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You pay a premium for a policy term, usually six or twelve months. If you cause an accident, liability coverage pays for the other party's injuries and damage up to your limits. Collision pays for your car after a crash, and comprehensive pays for theft, weather and other non-crash damage, in both cases minus your deductible. You file a claim, and the insurer investigates and pays.

At minimum, what your state requires, but many drivers choose far higher liability limits, because a serious accident can exceed the state minimum quickly. A common suggestion is 100/300/100: $100,000 per person, $300,000 per accident and $100,000 for property. If you have significant assets, consider more, or an umbrella policy. If you have a loan or lease, your lender will require collision and comprehensive.

It depends on your age, driving record, location, car and coverage. Young drivers and those in dense urban areas tend to pay much more, and premiums have risen a lot in recent years. Older averages won't tell you much. Get several quotes for the same limits and deductibles, then enter the monthly figure above to see the 10-year cost.

"Full coverage" isn't an official product. People generally use it to mean liability plus collision and comprehensive. It doesn't mean everything is covered. Your policy can still leave out rental cars, roadside help and any gap between your car's value and your loan balance unless you add those options. Check your declarations page to see exactly what you have.

It's what you pay toward a collision or comprehensive claim before the insurer pays. If repairs cost $4,000 and your deductible is $1,000, the insurer pays $3,000. A higher deductible lowers your premium but means more out of pocket per claim. Choose Compare two under Deductible above to see which one costs less over 10 years with your claims.

The other driver's liability insurer should pay for your damage and injuries, though that can take time. You can also claim through your own collision coverage, pay your deductible and let your insurer seek reimbursement from theirs. Uninsured motorist coverage can help if the other driver has no insurance. In no-fault states, your own policy pays certain injury costs first.

Your liability coverage pays the other party's injuries and property damage up to your limits, and you could be personally liable for anything above that. Your collision coverage pays for your own car, minus your deductible. An at-fault claim can raise your premium at renewal, sometimes for several years, so it may be worth weighing small repairs against paying yourself.

Insurers price your risk using your driving record, claims history, age, years of driving, annual mileage, location, vehicle model and repair costs, plus the coverage you choose. Many states also allow a credit-based insurance score, while a few restrict it. You can change some of these factors. Raising your deductible, dropping unneeded extras and asking about discounts can reduce your premium.

It's a rate at or below what other insurers quote you for the same coverage. National averages don't mean much, because your own price depends on so many personal factors. Compare at least three quotes, and include a local agent as well as online insurers. Check each insurer's claims reputation, too, since the cheapest policy isn't a bargain if it's hard to get paid.

A rule of thumb many people use is to consider it when your yearly premium for collision and comprehensive reaches about 10% of the car's value. If your car is worth $4,000 and those coverages cost $500 a year, you'd pay over the car's value in eight years. You'd also need enough savings to repair or replace the car yourself. If you still owe money on it, your lender may require the coverage.

Most insurers cover a newly bought car under your existing policy for a short time, often up to a couple of weeks, but contact them right away. A lease or loan will usually require collision and comprehensive, sometimes with low deductibles and higher limits. Consider gap coverage, since a new car can lose value faster than you pay down the balance. Use our auto loan calculator to see the balance.

It is if you claim rarely and can cover $1,000 from savings. The switch costs you $500 more on each claim. If it saves $150 a year, it wins as long as you claim less than once every 3.3 years, since $500 divided by $150 is 3.3. Ask your insurer for the exact premium at each deductible and compare it with the table above.