Everyone is supposed to have car insurance. Different states have different requirements for people to carry certain types of car insurance, with certain minimum policy limits. However, not everyone complies with these requirements, so it's important to understand both your state's requirements, and how you can protect yourself from the people who ignore them.

Liability insurance.

Liability insurance is the most basic type of insurance, and it's required in the state of Mississippi. Liability insurance pays for medical injuries up to the stated policy limits, and liability also pays for property damage to your vehicle or possessions in your vehicle up to the policy limit.

Policy limits.

When people purchase car insurance, they buy a policy that pays up to a certain dollar amount for different types of damages. Mississippi law states that drivers must carry a minimum of $25,000 in medical liability, with $50,000 in medical liability per accident, and $25,000 in property damage liability insurance. Some drivers elect to carry more coverage if they have significant assets or earnings to protect.

Uninsured motorists (UM).

Uninsured motorists' is a type of voluntary coverage that you can elect to add to your auto insurance policy that protects you in the event that you're involved in an accident with an uninsured driver. Uninsured motorists' insurance has policy limits similar to a conventional plan, and you must elect how much to carry. This is a voluntary policy, so you don't automatically have it; you must choose to carry it and pay an additional premium on top of your insurance policy.

Underinsured motorists (UIM).

UIM is similar to uninsured motorists, in that it is a voluntary policy that you must elect to carry and it protects you in the event that you're involved in a car accident with a driver that doesn't carry enough insurance. UIM makes up the difference between the other driver's insurance policy limits and your actual damages, in the event that your damages exceed the policy limits.

Additional insurance options.

Beyond traditional insurance designed to protect you in the event of a car accident, insurance companies offer additional coverage to protect you from other types of damage. This could include collision insurance, which covers damage regardless of who was at fault, or other types of insurance designed to protect against hail and other potential causes of damage. You can also purchase rental car insurance, which pays for the cost of a rental car for a short term in the event that your car is inoperable due to repairs, such as a car accident.