Car Insurance Company

Liability coverage is your protection for accidents you cause. Any cars or other property you damage is covered by property liability. And any injuries you cause to others is covered by bodily liability. For adequate protection from your car insurance company, a minimum of $50,000 of property liability is recommended. And since bodily liability also covers your legal costs if sued, it's recommended you get $100,000 per person or more if your net worth warrants it.

Another type of coverage, medical payments, covers the medical bills for you and your passengers when injured in an accident. If you already have some form of health insurance, you may not need this protection from your car insurance company. And other than keeping some for your passengers protection, you may eliminate it if your state law allows.

Uninsured or underinsured driver coverage will handle any of your unpaid bills when the driver who causes an accident has insufficient or no insurance. It's suggested that you ask for $50,000 or more of this protection from your car insurance company.

The fourth type of protection that a car insurance company can provide is the repair or replacement of your car. Collision coverage is for after an accident and for any other reason there's comprehensive. Your deductible should be as large as you can afford and at least $500.