The Nissan GT-R has been a hot car this year, winning prestigious industry awards such as Motor Trend’s “Car of the Year.” If you’re looking to save on insurance costs, don’t expect to be cruising around in this sports car anytime soon because Nissan’s GT-R takes first place in another arena: insurance costs. The GT-R is ranked 2009’s most expensive vehicle to insure, totaling in at an average premium of $2,533 according to Insure.com. Your best bargain insurance-wise would be the Hyundai Santa Fe, which has the lowest insurance premium averaging at just $830.

While auto insurance can be pricey, many financial emergencies are caused by major life events such as car accidents or medical conditions, so maintaining adequate insurance is one good way to stay protected from financial ruin. With all the different types of auto insurance available, understanding what you are getting for your money is important.

-Liability is the most important type of insurance and is required by state law. It covers costs associated with property damages or bodily injury caused by you or a member of your family in an accident.

-Collision insurance will pay for the repairs if your car is damaged in an accident.

-Comprehensive insurance pays for damage to your car from factors other than collisions, such as damage from fire or vandalism.

-Uninsured motorist coverage protects you if you are ever in an accident caused by an uninsured driver. It may also protect you against a hit-and-run.

-Personal Injury Protection (PIP) pays medical expenses and lost wages for you and your passengers if you are injured in an accident. If PIP is not required in your state, and you have good health and disability insurance, you can skip purchasing this type of protection or just get the minimum coverage.

-Medical payments (MedPay) will guarantee immediate medical payments regardless of who is at fault. It also covers you and members of your household in any accident involving an automobile, even if you are walking or riding a bicycle.

-No-fault insurance is required in many states. With no-fault, your insurance company would cover your expenses in an accident regardless of who was at fault. Other drivers would be covered by their own policies. This type of insurance eliminates the need for accident victims to establish another’s liability in a lawsuit.

When taking out an insurance policy, finding coverage that meets your needs and the requirements of your state is a top priority. Remember that your insurance must also be affordable.

-Ask your insurance company about discounts. You may be eligible for discounts for being a safe driver, good student, or college graduate.

-Remember, your credit matters. Car insurance companies take your credit rating into account when creating a policy for you. Insurance companies view credit reports as predictors of risk: if you’re responsible with your finances, you’ll be responsible with your car.

-Shop around. Web sites like Insurance.com and Esurance.com let you comparison shop major auto insurance providers to find the best policy for you.

In honor of Financial Literacy Month, we created a microsite that offers 30 simple steps to financial wellness–one for each day of the month. To enrich the experience, we asked some amazing people to guest post during the month on a topic that is related to the day’s step. Their dedication to financial literacy is truly inspiring! Today, book author and financial advice columnist Steve Bucci talks about protecting your financial future.

Why Kim asked me to write to you about insurance must be because she doesn’t like me! Just the name can kill a good conversation. “Question: What do you do for a living? Answer: I sell insurance. Response: silence.” You get my drift.

Still, insurance plays an important role in all our lives if we are to be successful; whether we like to admit it or not. And it’s not just Life Insurance anymore. There are other types like, Mortgage Insurance, Pet Insurance, Flood, Home Owners, Renters and of course Auto.

I want to take a minute to talk about two lesser known types: Credit Insurance and ID Theft Insurance.

Credit Insurance: Generally this is insurance that pays your credit card bill if you get disabled, loose your job or buy the farm. You pay a fee base on the balance you have on your card. The devil is, as they say, in the details. If you are unemployed or disabled you may have a waiting period. If you qualify, they may only make you interest payment or a minimum payment that would be spelled out in your policy. Yes, you get a policy and I suggest you read it. I think they write these things on Swiss cheese because they tend to have a lot of holes. My take is that they are not good bets. I’d rather see you take the money you’d spend and add it to your emergency savings account. An emergency savings account can be used for all sorts of emergencies, not just for a credit issue and you are paying money to yourself, not a credit card company.

ID Theft Insurance: This covers some of your expenses in recovering from having your identity stolen. Some ID theft insurance comes with a service that notifies your credit bureaus and lenders; while others have a staff that tries to unravel any mess or phony bills charged in your name or to your accounts by the thief. None of them pay for time lost from work to file documents, make police reports or attend court hearings if you are sued. Identify theft insurance is included in some homeowners policies, comes for free with some credit cards or may be purchased separately.

Steve Bucci is the author of Credit Repair Kit For Dummies, a book in the popular Dummies series that deals with all aspects of credit and how to keep yours healthy. He also is the Debt Advisor for Bankrate.com and answers question through the Advice Team at MoneyManagement.org.

It may seem very helpful when someone offers to handle paperwork on your behalf. However, before you agree to relinquish control, you should know that you are ultimately responsible for your finances—and any mistakes made on your behalf. Here are a few situations where a little outside help sometimes leads to big headaches.

-Medical billing and insurance. It is common for a medical provider to bill your insurance company for you. However, this does not mean that you are not responsible for the bill’s payment. You are responsible for the debt even if the bill doesn’t get submitted, is submitted with an error, or (for whatever reason) is not paid by the insurance company. If you do not pay the bill in a timely manner, the medical provider can report the delinquency to the credit bureaus and begin collection efforts. In some cases, it is smart to pay the bill and then try to get reimbursed from your insurance company.

-Vehicle trade-in. I just read an article from the Associated Press about an increase in the number of consumers who are left on the hook for used-car loans that dealers were supposed to payoff. When you trade in a car with a balance still owed, the dealer may offer to take care of the outstanding loan for you. If that doesn’t happen and the dealership folds, lenders can then go after you for the balance owed or repossess the car from its new owner. If you are trading in a car, pay off the loan first if at all possible. The other recommendation from the article is to deal only with dealers who are less likely to go out of business.

-Co-signing. Beware if you are on a cosigned loan that the other borrower has offered to “handle.” It is dangerous to presume that the other borrower is doing as they promised. As a cosigner, you are 100% responsible for the debt’s repayment. Any late payments will appear on your credit report; this is true even if you were unaware that late payments were being made. To be on the safe side, it is best to make payments yourself and then try to collect any money owed to you from the co-borrower.

-Divorce decree. While a divorce decree is extremely important document, is unlikely that creditors will honor its arrangements. The divorce decree is between you and your spouse and not your creditors. Your creditors are not involved in this settlement and have no input on the results. Consequently, the contracts you and your creditors have cannot be changed by the divorce decree. The ideal solution is to pay off any outstanding debts and start over. If this is not possible, visit with an attorney to discuss your rights and responsibilities before taking it for granted that you are not responsible for a debt.

Bottom line is that my 4th grader’s favorite “naughty” saying is true in some cases:
When you assume, you make an ass out of u and me.