The state of Rhode Island's Department of Motor Vehicles (DMV) requires all drivers to own and carry auto liability insurance policy as well as uninsured / underinsured motorist coverage.
Minimum coverage stands at

• $25,000 per person to pay for bodily injury
• $50,000 per accident to pay for bodily injury and,
• $25,000 to cover for all property damage in an accident (except that of the insured).

If asked to show proof of financial responsibility you can hand in your insurance ID card, this card is issued by your insurance company at the time you acquire a car insurance policy.

If you were the responsible party in the accident, liability insurance will help to pay for medical expenses for those you might have caused injuries in the accident. Also it will pay for damage caused to the other's property. Liability insurance does not pay for any expenses deriving from your injuries and/or your property's damage. Liability Insurance should be considered as a safety net because it will protect your assets in the event of an accident.

Uninsured / underinsured will help pay if the driver responsible for the accident either doesn't have car insurance or the coverage isn't enough to pay for all the expenses. Also it can help if you are involved in a hit and run situation.

In addition to previously mentioned coverages, you can choose to have Collision and Comprehensive insurance coverage. Keeping in mind that mandatory coverages are intended for helping the insured pay for damage and injuries caused to other parties involved in the accident, collision and comprehensive will provide aid to fix any physical damage your own property may suffer.

Collision coverage is, as its name says, coverage for when your vehicle suffers a collision. However, it is good for you to learn that this collision can be anything from a home accident, like colliding your car into the garage door or the front yard tree, up to a high speed collision on a highway. This type of auto insurance coverage will aid you to pay for any reparations your vehicle may need after suffering physical damage. However, Collision will never pay for medical bills or legal expenses.

Complementary to collision, there is comprehensive coverage. This type of auto insurance will protect your property from those damages caused by non driving related accidents or those that do not involve two moving vehicles. These type of accidents are more common than you'd think, for example, if you live in a region bound to have tornados, lots of rain or hurricanes, comprehensive coverage will help pay for any damage those extreme weather events may cause to your vehicle. Also living in areas where wildlife can be found may put your vehicle at risk of a collision with a crossing animal on the road, and comprehensive will also provide aid for reparations derived from running over wildlife. In addition to this, comprehensive coverage can come in handy when your vehicle is a victim of vandalism or theft.