Getting Insured
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IT IS ILLEGAL TO DRIVE WITHOUT INSURANCE IN AMERICA
Car insurance in the US — what you need to know
What Is Car Insurance?
Car insurance protects you, your car, and others in case of an accident, theft, or damage.
There are different types of coverage, but most states require at least:
- Liability insurance (covers injury or damage to others)
- Property damage liability (covers damage to other vehicles or property)
If you finance the car (take a loan), lenders usually require:
- Full coverage = liability + collision + comprehensive
Insurance is Compulsory
You must show proof of insurance before you drive off after buying a car.
Best insurers for first-timers:
- Geico
- Progressive
- State Farm
- The Zebra – compare quotes
Minimum insurance: liability (required by law)
Optional: full coverage (if the car is financed, it’s usually required)
Typical monthly insurance costs (2025 averages)
Driver Profile | Liability Only | Full Coverage |
25–40 y/o, clean record | $60–$120/month | $120–$180/month |
18–24 y/o, clean record | $100–$180/month | $200–$300/month |
Over 40, clean record | $50–$100/month | $100–$160/month |
New driver or no U.S. record | $150–$250/month | $200–$350/month |
As a refugee or newcomer, you may be treated like a “new driver” even if you drove for years in your home country — this can raise your rate until you build a U.S. record.
Age requirements
- You must be at least 16 to get insurance in most states (but most policies are for adults 18+)
- Under 25 years old = considered “high risk” and usually costs more
Factors that increase insurance rates
Factor | Why It Matters |
Young age (under 25) | Less driving experience = higher risk |
No U.S. driving history | No record to judge safety = insurer charges more |
New license | Seen as inexperienced |
Living in a city or high-crime area | More accidents/theft = higher risk |
Luxury or sports car | More expensive to fix or replace |
Low credit score (in most states) | Statistically linked to more claims |
No previous insurance | Breaks in coverage raise suspicion |
Prior accidents/tickets | Seen as unsafe driver |
Factors that lower rates
Factor | Benefit |
Over 25 | Seen as more responsible driver |
Clean driving record | No accidents or tickets = safer driver |
Driving less than 7,500 miles/year | Less risk = lower cost |
Good credit (where allowed) | Seen as more reliable |
Bundling (with renters or home insurance) | Discounts for using same company |
Driving a safe, inexpensive car | Less costly to repair/replace |
Types of insurance coverage
Type | Covers | Required? |
Liability | Others’ injuries/damages if you’re at fault | Yes (minimum legal requirement) |
Collision | Your car in a crash (even if you’re at fault) | Yes if financed |
Comprehensive | Theft, fire, weather, vandalism | Yes if financed |
Uninsured/Underinsured Motorist | When the other driver has no insurance | Optional (recommended) |
Medical Payments / PIP | Your injuries, passengers, hospital bills | Optional (required in some states) |
Tips to reduce cost
- Compare quotes from different providers:
Try The Zebra, Gabi, or Policygenius - Take a defensive driving course — ask if your insurer gives a discount
- Increase your deductible — that’s the amount you pay before insurance kicks in (e.g., $1,000 instead of $500)
- Bundle with renters insurance — often saves 10–15%
- Drive a safe, affordable car — e.g., a 2016–2020 Toyota Corolla or Honda Civic
- Install anti-theft devices — some insurers give discounts
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