What coverages do I absolutely have to have?
Legally, you have to meet your state’s mandatory minimum insurance requirements, if it has them. You can find these requirements on your state’s department of insurance website. However, you don’t want to skimp on coverage just to get low auto insurance rates. Sometimes higher premiums are worth the investment when you factor in how much you stand to lose if you are in an accident. Some coverages are unnecessary for certain individuals, however. For example, if you drive an older car, you do not need to carry collision insurance because your car probably has little to no cash value. Similarly, if you have a good health insurance policy, medical payments coverage is probably unnecessary as well.
