It’s no secret that rates for car insurance policies have gone through the roof for the best new cars. Because of this, many people are trying to find ways to make coverage cheaper. However, only getting the required auto insurance isn’t the best idea, as being underinsured can leave drivers on the hook for expensive bills down the road. This means there are certain areas of coverage people shouldn’t skimp on. 

Some parts of car insurance policies are required

As everyone knows, most states require car insurance policies to have at least minimal coverage. In most cases, this means drivers must have liability by law. Of course, car insurance policies with only liability coverage pay for damage to other vehicles and property for which the policyholder is responsible. This is the law’s way of ensuring drivers have protection when they are not at fault. 

Additionally, lien holders require people who have financed or leased their cars to maintain full coverage car insurance. These policies also cover your vehicle in the case of a car accident. Lien holders require this because it means they’ll be reimbursed if the car is a total loss. Sometimes, they can repossess the vehicle if drivers fail to maintain adequate coverage. 

Car insurance policies should have uninsured motorist coverage

Car insurance policies are required in most states. However, this doesn’t mean everyone follows the rules of the road. Because of this, drivers should add uninsured motorist coverage to any well-rounded policy. According to Progressive, this coverage pays for medical bills, lost wages, and more if you get into a crash with a person with either no insurance or insufficient insurance. 

As of 2022, about three-quarters of drivers in the U.S. had uninsured motorist coverage.

Collision coverage

Good car insurance policies should have collision coverage. Of course, states don’t require this type of car insurance, but it’s needed in the case of a car accident. With it, owners can rest assured that the insurance company will cover the repairs or replacement for their vehicle. The company will do this regardless of which driver is at fault. Collision coverage also covers when drivers hit objects such as trees or buildings. Of course, the damage will need to equal or exceed the deductible. 

Many drivers decide against collision coverage because of the price. However, most will agree that it’s worth it, especially if you have one of the best new cars

You should have comprehensive coverage

Good car insurance policies should also have comprehensive coverage. As the name suggests, this coverage covers a range of issues drivers could run into, including theft, vandalism, weather damage, and more. Many of these things can happen to the best new cars.

For more reading, check out our article on when car insurance covers tires.