How Much Car Insurance Do I Really Need? 
Your state might have a minimum requirement . If it does , you must have that much coverage to comply with state law . If you have decided to buy auto insurance you should start with the liability limit . Set the liability limit high enough to cover you in any situation you can think about . For example , you are at fault in an accident involving a fatality and serious injury to another person . You need enough liability coverage to compensate the injured party and the bereaved family . The company is going to stand between you and the injured party to the limits of the policy . How high a wall of protection do you want ? Then there is your own automobile . This is a more emotional issue . If you have a lender , they will normally require physical damage coverage . You have a range of deductibles which affect the premium somewhat . However , the only way to reduce the cost of the policy is to not provide physical damage coverage . Then if you are in that accident and your car is damagedyou pay the expenses . 