Car insurance is one of those things that cost a lot of money and you rarely use, until you need it. You’ve probably been tempted to cut corners when choosing a car insurance policy to find the cheapest option possible and still meet all legal requirements in your state. Below are some items to be aware of when shopping for car insurance:

Don’t skimp on liability coverage

Not having sufficient liability coverage could prove financially fatal in the event of a serious accident. While most people can handle a $500 deductible, most people would be wiped out if slapped with a million dollar lawsuit. Many insurance consumers opt for paying a higher premium to have a lower deductible even though they carry the bare minimum in liability protection.

A much better and safer option is to raise your deductible and increase the dollar amount of your liability coverage. Your overall insurance premium should remain approximately the same while providing you with significantly better liability protection. A good rule of thumb is to have a minimum of $500,000 of liability protection per person. This will vary depending on your particular financial situation and amount of personal assets. Your best bet is to consult with your agent or insurance professional.

A place to save some money is reducing or eliminating personal injury protection, also known as medical payments coverage. If you already have health insurance for yourself and your family, that would cover your medical bills after an accident. Again, check your health insurance policy to make sure you have adequate coverage.

Total liability versus coverage per person

Many policies are written with a total of $300,000 liability protection with a maximum of $100,000 per person. This doesn’t help you much if one person is involved in a $200,000 lawsuit. Instead, have your policy written so that the total and per person amounts are the same. That way, $300,000 in coverage is really $300,000 no matter how many people are involved.

Consider “umbrella” coverage

If you have considerable wealth, you probably will want to consider purchasing an umbrella policy that would protect both your home and car. Umbrella policies usually start at $200 to $300 a year for up to $1 million worth of coverage. Cheap when you consider the potential cost of a lawsuit.

Seek out professional advice

Your friend or well meaning uncle may be a great guy, but you probably don’t want to rely on his advice when it comes to car insurance. It best to get advice some advice from a neutral, credentialed professional.

Seek out an insurance professional who has earn industry credentials. Things to look for include: CPCU (Chartered Property Casualty Underwriters), CIC (Certified Insurance Counselor), or the AAI (Accredited Adviser in Insurance.) All three certifications require rigorous training and testing to earn.

Maintain a good credit rating

Many insurance companies will use your credit rating as an ingredient in determining whether to accept you as a client and how much to charge you for coverage so it pays to maintain a good score.

Car rental coverage

Unless you own a second car, make sure your car insurance policy covers the cost of a rental should you lose the use of your car after an accident. Being without this coverage could cost you significant cash especially if need to rent a car for more than a few days.

Shop around

In addition to calling local agent for price quotes, use online sources to search for the best price. make sure your compare “apples to apples” when determining what a good price is for the type of coverage you’re purchasing. Check customer satisfaction statistics. Often companies with the best scores have the best prices too.

Take advantage of discounts

If it’s been a number of years since your last accident or ticket, if you store your car in a garage or drive less than a certain number of miles each year, you can probably get some significant discounts on your premium. You should be able to get additional discounts for such things as having airbags, anti-lock brakes or an alarm system. Also consolidating your home and auto coverage with the sale company often gets you additional discounts.

Drop collision coverage on older cars

If your car is older than eight years or so, it may not make financial sense to spend money on collision coverage. For example, if your car is only worth $2000 and it’s totaled in an accident, all the insurance company will pay is $2000. Why not save that money and earn interest instead of paying it to your insurance company. If you are in an accident, you’ll have money already saved to use toward a new car. If not, you’ll have that much more money to spend on other things.

You can also check with companies like A.M. Best Company Inc. and Standard & Poor’s Insurance Ratings Service to research a company’s financial solvency. Cheap coverage does you no good if the company takes your premium and folds.