Buying auto insurance can seem like an overwhelming duty. There are many tips to consider that can potentially save or cost you a lot of money and stress over the years.

Auto insurance rates depend on several factors, including, your age and marital status, where you live, how many cars are on your policy, annual mileage driven, how far you are from your work, what you drive, how long you have been with your insurance company and what other things do you have insured with them, and of course your driving record.

Here are a few car accident insurance tips that can make this task much easier:

1. Drive A Low Profile Vehicle

Some cars carry high insurance costs based upon the perceived risks associated with those cars. For example, if you drive a sports car, most insurance companies will presume there is a higher inherent risk and assign a higher rate on your insurance policy. For much lower rates, drive a low-profile vehicle that does not raise any red flags with your insurance carrier.

2. What kind of insurance coverage do I need?

Most states require that you have liability insurance; to pay the other drivers for whatever damage you cause in an at-fault accident. Comprehensive coverage pays for the physical damage to your car from things like fire, theft, weather, and vandalism. Collision coverage pays for damage to your car if the accident was your fault (if the other driver was at-fault his insurance will pay for your damages).

3. Keep Your Credit Report Clean

Your credit report is often used by the insurance carrier to determine the amount of risk they assume to offer you a policy. Though most insurance carriers won’t proactively tell you that your credit report is used to determine your car insurance rates, there is a strong correlation between a person’s credit rating and the risk an insurance carrier assumes in offering that person a policy. Pay your bills on time and review your credit reports annually to ensure they are clean of errors.

4. How do I choose the right Auto Insurance Policy?

The minimum liability coverage required by your state may likely be low – so if you hit an expensive car, the other driver (or her insurance company) may sue you for any excess damages. Think about a higher coverage limit if you can afford it – and if you have assets to protect in case you get sued.

5. Install A Car Alarm Or Anti-Theft System

Often, you can save money on your car insurance rates if you install a anti-theft device. Your rates are largely a result of the perceived risk that a car insurance company assumes in carrying your policy. Installing a car alarm in your vehicle lowers this perceived risk. As a result, your rates may be lowered.

What to do After a Car Accident?

Action Plan to Deal with Accidents:

- Keep an Emergency Kit in Your Glove Compartment. Drivers should carry a cell phone, as well as pen and paper for taking notes, a disposable camera to take photos of the vehicles at the scene, and a card with information about medical allergies or conditions that may require special attention if there are serious injuries. Also, keep a list of contact numbers for law enforcement agencies handy.

- Keep Safety First. Drivers involved in minor accidents with no serious injuries should move cars to the side of the road and out of the way of oncoming traffic. Leaving cars parked in the middle of the road or busy intersection can result in additional accidents and injuries. If a car cannot be moved, drivers and passengers should remain in the cars with seatbelts fastened for everyone’s safety until help arrives. Make sure to turn on hazard lights and set out cones, flares or warning triangles if possible.

- Determine the Extent of Damage or Injuries . Try to stay calm. Panic can make others panic and the situation worse. There needs to be a calm person to determine the extent of damage and to determine if there are any injuries that need immediate medical attention.

- Discuss the Car Accident Only with the Police. With everyone all shook up it can be hard not to talk about what just happened, but that can also lead to you not thinking clearly and accurately about what happened. It is important to limit your discussion of the accident and not to admit any fault or liability. You should talk about the accident with the police and your insurance agent only.

- Call you Insurance Agent . Call your agent or insurance company’s 800-number immediately, even at the scene with the police if possible. Sometimes the police officer can give your insurance company more accurate information rather than information you may not be recording properly because you are upset by the accident. This can save you a lot of time later waiting for your claim to be processed.