How to Choose the Right Auto Insurance Without Overpaying

Car insurance is one of those things you know you need, but figuring out exactly how much coverage to get? That’s where it gets tricky. You don’t want to be underinsured and left paying out of pocket after an accident, but you also don’t want to waste money on coverage you don’t actually need.

So, how do you find the sweet spot—good coverage at a price that doesn’t break the bank? Here’s a simple breakdown of what each type of car insurance covers and how to decide what’s right for you.

1. Liability Insurance: The Must-Have Coverage
If you drive, liability insurance is non-negotiable—it’s required by law in nearly every state. It covers:

• Bodily injury liability – Pays medical bills if you cause an accident that injures someone.
• Property damage liability – Covers repairs if you damage someone else’s vehicle or property.

How much do you need?

• Your state sets a minimum required amount, but minimums are often too low to cover a serious accident.
• If you own a home or have savings, consider higher liability limits to protect yourself from lawsuits.

Who needs it?
Everyone—because it’s legally required.

2. Collision Coverage: Protecting Your Own Car
If your car is damaged in an accident—whether you’re at fault or not—collision insurance helps pay for repairs.

How much do you need?

• If your car is new or valuable, collision coverage is a smart investment.
• If your car is older and not worth much, it might not be worth paying for.

Who needs it?

• Drivers with newer or financed vehicles (lenders often require it).
• Anyone who doesn’t want to pay out of pocket for car repairs after an accident.

3. Comprehensive Coverage: More Than Just Accidents
Comprehensive insurance covers damage to your car that isn’t caused by an accident, including:

• Theft
• Vandalism
• Weather damage (hail, floods, falling trees)
• Hitting a deer

How much do you need?

• If your car is expensive or difficult to replace, comprehensive is a good idea.
• If your car is older and not worth much, you might be better off skipping it.

Who needs it?

• Drivers in areas prone to severe weather, break-ins, or wildlife collisions.
• Anyone who wants extra protection for non-accident damage.

4. Uninsured/Underinsured Motorist Coverage: Protection from Others
Not every driver on the road carries proper insurance (or any insurance at all). This coverage helps if you’re hit by someone who doesn’t have enough insurance to cover your expenses.

How much do you need?

• Consider matching your liability limits for full protection.

Who needs it?

• Anyone who wants financial protection against uninsured drivers.
• Drivers in states with high rates of uninsured motorists.

5. Personal Injury Protection (PIP) & Medical Payments (MedPay)
PIP and MedPay help cover medical bills after an accident—no matter who’s at fault.

PIP may also cover:

• Lost wages
• Rehabilitation costs
• Funeral expenses

How much do you need?

• PIP is required in some states.
• If you don’t have health insurance or have a high deductible, it can be a great add-on.

Who needs it?

• Drivers in no-fault insurance states (PIP is mandatory).
• Anyone who wants extra financial protection for medical expenses.

6. Roadside Assistance & Rental Car Coverage: Worth It?
Roadside assistance helps if you:

• Lock your keys in your car
• Have a dead battery
• Need a tow or tire change

Rental car coverage helps pay for a rental while your car is in the shop after an accident.

Who needs it?

• Drivers who don’t have another vehicle to use in case of an accident.
• Anyone who wants peace of mind for road trips.

How to Choose the Right Coverage for You

Still not sure what you need? Ask yourself:

• How much can I afford to pay out of pocket? A higher deductible lowers your monthly premium but means you’ll pay more in an accident.
• Do I own my car outright? If you’re still making payments, your lender likely requires collision and comprehensive.
• What’s the value of my car? If your car isn’t worth much, paying for full coverage might not make financial sense.
• Do I have savings to cover unexpected costs? If not, more coverage can help prevent financial strain after an accident.
• How much do I drive? If you’re on the road a lot, having more protection could be worth it.

The Bottom Line
Car insurance isn’t about finding the cheapest rate—it’s about getting the right coverage for your needs. The goal is to balance protection with affordability so that if something happens, you’re not left paying out of pocket for major expenses.

Need Help Finding the Right Coverage?
At National Insurance Brokers, we make auto insurance easy. Whether you’re buying a new policy or looking for a better rate, we’ll help you compare options and find the best coverage at the best price.

Get a free quote today and drive with confidence knowing you’re covered!