Car Insurance in the USA | Which Coverage to Choose

Moving from Russia to the USA, car insurance can be confusing. Instead of two options like OSAGO and KASKO, we get a complex, multifaceted system. Let’s break it down.

I currently use Progressive, so I’ll use it as an example for the state of WA. In different states and with different insurers, some details may vary, but the main principles remain the same.

So, car insurance in the USA consists of several items:

- Bodily Injury & Property Damage Liability

- Underinsured Motorist

- Underinsured Motorist Property Damage

- Personal Injury Protection

- Comprehensive

- Collision

- and other less significant coverage

1. Bodily Injury & Property Damage Liability - Coverage for bodily injury and property damage – similar to OSAGO

Here you choose the insurance amount that the company will cover if you injure someone or damage their property in an accident – their car or property, for example hitting a fence.

This coverage is divided into 3 parts: per person / per accident / property damage

For example, you choose $25,000 / $50,000 / $25,000

The first two numbers are for bodily injury. The third is for property damage.

This means that if you injure one person and the medical bill is up to $25,000 – the insurance will fully cover it. If two people and the cost is $30,000 each – insurance will pay $25,000 each. If three people and each treatment costs $20,000, although it's less than the per-person limit, the total limit is exceeded and the company will pay $50,000, leaving you owing $10,000.

Property damage is simple – hit someone else’s car, knock down a sign – repair is covered within the limit.

To choose the first two numbers, consider that one day of hospitalization in the USA costs around $20,000. For the third number, consider that an old car costs around $10,000, a new one $40,000. Also remember you may damage multiple cars at once.

My choice in this category – $50k/$100k/$100k

2. Underinsured Motorist – Coverage for your medical expenses if hit by a driver without insurance or with low/used-up coverage.

Purpose? Mainly to quickly get money from your insurance company. Responsibility is still on the other driver, but they may not have funds to cover your treatment, and you’d get little from their income.

It also has 2 parts: per person / per accident. If passengers are in your car, all receive payment within the total limit.

My choice – $25k/$50k

3. Underinsured Motorist Property Damage – Same, but covers repairs to your vehicle.

Here, deductible applies – the amount you pay first, then insurance covers the rest. Example: bumper damage $500, deductible $100 → insurance pays $400. Deductible for hit & run works similarly; if the driver flees, insurance pays $200.

Choose coverage based on your car’s value.

4. Personal Injury Protection – Covers lost income if you cannot work after an accident. My choice – $0, I don’t use it.

5. Comprehensive – Covers fire, theft, vandalism, hail, flood, or animal collision damage. You only choose the deductible; lower deductible = higher premium. Optional glass deductible can cover broken windows.

My choice – $500 deductible ($0 glass deductible if often parked in public with valuables inside)

6. Collision – Covers damage to your vehicle from an accident. You choose deductible; insurance covers the rest.

Example: deductible $500, you cause an accident, repair of other car $3,000, your car $5,000. Other car covered fully by insurance (item 1), you receive $4,500 for your car repair.

Comprehensive and Collision are like KASKO – protect your car regardless of fault (what is called “two-way insurance” in the USA). Typically unnecessary for cheap cars; more relevant if car value > $7-10k or if financed.

You can also add rental coverage, credit payoff in case of total loss, roadside assistance, or coverage for aftermarket parts.

Hope this explanation helps you understand insurance better.

⚠️ Tip: Compare quotes from 2-3 companies online before buying.

⚠️ Tip: Pay 6 months upfront to save 10-15%.

⚠️ Tip: Bundle home insurance with car insurance to save via multi-policy discount.

⚠️ Tip: Buy insurance online yourself; it’s cheaper than through an agent.

⚠️ Tip: You can change coverage anytime; adjustments apply immediately, and premiums are recalculated.

I recommend Progressive or Geico. Avoid no-name $30/month policies advertised online.

Disclaimer: The information provided here is for general informational purposes only and does not constitute legal advice. Translations are provided for convenience and may contain errors or omissions. For guidance on your specific situation, always consult official sources or a qualified attorney.