Remember, saving money on your auto insurance coverage isn’t just about getting the least amount of coverage for the least amount of premium, it’s about getting the most amount of coverage for the least amount of premium.

The particular coverages that you are required to carry will vary from state to state, with some very basic similarities. The rule of thumb here is very simply that the more coverage you request or require, the more premium you will pay, subject to the discounts you are eligible for. If it is explained to you that a coverage is “optional,” then you will most certainly pay more premium for your policy if you include this coverage, versus if you “decline” it.

The most important principle to understand about insurance “coverage” is this:

▪ It is a lot like air, in that you will usually not notice or really miss it, until you have none of it ▪

The problem here is also that hindsight is always 20/ 20, as in after you have an accident you will realize that you now have a “need” for rental car coverage. Do you have it? You should know these things before you realize that you may need them. Are you calling your insurance company to find out if you have a particular “optional” coverage? If so, most likely you do not, because when you requested your quote and purchased your policy you specified the “minimum” or “cheapest” possible policy, and this will rarely include any “optional” coverages.

The Best Auto Insurance Policy

Therefore, the “best” auto insurance policy for you is seldom if ever the “cheapest” one, because the state’s “minimum liability” requirement will not do much more for you than ensure that you may legally operate a vehicle on the roads of your state. If you want to know more about your state’s specific coverages and the limits of each one, often the best place to start is with a licensed agent.

Ask questions about what coverages are required, and which are optional. Ask for an explanation of any coverage that you do not completely understand. Do not be afraid to ask for the rate to be recalculated a few times as you price different coverage levels.

▪ When deciding where to spend premium dollars study the available coverages carefully, then determine the cost of each versus the benefit received ▪