• Liability - Liability insurance covers expenses <up to the financial limit of the coverage you select> you could incur if an accident is your fault. If you have legal expenses, your defense is paid. If you have caused injury to someone, damages owed to them are covered.
   
• Collision - Collision insurance covers the cost of repairing or replacing your own vehicle in the event of an accident.
   
• Comprehensive - This covers repairs necessitated by something other than an accident - if your window is smashed and your radio stolen or if a tree branch falls on the car.
   
• Uninsured Motorists - Regardless of legal attempts to prevent this, there are those who drive without basic liability insurance. This coverage makes certain that you, your passengers, and your vehicle are protected should you be in an accident caused by an uninsured driver. This also covers you if you are the victim of someone who leaves the scene <referred to as hit-and-run>. There are also policies that pick up where the inadequate policy of an "underinsured motorist" leaves you with property or medical expenses not covered.
   
• What’s a Deductible? - Your deductible is the amount you are willing to pay before your insurance kicks in. If you are willing to pay the first $500 toward costs, your premium <the amount due on your insurance bill> will be lower than if you choose a $200 deductible.
   
• What Else Determines the Premium Amount? - Insurance companies with other types of policies for sale may offer you a break on your homeowner's policy if you also buy your car insurance from them. If you are buying coverage for yourself and your spouse -- especially to cover more than one vehicle -- your coverage should be lower than two individual policies. There are also price breaks for drivers with clean records.

Most insurance companies offer payment options such as biannual billing, quarterly billing, and monthly billing. You will probably pay a small service fee if you choose to spread your payments out. Insurance within an urban area will be more expensive than in a rural one, as a rule.  If you have been at fault in a major accident or have a past record of driving while intoxicated or have points for speeding or other infractions, your rates will be higher. Elder drivers are often more expensive to cover. Young drivers are usually very expensive to cover -- boys more expensive than girls. The insurance rates are based on statistics of accidents that occur and how serious and/or expensive they tend to be. To assess their risk factor in insuring you, you'll be asked such things as your age, gender and marital status, how far you drive each day as well as within a year, and what safety features are on your automobile <airbags, anti-theft precautions, anti-lock brakes, etc>.

Something Else to Keep in Mind

If you find that the only insurance you are able to get is very expensive, don't hesitate changing later. Some companies will not take you if you have never been insured before. After a year or a few years of a clean driving record, you will probably be able to have your insurance company significantly lower the cost of your insurance. This is also the time to comparison shop again. A different insurance company may take you at even lower rates once you have proven to be a good risk.

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