It’s a question everyone who buys car insurance has to ask themselves: What coverage do I need on my auto insurance policy? Short answer: Your insurance company or agent is best equipped to help you answer this question, but you shouldn’t disregard your own concerns, financial situation, and tolerance for risk. Nobody can predict where or when a loss will occur—or how severe that loss will be. (That’s why we have insurance, after all.) You can, however, put coverage in place that is more likely than not to give you adequate coverage for the risks you face. What car insurance coverages are required? Most states require drivers to carry minimum limits of liability coverage. These minimum limits may or may not be right for you—it’s best to talk with your insurance company or agent to make sure. After all, liability coverage will only pay claims for other parties if you cause an accident. And even if that’s all you think you want to be protected f...