If you decide to purchase a car, you need to fully understand the insurance requirements of the state you are living in and insure yourself accordingly. Initially, seek out an Independent Insurance Agent and they will advice you on what is required for the state you are in. Nearly all agents will be listed in the Yellow Pages of the telephone directory. Some will not issue you insurance if you do not already have a prior driving record established in the USA; but most companies will.

The majority of states are now 'no fault' but there are still several that are not. Let's look at the difference. In some 'No Fault' states, you are not required to carry any insurance. This means, if you have a wreck, you pay to fix your car and the other person pays to fix his regardless of who wad at fault in causing the accident; but, whoever is at fault for the accident can potentially be sued by the other party for medical bills and loss of income due to the accident.

Other 'No Fault' states require you to arry a minimum 'liability' policy that pays the other party in the accident, but pays you nothing. This policy is usually referred to as a 30/50/15 policy. It will pay the other party up to $30K per person in their vehicle for bodily injury; up to $ 50K total to the people in other vehicle for bodily injury; and upto $ 15K for property damage, usually repairs to their vehicle.

In states that are not 'No Fault'; you will be required to carry at least a minimum liability policy.

In all states, you can purchase the following: Personal Injury Protection - coverage that pays for any medical bills you or others in your car sustain regardless of who is at fault; Comprehensive Protection - anything other than collision, for example, theft, vandalism, items stolen from within the car, broken windows, etc.; and Collision Protection - to fix your car regardless of who is at fault.

Get the policy that best fits your needs and meets mandatory state laws. Be aware that the cost of paying for this insurance is to be borne by yourself, and others if your money has been pooled to buy the car.