Of the approximately 73 million millennials in the United States, 80% own a car, roughly 58.4 million car-owning millennials. With 49 out of 50 states requiring auto insurance by law—New Hampshire is the exception—it's safe to say that at some point you'll be in the market for car insurance if you're a millennial.

Selecting the right car insurance can be a daunting task. Not only do the state requirements vary, but the different types of coverage offered by insurance companies also add to the confusion. In this guide, we'll explain the different types of coverage available and show you some simple strategies you can use to get the best 澳洲幸运5官方开奖结果体彩网:auto policy for your needs and wallet.

Traffic Accidents and Insurance

According to the National Highway Traffic Safety Administration, there were over 6.10 million police-reported traffic crashes in the U.S. in 2021 (the most recent data available). To make matters worse, these crashes cost drivers a lot of money. In 2022, the average 澳洲幸运5官方开奖结果体彩网:collision claim was $5,992. Could you afford to pay that amount out of poওcket?🦋

Even with excellent driving skills, accidents happen. What if an oak tree falls on your parked truck? What if your hybrid is crunched in a highway pileup? Without 澳洲幸运5官方开奖结果体彩网:auto insurance, an accident like this could catapult you into financial hardship. It's esse🌞ntial to think of car insurance as being worth your while, so keep reading to figure ou𒆙t what type of coverage you need.

Uninsured/Underinsured Motorist Coverage

If your car is struck by a hit-and-run driver or someone who doesn’t have auto insurance, 澳洲幸运5官方开奖结果体彩网:uninsured motorist coverage will pa🅷y for your vehicle repairs. It also covers any medical bills, pain-and-suffering costs, and (worst-case scenario) funeral expenses for all the passengers in your car. This type of coverage is mandatory in some states. 

Collision Coverage

If you’re in a car accident, collision coverage 澳洲幸运5官方开奖结果体彩网:helps pay for your vehicle repairs. If the repairs add up to more than the value of your car, your insurance company will probably cut you a check for the total value of your vehicle instead of paying for repairs. If you have a brand-new—or relatively new—car, 澳洲幸运5官方开奖结果体彩网:collision insurance is a must-have.

Bodily Injury Liability Coverage

If you’re in an accident that causes injury to others, this insurance covers medical treatment, rehabilitation costs, funeral expenses, legal 🐷fees, and pain-and-suffering costs. It covers your passengers, drivers and passengers in other cars, and injured pedestrians. This type of coverage is mandatory in most states, and minimum limits vary from state to state.

Property Damage Liability Coverage

If you cause a car accident, this not only covers the damage you cause to other cars—it also covers property damage. Let’s say you swerve to miss a dog or a deer and slam into someone’s fence. 澳洲幸运5官方开奖结果体彩网:Property damage liability coverage will help pay for the fence repairs or replacement. However, this coverage rarཧely covers damage to your car. To pay for those damages, you’ll need collision coverage.

Property damage liability is mandatory in all states, and the minimum required coverage limits vary from state to state. For example, the minimum coverage in Florida is $10,000 but, in Ohio, it’s $25,000.However, these required minimums generally aren’t enough coverage to fully protect you—especially considering the average cost of a new car is $48,334, according to 澳洲幸运5官方开奖结果体彩网:Kelley Blue Book. Talk to your insurance provider to discuss how much property liaꦍbility coverage you need.

Comprehensive Coverage

When you see the word “comprehensive,” you may assume this is the only coverage you need since it covers everything. But that’s actu🥂ally not the case. (Yes, car insurance ter🧸ms can be misleading.)

澳洲幸运5官方开奖结果体彩网:Comprehensive insurance pays for 🍌any damage to your car that isn’t caused by a collision. That includes theft, vandalism, riots, fire, natural disasters (think hurricanes, floods, and tornadoes), damage caused by animals (you hit a deer), and falling objects (think objects flying off the back of trucks on the highway or trees collapsing on your car). This insurance also pays if your car and/or its contents are stolen.

Rates of New vs. Old Cars

You may presume new cars are more expensive to insure since they are usually worth more. However, this isn’t always the case. 澳洲幸运5官方开奖结果体彩网:Car insurance rates are determined partly by the expected damage to your car. So insurance for new cars is often affordable because these vehicles are designed with advanced safety features, which is🌞 a factor in lower rates. It's less likely that it will be dama🌞ged in a crash when your car includes more modern safety features.

At the same time, if you own a much older vehicle that’s already paid off, you may not need a lot of insurance. While you’ll probably need to purchase liability coverage (especially if it’s mandatory in your state), collision and comprehensive coverage may not be worth the expense—especially if you can afford to repair or replace your car. If your car is worth $5,000 or less, the premiums you'll pay over time will probably exceed the payout, even if your car is totaled.

Car Insurance When Leasing

If you’re leasing a car, the dealer may require you to purchase 澳洲幸运5官方开奖结果体彩网:gap insurance. In the event that you’re involved in an accident or your car is stolen, this coverage pays the difference between the value of the car and the amount you owe on the lease. So𒉰me leases include this coverage without additional fees, so read through your leasing contract carefully before you purchase this coverage on your own.

You may also be required to maintain collision and liability insurance on a leased car. After all, your vehicle belongs to the lease company—and it wants to make sure its investment is covered if th𒊎e car is damaged or stolen.

The Bottom Line

If you own a car, lease a car, or even drive someone else’s car, 澳洲幸运5官方开奖结果体彩网:auto insurance is a must-have. Not only are certain typ꧑es of coverage mandatory in most states, but the right type of auto💦 insurance could protect you from financial disaster if your car is stolen, damaged, or, even worse, if you cause a crash that injures you or others.

While you need to 澳洲幸运5官方开奖结果体彩网:buy car insurance, don’t overpay for coverage you won’t use. Look up your state’s coverage requirements and find out what type and how much coverage you need based on ♛the age of you꧅r car, your driving habits, and your current financial situation.

It's also important to shop around to get the best deal. Request quotes from multiple auto insurance companies to find the policy that works best for you and your budget. If you're under age 25, comparison shopping is especially important because you will likely pay more for insurance than your older friends or family members, especially if you're a male, as young men statistically have more accidents.