The question for many car insurance shoppers is: do I buy the minimum amount of insurance that the state requires, or do I buy a full coverage car insurance policy?

If you are financing your car you may have little choice: your lender will require that you buy a full coverage policy. However, even if you don't have a lender you still may choose a full coverage policy for the added protection and peace of mind it provides for you - especially if you have a home or other asset that could be lost in a lawsuit following a severe accident.

The minimum auto insurance you absolutely must purchase in order to drive legally in Mississippi is what is commonly referred to as a 25/50/25 liability policy.

A 25/50/25 liability policy pays a maximum of $25,000 in medical costs for any one individual involved in an accident with your vehicle with a cap on all medical payments (regardless of how many people are hurt or what the extent of their injuries are) of $50,000 per accident. The final "25" refers to the maximum amount of property damage your liability insurance will pay for -- $25,000.

Two things to think about if you are considering purchasing only this minimum liability insurance.

First, if you are involved in a serious accident it is very possible that medical or property damages will quickly exceed the limits of this liability policy - and if that happens you could be on the hook for any additional charges, which could put your home or your savings or any other assets you have at risk.

And secondly, a liability policy will not pay one cent toward the repair of your vehicle and it may not pay for medical costs for you or anyone in your vehicle, particularly if you are found to be at fault in the accident.

In order to fully protect yourself and your passengers you need something more than a bare-bones insurance policy. First you are going to want to increase the amount of coverage on your liability policy and, secondly, you are going to want to purchase a full coverage car insurance policy.

A full coverage policy starts with a liability policy but in addition to that you will need to purchase a collision policy, a comprehensive policy, a personal injury protection policy, and an uninsured motorist policy.

A collision policy will pay for the repair or replacement of your vehicle should you hit another vehicle or if you strike a stationary object such as a tree or lamppost. Keep in mind that almost no policy will pay more than the Kelly Blue Book value of your vehicle, so don't go overboard in the size of your collision policy.

Your comprehensive policy pays for the repair (or in some cases the replacement of) your vehicle in the event that your vehicle is stolen or vandalized or if it is damaged by natural causes such as a falling tree branch or fire or flood. It is your comprehensive policy that pays for the repair of your vehicle if you strike an animal, such as a deer.

A personal injury protection policy will pay for medical treatments for you and any passengers in your vehicle even if you are deemed to be at fault in an accident. If you have a health insurance policy that is separate from your auto policy consult with your agent to see if you need to purchase additional personal injury protection insurance.

Uninsured motorist coverage, as the name implies, pays for the repair of your vehicle and pays for medical treatment for you and others in your vehicle if you are involved in an accident with a driver who does not have auto insurance.

As you might expect, the higher the amounts of insurance that you choose, the higher the monthly premium is likely to be. Keep in mind that you may be able to get your full coverage car insurance less expensively online.

If you are serious about wanting to find a good deal then be certain that you enter all of your information onto the forms on 3 different car insurance price comparison websites rather than relying on just 1 site - and then simply choose the least expensive policy you find.