Quite simply, an auto insurance policy includes these elements: there is the insurance company, who is offering the policy; the agent, who is the insurance company's representative; the consumer, who is looking to purchase a policy, and the terms, which state the responsibilities, coverage and legalities of the insurance policy.

The first to take into consideration are the qualifications of the insurance company. Do they have a good reputation? How are they rated with A.M. Best Company and other insurance regulatory agencies? Do they offer fair coverage rates?

Ask the right questions and shop around; compare rates, reputations and anything else that will help you make an informed decision. You are not only shopping for a good insurance company, but you are also shopping for a good agent.

A good agent will compare the different companies and place you with the company that fits your needs. You should look for an agent that can answer all your questions and who will be dedicated to actually finding you the best deal out there.

The second thing to look at is you, the consumer. Take into account your financial status and your needs as a driver; figure out which coverage is best for you.

Determine the most you can spend on a policy and figure what you can really afford; this will help you figure out what kind of coverage you actually need and help you and your agent pinpoint the correct policy.

Again, you need a good, solid agent to help you make an informed decision.

Choose your agent, coverage and your insurance company wisely. For example, if you commute to work everyday in rush hour traffic, full-coverage insurance is probably best for you.

If you have a newer car, full-coverage insurance is probably best for you. If you drive rarely, maybe liability and uninsured motorists is best for you because of the lower risk.

If you have an older car, maybe liability and uninsured motorists is best for you. You have many options as a consumer, so make the most of your opportunities and educate yourself.

Being an informed consumer means you get a better deal on your auto insurance policy and that you find the one that truly works for you.