Car insurance is something which we rarely think of, but all need. You may not spend a lot of time thinking about your policy unless you really need it. Most of us for this reason have little idea if we are really getting a good deal on our insurance. Learning a bit about car insurance can help you to avoid being taken in by smooth talking insurance salespeople and buying a policy with coverage you don’t really need.

The coverage which you are required to carry varies from state to state, as does the exact wording of the regulations in states with no-fault insurance; however, it is much the same in each state.

The first section of the policy is the part that covers your automobile. There are two sections to this part, comprehensive and collision. Collision covers when that tree jumps out in front of you, or another driver carelessly puts his car?s rear end in your way. Comprehensive covers theft, a falling branch, hail damage and all other things that damage your car.

The second section of the policy deals with your liability, the other guy?s damage if you caused the accident. The amount of coverage shows up in numbers. 25/50/10 for example means that the company won?t pay more than $25,000 per person and $50,000 total per accident. The 10 stands for $10,000 for property damage per accident.

Medical payments are there to cover any party involved in an accident, no matter who is at fault. Your car insurance policy also covers you in case you are hit by a car while walking. If you don’t have health insurance, this part of your car insurance helps to cover medical expenses. It may also cover medical expenses which your health insurance does not.

There are additional coverages in the policy such as uninsured/under insured motorists, which pays if someone hits you without any or enough coverage. This also covers a hit and run. Also towing may be added for a nominal sum if you have full coverage, both liability and comprehensive and collision.

You can reduce the cost of car insurance if you follow a few rules:

1. Before renewing your policy, get some different quotes and compare the prices. There are a lot of websites which let you do this all form the comfort of your own home or office. Be sure to look for quotes for insurance with the same coverage as you have already.

2.Check for discounts with your homeowners insurance company. Sometimes they offer a discount if you carry both products with them.

3. Ask if any discounts are available. There are often discounts available for drivers who have higher premiums (such as young drivers) who maintain good grades (if students) or for those who take additional driving courses.

4. Make sure that you really need to cover your car. If you don’t have a loan on the car, you might find it cheaper to just let the comprehensive and collision part of your policy go. Compare the payments you will receive if the car gets totaled against the Kelly blue book value - If this amount is less than two years of your monthly premium, you may want to drop this coverage and use the savings for a newer vehicle. However, don’t be cheap when it comes to liability coverage; it is well worth the cost.

5.Consider getting a beater. These older cars are great for commuting to work and other short trips. Carry only liability insurance for this car and save your good car for special purposes. Carry full coverage on the good car and save wear and tear.