Almost every state requires motorists to have auto liability insurance. In states that do not require it, you must have sufficient funds to pay claims if you cause an accident. Liability coverage protects you from the cost of personal injury to others, as well as damage to property. You can adjust the coverage to match your assets. If your assets are plentiful, you will want to have a large amount of liability coverage, protecting you from any high dollar judgments against you.

You can also purchase car insurance to protect against both underinsured and uninsured motorists. If someone else causes a wreck, you can still enjoy coverage even if the other driver has little or no insurance. With the Insurance Research Council reporting an average of 14% of all motorists driving uninsured, this type of insurance makes good practical sense. Uninsured/underinsured motorist coverage is a smart and affordable self-help tool, one you cannot afford to be without.

If you are buying a car and finance it through a dealership or a lender, you will be required to carry collision and perhaps comprehensive insurance coverage. This provides payment to repair your car if it is damaged. It will also pay to replace it if it is a total loss. Even if your car is completely paid for, collision insurance provides a good hedge against expensive car repairs. Comprehensive coverage provides you protection against losses from theft and vandalism, and damage caused by nature, such as hail. If your car is almost as dear to your heart as your favorite pet, collision and comprehensive insurance allow you to repair or replace your car in most cases.

Because statistics show that teenage drivers are more prone to accidents than those in most other age groups, it makes sense to insure them against all possibilities. However, even if you are an older driver with a flawless driving record, you will also benefit from a good car insurance policy. It makes sense to protect yourself from others who may not be as skilled or careful as you are.

Car insurance carries the benefits of insuring you against future problems. Liability insurance allows you to pay for any damage, to property or people, caused by your car. Underinsured/uninsured insurance protects you from drivers with little or no insurance of their own. And finally, collision and comprehensive insurance allow you to repair or replace your car, even if a wreck is your fault or caused by acts of nature, such as a falling tree branch. Having car insurance can truly put your mind at ease.