Car Insurance:
Do You Have Enough Coverage?

Car key on top of auto insurance policy documents.

Because accidents happen, adequate coverage is essential.

Have kids? Then, you'll want to ensure you have enough car insurance to cover all your financial bases while driving around with little ones in tow.

This is especially important if you're part of a carpool or plan to be a volunteer driver on school field trips. Should the unthinkable happen, it won't drain the kids' college funds.

Yes, I know, you're a good driver. But what about the uninsured driver who plows through a stop light, injuring you and your passengers?

Who do you think the parents are going to come after to pay their injured child's hospital bills? You, the driver, of course. Having sufficient insurance coverage in place is not just a financial protection, but also a shield of safety should a worst case scenario come to pass.

Car Insurance Coverage Options

Insurance policy coverage options include bodily injury liability insurance, which is the most common type of car insurance.

It covers repairing or replacing other people's cars and property when you are at fault.

The minimum insurance coverage options, however, need to be higher to protect the assets of most drivers.

There are several other types of insurance coverage to consider that provide additional protection from the costs of injuries and property damage to you and your passengers. These include:

Comprehensive coverage. This pays if your car or its contents are stolen or if your vehicle is damaged by fire, water, or other perils.

Collision coverage. This will cover repairing or replacing your car after an accident.

Uninsured/underinsured motorist bodily injury coverage. This coverage pays for the medical, rehabilitation, funeral, and pain-and-suffering costs of the victims in your car. This coverage also insures your household members as pedestrians.

Medical expense payments coverage. It helps you pay for your passengers' medical expenses, regardless of who was found at fault.

Roadside assistance. If you don't have a roadside assistance separately, ask that it be included in your insurance quote.

Choosing an Insurance Policy

Be sure to compare insurance quotes before making your final selection of a company and policy. Here are a few tips to aid in making your decision:

Understand that insurance companies differ. Auto insurance companies can provide the same coverage with vastly different premium prices. You can save money if you take the time to compare insurance quotes.

Look for more than cheap auto insurance. Cheap insurance is no bargain if an insurance company takes forever to service your claim — Research the insurer's record for claims service and its financial stability.

Ask for an insurance discount. Most insurance companies offer good driver insurance discounts, such as young driver discounts if the student has more than a B average in school and more. Often, car insurance companies won't volunteer discounts for which you qualify. So be sure to ask about discounts as part of your request for a car insurance quote.

Auto insurance is an easy way to protect yourself financially in a catastrophic accident. Be smart, shop around, and find a price that works for you and your family. You'll be glad you did.