Basically, insurance is a deal between you and an insurance company. You agree to pay the premium, and the insurance company agrees to pay the expenses if you get into a car accident.

In almost every state it is illegal not to have minimum car insurance. If you are found driving without insurance, often your car can be taken away. If you get in a car accident without insurance, you will be held financially responsible.

I have a car loan, how does that affect my car insurance? Most finance companies require you to have collision and comprehensive coverage as a part of your financing agreement.

Can I cancel my auto policy in the middle of my policy term? Yes, although if you are switching insurance companies, the best time to switch is at your renewal. Some companies may not give you a full refund if you cancel in the middle of your term.

Since 1945, each state has regulated their own insurance. Each state has an Insurance Department which headed by the Insurance Commissioner

Why do I need to purchase more than my state minimum?State minimums are designed to give motorists the very least they need to keep yourself legal. Though they are a good beginning, minimums may not give you the coverage that you need.

Most minimums may not cover even the most minor of accidents. Which means that if you are involved in an accident, and there is more damage than coverage, YOU are the one who has to pay. Remember, your insurance only pays to the maximum of your coverage, which is not necessarily an amount higher than your accident damage.

Having coverage for damage to your own car often is optional. To determine the value of your car consider its age, condition and how many miles are on it. Ask your insurance agent, if they think your car is worth having collision and comprehensive coverage.

To get the Kelly Blue Book Value of your car, go to www.kbb.com.

I just had a minor car accident, should I report the claim? Well, there are times when it is not to your advantage to report a small claim when the only thing damaged is your vehicle. The best thing for you to do is call your local agent and explain the situation.