Yes, you need car insurance! But you do have options that can keep the price affordable. Here's a brief rundown of what you do and don't need:

• Liability and property damage coverage: This covers injuries or damage you cause to other drivers, passengers, pedestrians, and property. Liability coverage usually specifies three numbers, such as 100/300/75. The first number is the amount your insurance company will pay if one person is injured ($100,000), the second the total amount they will pay if more than one person is injured ($300,000), and the third number is the maximum they'll pay for property damage to property, such as a fence, a house, a sign, or a mailbox ($75,000). It's expensive coverage, but don't skimp, particularly if you have a lot of assets that someone could come after.

• Medical: If you have sufficient health insurance, you don't need this. Opt for zero or minimal coverage.

• Collision and comprehensive: Collision covers the cost of damage to your car if you cause an accident, and comprehensive covers random damage or theft. If your car is old, you can adjust the amount downward, but keep in mind that the cost of repairs can be high. If your car is new, your loan agreement may require a certain level of coverage, but you can still opt for a high deductible.

• Uninsured or underinsured motorist: This covers your expenses if someone without any or sufficient insurance hits you. Check to see if your state covers any of these costs; opting out is a gamble. The Insurance Information Institute estimated that 13 percent of accidents are the fault of an uninsured driver.

It makes far more sense to raise your deductibles to keep premiums low than it does to minimize the levels of coverage. Your chances of not needing the coverage are greater than what it will cost you if you do.

How to Keep Your Car Insurance Rates Low

If you have an excellent driving record, you may qualify for the lowest rates available. Amica offers low car insurance premiums to safe drivers, but you have to meet their rigid standards to qualify. Also, anyone with military experience, or who has a family member (parent or spouse) who served in the military, is eligible for reduced rates through USAA.

Another option is to minimize coverage, but there are smarter (and safer) ways to lower your car insurance premiums:

• Drive safely. Two moving violations in a year will raise your rates substantially for the next three years. Obtain a safe driving pamphlet from your state's driver's license bureau, read through it, and abide by its laws.

• Contest traffic tickets. Even if the issue is debatable, many jurisdictions are not prepared to send a representative to court, which means you avoid those pricey points that boost insurance rates.

• Pay all fines promptly. The DMV can suspend your license, which will hike premium prices substantially for three years. Plus, they could report your delinquency to credit reporting agencies.

• Take a defensive driving course. You can save as much as 10 percent for three years.

• Check your policy annually. Benchmark birthdays can lower your rates. Women's rates go down at age 25, unless they marry earlier. In some states, an early marriage qualifies a woman for adult rates.

• Lower your mileage. Mileage less than 5,000 to 7,000 miles per year earns lower rates.

• Avoid SUVs. Companies will charge 5 to 20 percent more for SUV coverage. Ditto for sports cars.

• Drive cheap cars. If you buy a car that is cheaper to repair and that is not particularly attractive to thieves, you will be eligible for lower insurance rates.

Finally, always remember to ask about discounts. Not smoking, having a clean driving record, using anti-theft devices, installing anti-lock brakes, automatic seat belts, airbags, and having good grades or not using a cell phone in the car can all lower your rates — but you have to ask!