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In most states, all motorists are required to have a specified amount of liability insurance, although it's usually not enough to adequately protect you.
If your auto is financed through a bank or other commercial lender, the lender will require you to carry both collision and comprehensive property damage coverage.
An auto accident that leads to a large legal judgment against you can be hazardous to your personal economic health. Because of this, it's important that you have an adequate amount of coverage on your cars.
Auto insurance has two main components: liability insurance and insurance for property damage. Liability insurance is the most important. It provides compensation to persons who would be able to sue you for personal injuries, medical payments, loss of earnings, or damage to their property arising out of an auto accident.
Property damage insurance includes collision and comprehensive coverage, which compensate you for damage to your car, and assorted damage to it caused by such things as fire, theft, and vandalism.
The categories of auto coverage are broken down into:
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