The auto insurance policy is the document people most often pay for and least often read. Reading it once, with intention, is one of the most valuable hours you can spend on car ownership. Here are the five lines that do most of the work.
1. Bodily injury liability
Usually written as something like 100/300/100 — meaning $100,000 per person / $300,000 per accident / $100,000 property damage. If you cause a serious accident, this is the limit of what your insurer pays. Anything beyond that is you.
In modern medical reality, 25/50 (the legal minimum in many states) is dangerously low. 100/300 is reasonable; 250/500 is good for anyone with assets to protect.
2. Uninsured / underinsured motorist
This protects you when the other driver causes the accident and does not have enough insurance. In most states, around 1 in 8 drivers is uninsured. This is one of the highest-value lines in your policy.
3. Collision deductible
The amount you pay before the insurer covers a claim. Higher deductible = lower premium. The trade-off is that you eat the first $X of any claim.
A common error: setting deductible at $250 because it “feels safer.” Over five years, the premium difference vs $1,000 typically exceeds the worst-case claim cost. Run the math.
4. Comprehensive coverage
Covers theft, vandalism, weather, deer strikes — anything not a collision. Often confused with collision. If you live somewhere with hail, deer, or street parking in a city, comp pays for itself in less time than you would think.
5. Rental and roadside
Almost always cheap. Almost always worth it. The first time your car is in the shop for two weeks after an at-fault accident, the rental coverage line is the difference between $0 and $2,000 in rental fees.
How Car Money helps
Photograph your declarations page and store it under Insurance in Car Money. Set a date-based reminder for your renewal — most policies automatically renew at whatever the new premium is, and the only window to shop is 4–6 weeks before that.
The yearly premium-shop is the single highest-ROI hour you will spend on your car. Open the app, tap your insurance entry, see the renewal date. Set yourself a 30-day-out reminder.