Make sure your auto-liability policy includes bodily injury protection, uninsured-motorist coverage, and property-damage coverage. For bodily injury and uninsured-motorist coverage, get up to $100,000 per person and up to $300,000 per accident; for property damage, get $100,000. And if you can't afford to replace your car or pay for extensive repairs, get collision and comprehensive coverage.

Cut your premiums by taking the highest deductible you can afford. You'll save about 40 percent a year by increasing the deductible from $250 to $1,000. But you'll pay more out of pocket if there's a wreck, so if you have frequent car accidents, forget it.