What Are Your Car Insurance Needs? 

A Quick Review

Auto insurance is a double edged sword - you can barely stand the thought of paying for it every month; but you can't get away with not having it. And really, it would be incredibly stupid not to have insurance. You may think you have a valid reason for not having auto insurance coverage, although we personally can't think of any. But we won't dwell on that.

Here instead we will focus on remedying the situation. If you're like most individuals, your number 1 priority is to get the basic minimum requirements down. We'll begin with that, and continue from there. Most states require that you have liability insurance. This covers you when you're the one at fault in an accident.  If you live in New Hampshire, South Carolina, Tennessee or Wisconsin, you aren't required by law (at this time) to have liability coverage. For the rest of us, the mandatory coverage varies according to state. Personal Injury Protection (PIP), or Medical Payments (MedPay) in some states, pays for your own medical expenses, any lost wages and whatever other costs may arise when you're injured in an accident. It usually pays about 80 percent of your losses, and it also pays a death benefit. PIP is required in Colorado, Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon and Utah.

Some states also require you to purchase car insurance that will cover your own medical expenses, pain and suffering losses and, in some states, car damage in the event that the other motorist is at fault and is either uninsured or underinsured.

Even though each state has minimum (or no) requirements for bodily injury liability, it is probably in your best interest to purchase higher limits. If someone else is injured and you're at fault, the minimum liability coverage may not cover their medical expenses, in which case their lawyer will most likely come after your assets. It is generally recommended that you purchase 100/300 limits of bodily injury liability. On the other hand, if your personal assets don't amount to much, you don't have a whole lot for them to bother about, so the minimum requirements might actually suit you better, not to mention save you some much-needed money.

Besides bodily injury liability, personal injury protection, property damage liability and uninsured/underinsured motorist coverage, you have collision and comprehensive auto insurance coverage to think about. Collision covers damage to the policyholder's car resulting from running into anything, be it another car, a phone pole, a or another object. Comprehensive coverage takes care of your car in the case of theft, fire, falling objects, missiles, explosion, earthquake, flood, riot and civil commotion, among other things.

Comprehensive and collision coverage are required on most lease contracts, and are essential if you own an expensive car. If you're driving an old clunker, however, and the cost of the sum of your premium and your deductible exceed the worth of your vehicle, you probably want to think about doing without this coverage.

Before you purchase any type of auto insurance coverage, be sure to look at all your other insurance policies so you don't end up paying for something you already have. If you have a good health insurance plan, you might get away with buying the bare minimum personal injury protection coverage, or none at all. However, you might end up paying a co-pay and deductible that wouldn't apply with PIP or MedPay. Uninsured or underinsured motorist coverage might also be a smart buy, even if you have full medical coverage, because they can pay for your pain and suffering claims. If you belong to a roadside assistance company, you don't need to purchase that through your insurer. This also goes for mechanical breakdown insurance if you own a newly financed or leased vehicle which is still covered under warranty.

None of us like having to shell out a bunch of money every month for a product we may never need, but we are all in the same boat. The fact is that you will need and use your car insurance at some point, so it's imperative to purchase a worthwhile policy. Know what you must have and know what you should have and just do it right. These articles can help you do that.

• Choose the Right Provider
  
  Discover how to find the best car insurance company to fit your needs and pocketbook.
• Save On Car Insurance
  
  Comparison shopping, ensuring that you are receiving all the discounts you qualify for and maintaining a clean driving record can save you a fortune on car insurance.
• Best Car Insurance Quote
  
  Many people pay far more than they absolutely have to each year on their auto insurance because they simply haven’t taken the time to compare rates and policies with other auto insurance companies.
• Teenage Car Insurance
  
  Not all car insurance companies take the same bleak view of young drivers.Some discounts are available to help you cut costs. Remember, the higher the risk, the higher the cost of insurance premiums. This should be your guiding principle as you shop for insurance.