When it comes to auto insurance, you have three main types to choose from. Which ones is right for you?

1) Auto Insurance Comprehensive Coverage

Auto Insurance Comprehensive Coverage will cover damages to your car that are not caused by other motorists. For example, if your vehicle is damaged by fire, theft or vandalism of the whole car or a part of it, what is known as damage from acts of God (hurricanes, hail and flood).

This type of car insurance coverage is optional and should only be purchased if your vehicle is worth more then $1000. Auto insurance comprehensive coverage won't raise your premium too much, and you can choose deductible amounts of $250, $500, and $1000.

2) Auto Insurance Collision Coverage

Collision coverage covers your own car if you get into a collision. So if you crash into something or hit another car, this insurance will pay to fix your auto.

This type of coverage is optional and the deductibles range from $250, $500, and $1000. It is recommended if your car is worth more then $4000, as it can save you a bundle of money if you get into an accident.

3) Auto Insurance Liability Coverage

Liability coverage differs from comprehensive and collision coverage, because it is not usually optional. In most states and provinces, you are required by law to have a minimum amount. This type of insurance covers other people and their property.

If you cause an accident, your insurance company will pay for damages to property and for the medical bills for anyone you injure. They will cover all of the expenses, up to the maximum limit that was decided when you purchased the insurance policy. This limit may be anywhere from $50,000 to $1 million, depending on where you live and the coverage you decide on.

It is best to have at least $500,000 or $1,000,000 liability, that way you will surely be able to cover all damages and expenses you cause.