There are two main goals that you should be focused on when purchasing an auto insurance policy. The first of these goals is to secure a monthly premium that fits into your budget. The second of these goals is to ensure you are getting the right amount and right type of coverage for your needs. While most insurance companies offer a wide variety of discounts to help you accomplish this first goal, figuring out exactly what type of coverage is best suited to your needs will first require you to have a good understanding of the different coverage options available to you. The information outlined below can help you to accomplish this task so that you can build a custom insurance policy that is truly best suited to your particular needs. 

Liability: Bodily Injury/ Property Damage 

When purchasing an auto insurance policy, liability coverage is not optional. The reason for this is that liability insurance is required by law for all vehicles that are on the road. However, what is optional is the amount of bodily injury and property damage coverage that you choose to carry. While the law will set a minimum amount of coverage for this option, choosing to carry more coverage than the law requires can ensure that your policy provides adequate protection against personal liability even if you were to cause an accident that resulted in serious injuries or property damage. The most important thing to remember when purchasing this type of insurance is that liability insurance is designed to cover any damage or injuries that you cause to others, it does not cover any damage you do to your own vehicle or any medical bills that you may incur as a result of injuries that you suffer. 


Collision and comprehensive coverage are optional for most drivers. However, if your vehicle is currently being financed, you may find that your lender requires you to carry this type of insurance in addition to liability insurance until which time your loan is paid in full. 

Collision coverage offers property damage and bodily injury coverage for you. This means that if you cause an accident that results in your vehicle being damaged, collision insurance will cover the cost of repairing or replacing your vehicle. Collision coverage can also cover the cost of medical bills and other out-of-pocket expenses if you are injured in an accident where you are at fault.

Comprehensive coverage offers coverage for damages to your vehicle that are not the result of an accident. For example, if your vehicle is damaged in a hail storm, comprehensive insurance coverage would cover the cost of having this damage repaired. Many insurance companies also offer theft coverage as part of their comprehensive insurance policies.

Uninsured/Underinsured Motorist

The final type of auto insurance coverage you will need to choose to either accept or decline as part of your policy is known as uninsured/underinsured motorist coverage. What this type of coverage offers is pretty much all in the name. If a driver hits you and does not have insurance, this type of insurance coverage will cover your out-of-pocket expenses. It is important to note that damages to your vehicle will not be covered under either liability or collision coverage if the other driver is found to be at fault but simply does not have insurance.