Your Guide to Buying Auto Insurance

Coverage you need

Mandatory insurance

Property damage. This coverage pays to repair or replace another person's vehicle or other property damaged by your car. States typically require only $10,000 to $25,000. We suggest buying coverage of $100,000.

Uninsured and underinsured motorist coverage. This covers medical bills, rehabilitation, and funeral costs, as well as losses for pain and suffering for you or the passengers in your car when an accident is caused by a hit-and-run driver or someone who has little or no insurance. Get the same amount of this coverage as you do bodily injury coverage. That way, if someone who has no insurance hits you, your medical costs will be covered.

Bodily injury liability. Should you cause an accident, the "liability" part of your insurance coverage pays the medical, rehabilitation, and, if necessary, funeral bills of your passengers, the other driver, his or her passengers, and any pedestrians involved. It also covers pain and suffering awards as well as legal costs.

Buy coverage that will pay at least $100,000 per person and $300,000 per accident. If you have sizable assets, consider increasing those limits to $250,000 per person and $500,000 per accident. Such added coverage will raise your premium at least 10 percent. Consumer Reports recommends that people with a high net worth have a separate "umbrella" policy to insure against a lawsuit seeking an amount beyond their auto policy's limits. You may need to buy higher insurance limits to qualify for an umbrella policy.