Does shopping for Car insurance drive you mad? It can be so laborious and time consuming. Fighting your way through the legal jargon can be a real headache. However, when you finally crack the code you will eventually see that there are only four basic types of coverage that you need to concern yourself with. Out of these four two of them are actually required by law in most states.

To save you future headaches in the future here are the four basic types of car insurance features that you need:

1) Comprehensive Insurance. Although it isn’t required by law in most states, most loan companies are pretty strict and will generally demand that you take out comprehensive car insurance to protect not only their investment (i.e.; the car) but also you too. Comprehensive coverage handles the things that don't necessarily happen in a crash. These would include things like damage caused by vandalism, bad weather, fire and so on and are generally covered under a car's comprehensive policy. Without this coverage, many a person could find themselves up to their ears in debt with no car to drive so it is well worth investing in….just in case.

2) Liability Insurance. This coverage protects you from damage that you might cause in a crash to another person or if you damage property belonging to somebody else. The minimum limits are usually set by law, but you can increase the cover if you want to pay extra. This type of car insurance is essential for any driver.

3) Personal Injury Protection. This is basically a medical policy. In many cases you don’t even need to be in your own vehicle to be covered by this portion of a car insurance policy. You will generally be covered in whatever vehicle you are in. This type of car insurance pays medical bills, up to a set amount, following a crash. The limits vary depending on how much you want to cover yourself for or what the law demands in your particular state.

4) Collision Insurance. This type of car insurance is generally optional. Collision insurance pays for damage to your vehicle after a crash if you are the one at fault. The typical policy will usually pay for repairs up to the fair market value of a car or will provide a loan pay off up to the fair market amount. Although it is optional this coverage is almost always demanded by companies that write auto loans, but is considered "optional" by most government authorities. A word of warning though: This policy doesn’t pay what’s left on a loan. It only pays what the car is worth.

Not everyone needs the four basic types of coverage, but if you want to be a well-protected driver I would recommend on having all four of the car insurance policies even if they are not required by a loan agreement or the law. It is prudent to be covered for all eventualities just in case, as you never know what could happen on the road. It is one of those things in your budget that you hope that you will never have to use, but if you do it could be the best investment you ever make.