Auto insurance policies are not the same and can be individual depending on your needs and premiums you are ready to pay. It's dangerous to underestimate the importance of auto insurance, as there are more and more vehicles on the road every day, which means that the number of accidents also increases. If you were the driver at fault good auto insurance will cover the damages you may have caused and will also protect you from being sued by people to whom you caused damage and you will not have to pay for them personally. In every state you are supposed to have a minimum liability – and your insurance will depend on that. In most cases, however, the minimum amount required is not enough to cover all the damages caused by some accident. Once again, that means that you will be paying from your pocket, which can sometimes mean several hundred thousand dollars. Uninsured motorist's coverage is not required, but is very popular as this way your damages will be covered if you are in an accident with a driver that does not have an auto insurance policy. If you are looking for cheap insurance physical damage policies are worth looking at, as their primary purpose is to protect actually your car and gives you a chance to save by offering higher deductibles – and therefore, lower rates you will have to pay. Your auto insurance can also depend on your personal driving history, if it can be called so. If you have a great driving record over the period of three to five years the rates are going down, as good drivers mean lower probability of an accident. Even the driver education classes you have taken can be important – if you took them at your Department of Motor Vehicles this will help you save a lot of money on your insurance. Age is another important factor often taken into consideration – people older than 50 are considered to be safer drivers than those younger than 25, which are likely to pay the highest rates. Even the place where you live can influence the rates you will be offered - in areas with dense population, such as big cities, they tend to charge more as there are more cars and therefore a higher risk of being involved in an accident. If you are planning to be a carpool driver this can also help you save money – such people get a significant discount on their insurance not to mention the fact they help the planet ecology-wise.