Scooping up some insurance sounds simple enough, but there are a heck of a lot of options. Just look at all the types! Everyone knows that you want to minimize your costs while maximizing your coverage, the problem being that coverage corresponds with cost. Ugh. Think of it like you are building a bunker to protect yourself, and you need to pick the material you are going to make it out of. There’s steel, gold, concrete, bunnies, cotton, ballistic fiberglass, tin foil…you get the idea. The better the material (and usually the more you pay), the better protection you get. If someone’s shooting carrots at you, those bunnies might be effective, but if there are bullets…well, the bunny wall will fall.

However, just like everything, it’s all about your individual needs. How much coverage you need and what coverage you should buy depend on the life you live. For example, if you live in a literal desert with no people, no telephones, and no trees, you probably don’t need collision insurance. So, we can’t give you play by play guide. Heck, that’s what you personal finance guide’s for, but here’s some help on getting started.

Things to Consider Before You Buy

• There are insurance minimum laws? Oh yeah. As tired as you may be of the government being all up in your business, your state government is going to push auto insurance on you too. No escaping it. Almost every state has some sort of insurance requirement, so before you consider what kind of insurance you are going to buy, know what you absolutely have to buy.
• Auto loan minimums too? Sometimes lenders or leasers require a certain amount of insurance as well, so before you go and buy, consider if there are any additional insurance requirements.
• What do you want covered? After determining what you have to buy, think of what you want to buy.  Understand what different insurance companies offer, and decide what you think you want. Maybe you need comprehensive because the moose mafia seems determined to wreck your car.
• What can you afford? It’s all well and good to say that you want your car protected from anything this world throws at you, but can you really afford to protect yourself from UFO laser attacks on top of a cattle stampede and a flaming meteorite? Be sensible about your insurance. Consider cost and get what you absolutely need first. Don’t hobble yourself with unnecessary insurance.
• Could you afford a new car if you totaled your current car?  This is not one of those expenses you can neglect if your job depends on you having a car to get there. If your car bit the big one, could you buy another vehicle? Collision coverage may be expensive but without it you will be on the hook if the accident is your fault.  Consider that if you have Collision coverage and you total your car, your insurance company will only give you the current cash value for your car. Be careful about substituting the safety of insurance for some extra cash.
• There’s perks? Perks are always nice. Some insurance companies offer roadside assistance, towing, or tire repair. This is certainly something to consider. It sucks having to change a tire in general but especially if it’s in the middle of snowstorm and some wolves are howling away in a not-so-distant field.