If you drive, or even if you just own a car, you need car insurance. But how do you know which policy to buy.

First, it's important to be sure what your policy does and does not cover. If the policy does not give you enough liability coverage to protect your income and assets, or if it does not cover your unique driving situations, then you need to tell your agent about your needs and ask him or her for a new quote. While you are legally required to maintain car insurance, you also need to be sure your policy will take care of you in case of a crash or a breakdown. When you are shopping around, having a written record of the quote keeps the agent from attempting to raise your price if you decide to buy their insurance.

If you own a home or have life insurance, bundle your policies. That means you purchase all your insurance policies from the same provider. This can provide significant savings on all your insurance policies, and it simplifies your life because you are dealing with one insurance provider for all your needs instead of several insurance providers.

One of the major factors in computing how much you pay for auto insurance is where you live. Generally, coverage is more expensive in urban centers than in rural areas, especially if you own an expensive car. The more expensive your car, the more expensive your insurance. When buying a new car, you will also want to check your car's safety rating. Safer cars are less expensive to insure, while any kind of customization or "flash" will drive insurance costs up.

Always ask about discounts. Insurance companies often offer lower rates to women, seniors, households with multiple drivers, holders of bundled policies, and men and women in the armed forces. You often can get a cheaper policy if you belong to certain organizations and clubs, like AARP. If you have a teenaged driver in your household, and he or she is a good student, ask about good student discounts. Your teen can also get you lower premiums by enrolling in and completing driver ed or a defensive driving course.

Finally, ask around and get several car insurance quotes. Another provider could possibly offer you better coverage at a lower premium. Providers are competitive, so they also might be willing to lower their rates if they know you are shopping around for a deal. The internet makes comparison shopping easier that it was in the past. You can also do research and find out what discount programs are available, the risk assessment for your neighborhood and safety information on your vehicle. Being armed with knowledge will making negotiating a better rate easier than if you go into the negotiation unprepared.

Regardless of your car insurance needs, contact a qualified insurance provider. They can examine your situation and answer whatever questions you may have before tailoring a car insurance policy that meets your needs and provides the coverage you want. Car insurance may be required, but you also want a policy that meets your driving needs.