Take a look at your coverage once a year to make sure you have sufficient coverage. Most states require liability insurance to protect you if an accident's your fault. The minimum requirements for bodily injury liability differ from state to state, but yours should pay at least $100,000 per person and $300,000 per accident. If your net worth is high, consider upping those numbers.

Property damage coverage, which pays for another vehicle or property damaged by your car, should be at least $100,000. And uninsured motorist coverage, which pays the bills if you or your passengers are hurt by a driver without insurance, should equal your bodily injury coverage.

Although it's not required, you'll probably want to get collision insurance: it pays to repair or replace your car in case of an accident. Also consider comprehensive insurance to protect yourself if your car is stolen or damaged in a natural disaster (fire, flood, etc.). Keep in mind, too, that the higher your deductible, the less you'll pay in premiums. Other insurance includes personal injury protection and medical payments coverage. The first reimburses you for lost wages and in-home care, and the second covers medical bills for you and your passengers.

To help you choose an insurance company, visit your state's department of insurance website (every state has one). Many publish consumer complaint ratios for companies that sell policies in their state. Contact local body shops for the inside scoop, such as how quickly companies pay claims. Compare premiums online and speak to agents about savings for more than one policy.

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