Basic auto insurance is made up of coverages. The major components are:

• Collision: This is the part of your policy that pays to get your car repaired after a collision, regardless of just who hit what or how. It is collision insurance that will get your insurance company to seek out another driver's insurance company to pay for repairs if they were at fault. A deductible amount will apply: that's the amount you pay for the fixing before the insurance company pays the rest.
• Liability: If you are at fault in an accident it covers the injuries and damage you cause to other drivers and their cars. If you are taken to court this part of your insurance will apply to your legal costs. Most states require this one, but the amount required varies from state to state.
• Comprehensive: Coverage for damages to your car caused by something other than a crash. A vandal breaks in, a tree falls on it or floodwaters engulf it. Again, a deductible is applied.

Plus, you can also get policies that help pay medical bills after accidents, including injuries to people in your own car if you were at fault. And there is coverage for your car if damage is caused by another vehicle that was not covered by its own insurance. This "uninsured driver" insurance is often required by state law.

You can also find a policy that will cover amounts that are more than the other driver's insurance will pay if they were at fault (they are considered "underinsured" drivers).

Gap insurance must also be considered, and may be required with a leasing or finance deal. It will pay the difference between what other policies have paid out and the amount you owe on the vehicle should it be wrecked or stolen.

Leasing or financing requirements
When you lease or finance a car you may have to take out an insurance policy with terms defined by the leasing or financing company. If you do, you'll find that the coverage they demand is steeper than the minimum state demands when it comes to liability, and may be more than you would have bought for a car where the choice was yours alone.

A similar high level of collision and comprehensive insurance may also be required in a lease and/or a finance deal. What's more, the loan or lease company may demand you set your deductibles at a fairly low rate -- and that means you again pay a higher premium.

Make sure you take these fixed insurance costs into account when you work out your lease or financing costs.

Compare and contrast
Don't think of insurance as a fixed-price, fixed-benefit item. Do some comparison shopping between companies, and make sure to ask for all of their options: policies can be assembled piece by piece, with different prices for different coverages, a little more coverage in some places, less in others. Make sure you get a policy package you are sure covers you the way you need to be covered.

There are there a number of ways to bring coverage costs down without giving up vital protection. One way to get the best deal is to let the government help you: The Federal Consumer Information Bureau has created a list called Nine Ways To Lower Your Auto Insurance. The FCIB details ways to get more for less:

• Comparison shop.
• Ask for higher deductibles.
• Drop collision and/or comprehensive coverages on older cars.
• Eliminate duplicate medical coverages.
• Buy a "low profile" car.
• Consider area insurance costs if you are making a move.
• Take advantage of low mileage discounts.
• Find out about automatic seat belt or air bag discounts.
• Inquire about other discounts.

If you have any doubts about insurance requirements or laws in your state, try the insurance industry's National Insurance Consumer Helpline (NICH) at 1-800-942-4242 or call your state's insurance department; go to it's Web site for e-mail contact: