Car insurance doesn’t have to break the bank. You may be able to save by shopping around, declining unnecessary coverage and trading high deductibles for lower premiums. Indeed, you can cut costs, but you can't cut corners. If you drive in the United States, you need car insurance in the United States. Just how much and what kind depends on where you live, as insurance requirements vary by state. Here are some basic guidelines, however:

In all but two states -- New Hampshire and Wisconsin -- drivers are required to have car insurance that includes bodily injury liability (BIL) and property damage liability (PDL) coverage, which covers the injury or death of other people and damage to their property in an accident.
Many states require drivers to have car insurance that includes personal injury protection (PIP) coverage, which covers costs associated with their own injury or death in an accident.
Many states require drivers to have car insurance that includes uninsured motorist bodily injury (UM) coverage in the event that they’re in an accident with an uninsured or hit-and-run driver.
Collision and comprehensive coverage are not required in any state, although many auto insurance providers recommend them for the purpose of protecting your own vehicle in case of a breakdown or wreck.

Action Steps
The best contacts and resources to help you get it done

Browse car insurance quotes online
If you need car insurance, online car insurance quotes are a good starting point. Available from all major car insurance companies, they offer a fast and convenient way to research and compare premiums.

I recommend: Get comprehensive online quotes from car insurance providers at websites like InsWeb, Insurance.com, InsuranceUSA and InsuranceFinder, or from companies like Progressive and Esurance, which quote both their own and competitors' rates.

Solicit car insurance quotes from national auto insurance providers
Most major insurance carriers offer car insurance and all that do provide competitive car insurance rates.

I recommend: Among the country’s largest and most popular car insurance providers are AIG, Allstate, Chubb, Farmers, GEICO, The Hartford, Liberty Mutual and State Farm. National associations like AAA and AARP are also good sources for affordable car insurance.

Get car insurance from local and regional car insurance companies
Car insurance quotes can vary dramatically; for some of the most affordable, consider locally based providers.

I recommend: For car insurance in your state, try local car insurance providers and agents. You can find several at Business.com, where you can select your state from within its national automotive insurance directory. Also consider local programs like your state’s residual car insurance program. Organized online by state courtesy of AIPSO, states’ residual car insurance programs exist for drivers with poor driving records who can't easily find car insurance.

Use an independent agent to find car insurance bargains
Buying car insurance via an independent insurance agent can expose you to new resources, practical advice and special rates.

I recommend: To find an independent agent who can sell you car insurance in your town, search the member directory at the Independent Insurance Agents & Brokers of America.

Choose car insurance companies that you can trust
Before doing business with auto insurance providers, review their records with consumers to make sure they are reliable, reputable and responsible.

I recommend: If you subscribe to Consumer Reports, you can check up on car insurance companies in your state and nationwide. Another good resource is your state’s insurance department, as most compile and publish statistics on complaints against car insurance companies.

Tips and Tactics
Consider buying more coverage than is required by state law; minimum car insurance in your state might not be enough to cover car repairs or medical bills after an accident.

Penalties for drivers who don't have car insurance vary nationwide but might include driver's license and license plate suspension, cash fines, vehicle impoundment and even jail time.

If you're leasing or financing your car, dealerships might require you to have more and better car insurance than is required by your state's insurance laws.

Higher deductibles typically mean lower premiums and more monthly savings on car insurance.

If you own a business, don't forget to buy car insurance for company cars. If you own the vehicles, you'll need a commercial auto policy. If you don't own them, however, you should consider hired and non-owned auto liability coverage, which kicks in if you or your employees are in an accident while driving a personal or rented vehicle for business purposes.