When it comes to car insurance, the minimum amount of coverage you need is the liability coverage required by your state. This type of insurance will cover some, if not all, of the costs associated with injuries and damages that you are responsible for in an accident. If your vehicle is financed, the lender or landlord may also require collision, all-risk and collision insurance. It's a good idea to have at least as much personal injury liability insurance coverage as your state requires, and it's wise to buy coverage limits equal to your assets.
In New Hampshire, drivers are not required to have liability insurance for cars, but they must demonstrate financial responsibility to cover the expenses of an accident and purchase insurance, which may include UM coverage. Some auto insurance companies offer coverage for personal items, which covers personal belongings in the car if they are damaged or stolen, and replacement coverage for the rented car separately to pay for a car rental if yours is in the workshop after a covered loss. The amount of car insurance you need and the amount of car insurance that is required are two very different questions. Comprehensive insurance pays if the policyholder's vehicle is damaged by something other than an accident, such as a natural disaster or vandalism.
An auto insurance policy is comprised of several types of coverage, some of which may be required by your state or auto lender, while others are optional. For example, if you don't have adequate health insurance or medical coverage through your car insurance policy, it might be worth adding. Each state has different laws regarding liability insurance requirements, with some requiring coverage for uninsured drivers or protection against personal injury, and others requiring only liability for bodily injury and property damage. In addition, Personal Injury Protection (PIP) can help cover the deductibles and co-pays that you normally have to pay with health insurance, so you'll have to pay less out of pocket.
States set minimum requirements for liability coverage, but these amounts are often too low to fully cover after a serious accident. You'll also want the highest levels of PIP coverage, coverage for uninsured drivers, and other coverages required by law in your state. Most major auto insurance companies offer additional coverage options in addition to the standard coverage that makes up a full coverage policy. Even insurers will tell you that canceling collision coverage makes sense when your car is worth less than a few thousand dollars.
Finally, drivers should also consider taking out other types of car insurance to better protect themselves since liability insurance does not cover the injuries or property of the policyholder. Medical payment coverage covers your medical expenses after an accident regardless of who was at fault, so it often overlaps PIP and standard health insurance.