Considerations When Buying Auto Insurance

When you're looking for basic auto insurance, you'll want to think about several different types of coverage, depending on your needs and budget:

1. Personal injury protection or medical payments coverage: covers your own medical and rehabilitation expenses resulting from an accident-regardless who's at fault.

2. Bodily injury liability: pays for injury you cause others.

3. Property damage liability: pays for damages you cause to others' property.

4. Collision: pays for damage to your car resulting from a collision with another car, object or as a result of flipping over.

5. Comprehensive: reimburses you for loss due to theft or damage caused by something other than a collision with another car or object.

6. Uninsured and underinsured motorist: reimburses you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.

Most states require vehicle owners to buy a minimum amount of bodily injury and property damage liability insurance before they can legally drive their vehicles.

General guidelines: the insurance industry and consumer groups recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident, since accidents may cost far more than most states' minimum limits.

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