An auto insurance policy is a contract between you and an insurance company. You pay a premium, and in exchange, the insurance company promises to pay for specific car-related financial losses during the term of the policy.

 Auto insurance Policies are broken down but limits and requirements vary by state.  

• Liability car insurance pays for accidental bodily injury and property damages to others. Bodily injury damages include medical expenses, pain and suffering, lost wages, and other special damages. Property damage includes damaged property and may include loss of use.

• Personal Injury Protection Auto insurance pays medical expenses for covered persons, regardless of fault, for treatment due to a car accident.

Medical Payments Auto insurance pays medical and funeral expenses for covered persons, regardless of fault, when those expenses are related to an auto accident.

• Collision Auto insurance pays for damage to a covered vehicle caused by collision with another object or by upset of the car. A deductible is required.
• Comprehensive Auto insurance pays for loss of or damage to a covered vehicle, except loss caused by collision or upset.
• Uninsured Motorist insurance pays damages when a covered person is injured in an auto accident caused by a driver who does not have liability insurance.
• Underinsured Motorist insurance pays damages when a covered person is injured in an auto accident caused by another driver who has insufficient liability insurance. Application of this coverage varies by state and depends upon policy provisions.
• Rental Reimbursement pays expenses incurred for renting a car when your auto is disabled due to an auto accident. Daily allowances or limits vary by state or policy provisions.
• Emergency Road Service pays expenses incurred for having your auto towed as a result of a breakdown.

There are eight ways you can get auto insurance policy that suits your requirements and pocket.

1. Comparison shopping by getting car insurance quotes from various car insurance companies.
2. Ask for higher deductibles to lower your premium.
3. Drop collision or comprehensive coverage if you own a car that's worth less than $1,000 because you'll probably pay more for the coverage than you would ever collect on a claim.
4. Buy a “low-profile” car that is expensive to repair or that have a high theft rate generally have higher insurance costs.
5. Take advantage of low-mileage discounts if you put fewer than a predetermined number of miles on their vehicles each year.
6. Consider insurance cost when making a move, as costs tend to be highest in cities, where more traffic congestion occurs.
7. Find out about discounts for automatic seatbelts or air bags.
8.  Ask about other discounts-Some companies offer discounts for insuring more than one car, also insuring your home with them, having no accidents in three years, being a driver over 50, taking driver training courses, having antitheft devices and a good-student discounts when you are insuring a teen driver.

Thus auto insurance is quintessential for you, your family and your car. Auto insurance policy should be a complete package of your coverage requirement, affordable premiums and good services.