Automobile Insurance

The larger your deductible for collision and comprehensive, the less you'll pay for the coverage. So it's always a good idea when you're getting automobile insurance, to make sure you get the largest deductible you can afford. And if your car is old and no longer worth much, it's financially sensible to drop the coverage.

As protection against drivers with little or no insurance, you can get uninsured or underinsured driver coverage. If the other driver is at fault, this covers your bills that his automobile insurance doesn't. For adequate protection, it's recommended you get at least $50,000 worth of coverage.

Medical protection takes care of your medical expenses and those of your passengers when you're in an accident. But you may not need this coverage if you also have a health plan. You can drop the coverage from your automobile insurance if it duplicates your other insurance or carry a minimal amount as protection for your passengers.

As your assets grow over time, the amount of liability insurance you carry becomes more important. The bodily liability of an automobile insurance policy pays for the other driver's injuries when you're at fault, but it also covers your legal costs if sued. So you should get at least $100,000 per person in coverage and more if your net worth warrants it. For property liability, it's recommended you have a minimum of $50,000 protection to cover the damage to the other driver's car or other property.