By David Keller, CIC, CPIA
CEO, Keller National Insurance
“I Just Need the Cheapest Car Insurance.”
We hear that phrase from prospective clients almost every week.
While saving money is important, choosing the cheapest auto insurance policy can become one of the most expensive financial decisions you ever make. The real question isn’t how little you can spend. It’s whether your car insurance policy will protect you when you need it most.
Auto insurance is designed to protect your finances, your family, and your future. Understanding your coverage before an accident happens can help you avoid costly surprises and out-of-pocket expenses.
Here are five of the biggest mistakes we see people make when purchasing auto insurance.
Mistake #1: Choosing Price Over Protection
It’s natural to want to save money on insurance. However, the lowest priced policy often provides the least amount of protection.
Many people purchase the minimum insurance coverage required by law without understanding what their policy actually covers or, more importantly, what it doesn’t cover.
A lower premium may save you a few dollars each month, but inadequate coverage can cost you thousands after an accident.
Instead of asking, “What’s the cheapest insurance policy available?” ask, “Will this car insurance policy properly protect me if something goes wrong?”
Mistake #2: Carrying Liability Limits That Are Too Low
Many drivers begin with lower liability limits because they don’t have significant assets to protect. But, life changes.
You get married. You start a family. You purchase a home. You buy newer vehicles. Your income grows.
Unfortunately, many people never update their car insurance policies as their lives change.
Today’s medical expenses and vehicle repair costs are significantly higher than they were just a few years ago. A serious accident can quickly exhaust low liability limits, potentially leaving you responsible for the remaining damages.
Recently, we helped a client who had purchased a policy online with bodily injury liability limits of only $25,000 per person. After a relatively minor accident, those limits were insufficient to cover the injured party’s medical expenses. We helped them increase their liability limits and add an umbrella policy to better protect their financial future.
Consider another common scenario: a driver chooses state minimum liability limits to save about $15 per month. A few months later, they rear-end a new SUV, and two occupants require emergency medical treatment. Their liability limits are exhausted, leaving them personally responsible for the remaining damages. In addition to this, they may not have enough property damage insurance coverage to pay for the damage they caused to the SUV.
Saving a small amount on your insurance premium isn’t worth risking your financial future.
Mistake #3: Skipping Uninsured & Underinsured Motorist Coverage
This is one of the biggest coverage gaps we encounter.
According to the Insurance Research Council, one in three drivers is either uninsured or underinsured. That means there’s a significant chance the driver who causes your next accident won’t have enough insurance—or any insurance at all—to fully pay for your injuries.
Uninsured and underinsured motorist coverage helps protect you and your passengers when the at-fault driver doesn’t have adequate insurance.
You can’t control who shares the road with you, but you can make sure you’re protected if the unexpected happens.
Mistake #4: Declining Glass Coverage
Windshield damage is one of the most common auto insurance claims we see.
A small rock can quickly turn into a large crack that requires a complete windshield replacement.
Many insurance companies offer reduced or even zero-dollar glass deductibles. Reviewing this coverage before you need it can save you both money and frustration.
If you’ve ever had to replace a windshield, you know how convenient it is when your policy includes strong glass coverage.
Mistake #5: Saying No to Rental Reimbursement Coverage
Rental reimbursement coverage is one of the least expensive coverages you can add to an auto insurance policy, yet it’s often one of the most appreciated after an accident.
If your vehicle is in the repair shop for several days, or even several weeks, you’ll still need transportation for work, school, appointments, and everyday life.
Without rental reimbursement coverage, those costs come directly out of your pocket.
For just a few dollars each month, this coverage can provide valuable peace of mind when you need it most.
Protect Yourself Before an Accident Happens
The cheapest auto insurance policy isn’t always the least expensive in the long run.
A few extra dollars each month can mean thousands of dollars in additional protection after an accident.
At Keller National Insurance, we believe insurance should protect your future, not create financial surprises. As an independent insurance agency, we compare coverage from multiple top-rated auto insurance companies to help you find the right balance between protection and price.
If you’re unsure whether your current auto insurance truly protects you, we’d be happy to review your policy at no cost. We’ll explain your coverage, identify potential gaps, and help you make informed decisions so you can protect what matters most.
Frequently Asked Questions (FAQs)
How Much Liability Coverage Should I Carry?
The right amount of liability coverage depends on your income, assets, and financial goals, but many insurance professionals recommend carrying at least $250,000 per person, $500,000 per accident for bodily injury, and $100,000 for property damage (250/500/100) whenever possible.
If you own a home, have retirement savings, earn a higher income, or have other assets to protect, higher liability limits and even a personal umbrella policy can provide valuable additional protection.
Keep in mind that medical expenses and vehicle repair costs have increased significantly in recent years. A serious accident can easily exceed state minimum liability limits, leaving you personally responsible for the remaining damages.
The best way to determine the appropriate liability limits for your situation is to review your coverage with a licensed insurance advisor who can evaluate your unique risks and recommend protection that fits your needs.
Not sure if your current liability limits are enough? Contact Keller National Insurance for a free insurance review. We’ll explain your coverage, answer your questions, and help you choose limits that properly protect your family and your financial future.
