Liability Insurance:
This coverage protects the owner against losses from legal liability arising from bodily injury or property damage caused by an automobile accident. The coverage can be a single limit, ($100,000 for each accident), or split limits such as $50,000 / $100,000 / $25,000 (per person/per accident for bodily injury/property damage).

Medical Payments Coverage:
This provision pays medical because of bodily injury. The coverage is generally in increments of $1,000 to $5,000 up to $10,000 per person per accident.

Physical Damage Coverage:
This section of the auto policy is designed to cover physical damage to the insured auto. Collision covers, as the name implies, collision losses. Comprehensive (also known as "other than collision") covers losses from non-collision incidents, such as theft, fire or storm damage. Losses for physical damage are generally based on the cost to repair or replace the damaged or stolen vehicle.

Uninsured/Underinsured Motorist:
Even though many states have enacted "financial responsibility" laws, not all automobile owners comply. Uninsured motorist coverage pays for injuries sustained in an accident with an uninsured (or a hit-and-run driver). Underinsured motorist insurance covers the difference between actual losses sustained, and what an insured can collect from an at-fault driver, up to policy limits.

Personal Injury Protection (PIP):
PIP provides coverage for bodily injury sustained by the insured or any family member. Coverage has a $10,000 limit and is mandatory in the state of Florida - additional limits are available. Also provides funeral expenses up to $5,000.

Do I need really need it when I rent a car? The collision damage waiver, which is a type of insurance that the rental car company tries to sell, releases you from financial responsibility should you damage their vehicle while renting it. If you have already have insurance on your own car (including collision and comprehensive coverage), and rent a car for pleasure only (e.g., when on vacation), you don't need to buy the collision damage waiver from the rental company. Renting a car for business purposes, however, is usually a bit different, and you should check with your insurance agent first.

Yes. Liability, collision, and comprehensive insurance follow your car. In addition, if the person who borrows your car is insured, his or her policy also will be available to cover the cost of damages and injuries should there be an accident. Keep in mind that when you borrow someone else's car your liability coverage follows you but your comprehensive and collision do not.

Each of these numbers means thousands of dollars in liability coverage. For example, the numbers 100/300/100 actually mean $100,000/$300,000/$100,000. The first number is for bodily injury coverage per person; the second number is for bodily injury coverage per accident; and the third number is for property damage coverage per accident. Thus, in the above example, your coverage: $100,000 in bodily injury coverage per person. $300,000 in bodily injury coverage per accident. $100,000 in property damage coverage per accident.

Insurance companies use scores to help them issue new and renewal insurance policies. Insurance Bureau Scores provide an objective, accurate and consistent tool that insurers use with other applicant information to better anticipate claims, while streamlining the decision process so they can issue policies more efficiently. By better anticipating claims, insurers can better control risk, enabling them to offer insurance coverage to more consumers at a fairer cost.

As with most everything else, you can shop around to find low cost auto insurance. There are many factors that go into determining the right coverage - and price - for your individual situation. While it can pay to shop around on your own, your shopping should also include the input and advice of an insurance agent. In addition, there are a number of things that you can do that will enable you to get the right coverage at a lower cost.

• Maintain a good driving record.
• Take the highest deductible you can afford on collision and comprehensive coverage.
• Check for discounts.
• Pay your premiums on time.
• Consider dropping some coverage on older cars.
• Periodically review your coverage.
• Seek Professional Guidance from an Insurance Agent.