Most states require car insurance; there's typically a minimum amount of coverage required on a motor vehicle operating on state roads.
But you should consider taking out more insurance coverage than just the state minimum, and you should base your decision on more than just the monthly premium.
To understand what you're really getting for that premium, you need to be familiar with the six types of car insurance coverage.
Let's take a look at each of these.
Types of insurance Bodily Injury Liability This type of car insurance is used to cover damages you cause to someone else when you're driving, whether you're in your vehicle or theirs (with their permission).
It is used to cover medical expenses of the other person, should you be responsible for a serious injury.
Property Damage Liability This type of coverage is used for damages you cause to someone else's property.
This can include cars, fences, gates, light poles, garages, and other types of building or structures.
Personal Injury Protection Sometimes called PIP as shorthand, this is the car insurance that covers your own medical bills Uninsured / Underinsured Motorist Coverage This type of insurance is used to cover injury to you (or someone driving your car with your permission) in the case of a hit-and-run, if the person who causes the accident does not have insurance, or if they do have insurance but it's insufficient to cover the costs.
Collision This is the type of insurance that covers your vehicle in a collision, or if you tip it over.
The coverage works whether or not you were at fault, though in different ways.
Comprehensive This protects you from nearly everything: falling rocks or trees, natural disasters, theft or vandalism, explosions, alien invasions, you name it.
Keeping premiums low If you're tired of paying too much for auto insurance, consider trying a few of the strategies below to shrink your premiums.

• Shop around.
  When you compare auto insurance quotes from a few different providers, you'll ensure that you're not paying way too much.
  
• Be a safe driver.
  Unsafe drivers cost more to insure.
  
• Consider buying all of your insurances, including home and health, from the same company; some providers knock money off for buying in bulk.
  
• Set your deductibles as high as you can afford; the insurance coverage over that amount is usually higher.
  

Remember: just because the state sets a minimum doesn't necessarily mean it's the right policy for you.
Compare rates, drive safely, and save!