Basics

• Liability auto insurance is legally required in most states. This covers you for injury or damage to someone else. When you buy collision and comprehensive protection, you elect a deductible amount for each type. Collision covers damage to your car from an accident and comprehensive covers other common damages.
  
  

Premiums

• The higher your auto insurance deductible, the lower your premiums. If you want to pay less in monthly premiums, you can elect $500 or $1,000 deductibles, which are common. Realize you must pay up to that amount following a covered event before receiving any relief from your insurance policy. If you want to avoid substantial payouts of higher deductible amounts, you can take on a higher monthly premium and elect $0 to $100 or $250 deductibles.
  
  

Considerations

• Consider the value of your car when buying coverage. If you have a low value car, you might opt for higher deductible amounts, since the car might be a total loss anyway in an accident. Some people buy only the legally required liability on low value cars to avoid higher premiums. You could also combine home and auto policies for bundle discounts.