There are several things you should consider when selecting auto insurance coverage. Your auto insurance policy is in place to protect you and your assets if you are involved in an accident. Having enough and the right type of coverage for your needs is crucial. However, selecting an auto insurance policy can be more challenging than expected. Here are three things to know when choosing auto insurance coverage for your vehicle.  

What Your State Requires

Before searching for coverage, you must consider your state's minimum requirement for auto insurance coverage. Most states have a minimum amount of liability coverage requirements you need to purchase to be able to drive legally. Liability coverage is designed to protect you if you are at fault in an accident. Liability coverage is made up of bodily injury and property damage liability coverage. Bodily injury liability coverage covers the medical expenses and lost wages for anyone injured in an accident you caused. Property damage liability coverage covers damage to another person's property that you caused.

Whether You Need Additional Coverage

You must also know whether additional coverage is necessary when choosing an auto insurance policy. If liability coverage isn't enough, you will want to consider collision and comprehensive coverage options. Collision coverage takes care of the damages to your car if you are in an accident, regardless of who is at fault. A comprehensive auto insurance policy will pay for damage to your car not caused by an accident, including theft, vandalism, or weather-related damage. This additional coverage may be a good idea if you have a new or valuable vehicle you want to protect. 

How Much Coverage Costs

How much your auto insurance policy sets you back depends on your vehicle's age, make, and model, as well as other factors. Where you live, your age, gender, and driving history can all impact how much you pay for coverage. Determining how much the coverage you need will cost is essential before taking out a policy. The average driver pays more for full coverage auto insurance than the minimum coverage options. Full coverage policies cost $2,014 per year on average, while minimum coverage auto insurance costs $622 per year. 

There are a few things you should know when selecting auto insurance. First, you need to know how much coverage your state requires. Second, additional coverage may be necessary for your needs. Finally, consider the cost of auto insurance coverage before committing.