Need of car insurance

*A growing number of people are dropping their auto insurance to try to save money,  according to a recent study by the Insurance Research Council (IRC). If the current rate  of unemployment continues, the IRC estimates that the national uninsured rate will climb  from 13.8 percent in 2007 to 16.3 percent in 2010. With that many people driving without  coverage, it's dangerous to be uninsured. But how much car insurance do you really need?

*If you're like many people feeling the pinch, your inclination is to get the bare  minimum of insurance coverage required by the law in your state. That's a good place to  start, though those minimums may not fully protect you -- or your assets -- if you file  a claim. We recommend getting more than the minimum coverage unless you are driving a  beater and have no assets to protect.

*Every state in the nation, except for New Hampshire and Wisconsin, requires that you  have liability insurance, and that mandatory coverage varies according to state.

*In the chart below, minimum liability limits are read as follows (in thousands of  dollars):

*Bodily injury liability for one person in an accident
*Bodily injury liability for all people injured in an accident
*Property damage liability for one accident


*So, for Alabama, the minimum requirements are $25,000 of bodily injury liability for one  person, $50,000 bodily injury liability for all people and $25,000 property damage  liability. Personal Injury Protection (PIP), or Medical Payments (MedPay) in some  states, pays for your own medical expenses, any lost wages and whatever other costs may  arise when you're injured in an accident. It usually pays about 80 percent of your  losses, and it also pays a death benefit. PIP is required in: Arkansas, Delaware,  Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New  Jersey, New York, North Dakota, Oregon, Pennsylvania and Utah.