Fact:
The kinds and amounts of car insurance you need depends on your individual situation.
Basically there are six types of coverage that can be included in a car insurance policy: collision (pays to repair or replace your car after an accident); comprehensive (repairs or replaces your car if it's damaged by such things as flood or vandalism); bodily injury and property damage liability (pays legal defense costs and damages if your car injures a person or damages property such as a building); medical payments (covers medical expenses resulting from an accident) and uninsured/underinsured motorist insurance (covers you or members of your family if injured by an uninsured or underinsured driver). You may need some or all of these coverages depending on where you live and your individual situation.

Fact:
Carrying the bare minimum of liability insurance can be a costly decision.
Today, six figure lawsuits aren't uncommon. And if you're involved in an auto accident that seriously injures or kills someone, you could be in serious trouble if all you have is minimal liability insurance. While it may cost you a few dollars to increase the liability portion of your car insurance policy, it could save you thousands in the event of a claim.

Fact:
The higher your deductible, the lower your car insurance premium.
Insurance should be used to protect you against losses that could significantly damage you financially. Yet all too often, people spend more for car insurance that they have to by choosing a low deductible. A deductible is the amount of money you have to pay out of your own pocket if there's a claim. By switching from a $250 to a $500 deductible, you can save up to 30% and more on the collision portion of your car insurance policy.

Fact:
The less you a use your car, the lower your car insurance costs.
Your auto insurance rates are partially determined by how far you drive and how often. The more you use your car, the higher your rates can be. As a result, things that cut down your mileage, such as car pooling, can lower your car insurance premium.

Fact:
Factors such as age, marital status, the number of cars you own and your driving record also affect what you pay for insurance.
There are lots of different ways to save money on car insurance. A good driving record is one of the best. Drivers with no tickets and accidents pay much less for car insurance that those with poor driving records. A number of companies also offer discounts to senior citizens and people with more than one car insured on the same policy. Often you can even save if you have children who attend college more than 100 miles away from home.

Fact:
Your car insurance policy isn't automatically updated.
It pays to review your car insurance on a regular basis. If your car is paid off and getting older, you may want to consider dropping collision coverage. If your 20-year-old son isn't living at home anymore and driving the family car, your insurance situation changes. Or if you're not driving as far to work as you did in the past, you could be paying less for car insurance. Keeping your car insurance in line with your current situation not only helps ensure you're adequately protected, it can save you money.

Fact:
Insurance agents and companies are not all the same.
There are lots of insurance agents and companies who sell car insurance. Each varies in terms of pricing, the products and services they offer and their experience. Some agents only represent one company. This means you'll get the product they have to sell. Other agents are independent and represent many different insurance companies. The best bet is to choose a professional agent who's independent. It offers you the advantage of lots of different products from which to choose.

The bottom line is, getting the facts gives you the information you need to buy insurance wisely. It can also mean the difference between getting your claim paid or finding out you don't have the right coverage.