Each state has its own set of laws regarding which types of coverage are required. Often, minimum limits are also set. Deciding which coverages and how much to buy over and above these requirements is a personal decision.

Some questions to consider:

• How much am I willing to pay on my own to repair my vehicle?

• Do I have other insurance that will pay if I were hurt as the result of an auto accident?

• What assets do I have to protect?

• If I cause an accident, are my coverage limits high enough to pay for the property damage to the other vehicle? What if the other vehicle was very expensive?

• If I cause an accident, are my coverage limits high enough to pay for the medical bills and lost wages of the person I hurt? What if the person I hurt was a doctor?

Understanding terms and coverages