Being able to drive out on the open road comes with a lot of responsibilities. Not only do you need to be cautious of all those around you, but you also have to make sure you have the right insurance in place to protect your vehicle in the event of an accident.

Car insurance can be tricky. You want to make sure you have the right coverage, while still being able to afford the monthly payments. To help make sure you don't make a costly mistake with your auto insurance, consider the information below.

1. Setting your insurance coverage according to the minimum required by your state.

All too often, people end up going with the bare minimum required of them to help save more money in their pocketbook. Sadly, that could end up costing you a lot of money out of your own pocket if something were to go wrong. Imagine what might happen if you only have $10,000 of property damage on your vehicle and you are involved in a major collision. Is that going to be enough to repair your vehicle? Depending on the vehicle you drive, it might be. However, you don't want to take that risk. Base your limits on your vehicle, not on what the state minimum is.

2. Lying about your driving record.

While you might want to snag the best rates possible, you shouldn't do it by lying about your driving history. In the end, it is going to come back on you. Remember, a quote is simply that: a quote. When the company actually issues your policy, they are going to pull your driving record. While your quote might have been $300, you could end up paying $500 per month if you have a bunch of accidents, tickets or DUIs on your record. To get the most accurate price, you should be honest right from the beginning. Better to avoid the surprise later on down the road.

3. Choosing your new policy because of a low monthly premium.

Sure, everyone wants to save money on their auto policy, but that doesn't mean you are making the right choice in choosing a cheap policy. You also need to look at what type of coverage you are getting. Do you have rental car coverage, wage loss benefits and towing? Those expenses can quickly add up when in an accident. Look at the whole package before making a final decision on your policy.

By going through the tips above, you can prevent yourself from getting into a mess that you can't afford to clean up.