This is where the legal responsibilities of both the insured and the insurer are listed, including premium payment obligations, steps to filing a claim, and procedures for resolving disagreements.

This section defines terms and outlines the rights of the policyholder and the insurance company. This section is often referred to as the "fine print."

This covers loss to your own auto caused by its collision with another vehicle or object. If you cause an accident, collision coverage will pay to repair your vehicle, and is normally the most expensive part of an auto insurance policy. You must choose a deductible, which is the amount you, the insured, must pay before the insurance company pays the remainder of each covered loss. The higher the deductible, the lower the premium costs. However, keep in mind that this is the amount you must pay (generally to the repair shop) if your vehicle is damaged, so deciding on your deductible, which directly affects your premium, can be a bit of a balancing act.

Comprehensive coverage covers damage to your vehicle caused by an event other than a collision or overturn. Examples include fire, theft, vandalism, and falling objects. This also comes with a deductible you select, which is how much you will pay before the insurance company pays the remainder.

The official definition of liability from the InsWeb glossary is: "That portion of the insurance contract which pays and renders service on behalf of an insured for a covered loss arising out of the insured's responsibility to others imposed by law or assumed by contract." In simpler terms, if you are at fault in an accident, liability insurance will pay to cover injuries and property damage costs caused to others in the accident (including your legal defense costs, if applicable).

Insurance Is A Good Thing To Already Own Taking a risk might be good with poker or with your stocks, but when it comes to renting a car, do you really want to forgo insurance? Sure car rental insurance is complicated (even the counter agents don't know everything), but it is an unwise decision to drive without a safety net. Your cheap car rentals might not be as cheap as you think they are if you option to buy the car rental agency's insurance.

Want to save money? Here are suggestions from the Insurance Information Institute to help you save on your auto insurance policies.

This part of our sample fault-based automobile policy is important because it lets you know the general provisions that apply to the entire policy. It also includes your rights and the insurance company's rights in dealing with one another as insurer and insured. Basically, there are ten subsections; each will be explained where they are not self-explanatory.

A basic automobile insurance policy may include up to six different types of coverage. Usually each section is priced separately:

The Dollar-a-Day policy is a program that helps make automobile insurance available to drivers who are likely to go uninsured because of limited financial resources. The Department of Banking and Insurance does not issue the automobile insurance but provides information on how to obtain the Dollar-a-Day coverage.