Liability Coverages

• The liability portion of an auto insurance policy pays for damage when you are responsible for an accident. The minimums required by states are sometimes very low, especially if the accident is serious. The cost of repairing a car and paying for medical bills adds up quickly. If you don't have enough liability coverage, you leave the other person in a difficult financial situation. You may also end up on the receiving end of legal action if the other person decides to file a lawsuit against you. The bodily injury liability covers up to a certain amount per person with a cap for the accident. For a $50,000/$100,000 coverage, each person injured receives up to $50,000 with a maximum paid of $100,000 for the accident. Often, increasing the liability to the next level doesn't add much to the premium.
  
  

Claims Process

• The fine print of an auto policy may affect how a claim is handled should you get into an accident. For example, some policies force you to go with after-market or generic parts for a covered repair. You may not have a choice in mechanics. Ask the agent to explain the process for handling claims, including his role in the process. Agents often work with multiple insurance companies. The actual company will handle the claim, but you want an agent who will help you through the process and advocate for you.
  
  

Discounts

• The discounts available from a particular insurance company help offset the cost of the policy. Common discounts are available for no accidents, no driving violations, multiple insured vehicles and multiple policies with the same company. Ensure that the agent takes into consideration safety features on the vehicle like anti-lock brakes, airbags and alarms. These features should drop the price of your auto coverage because of the reduced risk. If you don't see these common discounts, ask about them or look for a different insurer who will offer the reductions.
  
  

Financial Stability

• Shopping around for quotes from several insurance companies is a smart move that allows you to get the best rate. Before committing to a company, do a little research to make sure the company is financially stable and provides high-quality customer service. A.M. Best and Standard & Poor's are two sources for financial information on insurance companies. A secure company is more likely to still be in business and pay out when you have a claim to file. Check with your state's insurance commission to check for complaints against a particular insurance company.