Experts say the first thing you need to do is satisfy the mandatory auto insurance coverage by state. Meaning the insurance requirements for the state where you live. In most states, you’re required to have insurance that covers at least $20,000 per accident. You also have to consider though protecting your assets. In other words you don’t want someone suing you and claiming all your savings. Many people with significant assets i.e. a house, savings account, stocks etc. choose liability coverage of $100,000 per accident. Insurance advisers recommend homeowners should maintain at least $100,000 worth of coverage. You also need to insure your vehicle which means you will need physical damage coverage. This will help you repair or replace your car if it’s damaged or stolen.

Uninsured motorist coverage is something else you should consider. This offers coverage if you are hit by someone who doesn’t have insurance. The uninsured motorists has no way to pay for the damage they cause so this coverage is a wise choice.

The major issue to consider is how much insurance you need to protect your assets. You might want to consider an umbrella policy. This is a supplemental to your auto insurance and you can get coverage in the amounts of $1 million or more.

Medical Payment insurance is also another important type of coverage. Insurance coverage that pays medical expenses and possibly other expenses (such as lost earning, rehabilitation, replacement of services, and funeral expenses, depending on the policy), for you or any passengers in your vehicle if your vehcile is involved in an accident and pays medical expenses and possibly other expenses for you or family members injured or killed while riding in another vehicle or injured by another vehicle while walking.

Also, if you are driving a new car, insurance experts tell you to opt for the new vehicle replacement coverage.

Collision and comprehensive insurance are optional types of auto insurance that protect your car if it is damaged. These are considered physical damage coverage and will pay to help repair your vehicle. Collision insurance pays for damages sustained by your car from a collision with another object. Comprehensive covers damage to your automobile from incidents such as vandalism, theft, or glass breakage.

These types of car insurance are optional unless you are paying on a loan or lease then whomever you are paying the money to will usually require that you have full coverage on your car, meaning these coverages plus state mandated liability coverages.

If you drive a lot for work you chance of being in accident is higher so you should carry collision insurance. If you have teen drivers or new drivers in your family you should also strongly consider carrying collision insurance since young drivers due to their inexperience are more likely to have collisions.