Car insurance refers to any form of insurance that can be used to cover damages to your vehicle or damages caused by your vehicle. There are a number of different kinds of car insurance and some are necessary while others are optional.

State Law

Most states will not allow you to drive your vehicle without car insurance. The type and amount of insurance that you need changes from state to state so you should check with local real estate agents to become informed about your state's requirements.

Personal Injury Protection

Many insurance companies will try to get you to buy personal injury insurance, which covers your medical costs if you are injured in a car accident. These costs are usually covered if you have life and disability insurance.

Cover Damage Costs

If you have a car that is actually worth replacing and repairing damages on, collision and comprehensive coverage is a good idea because it will cover any damage caused by an accident, theft, vandalism or glass breakage.

Uninsured/Underinsured Driver Insurance

This is a highly recommended form of insurance because it protects you if you get in an accident with someone who does not have adequate insurance. Its cost-to-benefit ratio means it's cheap to have and can really pay off if you ever have to use it.

Peace of Mind

You never know when something bad is going to happen. Car insurance gives you one less thing that you have to worry about going wrong and ruining your financial state.

Source:

FiLife: o You Need Car Insurance? How Much Do You Need?

DMV: How To Buy Car Insurance

Resource:

Progressive