How to Choose Car Insurance

How to Choose Car Insurance

Oct 26, 2022

Car insurance is an important purchase for all drivers. Not only is it required by law in most states, but it can also help protect you financially if you’re involved in an accident. However, with so many different options available, knowing how to choose car insurance can be a bit overwhelming at first. But don't worry—we're here to help! Let’s break down everything you need to know about car insurance so you can make the best decision for your needs.

 

Types of Car Insurance

There is no one-size-fits-all approach when it comes to car insurance. Different drivers will prefer distinct kinds of coverage depending on their unique circumstances. Before deciding on any policy, it’s important to understand the various types of coverage available. Here are a few major policy types to keep in mind.

  1. Liability

    This is the most basic type of car insurance. It generally covers bodily injuries and property damage caused by your vehicle. All states except New Hampshire require some form of auto liability insurance.

  2. Uninsured/Underinsured Motorist (UM/UIM)

    Many states also require these kinds of coverage. They help to cover the cost of damages if an at-fault driver doesn’t have insurance, or if their liability limits are too low to pay for repairs and medical bills.

  3. Collision

    Vehicle lenders and leaseholders often require this type of supplemental insurance. It can cover repair or replacement costs after an accident with another vehicle or object.

  4. Comprehensive

    This broad form of supplemental coverage protects against damage from hail, fire, theft, and vandalism. Some lenders may require it when leasing or buying a new vehicle.

  5. Optional Coverages

    Most carriers offer several different optional coverages including roadside assistance, transportation expense coverage or even loan/lease GAP coverage.

Which Coverage Do You Need?

Everyone’s insurance needs are different. However, when choosing car insurance, it’s best to first research the minimum requirements in your state. This will give you a good idea of where to start. Keep in mind that state minimums are rarely enough to cover the cost of most accidents, though.

Most states require drivers to have a certain amount of liability and UM/UIM coverage. Collision and comprehensive coverage are usually optional, but they provide valuable protection if your car is damaged or stolen. PIP coverage is also mandatory in no-fault states like New York, Florida, and Michigan.

When choosing car insurance in Nebraska, consider the state minimums of 25/50/25. This reads as $50,000 in total coverage for bodily injury liability up to a limit of $25,000 per person. The third number refers to $25,000 in property damage liability coverage. Remember that this is only the bare minimum, and most drivers will benefit from higher limits in the event of a major accident. Be sure to talk to your agent about which liability limits are appropriate for your financial situation.

Compare Quotes

Once you know what kind of coverage you need, then it’s time to start comparing quotes. Partnering with an independent insurance agent can save you a lot of time and frustration during this process. They’ll help you understand your options, find discounts, and choose the right car insurance coverage for your unique needs.

When comparing policies, make sure each quote is for the same type and amount of coverage. It’s also important to read the fine print so you understand what each policy does and doesn’t cover. Resist the urge to always go with the cheapest option, especially if your state minimums wouldn’t be enough to cover the cost of major repairs or medical bills.

We Can Help You Choose Car Insurance

Choosing the right car insurance doesn't have to be difficult. By understanding policy types, state minimums, and how to compare quotes, you can easily find the right coverage for your needs. If you’re in need of car insurance or simply have some questions, then we encourage you to contact us today. Our agents will gladly provide free quotes and walk you through the entire process from start to finish.

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We can’t say enough about the customer service and the knowledge that Tracy and all of the agents have at Omega Insurance Group! Whenever, we have had a question, Tracy has addressed it immediately. Tracy is always checking to make sure that my husband and I have the best covera...Pam & Floyd B.Lincoln NE
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