What should you consider when buying a new auto insurance policy?

Self-driving cars may be part of the future, but today our roads are still filled with human drivers — and humans make mistakes. Even careful drivers face risks every time they get on the road.

Because these risks are unavoidable, having the right auto insurance policy is essential to help protect you from financial hardship if an accident occurs.

Understanding how to choose auto insurance can help you select coverage that best works with your needs and budget. In this guide, we’ll cover:

By reviewing these factors, drivers — including those looking for auto insurance in Des Moines and across Iowa — can make more informed decisions about their coverage.

What This Article Covers:

Even a relatively small accident can result in unexpected financial expenses.

Vehicle repairs, medical treatment, and potential legal claims can quickly add up—often far beyond what many drivers expect.

The right coverage can help pay for expenses such as:

One of the most common mistakes drivers make is assuming that the minimum coverage required by state law is enough. In reality, serious accidents can easily exceed those limits, leaving drivers responsible for the remaining costs.

Choosing the right auto insurance coverage helps ensure you have the protection you need when it matters most. The next step is understanding the different auto insurance coverage types that may be included in a policy.

Choosing the right policy starts with understanding the different types of coverage available. Each type of coverage protects you in a different way, helping reduce the financial impact of accidents, damage, or other unexpected events.

Liability insurance is one of the most important parts of an auto insurance policy. It helps cover the cost of injuries or property damage you may cause to others in an accident.

Medical bills, vehicle repairs, and legal claims can quickly exceed minimum coverage requirements.

Because of this, many drivers choose higher liability limits to better protect their financial future.

Liability-related protections may include:

When choosing coverage limits, it’s important to remember that your financial security is far more valuable than the car you drive.

Collision coverage helps cover the cost of fixing or replacing your vehicle if it is damaged in a crash, regardless of who was responsible for the accident.

This type of coverage can be especially important for newer or higher-value vehicles.

Drivers may be able to reduce their insurance premiums by selecting a higher deductible. This means you would pay a larger portion of repair costs out of pocket if an accident occurs, but it can help lower the overall cost of your policy.

For some drivers, adjusting deductibles can be a practical way to manage insurance costs while maintaining strong coverage.

Comprehensive insurance helps cover vehicle damage caused by non-collision events. These incidents can happen unexpectedly and may not involve another driver.

Common situations covered by comprehensive insurance include:

Together, collision and comprehensive coverage are often referred to as physical damage coverage, helping protect your vehicle from a wide range of risks.

Even if you carry strong coverage, not every driver on the road does. Some drivers have no insurance at all, while others may carry only the minimum required by law.

Uninsured and underinsured motorist coverage offers financial protection if an accident involves a driver whose insurance is either missing or insufficient to cover the resulting damages.

Without this coverage, you could be left paying for medical bills, repairs, or other expenses out of your own pocket. In many situations, relying on other drivers’ insurance to protect your finances can be a risky gamble.

This type of coverage helps ensure that your policy still protects you—even when the other driver’s insurance falls short.

The right amount of coverage often depends on your vehicle, your finances, and the level of protection you want from your policy.

However, the situation may be different if your vehicle is older and fully paid off. In some cases, the cost of maintaining collision and comprehensive coverage may approach—or even exceed—the car’s actual value.

When reviewing your coverage, consider:

Some drivers choose to drop physical damage coverage on older vehicles and redirect those savings toward stronger financial protection, such as:

This approach helps prioritize protecting your financial security, not just the vehicle itself.

Your deductible is the amount you pay out of pocket before your insurance coverage applies to a claim. The deductible you choose plays a major role in how much your insurance policy costs.

In most cases:

• Higher deductible → lower monthly premium
• Lower deductible → higher monthly premium

Choosing the right deductible depends on how much risk you’re comfortable taking on. A higher deductible can reduce your insurance costs, but it also means you’ll pay more out of pocket if your vehicle is damaged.

When selecting a deductible, consider factors such as:

• Your ability to cover repair costs after an accident
• How frequently you drive
• The overall value of your vehicle

The goal is to find a balance between affordable premiums and a deductible you can realistically pay if a claim occurs.

While most auto insurance policies include core protections such as liability and collision coverage, additional optional coverages can offer extra financial protection in certain situations.

An umbrella policy offers added liability protection that supplements your auto insurance coverage when damages exceed the limits of your primary policy.

If you’re involved in a serious accident and the damages exceed your auto policy limits, umbrella coverage can help cover the remaining costs. This can include expenses related to:

• Medical bills and injury claims
• Property damage
• Legal fees or lawsuits

One reason many drivers consider umbrella insurance is that it can significantly increase liability protection while remaining relatively affordable compared to the amount of coverage it provides.

For drivers with assets, savings, or property to protect, umbrella coverage can offer an extra level of financial security.

If your vehicle is damaged in an accident and needs time in the repair shop, getting around without a car can quickly become inconvenient.

Rental reimbursement coverage may help pay for a temporary vehicle while your car is in the repair shop following a covered claim.

This coverage may help pay for:

• A rental car
• Alternative transportation during repairs
• Short-term mobility after an accident

Although some drivers choose to skip this option, it can simplify the recovery process after an accident by helping cover transportation while your vehicle is being repaired.

