In most states it is mandatory to have insurance on your vehicle if you drive it on the road. Trying to decide what type of insurance to buy can be difficult if you are not sure what you really need. You also have your budget and vehicle type to take into consideration. There are usually seven different types of auto insurance on the market. Each one has it’s advantage.Liability InsuranceThis is the most common type of insurance that motorists usually purchase. Liability satisfies the minimum requirement that most states require for coverage. If you are at fault in an accident then this insurance will cover the cost of medical bills and property damage to a certain limit. It is possible to exceed this limit in serious cases, and if this happens, then you will be responsible for any amount above the coverage. It is a good idea to choose higher coverage levels if you can afford it.Collision InsuranceUnlike liability, collision insurance covers damage done to your car. This insurance is absolutely necessary if your car is newer or brand new. If your car is totaled, then your insurance company will cover the value of the car prior to the accident. If your car is older, then collision may not be worth the extra premium. If your car is wrecked without collision then you may find yourself without the money needed to fix your car.Comprehensive InsuranceWhen unforeseen events happen, for example if a tree falls on your car while parked or you hit a large animal on the road, then comprehensive will cover the damage. Any natural disaster that affects your car will be covered under comprehensive. Theft is also covered under comprehensive insurance and it can be a good policy to have if you live in a rough neighborhood. Installing anti-theft devices can help lower your premium.Uninsured Motorist ProtectionSometimes the other driver in an accident will be uninsured and unable to cover the cost of the damage. There is a chance that you will be left with the bill. Uninsured motorist protection will cover your medical bills regardless of who is at fault.Medical / Personal Injury ProtectionAfter a car accident, there is usually continuous medical care needed for injured drivers and passengers. These costs can be quite high with therapy sessions and numerous doctor’s visits. This insurance will cover all your bills and your passengers medical bills no matter who is at fault in the accident.No-Fault InsuranceOnly a few states provide no-fault insurance. This type of insurance provides blanket coverage regardless of who is at fault. On top of that it covers both injury and property damage. No-Fault insurance is usually very expensive and it is best to compare it with other types of coverage.Gap InsuranceIf you have purchased a brand new car and are still making payments, then you might want to consider gap insurance. The more you owe on your car, the more gap insurance should be considered. You may be required to purchase gap insurance by lenders and also be required to keep it until you have finished your payments.Now that you know all your options, you should ready to talk to your insurance agent and let him know exactly what you need. Be sure to shop at several different companies. Many have different rates and coverage levels. Having good coverage can go a long way to giving you good peace of mind.

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