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  Auto insurance requirements are left up to each individual state. Most states require a driver to have coverage for liability for bodily injury and property damage. The minimum amount of coverage varies by state. Drivers have options to protect themselves and others, when purchasing an auto insurance policy, by choosing the correct coverage types and amounts.
  
  

Liability

• On an auto insurance policy, liability coverage refers to coverage available if the policy holder causes damage to another person's property. The Insurance Institute recommends that a driver carry $100,000 of bodily injury protection per person and coverage of $300,000 per accident. Liability coverage may need to be raised if the driver's net worth is over $300,000. An umbrella policy may be a good idea since it covers damages when underlying coverage is exhausted.
  
  

Full Coverage

• Collision and comprehensive insurance are optional coverages that are considered full coverage. They cover the auto being driven by the insured. Comprehensive covers the cost of repair on the vehicle if damage is caused by fire, theft, vandalism or a natural occurrence, such as hail. Collision covers the auto if it is involved in an accident, regardless of who is at fault. Repairs are made if possible; but if not, the insurer will pay for the car up to its fair market value. This coverage should be taken if the auto is leased or financed.
  
  

Deductible

• A deductible is associated with comprehensive and collision coverage. Since the deductible must be paid before repairs are completed, it should be kept at an amount the insured is comfortable with paying out of pocket. The higher the deductible, the lower the amount of the insurance premium.
  
  

Uninsured Motorist

• One in four drivers on the road today does not carry auto insurance. Uninsured motorist coverage is an optional coverage that protects the policy holder in the event the person who caused the accident does not have coverage or is under-insured. It provides bodily injury coverage for medical bills and time off of work due to an auto accident.
  
  

Premium

• Auto insurance premiums are based on risk. Groups such as single men under the age of 25 pay higher premiums based on their higher demographic risk. Getting a good rate includes shopping for quotes, using all available discounts, maintaining a clean driving record and having a good credit history.