What makes it necessary to have automobile insurance? The necessity has been a big debate for years now. The biggest reason is because it is the law. Another good reason is it protects your financial well being. These are the most important reasons.

When it comes t auto insurance lawmakers have come up with many valid reasons to set laws. Many states take it very seriously and have expensive penalties if you do not comply. But even with the laws and the fines many drivers still ignore the fact that auto insurance is a must.

Those who choose to take the risk often pay the price big time. However, most consumers like to take advantage of uninsured motorist coverage when they purchase their auto insurance. Everyone hears the stories of the risk takers and they want to be protected from them.

If you are uninsured and you have an accident it does not excuse you from paying the damages you cause. If you are at fault you will have to pay all damages, if you do not you could lose your driving privelages in many states. Besides having your car towed and impounded there are prety hefty fines for ignoring the law too.

There are 6 different kinds of coverage that you can purchase. First, is the most common limit set forth by the state. Bodily Injury liability. This coverage will pay for any one that you or a designated driver of your vehicle may harm in an accident. The state minimum however is often not enough coverage. Medical bills can be very expensive.

If you would also like coverage for you and your passengers you would want to purchase PIP or Personal Injury Protection. Property Damage liability is another that the state may require and it covers damages done to property if you are at fault. This could include, structures, trees, lamp post and telephone poles.

If you have a collision and you are at fault and want your auto to be covered you need Collision Coverage. Collision Coverage protects your vehicle. If you are looking for something that would protect your auto if a fallen tree should crash down on it or vandals attack you need Comprehensive Coverage.

Too many people only purchase the minimum amount of coverage that the state requires and often that is not adequate coverage. So you may want to purchase under insured motorist coverage for your protection. Then the insurance company will pay what ever the other persons insurance does not if damages exceed their coverage.