The amount of auto insurance that you need depends on your individual situation. If you have very few assets and don’t own your home, you might only need liability insurance. If you have multiple assets and are a homeowner, you will need more auto insurance in order to protect your assets. If you are financing the car or other vehicle that you own, you will usually be required by your finance company to keep a certain level of coverage (usually referred to as “full coverage” or “comprehensive collision”) auto insurance on the vehicle, at least until it is paid off – this protects the lender from loss if you are involved in an auto accident.