Car insurance is something that every driver is required to have on their car, but states require simple liability insurance, which is insurance that may pay the victim of an accident if the carrier of the liability insurance is at fault. Liability insurance is the cheapest to get, and rates can be anywhere from between $600 and $1200 a year, depending on vehicle, driving record or your state's requirements for liability insurance. Sometimes a loan or lease holder will require comprehensive car insurance as well, if you are leasing your car, or buying it on credit.

Many drivers choose to get comprehensive car insurance instead. This is especially true for drivers that spend a lot of money on their cars, or that spend a lot of time and money to maintain them. Comprehensive Car Insurance is easy to get, you can find out about it simply by asking your insurance agent.

Your decision of whether or not to get comprehensive car insurance coverage for your vehicle largely depends upon what your risk factors are. First, let's define what comprehensive car insurance is. Comprehensive coverage allows you to receive coverage for things like damage to your vehicle if it is stolen, flood damage, or damage from fire or unexpected events like damage from animals.

Of course, most people aren't in any danger of any of these risk factors, such as animal damage, unless you spend a lot of time driving through zoos or the Serengeti. But you may want to consider this type of insurance if you are a dog groomer or a veterinarian, or if you live in an area where flooding is a possibility.

Comprehensive Car Insurance may also cover you in case your vehicle breaks down and you need to get parts replace or fixed. Generally, while this is the most expensive factor in determining your rate on comprehensive insurance, you can reduce this premium by choosing a higher deductible.

The higher your deductible the lower your rate will be, but be aware that if something happens then you will be required to pay the deductible before the insurance company will pay anything. For instance, if you have a damage from flood clause in your policy, and you choose a deductible of $1000, then if your car was water damaged and it would cost $1500 to repair it, you would pay $1000 and the insurance company would pay $500.

Of course, this goes both ways. If your car is damaged and the repair cost is $11,000, then you'll only pay $1000 while the insurance company pays $10,000. So balance what you can afford to pay in an emergency situation, whether it be from savings, or emergency money, decide what sort of deductible you can afford to pay. Any specific questions can be answered by your agent.