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You can save money by choosing a car insurance company that has a reputation for customer service. Some companies offer discounts for things like making automatic payments and signing up for usage-based insurance. Insurers use a variety of factors to calculate your auto insurance rate, including the age and gender of the driver and the type of vehicle they drive. Some even take into account your driving history and credit history. (Image: https://www.nj.com/resizer/yia2HPWP6W2N6WZ2lJaSH8Qsrsk=/1280x0/smart/cloudfront-us-east-1.images.arcpublishing.com/advancelocal/2XKRAT5YQJEXNB5BID2AIN5MTM.JPG)Collision Coverage If your car gets damaged in a crash, collision insurance can pay to fix or replace it. It also helps if you're in an accident that's not your fault and you don't have enough liability coverage to cover the repair costs.

The value of this coverage varies depending on your car's age, value and location. It's not always worth the investment, however.

You might consider removing collision coverage from your policy if you don't need it. If you have a low-value or old car, you might also consider omitting this coverage to save money on your monthly premiums.

The best way to determine whether you need this type of coverage is to calculate its cost and deductible. The deductible is the amount you'll need to pay before your insurer starts paying for damages. Comprehensive Coverage Comprehensive coverage helps pay for damage to your car from a variety of events, such as fires, theft, vandalism or natural disasters. It's often more expensive than collision coverage, but it may be worth it to you if you can't afford to repair or replace your car out of pocket. In most cases, your policy will cover these events with a deductible you're responsible for paying before it starts to pay on your claim. The deductible amount you choose will make a significant difference in the cost of your monthly premiums.

Generally, you aren't required to have comprehensive coverage, but it could be beneficial for drivers in areas that have high rates of vehicle theft or severe weather-related occurrences. Also, it's a good idea to carry collision coverage in case you are involved in an accident on a road with high crash rates. Liability Coverage Liability coverage helps pay for other people's injuries and property damage if you're deemed responsible for causing an accident. It's required in most states.

The amount of liability you need to purchase depends on several factors. Your credit history, car's value and location are among them.

You also have to consider how much you could lose in a lawsuit. For example, if you were found at fault in an accident that caused $135,000 in property damage but your insurance policy only covers $35,000, the other driver can sue for the remaining $100,000.

Liability is one of the most important coverage types to have. It’s important to get enough of it to protect yourself if you cause an accident. Uninsured/Underinsured Motorist Coverage Uninsured/underinsured motorist coverage is an optional auto insurance policy that pays for your car repair costs and medical bills if you get in an accident with a driver who doesn't have insurance or has insurance limits that are too low to cover your damages. It also helps if you're hit by a hit-and-run driver.

Some states require you to carry uninsured/underinsured motorist (UM) coverage, while others don't. Regardless, it's important to have it.

In fact, according to the Insurance Research Council, 1 in 4 drivers on the road is uninsured. In states where this is a problem, it's especially crucial to have this coverage.

Adding UM to your policy can be relatively inexpensive, but you may want to consider “stacking” it with other auto coverages to increase the amount of protection you have. Stacking can significantly increase the limits of your bodily injury liability and collision coverages. But it could also raise your premiums. So make sure to compare personalized rates before you add UM to your policy.