Searching for the right type of auto insurance can be overwhelming. There are so things to know about insurance and what factors affect it, like your age, the kind of car you drive, the state where you live, and driving record. Even basic things like whether you owe money on your car can affect what type of car insurance you need to cover your needs. Find out everything you need to know about auto insurance with this list of basics:

Standard vs. Optional Car Insurance

What type of auto insurance you need is as personal as they type of car you drive. While some insurance policies are required by state laws, other plans may be optional. Figure out whether liability insurance (standard) or collision and comprehensive (optional, in some cases) coverage is right for you.

Liability

Basically, liability insurance policies vary according to several factors, including your age, gender, car you drive, and even the county you live in. As such, you have several options when choosing liability insurance, but the fact is you must have liability insurance at the least to be a legal driver in the United States. Often at very affordable rates, liability auto insurance covers property damage and bodily injury to another party in the event you are involved in a motor vehicle accident.

Bodily Injury Insurance

CYA gets a whole new meaning when you consider it literally. Bodily insurance liability covers you in the event you cause an accident where a person is killed or injured. In other words, this is a good type of insurance to have and most states require you to carry some percentage if BI. Think carefully before automatically choosing the cheapest plan.

Property Damage

As the name implies, property damage liability pays for the cost of damage to another person’s car or other property in the event you cause an accident.  Again check your particular state’s laws regarding how much you PDL you need to be considered legal.

Collision and Comprehensive

Depending on whether you own your car or owe money to a bank of financial institution you may be required to carry full coverage or collision and comprehensive coverage for your motor vehicle. This type of car insurance covers all damage to you and your car in the unfortunate event of an accident. What’s more is collision and comprehensive insurance will cover accidents that happen off-road, like hail damage, theft or fire. The downside is that this insurance can be expensive and may even exceed your car note. Increasing your deductible is one way to keep monthly premiums lower – and it’s often worth the extra out-of-pocket expense.

Uninsured/Underinsured Motorist

Part of the reason we purchase auto insurance in the first place is to protect ourselves from those drivers who are uninsured. What happens when an uninsured driver rams into your car? UM/UIM insurance covers expenses when you’re hit by one of these underinsured drivers. IN some states this is mandatory and can be more affordable than full coverage premiums.