As we mentioned earlier, you will need at least the amount of coverage your state's financial responsibility, compulsory auto insurance and/or No-Fault law requires. You will want to consider whether you need more insurance than the state requires, as those limits are minimums and accident claims for injuries and damage to others' cars and property can be quite high. Also, remember you can considerably reduce your cost for collision and comprehensive coverage by increasing your deductible. No one can make the coverage decision for you, as it depends on your individual circumstances. Here are a few of considerations to take into mind when making that decision.

• If you are young, single and have not accumulated a large amount of assets, such as a home, you may not need large amounts of liability insurance.
• Once you are married and perhaps have children, you may be shuttling them around with their friends to school, soccer and dance classes. You may also have more assets to protect, such as being a first time homeowner. At this time of your life, you may want to consider higher amounts of insurance.
• When your children grow up and become drivers, they may drive your family car or their own. Also, you probably have accumulated substantial assets at this point. This is also a good time to reevaluate your coverage limits.
• Maybe you or your children are driving an older model car that is not worth a large amount of money. Depending on the cost of the collision and comprehensive coverage, it may not be cost effective to continue to carry these coverages. This may be particularly true if you have already increased your deductible to save money on your insurance premiums.
• When the assets you have accumulated over time cause your net worth to exceed the limits of the auto liability insurance you have purchased, you may want to consider buying additional liability coverage through what is called an umbrella policy. If you have your auto and homeowners insurance coverage with the same company, you may want to contact that company to inquire about purchasing the umbrella liability policy from them, as it may cost less. Otherwise, check with either your automobile or homeowners insurance company about this coverage.

Remember, even though the decision as to the types of coverage and amount of coverage is yours, you don't have to make it alone. Your insurance company representative or a professional insurance agent can guide you through the decision-making process.

When do I Need My Own Policy?
It is a good point to remember that auto insurance coverage requirements follow the owner of the vehicle. That means that once you purchase the car yourself, without a parent or someone else as a co-buyer, you are responsible for obtaining an auto insurance policy. If you live in the same household as the vehicle owner and don't own your own car, you usually can remain on the vehicle owner's auto policy as a covered driver. This should be the least expensive option. When you buy your own vehicle and are solely responsible for the payments, most insurance companies will require you to have your own auto insurance policy. If you are a student and take your car away from home with you to school, you may also need your own insurance policy.