Can I drive without insurance?

No....unless you want to see what the inside of a jail cell looks like. The idea behind car insurance is so that both you and other drivers are protected. Along with a potential jail sentence if caught without car insurance, a suspended driver's license and heavy fine should also serve as deterrents.

Does insurance cover any collision repairs?

If you pay your deductible, the answer is
yes. Should you be in an accident,
hopefully not with a cell phone
in hand, your insurer will
compensate you to fix your
car and maybe the other car,
too, if the accident was your
fault. It is possible you will
be compensated for a rental
while your car is in the shop.

Can I be sued if in an accident with no car insurance?

If lawsuits scare you, then make
sure you have car insurance. Yes, some lawyer is happy to make a profit off of your misery. If you haven't ever caused an accident, well, keep it that way. If you are involved in an accident, there is insurance known as bodily injury liability, which provides coverage for any medical treatment of anyone you injured while behind the wheel.

Will I need insurance when I apply for a car loan?

Want the loan? Well, better have car insurance. Unless some loan officer is behind the eight ball, they will want proof of car insurance prior to approval of the loan. Unless you have a wad of cash to pay for the car, better have valid car insurance or say bye-bye to the loan.

What happens if I'm Stopped and Can't Provide Insurance?

Better be a good talker to work your way out of this one. If you're involved in an auto accident, you definitely want to know where those insurance papers are. Law enforcement will want to see the insurance papers that should be in your vehicle. If the papers are missing, even if the coverage is present, you've got a problem. You could be looking at a major fine and possibly jail time if you cannot produce them. Also, if you are stopped for any traffic citation, you will be asked to provide insurance paperwork.

How Much Coverage Should I Get?

Find out how much car insurance is required in your state and compile a list of the various types of coverage. Lots of experts agree that if you have many assets you should have enough liability coverage to protect them. As an example, if you buy $50,000 of bodily injury liability coverage and have $100,000 in assets, attorneys could pursue you in the event of an accident where you're at fault and the other driver's medical bills top $50,000.

General recommendations for liability limits are $50,000 for bodily injury liability for one person who suffers an injury, $100,000 for all individuals injured in an accident and $25,000 property damage liability (translates to 50/100/25) taking into account that half of the vehicles on the road cost more than $20,000.

Also take into consideration that the limits of any uninsured and/or underinsured motorist coverage that you buy may not exceed the limits of your liability coverage.

Finally, your past driving habits will also be taken into consideration when you apply for car insurance. Accidents, tickets for driving infractions and so on can raise your rates. If you have some of these habits, getting additional comprehensive coverage is oftentimes recommended.

Can I Delete Certain Coverage Aspects?

If you're significant other says you're not spending enough money on them and you are looking to save some cash on car insurance, there is a chance you can save some dough.

In some instances, you can drop collision insurance if:

1. You have cars that are 5 years of age or older; 2. The annual fee for coverage is 10 percent or greater of your vehicle's value; 3. You no longer are dealing with an outstanding loan; 4. You are shown to be a safe driver; 5. You have enough money in order to cover repairs.

Can I Get Discounts?

Always seek out discounts, especially in this economy. Among the discounts you could have come drive your way will be discounts for a good driving record, safety equipment, positive credit score, and more.

How Important is Reviewing the Policy?

Given that lawyers are always looking for their next victim, definitely read the fine print or you could be taken for a ride. You will want to retain the right to sue, so find out beforehand if you are giving up your right to go to court and if you will be forced into arbitration should there be a dispute between you and the insurer.

How Soon Should I Cancel my Old Policy?

Once you have signed, sealed and delivered on your new car insurance policy, cancel coverage with your present insurer. Should your state require you to carry proof of car insurance, be sure to either have it available in your wallet or glove compartment.

So now that you have some tips on car insurance, get behind the wheel, put the vehicle in drive and head out for a spin.

And as the Tom Cochrane song advises...'Life is a Highway...'