In this tutorial I'm going to tell you the exact steps to figure out how much car insurance you really need. Car insurance can be big confusing for us and actually lot of money down the drain. We will converse that kind of insurance into three parts.

You need to understand the three types of car insurance coverage’s available that includes liability comprehensive and collision. 

Liability coverage

Liability insurance covers anybody injury or property damage. When you have an accident that is your fault, if you were to hit somebody your insurance would cover the cost of the repairs to that car or if you caused any harm to the person like physical injury. So this is the basic type of insurance that everybody needs it's illegal to not have this type of insurance.

Make sure if you have it so bodily injury liability think of this as medical cost property damage. Liability think of this as the cost of the repairs to the car. 

Comprehensive insurance

Comprehensive insurance covers any kind of repairs to your car that did not result from a collision. For example  your car got broken into a tree branch fell on top of it and your car caught on fire unexpectedly. A natural disaster hailstorm came around any of those things would be covered by comprehensive insurance.

Collision insurance 

Collision insurance covers the cost of repair for your vehicle if you are involved in an accident and it doesn't matter whose fault, whether the person who hit you or you hit somebody else. Collision coverage will cover the cost of repairs to your car. Your own liability insurance does not cover the cost of repairs towards your car unless the other person is at fault and then their liability insurance would cover the cost of your repairs. For example other person didn't have enough liability insurance to cover the cost of your repairs. 

This is where collision coverage would help you out one important thing to note here is if you have a car loan, you may be required to have full coverage which means all three types of insurance on your car. So while you may not have the opportunity to pick and choose the different types that you want. You do have the option to shop around different insurance companies to get the best rate. You need to determine how much car insurance you need. I will be really good idea to maximize your liability coverage. Now generally most insurance companies will max out in three different areas. This would include personal injury, total injuries, per accident and property damage. So when you go into your insurance coverage you can log on to your account. You should see three different numbers.