Many drivers assume their policy will automatically cover every situation involving their vehicle. However, certain scenarios require special attention to avoid unexpected gaps in coverage.

If you use your personal vehicle for work-related activities, it’s important to inform your insurance provider. Some personal auto policies may limit or exclude coverage if the vehicle is being used for business purposes.

Examples of business use may include:

• Visiting clients or job sites
• Making deliveries or transporting equipment
• Using your vehicle regularly for work-related errands

If your vehicle is involved in an accident while being used for work and the insurer was not informed of that use, it could create complications when filing a claim.

Reviewing how your vehicle is used can help ensure your policy provides the appropriate protection.

Renting a vehicle can raise important coverage questions.

Your personal auto insurance policy may provide some coverage when driving a rental car, but the amount and type of protection can vary depending on the details of your policy.

Rental car companies may offer a damage waiver option that helps limit your financial responsibility if the rental vehicle is damaged during your rental period.

Before declining this option, it’s helpful to confirm:

• Whether your current auto policy covers rental vehicles
• What types of damage may or may not be covered
• Whether there are limits or exclusions when driving a rental car

Understanding how your coverage applies to rental vehicles can help you avoid unexpected expenses if an accident happens while you’re away from your own car.

Insurance companies price policies based on risk. A DUI conviction signals a significantly higher likelihood of future claims, which directly affects how insurers evaluate and price coverage.

As discussed earlier, increasing your deductible can lower your monthly premium. Drivers who are comfortable covering a larger portion of repair costs out of pocket sometimes use this strategy to help keep insurance costs manageable.

The key is choosing a deductible amount you could realistically afford if you needed to file a claim.

Many drivers qualify for discounts without realizing it. Insurance companies often offer reduced premiums based on factors related to your driving habits, policy structure, or financial profile.

Common discounts may include:

• Safe driver discounts for maintaining a clean driving record
• Driver safety course discounts for completing approved training programs
• Multi-policy savings for combining home and auto insurance policies
• Multi-vehicle discounts for insuring more than one car with the same insurer
• Credit-based discounts, which some insurers use when evaluating risk

Because discount programs vary by insurer, it’s always worth asking which savings opportunities may apply to your policy.

Some insurers offer usage-based insurance programs, also known as telematics programs, which use technology to monitor driving behavior.

These programs typically rely on a mobile app or small device that tracks factors such as:

• Driving speed
• Braking patterns
• Time of day you drive
• Overall mileage

Drivers who demonstrate safe driving habits may receive lower premiums or performance-based discounts over time.

Although insurance coverage can help protect you financially after an accident, practicing safe driving habits can lower the risk of being involved in one.

One of the biggest risk factors on the road today is distracted driving. Activities such as texting, checking notifications, or adjusting apps while driving can take your attention away from the road for just a few seconds—but that brief distraction can significantly increase the risk of a crash.

To help reduce distractions while driving, consider these simple habits:

• Avoid texting or using apps while driving
• Set navigation and music before starting your trip
• Keep both hands on the wheel and your focus on the road
• Activate your phone’s driving mode to limit calls, texts, and notifications while you’re behind the wheel.

Many modern smartphones include built-in tools that automatically limit notifications while you’re driving. These features can help reduce the temptation to check your phone and make it easier to stay focused on the road.

By minimizing distractions and maintaining good driving habits, you can help lower your overall risk of accidents and better protect yourself, your passengers, and other drivers.

When selecting an auto insurance policy, many drivers focus mainly on keeping their monthly premium as low as possible. While keeping costs manageable is important, overlooking key details can lead to coverage gaps that may become costly after an accident.

Here are some common mistakes drivers should avoid when selecting a policy:

Buying only the minimum coverage required by law

State minimum limits may not fully cover the costs of a serious accident, especially when medical bills or property damage are involved.

Not asking about available discounts

Many drivers miss out on savings simply because they never ask about discount programs offered by insurers.

Ignoring uninsured or underinsured motorist coverage

Not every driver on the road carries enough insurance, and this coverage helps protect you if the at-fault driver cannot fully pay for the damages they cause.

Failing to review coverage regularly

Insurance needs can change over time as vehicles age, driving habits change, or financial situations evolve. Periodically reviewing your policy helps ensure your coverage still fits your needs.

Taking time to review these factors can help drivers avoid common pitfalls and choose an auto insurance policy that provides more reliable protection.

Choosing the right auto insurance policy concerns more than simply selecting coverage online.

Reviewing your options with an experienced insurance professional can help ensure your policy provides the protection you actually need.

This approach can help drivers find coverage that fits both their protection needs and their budget.

Working with an independent agent may also help you:

• Compare policies from several insurers in one place
• Identify available discounts or coverage opportunities
• Adjust your policy as your needs change over time

Because vehicles, driving habits, and financial situations can change, reviewing your policy periodically can help ensure your coverage continues to provide the right level of protection.

For drivers looking for guidance on auto insurance in Des Moines and across Iowa, speaking with a Trusted Choice® Independent Insurance Agent can make it easier to consider your choices and choose coverage that fits your needs.