Having car insurance is a requirement in most states. Even though it is required, it doesn't mean you have to pay more than you need to. It is a good idea to look over your records and compare different rates with other companies from time to time. If you know the rates of other companies than you can at least negotiate with your current agent to lower you premiums. They are more likely to do this if they know you are educated and they want to keep you on as a customer.
Auto liability insurance protects you from getting sued in the event of an accident. It is very important to have this feature because when you get in an automobile accident there are often unforeseen injuries that many people would like to try and sue you for as damages. A good amount of coverage to have just in case you get into an accident is at least double your assets. If you don't have much in assets such as not owning a home that doesn't mean you don't need this coverage. One asset you do have that you may not be aware of are your future earnings. You can be sued for your future earnings and have your paycheck garnisheed. You want to have around $50k to $75k in protection reserved for property damage in case you hit another vehicle.
Most states require having a certain amount of auto insurance to be legally driving. This doesn't mean that everyone follows the law and in the event of you getting into an accident with an uninsured motorists you want to be sure your insurance covers you since they don't have insurance to pay for damage and medical expenses. You may not need this feature if you already have a comprehensive medical plan and disability insurance. If this is something you already have then omit this from your current coverage because it is not necessary and is duplicate coverage. One thing to consider though is if you do drop this coverage, passengers in your vehicle aren't covered unless they have their own medical and disability insurance.
Deductibles are one of the easiest ways you can lower your monthly premiums. This makes it so that if you only have minor damage after an accident you can just pay out of pocket, rather than submitting a claim. If you have to put in a claim from getting in an accident your premium may increase. A decent amount to have your deductible at for your auto insurance policy is around $500 to $700. If you avoid getting in an accident throughout the year, you will save a great deal of money in the long run than if you have to submit a claim. If you have an older car that doesn't have a very high value than you may consider getting rid of your comprehensive and collision coverage. If you end up in the situation of getting in an accident and you determine that it is not worth paying the deductible because the damage is less than your deductible than you don't need this feature.
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