Getting auto insurance doesn’t have to be confusing. Whether you’re buying coverage for the first time or just trying to better understand your options, this guide breaks down the basics in plain English. From the minimum required coverages to optional coverages available, lapses, and cost-saving tips—we’ve got you covered.

Minimum Required vs Optional Coverages: What’s the Difference?

Minimum Required insurance is the most basic type of auto coverage and is required in each state. This is the minimum required coverage that that will allow you to comply with your State’s Auto Insurance Requirement.  These apply to damages and injuries you cause to third parties in the event you are involved in an at fault accident.  Personal Injury Protection (PIP) coverage is required in some States, like Utah, and will apply to injuries sustained to occupants in your vehicle. The Minimum Required Insurance usually includes:

• Bodily Injury Liability – This coverage applies to injuries you caused to third parties in the event you are involved in an at fault accident.
• Property Damage Liability – This coverage applies to damage to property owned by others in the event you are involved in an at fault accident.
• Personal Injury Protection (PIP) – This coverage applies to medical expenses for injuries sustained by occupants of your vehicle, no matter who was at fault.  This coverage is only available in States that require PIP, like Utah.  Other States offer an optional coverage that is similar under Medical Payments (see below).

Liability coverage protects others—but it doesn’t pay for your own car or injuries. That’s where these optional coverages come in.

Optional coverages are available once you’ve selected the Minimum Required Insurance. Optional Coverages may include:

• Collision Coverage – Helps pay to repair or replace your car if you’re in an accident, regardless of who’s at fault.
• Comprehensive Coverage – Covers things that aren’t accident-related, like theft, vandalism, fire, falling objects, or weather damage.

Some drivers also choose to add:

• Uninsured/Underinsured Motorist Coverage – May help if you’re hit by a driver who doesn’t have insurance or doesn’t have enough.
• Medical Payments – May help cover medical expenses for you and your passengers, no matter who was at fault.
• Towing – This coverage applies to towing expenses that result from a covered accident. This is not Roadside Assistance.
• Rental Reimbursement – This coverage would apply to the expense to rent a replacement vehicle in the event that your auto is involved in a covered accident.
• Motorclub or Roadside Assistance – These benefits are towing and emergency roadside assistance if your covered vehicle is disabled on the side of the road. Some companies also provide rental car discounts.

It’s important to remember that even when you purchase these Optional Coverages, it doesn’t mean every situation is covered. Always read your policy carefully and talk with a licensed insurance agent to understand what your specific plan includes.

Why Auto Insurance Lapses Matter

A lapse in coverage means there was a period where your vehicle wasn’t insured. Even a short lapse can have lasting effects, including:

• Higher future premiums
• Difficulty qualifying for low-cost or quotes with preferred insurance companies
• Possible penalties or license suspension, depending on your state

To avoid a lapse, try to line up your start date with a new provider before your old policy ends. Many insurers allow you to set up a policy in advance, so there’s no gap in coverage.

Tips for Saving on Car Insurance

Looking for affordable auto insurance? Here are some ways drivers may lower their auto insurance costs:

• Bundle your policies (like car, motorcycle, boat / personal watercraft and home / condo / renters insurance) with the same company
• Maintain a clean driving record – No tickets, accidents or lapses in your license will help you qualify for lower insurance premiums.
• Take advantage of discounts like safe driver, good student, or multi-car
• occupation discounts, degreed professionals,
• Raise your deductible if you’re comfortable paying more upfront in case of a claim
• Drive fewer miles each year – some companies offer validated mileage programs and if you driver fewer miles than the average driver in your area, you can benefit from the savings
• EFT Payment Options – select an EFT Payment option and you may save money on your auto insurance.  This will also give you the piece of mind that you know your payments are always on time and you can avoid a lapse in coverage.
• Shop around and compare quotes — prices can vary widely between providers. Give us a call and let one of our team members do the shopping for you.  If you are shopping for auto insurance in Arizona, California, Colorado, Nevada, Oregon, or Utah, we’ve got your back.  Look for additional States coming soon!  Not all insurance companies are the same.  There is more to auto insurance than just price.  We can also secure insurance for your Motorcycle, RV, Boat, and Business.  Yes, if you are shopping for insurance, its worth it to give us a call.

Every driver’s situation is different, so what saves money for one person may not for another. That’s why it’s smart to get a few quotes and compare.