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Confused about how much coverage you need? Remember that every driver has different auto insurance needs, and the coverage you choose depends on your situation. Your insurance rate is determined by many different factors such as your driving record, the value of your vehicle, how much coverage you want, your deductible, etc. If your vehicle is financed, the company you have the loan through will most likely require you to purchase full coverage vs basic liability insurance. It is also important to evaluate the type of coverage you are purchasing. State minimum coverage, also known as liability insurance, is usually the cheapest, and many drivers that are looking dor the lowest monthly payment choose this option. It is important to do your research to make sure you have the right coverage for your needs.