In most states, it is illegal to drive without auto insurance. Each state varies on coverage requirements, but many people choose higher limits than what is stated in the law. Auto insurance covers three areas:
Liability coverage is for the damage you cause to another driver or their vehicle or property. This includes medical costs to them and court costs and awards if you are found to be at fault. State requirements are often low, and it is advisable to ask for more coverage
You can cover your vehicle with comprehensive and collision coverage, but this is optional. If you carry this coverage, you can expect your car to be repaired or replaced. If you choose not to carry this part of the insurance, you will have to pay all expenses out of pocket.
Medical coverage is for you and any passengers you had in the car, whether the other person involved in the accident had insurance or not.
If you are financing your car, you may be required to have different coverage than what the state law requires. You will most likely be required to carry both comprehensive and collision insurance. Collision insurance insures your vehicle if it is in a wreck with another vehicle or object or from flipping over in a single car accident.
Comprehensive insurance covers theft, hail, and other things that result in damage to your car. Vandalism, a tree limb falling on the car, or hitting a deer are examples of times when you would use your comprehensive coverage.
You can often get discounts when buying auto insurance, such as a safe driver discount if you haven't been involved in an accident. You can get a multiple car discount if you insure more than one vehicle with the same insurer. Ask about any discounts when you are price shopping.