State Minimum Requirements: Each state has its minimum insurance requirements. You need to make sure you meet these requirements before you hit the road. You can check your state's minimum coverage requirements on your state's insurance department's website.
Liability Coverage: Liability insurance covers the costs of damages and injuries you may cause to other drivers or their property. While the state's minimum liability coverage requirements seem adequate, it is wise to obtain a higher coverage limit. If you cause an accident that causes more damage or injuries than your coverage limits, you may pay out of pocket.
Collision coverage: Collision coverage pays for damage to your car if you hit another car or object or if your car is hit by another person. If you own an expensive car, it is wise to get collision coverage that covers the full cost of repairs or replacement.
Comprehensive coverage: Comprehensive coverage pays for damages to your car due to incidents like theft, vandalism, or natural calamities. If you own an expensive car or live in an area prone to natural disasters, it's a good idea to get comprehensive coverage.
Medical Payments Coverage: Medical payments coverage pays for medical expenses if you or your passengers are injured in an accident. If you have health insurance, you may not need this coverage. However, if you do not have health insurance, medical payment coverage can help cover your medical bills.
Personal Injury Protection (PIP): PIP covers medical expenses, lost wages, and other expenses if you or your passengers are injured in an accident, regardless of who caused the accident. Some states require PIP coverage, while others do not. Even if your state doesn't require one, you may want to consider getting one.
Uninsured/Underinsured Motorist Coverage: Uninsured/Underinsured Motorist coverage pays for damages and injuries if you are involved in an accident with an uninsured driver or if you do not have enough insurance to cover the damages. If you live in a state with a high number of uninsured or underinsured drivers, it's a good idea to get this coverage.
Your financial situation: If you have significant assets, you may want to get a higher coverage limit to protect your assets in case of an accident. If you don't have many assets, you may be able to get by with a lower coverage limit.
