• Automobile insurance requirements vary by state.Crash on the street. German auto model 2007. image by Dariusz Kopestynski from Fotolia.com
  
  Each state has its own minimum requirements for legal car insurance. Most insurance companies will have the specifics for your state available and can give you that information over the phone. Requirements can include liability, personal injury protection, uninsured motorist and physical damage protection. Each state will determine which components are required and the minimum dollar amount each must cover for drivers residing in that state.
  
  

Liability

• With the exception of New Hampshire, every state requires liability coverage as of 2010. Liability coverage is threefold: injury of one person, injury of two or more people and property damage. Each component has a set minimum dollar amount of coverage that is required by state law. Some states require only liability to be in compliance with minimum insurance guidelines.
  
  

Personal Injury Protection

• Personal injury protection (PIP) is required by fewer than 20 states but is highly recommended. PIP covers expenses from injuries you incur in an accident as the driver of the vehicle at fault. Having PIP coverage is not very expensive but can be invaluable in case of injury to yourself or your passengers. Medical bills add up quickly.
  
  

Unisured Motorist

• Almost half the states in the U.S. require uninsured motorist (UM) coverage. UM will cover damage done to your car and injury to yourself in the event that the driver at fault does not have auto insurance. Uninsured motorists are driving illegally and can cause damage that often they cannot pay for.
  
  

Physical Damage

• Vehicles bought on credit will have minimum requirements for insurance set by the loan company that exceed state minimum requirements. States do not require that damage to your car be covered by you, but loan companies do. This falls under a physical damage, or "comprehensive," policy. Companies who finance car purchases must protect their investment until you finish paying for the vehicle They do this by writing into the loan approval a contingency that the vehicle itself will be covered under an insurance policy.