Personal auto insurance coverage has three parts.

1- The liability insurance policy. It covers your financial responsibilities for injuring others. Some liability coverages are required by most states.

The second and third parts of auto insurance cover the car itself:

2- The comprehensive coverage that reimburses losses from fire, theft, and other perils.

3- The collision coverage that pays to repair losses caused by an accident. This coverage is often mandated by leasing companies and banks. There are also ancillary medical, car rental, and other coverages which vary by state.

Utilizing high deductibles on the physical damage coverages can help reduce premiums. If you carry umbrella insurance, you must be sure that you carry the required amount of basic liability insurance to avoid a gap in coverage for a serious accident.