Your car insurance covers you and your car in case of an accident or the negligence of someone else. In order to insure you, the car insurance company needs payment.

This payment is done through your car insurance premium, which is the total amount annually paid to your insurance company. It may be a cheap car insurance premium that is easy on the wallet, or you may be paying higher than average car insurance premiums due to tickets, bad credit or other negative influences.

Your average car insurance premiums contain several factors that can be found on the declaration page of your policy. This page of your car insurance policy is tailored specifically for you and gives you a snapshot of the coverage that you and your insurance agent agreed to.

You will be given a binding agreement upon your acceptance of the coverage discussed, and it will be a recap of all the information that you have supplied to your insurance agent.

The policy declaration page contains your name, vehicle information, and the garaging address. It also contains the policy period and terms; it will note if this is a six-month policy or annual. It will contain your policy number, and the company that is underwriting the policy.

This policy also will list out the coverage you have chosen, in addition to the deductible information and the premium for the specific coverage noted. This makes up the insurance rates used to determine low car insurance premiums.

When you compare your insurance rates with another company, use this paper to make sure that you are comparing the coverage to obtain low car insurance premiums.

If you have $50,000 in Liability coverage with a $250 deductible, make sure that you are comparing the same or you will not get the same cheap car insurance premium, and may not have as much protection.

The following list describes some of the coverages that make up your average car insurance premiums.

- Bodily Injury Liability covers any injury to you, a designated driver, or passengers in your vehicle. This coverage is usually part of a state’s minimum requirement to register a vehicle.

- Property Damage Liability may be part of a state’s minimum requirement to register a vehicle and it covers any damage to property that you or a designated driver causes.

- Collision is an optional coverage that pays for damage done to your vehicle from a collision with another vehicle or object.

- Comprehensive covers loss from theft, fire, flooding, vandalism, or anything non-collision related.

- Underinsured and Uninsured Coverage is optional and pays for injuries to you or a designated driver when you are involved in a collision with an uninsured motorist.

Additional exemptions and exclusions are located in the endorsement section of the policy. You may decide that you want additional coverage for a broken windshield, and that may be an extra charge. That would be an endorsement if the policy is written in Montana where rocks fly by the minute and it is common to see someone driving with a broken windshield. If you are located in Florida, broken windshields are included in your average car insurance premiums under the Florida laws.

You may be allowed to pay your average car insurance premiums in installments and if you do, there may be a fee associated with the payments. The fee is usually a couple of dollars. It does not affect your coverage; you will still be covered even if you make payments.

As you can see, your car insurance premium is made up of many individual items, most of which you can choose to meet your needs. Remember that in order to compare low car insurance premiums, that you compare all the coverage in order to make a decision regarding a cheap car insurance premium.