What You Need to Know Before Choosing Coverage
Reviewing all the available auto insurance coverage types can be overwhelming. Some types of car insurance are required by law or by lenders, while others are optional add-ons. The more car insurance coverage options you select to add to your policy, the higher your premiums will be. It can be helpful to estimate your car insurance costs before assembling your policy.
You may have been asking, "What types of car insurance do I need in 2026?" A local independent insurance agent can easily help you get equipped with all the car insurance you need in a complete policy. They can also help find any car insurance discounts you qualify for to reduce your rates as much as possible. Until then, you can review our guide to the different types of auto insurance coverage to better understand your options and what should be included in your policy.
Car Liability Insurance
Liability car insurance is almost always required by state law and covers damage to and injuries to other vehicles, drivers, and passengers. Coverage has two components: bodily injury liability and property damage liability.
Collision Insurance
What does collision insurance cover? It covers damage caused to your own vehicle in an accident, regardless of fault.
Comprehensive Insurance
What does comprehensive insurance cover? It covers damage or losses caused by threats to your vehicle other than collision, including windshield breakage, hail damage, theft, etc.
Gap Insurance
What does gap insurance cover? It covers the remaining balance on your auto loan if your vehicle is stolen or totaled in an accident, and its current depreciated value does not match the amount due on the loan.
Extended Warranty Coverage
Car warranty insurance, or your car's extended warranty, acts as an insurance policy that provides coverage for future mechanical failures of your vehicle.
Towing and Roadside Assistance
Towing and roadside insurance can provide reimbursement if your car breaks down on the side of the road and you need a tow or other assistance to transport your vehicle and yourself.
Broad Form Auto Insurance
This provides one driver with minimum liability insurance to protect against costs associated with bodily injury or property damage to others. Additional drivers cannot be added to these policies.
Salvage Title Car Insurance
These policies typically provide liability coverage for vehicles with salvage or rebuilt titles. It can be harder to find full coverage, including comprehensive and collision insurance, for salvage title cars.
New Car Replacement Insurance
This coverage can pay for a replacement vehicle of the same make and model if your car is stolen or totaled. Coverage is typically only active for one to three years after purchase or within a set mileage limit.
Uninsured Motorist Coverage
This coverage can reimburse drivers for medical expenses and vehicle damage if they're hit by an at-fault driver who doesn't carry adequate car insurance. It can also pay for damages after hit-and-runs. You may have asked, "Do I need uninsured motorist coverage?" Find the answer here.
Tort Insurance
In the 38 "tort states," drivers with tort insurance policies have unrestricted rights to sue an at-fault driver after an accident to get reimbursed for medical expenses, car repairs, lost income, and additional harm.
Personal Injury Protection
This coverage can pay for your and your passengers' medical expenses and lost wages after an accident, regardless of fault. PIP insurance can also pay for rehabilitation and other related expenses if you're injured in an accident.
Rideshare Insurance
This coverage can pay for incidents that occur while actively using your personal vehicle for a ridesharing service like Uber or Lyft. Depending on the policy, it might include collision, liability, comprehensive, and other coverages.
Short-Term Car Insurance
These policies are known as temporary car insurance and can be bought for short periods of time, such as a single day, a couple of weeks, or a few months. It's often needed by uninsured drivers who borrow or rent a vehicle.
Full Coverage Car Insurance
What is full coverage car insurance in 2026? Full coverage car insurance is not an official industry term. It refers to a package of important protections, including liability, collision, comprehensive, uninsured/underinsured motorist, and often medical payments or personal injury coverage. However, gap insurance and rental reimbursement coverage are typically not included in full coverage policies.
Medical Payments Coverage (MedPay)
What is MedPay car insurance? MedPay covers medical expenses for you and your passengers after an accident, regardless of fault. It requires no deductible and is especially valuable for drivers with high-deductible health plans.
Rental Car Insurance
Rental car insurance covers damage or liability when driving a rented vehicle. Find out when your existing auto or credit card coverage is sufficient and when purchasing a rental counter policy makes sense. Note: this is distinct from rental reimbursement, which covers a rental while your own car is being repaired.
Non-Owner Car Insurance
Non-owner car insurance provides liability coverage for drivers who do not own a vehicle but regularly drive borrowed or rented cars. It can also satisfy SR-22 filing requirements.
Leased Car Insurance
Leasing companies require drivers to carry higher coverage limits than most states mandate, typically including collision and comprehensive coverage, and sometimes GAP insurance. Learn what coverage your lease agreement requires.
Multi-Car Insurance
Multi-car insurance, sometimes called a family car insurance policy, covers two or more vehicles and drivers under a single policy. It can reduce overall premiums compared to insuring each vehicle separately.
SR-22 Insurance
What is SR-22 insurance? An SR-22 is not a type of insurance but a certificate your insurer files with the state to confirm you carry the minimum required coverage. It is typically required after serious violations such as a DUI, driving uninsured, or a license suspension.
Teen and Young Driver Car Insurance
Teen and young drivers typically pay the highest car insurance rates because of their limited driving experience. Learn how to find affordable coverage, qualify for good student discounts, and decide whether to add a teen to an existing policy.
College Student Car Insurance
College students can often save by staying on a parent's policy, especially when attending school more than 100 miles from home. Learn about good student discounts, away-at-school discounts, and the right coverage for student drivers.
Senior Car Insurance
Experienced senior drivers may qualify for mature driver discounts and low-mileage savings. Learn which carriers offer the best rates and coverage options for drivers over 65.
FAQs About Auto Insurance Coverage Types
You can find answers to even more commonly asked questions about car insurance in our comprehensive car insurance FAQs.
What are the main types of car insurance coverage?
The six core types of car insurance include liability, collision, comprehensive, uninsured/underinsured motorist, PIP, and MedPay. Optional add-on coverages include gap, rental car insurance, roadside assistance, rideshare endorsements, non-owner policies, and SR-22 filings.
Which types of car insurance are required by law?
Liability coverage, including bodily injury and property damage, is required by law in most states. PIP coverage is required in no-fault states. Uninsured/underinsured motorist coverage is required in some states. Collision and comprehensive coverage are not legally required, but lenders may require them for financed or leased vehicles.
What is the difference between collision and comprehensive insurance?
Collision coverage pays for damage to your vehicle in an accident with another vehicle or object, regardless of fault. Comprehensive covers non-collision losses, including theft, weather events, vandalism, fire, and accidents involving large animals.
What does "full coverage" car insurance actually include?
Full coverage is not an official policy term. It typically refers to a policy with liability, collision, and comprehensive combined. Gap insurance, rental car insurance, and roadside assistance are not included and must be added separately.
What is an SR-22, and when do I need one?
An SR-22 is a certificate your insurer files with the state to confirm you carry at least the minimum required liability coverage. It is typically required after serious violations such as a DUI, driving without insurance, or a license suspension. It is not a type of insurance itself.
Do I need gap insurance if I am leasing a car?
Often, yes. Many lease agreements require gap insurance and may bundle it into the lease cost. If not already included, adding gap coverage through your insurer is typically cheaper than purchasing it through the dealership. Check your lease agreement to confirm whether coverage is already in place.
How many types of car insurance are there?
There are six core coverage types and 24 distinct coverage and driver-profile topics covered on this page. The right combination depends on your state's requirements, whether your vehicle is financed or leased, and your personal driving situation.