What Type of Car Insurance Do You Really Need? A 2025 Guide

If you own a vehicle, you’ve likely asked yourself: “What kind of auto insurance do I really need?” With so many terms—comprehensive, liability, collision, uninsured motorist—it’s no wonder drivers feel overwhelmed.

At JNA.org, we’re here to help you understand the different types of car insurance so you can make an informed decision based on your budget, your car’s value, and your state’s requirements.

Why Auto Insurance Isn’t One-Size-Fits-All

Every driver has unique needs. Whether you drive a new electric SUV, a classic sedan, or a budget-friendly hatchback, the right auto insurance depends on your lifestyle, location, and risk tolerance.

Here are the most common types of car insurance and how they protect you:

1. Liability Insurance (Required in Most States)

Liability insurance covers damages you cause to others. It includes:

• Bodily Injury Liability: Pays for medical costs if you injure someone in an accident.
• Property Damage Liability: Covers repairs to another person’s vehicle or property.

Who needs it? Everyone. This is the minimum car insurance required by most states.

2. Collision Insurance

Collision coverage pays for repairs to your car after an accident, regardless of who’s at fault.

Who needs it? Drivers with newer or financed cars who want help covering repair costs.

3. Comprehensive Insurance

Comprehensive insurance covers non-collision events like theft, vandalism, floods, or falling objects.

Who needs it? Anyone in an area prone to extreme weather, car theft, or natural disasters. Also required by most lenders for financed vehicles.

4. Uninsured/Underinsured Motorist Coverage

If you’re hit by someone without enough (or any) insurance, this coverage protects you.

Who needs it? Highly recommended for all drivers—especially in states with high rates of uninsured motorists.

5. Personal Injury Protection (PIP) or Medical Payments

PIP helps pay for medical expenses, lost wages, and rehab after an accident, no matter who’s at fault.

Who needs it? Drivers in “no-fault” states, where it’s often required.

So… What Car Insurance Should You Get?

Here’s a quick way to decide what’s best:

• Driving an older car with low value? Liability might be enough.
• New or financed vehicle? Add collision and comprehensive.
• Live in a high-crime or storm-prone area? Comprehensive is a must.
• Not sure what the future holds? Go for full coverage for peace of mind.

Tips to Save on Auto Insurance

• Bundle your car and home insurance for discounts.
• Raise your deductible if you can afford more upfront costs.
• Compare quotes regularly to get the best rate.
• Maintain a clean driving record to lower premiums.

Choose Coverage That Matches Your Life

Auto insurance is more than a legal requirement—it’s your financial safety net. At JNA.org, we simplify the process of choosing the right plan. Use our tools to compare providers, understand your options, and secure the coverage that fits your life.

Need help finding affordable auto insurance in 2025? Start with JNA.org and get matched with top providers near you today.