Personal auto insurance is a contract between the insurance company and the insured or policyholder. The insurance contract has mandatory clauses and some optional coverages.
Auto insurance premiums are based on various data, such as driving history, location, and credit history. Policyholders must work diligently to become safe drivers, avoid high-risk areas and build a good credit score.
What you should do
Research which coverages are mandatory in your state and which are voluntary in the coverage areas of:
liability, uninsured/underinsured motorist, comprehensive, collision, medical payments, and personal injury protection.
Furthermore, evaluate the costs versus the risks the policyholder is willing to undertake. Also, acknowledge that complete elimination of risk may be too expensive to obtain.
Each state requires by law some insurance with its respective protection limits. The insurance industry recommends that the minimum protection for medical expenses should be $ 100,000 per person and $ 300,000 per accident.