Comprehensive auto insurance is not required by law. However, if you’re financing or leasing a car, then your lender or dealership will typically require that you purchase comprehensive as well as collision insurance. Even if you’re not asked to buy it, maintaining comprehensive coverage may be a good idea, especially if your car’s market value is high. Comprehensive insurance can provide a significant financial cushion in the event of theft, vandalism, and other incidents outside of your control.

The least expensive auto insurance option would be purchasing the minimum amount of liability coverage required in your state. While this decision may be economical in the short term, it could prove to be more expensive in the long run. If you purchase the cheapest insurance option and cause an accident, then you’ll be on the hook for any car repairs or medical bills that exceed your coverage limits. You’ll also be fully responsible for fixing your car if you hit another vehicle or object or if your vehicle is stolen or damaged by something other than a collision.

The minimum amount of car insurance you must maintain by law depends on the state you live in. In Alaska, for instance, you’re required to purchase liability coverage with limits of at least $25,000 for property damage and $100,000 for bodily injuries, capped at $50,000 per individual. In Arizona, on the other hand, you’re only required to buy coverage with a property damage liability limit of $10,000 and bodily injury liability limits of $30,000 per accident and $15,000 per individual.

Your auto insurance policy would cover vehicle theft if you purchased comprehensive coverage. Liability and collision coverages won’t cover you if your car or certain parts are stolen.

Beyond purchasing the minimum amount of car insurance required in your state, you need to ensure that your assets are protected legally and financially if you get into a serious accident. Start by totaling the value of your car, home, savings, and investments, then deduct your debts to get your net worth. The liability limits of your policy should cover that amount.

Additionally, purchasing collision and comprehensive insurance is wise if you can’t afford to replace your car after it’s totaled or stolen. You could consider dropping collision and comprehensive insurance if your car is older and has depreciated significantly to under a few thousand dollars.

Here are some auto insurance tips to keep in mind before purchasing a policy:

• Good driving habits can help you save money. Your driving record partially determines the cost of your premium. Having a clean record can help you score a better rate as well as driver safety discounts.
• A higher deductible usually means a lower premium — but there’s a catch. Choosing a higher deductible can help you save money on car insurance premiums because your insurer won’t have to cover as much in the event of an accident. However, this means you’ll pay more out of pocket if you need to file a claim.
• Your ZIP code matters. Drivers who live in areas with higher rates of accidents, theft, and vandalism might pay more for car insurance. Similarly, you may have a higher premium if you don’t have access to secure parking.
• Get a discount by bundling insurance policies. You can save money by purchasing different types of insurance — such as homeowners, renters, or life insurance — from the same company.

For convenience, major insurance companies generally offer a quote and online transactions. This process allows you to quickly compare auto insurance rates between different insurers and find a good deal. However, there are benefits to working with an agent, including personalized customer service and the opportunity to ask specific questions about your coverage, the laws in your state, and which discounts are eligible for you.

Car insurance companies offer many different types of discounts that can help lower your premium. For example, you could get rewarded for driving accident-free for several years, maintaining good grades at school, having an anti-theft device or system installed in your car, or being a homeowner. Make sure to run through the list of discounts available from your insurer so you can maximize your savings.

Other drivers might not carry sufficient liability insurance to cover damages from any accidents that they cause. Uninsured and underinsured motorist coverage reimburses you for medical bills, car repairs, and lost wages if you’re hit by an uninsured or underinsured driver, respectively. This coverage also applies if you’re the victim of a hit-and-run.