All states require some minimum level of liability coverage of their drivers and, of course, if you own and operate a motor vehicle you will need auto insurance for your own protection, regardless of state law. There are several different types of coverage such as liability, uninsured/underinsured driver, personal injury coverage, and more: Liability coverage is what protects one should he or she be found to be at fault for an accident. It compensates for any medical costs for you and the other driver and any property damage as well. Collision coverage pays out for damage to his or her car resulting from collisions, regardless of fault. In addition to the normally mandated liability coverage, this coverage is also mandated by banks and credit unions for those who have car loans. Comprehensive will, essentially, cover anything other than damage resulting from collisions, including theft, vandalism, or when nature causes financial losses to your car. This is often required by institutions giving out loans as well. Arguably, the biggest benefit in carrying a policy is the mitigation of potentially ruinous out-of-pocket expenses a person would otherwise be forced to pay. In addition to vehicle repairs, coverage can deal with medical bills and other costs too. It can be very helpful to consider a combination of these coverage options to provide the most protection for your auto, truck, or SUV.