Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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The lowdown...

  • Each state has their own set laws for car insurance requirements
  • Drivers should understand each portion of their policy and what it covers
  • Drivers who own expensive cars will need coverages above and beyond the legal requirements

Generally, the more expensive your vehicle is, the more you will pay for auto insurance.

Even though you may own an expensive vehicle, you can still find good rates on your auto insurance premium. The best way to do find a good rate is to comparison shop using an online price comparison tool.

By using such a tool, you can easily select the best premium that fits your driving and financial needs. Enter your zip code above to get started right now!

Legally Required Auto Insurance


In almost every state in America, drivers are required to have auto insurance. This is for the protection of every driver, pedestrian, and bicyclist on the road.

Not having at least the minimum required amounts of auto insurance puts you and other people on the road at risk financially.

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What happens if I don’t obtain insurance on my vehicle?

While it may be tempting to save money and forgo the regular expense of paying an auto insurance premium, it could end up costing you a lot in the end.

For most drivers, the serious risk isn’t worth it. If you are found to be driving without auto insurance, you may face one or all of the following consequences depending on the compulsory auto insurance laws in your state:

  • Jail time
  • Fines
  • Community service
  • Having your car impounded
  • An SR22 insurance requirement
  • Suspension or revocation of your driver’s license
  • Suspension or revocation of your car registration

In addition to the legal consequences of simply not having auto insurance, you will face even bigger issues if you are in an accident.

If you get into an accident, hit a deer, or have your vehicle stolen or vandalized and you do not have certain insurance coverages, you will be left to deal with the aftermath yourself.

If you are in an accident and do not have liability insurance, you could be found personally liable in civil court for the property and physical damages you have caused others.

Types of Auto Insurance Coverage


Understanding each piece of an auto insurance policy can help you to make sure you have the coverage that you need and that you are not paying for the coverage that you don’t need.

In fact, many industry experts suggest reviewing your auto insurance policy at least once per year in order to keep up with any auto insurance needs you have that may have changed.

An auto insurance policy can potentially consist of several pieces all rolled together to complete the entire coverage. In general, your options for coverage will include the following coverages:


Liability is the minimum coverage type that most states require. Bodily injury liability covers the medical expenses and funeral expenses of other parties you may injure.

Property damage liability will pay for damages you have made to the property of others such as vehicles, buildings, and landscaping. Liability does not cover your own damages.

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Uninsured/Underinsured Motorist

Some states require this type of coverage and some do not.

Uninsured motorist coverage will pay for damages if you are the victim of a hit-and-run accident or if you are in an accident with someone who does not have auto insurance coverage at all.

If you are involved in an accident with someone who had insurance but does not have enough coverage to pay for all of your damages, underinsured motorist coverage can help pick up the tab where their insurance coverage leaves off.

Medical Payments or Personal Injury Protection (PIP)

Also known as med pay, this coverage pays for your own medical bills in the event of an accident, no matter who was at fault.

In some cases, this coverage type will also reimburse you for lost wages or for hiring household help as a direct result of your injuries. Some states require PIP coverage from their drivers.


If your vehicle is damaged in an accident, the optional collision portion of your policy is what you will rely upon, especially if you are at fault. Collision coverage is elective and you also choose your deductible and coverage limits.


This coverage is for other damages such as natural disasters, floods, fires, theft, vandalism, and even hitting wildlife. This coverage is also optional and you will select a coverage limit and deductible.

Roadside Assistance

This coverage is not required but can come in handy if you find yourself on the side of the road in need of help.

Roadside assistance can help you with a dead battery, running out of gas, a flat tire, or other similar car problems you might experience while out on the road.

Rental Car

If your car is damaged, you may find yourself without reliable transportation for some time while it is repaired. Rental car coverage will usually pay a certain amount per day towards a rental car for about 30 days.

Gap Coverage

If you lease or finance your expensive vehicle, your expensive car is probably depreciating very quickly. Unfortunately, this puts you at risk for still owing on your lease or loan even if your vehicle is totaled in an accident.

If you are in an accident and the auto insurance carrier decides it is cheaper for them to pay you the fair market value of your vehicle instead of paying to fix the damages, they will pay you the former.

You will then use this money to pay off your loan or lease but if it isn’t enough to cover the full amount that you owe, your optional gap coverage will fill in the difference.

What insurance do I need for my expensive car?


If you have an expensive car, you are more at risk financially so you should probably have more coverage than the average driver.

In addition to what is legally required in your state, you will want to be sure to add the following to your policy:

  • Collision
  • Comprehensive
  • Gap

These optional coverages will help protect the financial investment you have made in your vehicle.

While having to pay for coverage beyond what is legally required doesn’t usually excite drivers, it is a smart move financially if you have an expensive car.

You can still save money on your auto insurance policy for your expensive car by using our price comparison tool.