The first is by purchasing a policy that only covers you for your state's minimum insurance requirements. You're a great driver aren't you? It doesn't matter, the minimum coverages are not going to be adequate if you get into a serious accident caused by you or someone else - you could end up being sued and possibly losing your case - even if you were in the right. You will incur legal costs, court costs and end up paying the amount of the lawsuit, and in extreme cases you may end up losing your home and paying to repair and replace your vehicle.

The only people who get cheap car insurance, in comparison with the rest of the population, are people who own a sensible vehicle. Which means there is no financing involved, they will be a middle-aged woman, in a steady and sober occupation such as a teacher or banker, and have a pristine driving record with no tickets for moving violations or any accidents. She will also have a good credit history, live in a rural area in a state such as South Dakota and pay for her policy in full on its renewal date. Her car will have an anti-theft device, anti-lock brakes and be kept in a secure location when not in use. She will also opt for a large deductible and not drive very far.

If this doesn't apply to you, then you are going to have to do some research and shopping around. Every state requires that you have vehicle insurance, so there is no way around it, but remember what you are paying for - a good car insurance policy, tailored to your lifestyle and needs, should provide you and your family with peace of mind.

Property, liability, and medical are all included in your cheap car insurance plan. If your medical bills, or those of another person involved in accident exceed the minimum limit you opted for, then you could be out of pocket. Property coverage pays for damage to or theft of your car, if you paid cash for that brand new car and only have minimum coverage, again you will be out of pocket. Bodily injury or property damage caused by you is taken care of by liability coverage, with cheap car insurance this may not be an adequate amount. If you opt for the minimum, the costs of treating injuries, rehabilitation and lost wages and possibly funeral expenses are paid by medical coverage - but only up to the limit you have requested.

To get cheap car insurance may cause you major financial problems in the event of a serious accident. If you are that middle-aged teacher in South Dakota, you're lucky, for the rest of us, cheap car insurance may cost us considerably more than we bargained for, in the event of a serious accident. So contact an experienced auto insurance agent to discuss what is best for you.