What should I consider when acquiring or evaluating automobile insurance?

Automobile insurance protects automobile owners from the potentially large bills an accident could bring. Automobile insurance also protects the car owner from theft and provides some liability protection.

  • Buy sufficient coverage in essential areas such as bodily injury and personal liability, but reduce or eliminate coverage in other areas such as collision and comprehensive if you own an old clunker.
  • Don't buy cars that cost a lot to insure and invite the attention of auto thieves. Really, your image won't suffer if you own a homely car.
  • Don't waste money on car rental insurance if you don't need to. If you're going to rent a car, find out in advance if your automobile insurance policy will cover it (most do).