Basic Coverage

• There are six varieties of auto insurance coverage a consumer can choose from, according to the website AutoInsurance.org. The price of coverage will vary depend on the policy-holder's age, type of vehicle, accident and driving history, and whether the vehicle is financed or owned. The six basic types of car insurance include property damage; bodily injury liability; comprehensive, which includes theft or non-auto damage; collision; medical bills or personal injury protection (PIP); and uninsured motorist protection.
  
  

Minimum State Requirements

• All states require a minimum auto insurance liability coverage, which is further broken down by state into subsets minimums. The most common minimum coverage requirements include liability coverage for bodily injury caused by the driver, property and vehicle damage liability, uninsured or under-insured motorist coverage and personal injury protection for the policyholder and his passengers.
  
  

Premium Fluctuation

• Due to fluctuation in each state's basic car insurance requirements, premiums on auto insurance also vary by state. In a 2010 study conducted by the website Insure.com, the five highest-premium auto insurance states included Louisiana, Michigan, Oklahoma, Montana and California. A state's individual basic auto insurance requirements have a direct factor on an individual's premium, according to the study.