Review car insurance to make sure it protects you
Whether it is your fault of not, it pays to have insurance to back you up.

Car insurance is designed to protect you in the event that you are involved in an accident and damage your vehicle or are sued for damaging someone else's property or causing them injury. Almost all states require car insurance, but how do you decide what type of insurance to buy?

Before you go shopping for car insurance, it is a good idea to get a copy of your driving record. If you have ever had a traffic ticket and took a class to prevent it from appearing on your record, you want to make sure that did in fact happen. When you speak to someone about getting insurance, don't misrepresent your driving record. Your insurer could invalidate the contract and refuse to pay for any losses.

When looking for insurance, know the value of your vehicle and get at least three different quotes in writing. In order to protect your assets, make sure you have enough liability coverage and consider whether you will need any secondary coverage for items like emergency road service. Have the agent inspect your vehicle and verify the Vehicle Identification Number (VIN) and the odometer reading. They should also know if you lease your vehicle. If your vehicle has dropped in value, you may want to consider dropping comprehensive and collision coverage. If you need deductibles, choose the highest ones.

When shopping for car insurance, don't be taken in by companies that claim to have the lowest rates. They could do "low balling" and send you a letter stating that you owe more money on your policy due to a company rate error. The best way to evaluate an insurance company is through its A.M. Best rating. The more As in a company's ratings, the better its ability is to pay off. Ask what a company's rating is and make sure you get it in writing.

There are different types of car insurance. Some of the more common ones are:

t Bodily injury and liability insurance. This type of insurance protects you from claims made against you in the event that you cause bodily injury to someone in a car accident. It also covers your defense costs.

t Car rental insurance. This type of insurance entitles you to a rental vehicle in the event that your vehicle is in the shop for repairs longer than a day due to an insurance claim.

t Collision insurance. This type of insurance pays for damage to your vehicle in the event you are the cause of a collision with another vehicle or fixed object.

t Comprehensive insurance. This type of insurance covers your vehicle from damage by anything other than an accident.

t Liability insurance. This type of insurance pertains to damage caused by you to someone else's property. When another driver makes a claim against your insurance company to repair their vehicle, this is the coverage they invoke.

t Medical insurance. This type of insurance takes care of all medical expenses incurred in a car accident for you and anyone else covered in your vehicle, no matter who is at fault for the accident.

t No-fault, personal injury insurance. This type of insurance pays for damages no matter who is at fault in the accident. It covers medical, rehabilitation, work loss, funeral and other expenses incurred by you, passengers in your vehicle, your family or pedestrians who were injured by your vehicle.

t Towing insurance. This type of insurance covers the cost of a tow truck service.

t Underinsured or uninsured motorist insurance.

This type of insurance covers your injuries up to the policy limit in the event that you have an accident and the other driver has no insurance or their insurance company can't pay the costs.

Damage or injury caused by hit-and-run drivers is included.

Depending upon the insurance company you choose, there may be some ways that you can get a discount on your insurance. Some of these include:

t Being a safe driver t Completing driving school

t Driving a safe vehicle

t Installing anti-theft devices in your vehicle

t Owning a vehicle with air bags, automatic seatbelts or anti-lock brakes

t Using the same insurance company for your car and home insurance

Having a car accident is not something we like to think about, but chances are that some time in your life you will be involved in one. Whether it's your fault or not, it pays to have insurance to back you up; otherwise, you could wind up with a fine or worse, a lawsuit.