Every driver knows they need car insurance—but when it comes time to choose a policy, the options can feel endless. Between liability, collision, and comprehensive coverage, how do you know what you actually need and what’s just optional fluff?
This guide breaks down the most important parts of an auto insurance policy and helps you decide what makes sense for your budget and your vehicle.
When you buy auto insurance, you’re purchasing financial protection. It’s there to help cover the cost of accidents, property damage, medical bills, or even theft. The right coverage doesn’t just protect your car—it protects your peace of mind every time you hit the road.
Most states require at least liability insurance, but that’s just the start. Let’s go through the most common coverage types so you can build a plan that fits your needs.
Liability insurance covers damage you cause to others. If you’re at fault in an accident, this pays for repairs to the other driver’s vehicle and medical costs for injuries. It’s mandatory in nearly every state, including Oklahoma.
There are two parts to liability coverage:
While state minimums may seem affordable, they often don’t cover enough in a serious crash. It’s worth increasing your limits to avoid paying out-of-pocket later.
Liability only helps the other driver—collision coverage helps you. This pays for repairs or replacement of your car after an accident, regardless of who’s at fault.
If you drive a newer car or one that still has a loan or lease, collision coverage is usually required. Even if your vehicle is older, it’s worth comparing the cost of coverage against your car’s current value.
Comprehensive coverage protects your vehicle from damage caused by non-collision events like:
Oklahoma drivers know how unpredictable the weather can be, so this coverage is often a smart choice for anyone parking outdoors or in storm-prone areas.
Even though it’s required by law, not everyone on the road carries enough insurance. If you’re hit by an uninsured or underinsured driver, this coverage pays for your medical bills and damages.
It’s a small cost that can save you thousands—especially since Oklahoma ranks among the top states for uninsured drivers.
Medical payments (MedPay) and personal injury protection (PIP) help cover medical expenses for you and your passengers, no matter who caused the accident. PIP can also help with lost wages or childcare expenses if you can’t work due to injuries.
These add-ons are especially valuable if your health insurance has high deductibles or limited coverage for auto-related injuries.
If you financed or leased your vehicle, gap insurance covers the difference between what you owe on your car and its actual cash value after a total loss.
For example, if your car is worth $20,000 but you owe $25,000 on your loan, gap coverage pays that $5,000 difference. Without it, you could be stuck paying for a car you no longer have.
The right coverage depends on your personal situation—your car’s age, your budget, and your comfort level with risk. Here’s a simple breakdown to help guide your decision:
You can also save by bundling your home and auto insurance policies through one provider. Many insurers offer multi-policy discounts that add up to big annual savings.
National insurance companies might offer flashy ads, but when it comes to claims, having a local agent can make a world of difference. KMO Insurance works directly with families and drivers throughout Oklahoma to tailor coverage that fits real-world needs—not just a one-size-fits-all policy.
Whether it’s helping you file a claim, find discounts, or review your coverage each year, a trusted local agent helps ensure you’re not overpaying or underinsured.
Here are a few quick tips to help you lower your premiums:
Small changes can make a big difference, and KMO Insurance can help you identify discounts and coverages you might not even know you qualify for.
Auto insurance isn’t just about following the law—it’s about protecting your life, your finances, and your future. The right coverage keeps you prepared for whatever the road brings, from fender benders to unexpected storms.
If you’re unsure where to start or want to review your current plan, reach out to KMO Insurance today. Their team can walk you through your options, compare rates, and make sure you have the right protection for every mile ahead.