Accidents happen. In cars, they happen nearly 100,000 times a day, and insurance can be the only thing standing between you and financial catastrophe.

Here are explanations of the major parts of a typical policy, starting with perhaps the most important component, liability coverage. The goal is to help you find your way through the thick language of an insurance policy.

We also offer suggestions for getting the best possible deal on your coverage.

• Liability Coverage: In Case You're at Fault
  Liability coverage protects you if you bang up someone else or their property.
  
  
• No-Fault Insurance
  When it's unclear who's to blame, no-fault coverage can eliminate delays and legal costs.
  
  
• Collision Coverage: Don't Take Chances
  In many cases, collision coverage is optional, but there are many good reasons to include it in your policy.
  
  
• Medical: Coverage You may not Need
  Don't duplicate coverage you may already have.
  
  
• Uninsured Drivers: Protect Yourself
  Cover yourself and your passengers in case other drivers disobey state insurance laws.
  
  
• Comprehensive: A Grab Bag of Coverages
  Don't forget about theft, fire and forces of nature.
  
  
• How to Get a Good Deal
  Premiums can never be too cheap. Here are some ways to lower your car insurance bill, and keep it down.

MORE: Kiplinger.com | The Basics of Money | Getting Started

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