If you drive a car, you need car insurance and in most states (48 of them), it’s more than just a good idea — it’s the LAW! When you buy car insurance, you are buying what is called a policy. The amount you pay is called a premium. Your policy’s premium is based on a variety of factors including the type of car you drive, your driving history, your credit score, other drivers in your family and what kind of insurance you want.

Since state laws vary, some of the coverage types listed here may be required by your state and some of the coverage may be optional.

• Liability – This is the minimum coverage you must carry in 48 states. Liability protection pays for accidental bodily injury and property damages to others, not YOU! Injury damages may include the medical expenses, pain and suffering and lost wages due to someone involved in an accident where you’re at fault. Property damage includes the damaged property of others and their vehicles. This coverage also pays defense and court costs. State laws determine how much liability coverage you must