Auto insurance is a form of protection against the risks associated with owning and driving an auto. This could potentially lead to significant financial loss if you're not properly covered by quality insurance. The three basic categories of auto insurance coverage are liability, physical damage and medical.

What Products Are Available? There are several additional types of auto insurance coverage that are typically bundled together with liability and physical damage coverage. You should consider these additional coverages in light of your needs and the coverage required by state law.

-Uninsured Motorist. This coverage is required in some states and is optional in others. It covers your property damage and bodily injury costs caused by an uninsured driver. Is this coverage required in your state? If optional, some or all of the items covered may also be covered by your other insurance, such as health, disability and physical damage. Thus, the coverage may not be necessary. However, it is important to know that you are covered if you are involved in an accident with an uninsured driver.

-Underinsured Motorist. Similar to uninsured motorist coverage, it can be added to your auto policy to cover property damage and bodily injury caused by a driver whose liability limits are too low to cover adequately the damages you have suffered. This coverage can pay for your deductible under your physical damage coverage for damage caused by another driver.

-Additional Coverage. Can be added to your auto policy to cover certain costs related to an auto accident or routine mechanical failure such as temporary transportation, towing, and labor costs. These additional coverages are often available through various credit cards, car manufacturers and auto club memberships. If you are already covered, the additional coverage may not be necessary.

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Insurance companies consider a number of factors when they calculate your auto insurance premiums. Factors considered are liability and physical damage coverage, age, gender, marital status, driving record, prior claims, use of auto, the auto's year/make/model, and geographic area.

Generally, your auto policy covers you, your spouse, family members, anyone driving the car with your permission, and anyone who reasonably believes he or she is entitled to drive your car. The vehicles listed in the policy are covered. Autos that you borrow or rent are often covered. New autos are covered if you notify your insurance company within a specified period of time generally 30 days.

Tip: Check to see if your policy covers rental cars for personal and business purposes. If so, do not duplicate the coverage when you rent a car

• Request quotes from three companies
• Not all states require you to have insurance, but all states do require you to prove you can pay specified amounts if you cause injury or damage while driving. If you have further questions, click here for phone numbers for your state's insurance requirements.
• Check financial ratings of insurance companies.
• Ask for higher deductibles-this is the amount you pay before the insurance company pays a claim. Increasing your deductible from $200 to $500 could reduce your collision and comprehensive (fire and theft) cost by 15% to 30%. $1000 deductible is even a lower premium and you may consider this, as claiming smaller amounts may raise your rates making it less cost effective in the long run. Consider deleting comprehensive and/or collision coverages on cars worth less than $1000.
• Buy a low profile, low maintenance car. You pay higher insurance costs for cars that are expensive to repair or that have a high theft rate.
• Low mileage discounts may be available for motorists who don't drive many miles in a year.
• Discounts may also be offered for automatic seat belts, airbags, and anti-lock brakes.

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LEARN CAR SAVINGS TIPS

MORE KEY NSURANCE TIPS:

You may not realize it, but the insurance rates you pay for your car can vary dramatically depending on the insurance company, agent or broker you choose, the coverage you request and the kind of car you drive. Listed below are a number of things you can do right now to lower your insurance costs.

1. COMPARISON SHOP- Prices for the same coverage can vary by hundreds of dollars, so it pays to shop around. Ask your friends, check the yellow pages or call your state insurance department. You can also check consumer guides, insurance agents or companies. This will give you an idea of price ranges and tell you which companies or agents have the lowest prices. But don't shop for price alone. The insurer you select should offer both fair prices and excellent service. Quality personal service may cost a bit more, but provides added conveniences. So, talk to a number of insurers to get a feeling for the quality of their service. Ask them what they would do to lower your costs. Check the financial ratings of the companies too. Then, when you've narrowed the field to three insurers, get price quotes.

2. ASK FOR HIGHER DEDUCTIBLES- Deductibles represent the amount of money you pay before you make a claim. By requesting higher deductibles on collision and comprehensive (fire and theft) coverage, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision cost by 15% to 30%. Warning: Make sure you have enough cash or liquid assets to pay the deductible if you choose a high deductible.

3. DROP COLLISION AND/OR COMPREHENSIVE COVERAGES ON OLDER CARS- It may not be cost-effective to have collision or comprehensive coverages on cars worth less than $1000 because any claim you make would not substantially exceed annual cost and deductible amounts. Auto dealers and banks can tell you the worth of cars.

4. ELIMINATE DUPLICATE MEDICAL COVERAGES- If you have adequate health insurance, you may be paying for duplicate medical coverage in your auto policy. In some states, eliminating this coverage could lower your personal injury protection (PIP) cost by up to 40%.

5. BUY A "LOW PROFILE" CAR- Before you buy a new or used car, check into insurance costs. Cars that are expensive to repair, or that are favorite targets for thieves, have much higher insurance costs. Write to the Insurance Institute for Highway Safety, 1005 North Glebe Road, Arlington, VA 22201 an ask for the Highway Loss Data Chart.

6. CONSIDER AREA INSURANCE COST IF YOU ARE MAKING A MOVE- Costs tend to be lowest in rural communities and highest in center cities where there is more traffic congestion.

7. TAKE ADVANTAGE OF LOW MILEAGE DISCOUNTS- Some companies offer discounts to motorists who drive fewer than a predetermined number of miles a year.

8. FIND OUT ABOUT AUTOMATIC SEAT BELT OR AIR BAG DISCOUNTS- You may be able to take advantage of discounts on some coverages if you have automatic seat belts and/or air bags.

9. INQUIRE ABOUT OTHER DISCOUNTS- Some insurers offer discounts for more than one car, no accidents in three years, drivers over 50 years of age, driver training courses including defensive driving, a good driving record, anti-theft devices, anti-lock brakes and students with good grades.

10. WE WILL BE OFFERING QUALITY AUTO INSURANCE ONLINE- Our products and services page will give you some options. Our staff is finalizing the details for our priority affiliates, We have many good options for you on products and services.