5) Comprehensive Physical Damage.  For damage to the insured’s car resulting from theft, vandalism, fire, hail, etc. 

6) Uninsured or Underinsured Motorist Coverage.  For cost related to property damage and injury to the insured by an uninsured or underinsured motorist.  This is frequently the coverage that comes into play after a hit-and-run accident.

Of course, read your policy and ask questions, as these are only broad explanations and will vary from policy to policy.

A Few Money Saving Pointers

No matter how I prune and fertilize them, the trees in my backyard simply will not grow money.  Without such a “cash crop,” saving money has become very important in my life.  Following are some money saving tips from experts in the field, as well as some of my personal experiences:

1) Check the Competition.  Remember, there are lots of companies selling this stuff. Check around. Compare the prices from four or five companies. You’ll find that rates and prices vary quite a lot.

Remember, not all companies are equally good.  As is the case with any form of insurance, the cheapest price isn’t always the best buy. Ask your friends about the experiences they have had with their companies and check the rating services. 

2) Drive Like You Know You Should. One thing that will raise your car insurance costs the fastest is a bad-driving record.  This is something you can control—do it! 

3) Arrange for Higher Deductibles. A deductible is the money you have to pay before the insurance company fulfills your claim. You can reduce the cost of your insurance drastically by raising the deductible (the amount you’re responsible for) on collision and comprehensive coverage.

4) You Might Opt Out of Comprehensive and/or Collision Coverage If You Drive An Older/Cheaper Car.  Assuming your agent is trustworthy, this is might be worth discussing.

5) Inform Your Agent If You’re A Low Mileage Driver.  Some companies determine their rates based on the amount of annual driving a policyholder does. 

6) Tell Your Agent About Any Safety Features and Anti-Theft Systems On Your Car.  Some companies reduce their costs to people who drive cars with automatic seat belts, airbags, and other safety and theft devices.  It’s worth asking about.

7) Pay Your Premium in One Lump Sum.  Some companies charge less if you pay your premiums annually or semi-annually.  This can avoid some of the service charges associated with monthly payments.

8) Check and See if Your Insurer Discounts Car Coverage When You Buy Other Insurance from Him.  Some insurers give price reductions to clients who buy their homeowners, umbrella, and other coverages from them.