Smart Shopper's Guide to Auto Insurance

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Kiplinger.com
Saturday, February 16, 2008; 12:00 AM

Accidents happen. In cars, they happen nearly 100,000 times a day, and insurance can be the only thing standing between you and financial catastrophe.

Here are explanations of the major parts of a typical policy, starting with perhaps the most important component, liability coverage. The goal is to help you find your way through the thick language of an insurance policy.

We also offer suggestions for getting the best possible deal on your coverage.

Liability Coverage: In Case You're at Fault

Liability coverage protects you if you bang up someone else or their property.

No-Fault Insurance

When it's unclear who's to blame, no-fault coverage can eliminate delays and legal costs.

Collision Coverage: Don't Take ChancessIn many cases, collision coverage is optional, but there are many good reasons to include it in your policy.

Medical: Coverage You may not Need

Don't duplicate coverage you may already have.

Uninsured Drivers: Protect Yourself

Cover yourself and your passengers in case other drivers disobey state insurance laws.

Comprehensive: A Grab Bag of Coverages

Don't forget about theft, fire and forces of nature.