Owning a car is an expensive venture. Not only are you responsible for the cost of the vehicle itself, but the costs of gas, maintenance, and oil changes can also add up. But there is one extra cost and nuance you have to figure out when it comes to car care, and that is your car insurance. Not all insurances are created equal. Each will have different coverages and different costs based on your needs.

Selecting the best car insurance for you takes research and shopping around. You also need to know how much coverage you want. Your lifestyle choices will often factor into this. Different liability insurance will also have different costs, so if you’re looking to keep your price lower, you may have to settle for less coverage. Overall, you know your driving situation better than anyone. Be honest with yourself about how good of a driver you are and if you need comprehensive coverage. At the end of the day, the better car insurance, the lower the deductible costs, if you do end up in a collision or your car, needs repairs. Let’s dive into different optional coverages for your insurance to decide what may be right for you.

What kinds of coverages are there?

When you own a car, you are required to have insurance on your vehicle. In Australia, that baseline insurance is called Compulsory Third-Party Insurance. This only covers injury to another person in the event of an accident. So if you cause a crash and someone needs a medical treatment plan, your insurance company would be responsible for paying for those bills. This is not collision insurance and does not cover any damage to your car or a car you hit. If you would like to add that on, you would choose Third-Party Property insurance. This would cover damage to another vehicle, but not your own. If you’d like to add coverage for your vehicle against fire, theft, or vandalism, that would be Third-Party Fire and Theft Insurance.

For a lot of individuals, you are looking for full coverage in case of any damage, emergency, or accident. In that case, comprehensive car insurance is the best way to go. This adjustment means you are covered for all the above situations, plus collision coverage for the damage done to your vehicle during an accident. This is the option most individuals will choose when shopping around for insurance products.

Lifestyle will affect your needs.

Deciding what car insurance you need really comes down to how good of a driver you are. Auto insurers will take this into account as well when they create your insurance policy. If you never get in accidents and want to take the risks for your own vehicle, then you may just need basic insurance.

However, if you know you’re more of a reckless driver, a more comprehensive coverage option may be best. Also, be prepared that insurance can help cover costs related to an accident. So finding a great chiropractor to help with back pain caused by an accident may actually be covered with more advanced insurance. Of course, accidents happen no matter who you are, and you aren’t the only driver on the road. The better your insurance, the more peace of mind you’ll have in the long run.

Look into the different costs.

The costs of your auto policy will affect what kind of coverage you want. Comprehensive coverage is going to be more expensive than a basic option. Just know, if you opt for a cheaper auto insurance policy now, you may end up owing a lot more in repair costs or medical bills in the future.