State minimum coverage keeps you legal by meeting the state’s minimum requirements, but it may not be enough to protect your finances in a serious accident. While these basic legal standards are required, many drivers opt for higher limits to ensure quality coverage that offers more comprehensive protection. Costs that can exceed minimum limits quickly include:

• Medical bills
• Multiple injured parties
• Newer vehicle repair costs
• Lawsuits and liability exposure

Many drivers choose higher liability limits because the additional cost is often smaller than people expect.

Full coverage (liability + comp/collision) often makes sense when:

• Your vehicle is newer or financed
• Your car has meaningful value you can’t easily replace
• You want protection from theft, storm damage, and at-fault accidents

Affordable coverage and cheap car insurance options are available even for drivers seeking full coverage, but it’s important to balance cost with adequate protection. This means you can find budget-friendly policies that still provide reliable protection, rather than sacrificing quality for the lowest price.

If your car is older and low value, you may choose liability-only—but it depends on your budget and risk tolerance.

If your vehicle is financed or leased, lenders commonly require comp and collision. Requirements vary, but if you have a loan, you typically must carry what the lender requires until it’s paid off.