INSURANCE
Auto Insurance
The coverage you’re legally required to have, the coverage that actually protects you, and how to pay less for both.
Written by the Grow My Pile team · Updated for 2026 · About a 6-minute read
The quick answer
Carry enough liability to protect what you own (many drivers choose 100/300/100), add collision and comprehensive while your car is worth more than a few thousand dollars, and raise your deductible to cut your premium. Re-shop your rate every year or two — loyalty rarely pays.
What auto insurance covers
An auto policy is really several coverages bundled together. Knowing what each one does helps you keep the parts that matter and drop the parts you don’t.
- Liability — pays for injuries and property damage you cause to others. It’s legally required in almost every state and is the most important piece. It does not pay for your own car.
- Collision — pays to repair or replace your car after a crash, minus your deductible.
- Comprehensive — covers non-crash damage: theft, vandalism, weather, fire, or hitting an animal.
- Uninsured / underinsured motorist — protects you when an at-fault driver has no insurance or too little.
- Medical payments / PIP — helps cover medical bills for you and your passengers, no matter who caused the accident.
How much coverage you need
State minimums are usually far too low — a single serious accident can cost much more. Liability limits are written like 100/300/100, meaning $100,000 per injured person, $300,000 per accident, and $100,000 for property damage. A good rule of thumb is to carry enough liability to cover your net worth, since that’s what’s at risk in a lawsuit.
Collision and comprehensive are worth keeping while your car holds meaningful value. Once the yearly cost of those two climbs above roughly 10% of the car’s value, many drivers drop them and self-insure. Choose the highest deductible you could comfortably pay out of pocket tomorrow.
How to lower your premium
- Raise your deductible (for example $500 to $1,000) — it can noticeably cut your premium.
- Bundle auto with home or renters insurance for a multi-policy discount.
- Ask for every discount: safe driver, low mileage, good student, paperless billing, and usage-based (telematics) programs.
- Keep your credit healthy — most states let insurers factor it into your rate.
- Shop your rate every year or two; the cheapest insurer changes over time.
- Drop extras you don’t need, like rental reimbursement if you have a backup car.
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Grow My Pile is educational and not insurance, financial, or legal advice. Coverage requirements and options vary by state and insurer — confirm details with a licensed agent before you buy.
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