If you're applying for auto insurance for the first time or are looking to switch companies, there are a number of important decisions you'll need to make. These decisions can play a large role in determining how much you'll need to pay and what kind of coverage you have in the event of an accident. Don't go lightly into these decisions.

Do I Really Need Insurance?

Anyone who is faced with buying coverage they can't really afford has at least flirted with the notion of driving uninsured. This decision basically comes down to weighing one thing: the risk of having an accident or getting pulled over against the benefits of saving a lot of money. When it comes down to it, however, there really is no decision to be made here. Your state is likely aware of whether or not you are insured, regardless of whether or not you get pulled over. Your driver's license will probably be suspended if you are uninsured for kibg. So then it comes down to driving on a suspended license. Make that choice if you must, but jail time will follow if you are caught.

What Is The Coverage Amount?

While every state in the country insists that drivers have auto insurance, there is typically a minimum amount of coverage required. This coverage will protect you and other drivers in the event of an accident, but it will do little more. It won't cover you if an act of god damages your vehicle, it won't cover damage done in an accident with an uninsured driver, and it will not cover your medical bills should you be injured. These are big considerations you should think about when signing up for a package. Accidents happen and the costs can rack up rather quickly. Don't get caught in a situation where your financial life goes into a tailspin because of something beyond your control.

How Much Is The Deductible?

The general rule when it comes to buying insurance is that you have a choice. You can opt for a higher deductible, which will translate to a lower premium, or you can have the opposite. Which you choose is up to you. Generally speaking, the wisest choice is to pick the highest deductible you can pay in the event of an accident. Having said that, don't pick a figure you could only possibly pay or you might be able to pay. Pick something you will definitely be able to pay. If this is considerably low, you'll have to pay a higher price for your premium, but it will be worth it if you get into an accident.