- Your car is worth more than you can afford to replace.
You may not need full coverage if:
- You own an older car worth less than $3,000.
- You have enough savings to pay for a new car if it’s totaled.
Key takeaway: If you finance, lease, or can’t afford to replace your car out of pocket, full coverage is worth it. If your car is worth less than $5,000 or you have savings to cover a total loss, liability-only may be enough.
Get car insurance quotes
When you shop for car insurance for the first time, compare quotes from multiple insurers to find coverage that fits your budget. Comparing quotes can make it easier to see which option fits your needs.
Insurance companies have vastly different pricing for first-time car buyers, even for the same level of coverage. By comparing quotes you can potentially save hundreds of dollars annually.
How much car insurance costs for first-time buyers
Car insurance costs vary widely for first-time buyers because insurers look at many details about you and your car, and each company weighs those factors differently.
What you pay depends on factors like your:
- 🎂 Age: Drivers under 25 pay the most because they statistically have more accidents.
- 📍 Location: Urban areas with more traffic and crime have higher rates.
- 🚗 Car type: Expensive cars, sports cars and cars with high theft rates cost more to insure.
- 💳 Credit score: In most states, better credit means lower rates.
- 🛡️ Coverage level: More coverage means higher premiums.
Recommendation: Car insurance for first-time buyers can vary by hundreds of dollars for the same coverage, so it’s crucial to compare quotes. Get quotes from multiple insurers and compare rates side-by-side.
Compare quotes
Avoid these common mistakes
⚠️ Buying only the minimum coverage
State minimums are often too low to fully protect you. If you cause a serious accident, you could be personally responsible for thousands beyond your policy limits.
🔍 Not comparing quotes
The first quote you get is rarely the best. Shopping around can save you on your premium. Insurance companies often price first-time buyers very differently.
👥 Forgetting to add all drivers
If someone else drives your car regularly (roommate, partner, family member), you need to add them to your policy. If they cause an accident and they’re not listed, your insurer may deny your claim.
📅 Letting your policy lapse
If your insurance lapses even for one day, insurers label you as a high-risk driver. Your rates will most likely go up significantly when you buy a new policy.
Why it matters: Avoiding common mistakes can save you thousands of dollars in out-of-pocket costs, denied claims and inflated premiums. A little extra effort upfront can protect both your finances and your driving record for years to come.
FAQ
🚗 Do I need car insurance before I drive?
👨👩👧 Can I be added to my parents’ policy?
🚨 What happens if I drive without insurance?
⏱️ How long does it take to get car insurance?
🔄 Can I cancel my policy anytime?
🛒 Do I need to stay with the same insurer?
Methodology
Statistics, rates and conclusions in this article are based on proprietary databases of real-world car insurance quotes, not third-party models or estimates. Data is collected from real-world insurance quotes and aggregated and anonymized to protect privacy.
With millions of quotes delivered each year (often multiple offers per driver), datasets are large enough to avoid bias toward any one region, insurer or driver type. Unless otherwise indicated, quotes shown are from drivers with clean records in the last 12 months. Quotes involving accidents, violations or credit use the last 18 months to ensure a reliable sample.
Editorial integrity
The goal is to provide balanced, unbiased and helpful information about car insurance. Articles are not sponsored by advertisers or insurance companies. As a comparison platform working with multiple insurers, the goal is to help consumers find the best fit for their situation.
