We all want affordable automobile insurance. What we don't realize, however, is that it is a simple matter of educating ourselves to get the best from our insurer and our insurance policy. If we know what to look out for, then we'll be able to purchase a policy that covers us under the appropriate circumstances, and we'll purchase it from a reputable insurer.

Your policy documents contain all of the information that you need to know exactly what your insurance policy is about, what it covers and how it does so. When you think about purchasing an insurance policy, the policy documents will be presented to you beforehand. These are the documents that you will have to sign to finalize the purchase of the policy, and a copy of all of these documents will be given to you.

When you look at your policy documents, you will notice the term "policy period." This tells you for which period your insurance policy is effective. Once this period has come to an end, you will have to renew your policy. Beyond this, you will find a list of the vehicles that you have insured under the policy. The type and number of vehicles that you place on your policy can drastically affect your premiums. Thus, when you purchase a vehicle, consider taking the insurance prospects into account before making the decision to purchase.

The number of drivers who are placed on your policy will also affect your rates. A good idea is to put all of the drivers in your home under a single policy, as opposed to each taking out his or her own policy, as this will result in a significant rate reduction in most instances. The next thing you have to take into account is your liability coverage. This is the amounts that will be paid out in respect of various claims. The same applies for your physical damage coverage. This is the maximum that will be paid if your vehicle needs to be repaired or replaced. When you purchase your insurance policy, take time in considering these values, as you need enough cover, but not so much that your car insurance premiums are not affordable. In other words, take only as much cover as you can afford - no more and no less - and you cannot go wrong.

One final note to consider is the fact that these days, most insurance companies of a large variety of auto insurance discounts for various things. Be sure to ask your insurer what discounts they have to offer you, and you can be sure that you will get the lowest rates and the best quality possible.