There are a lot of expenses when owning a car. The maintenance, car loan, and rising price of gas to name just a few. Insurance also counts among those expenses, too. This is why it’s so important to choose the right policy.

It is very common that people pay for insurance that they don’t really need which makes it more expensive than it needs to be. There are a lot of things that need careful consideration such as finding the right car accident lawyer Salt Lake City if you’re in an accident, researching the best mechanic when you have car trouble, and of course, finding the right car insurance policy. In this article, we will go over several things to look for when researching the right policy for your needs.

1 -- Collision coverage

Sometimes an accident is entirely your fault. Maybe you were driving while distracted, or you simply didn’t see the light change. Whatever the reason, you caused the accident and now have to worry about how much it is going to cost you. This is why you need to have collision coverage so your insurance will cover any expenses incurred due to injury to the driver and passengers of the other vehicle.

It is almost always a mandatory policy coverage item to have collision coverage that covers bodily injury to the other driver and passengers and each state has its own minimum that you need to have.

Look for insurance that will not only give you the minimum but also a good price if you want to increase the compensation if you are at fault. The thinking is that if the expenses exceed what your insurance company is required to pay then you will have to pay them out of your own pocket.

A good rule of thumb is to get coverage that has a 100/300/100 ratio for coverage. This will pay out up to $100,000 towards injuries of the other driver, plus $300,000 for injuries to the other passengers, plus another $100,000 for damage to the other vehicle or property.

Some policies will also include compensation for your own injuries, but many do not. If you want to make sure that your potential injuries are also covered then make sure to add liability coverage.

2 -- Comprehensive coverage

The type of coverage that often is what people are overpaying for is called comprehensive insurance. Often, it covers useful things that are likely to happen so you aren’t paying out of pocket. However, there are times when you are paying for coverage that doesn’t make sense.

For instance, if the area where you frequently drive has a lot of potholes or the condition of the road is poor, then having comprehensive coverage for a broken windshield is a good idea. On the other hand, paying for flood insurance when you live in an arid area where there is a low risk of water damage to your car makes little sense.

Go through the policy to see what the comprehensive coverage is and remove those unwanted items.