Auto Insurance 101: What Every Woman Should Know Before Hitting the Road

Let’s face it—auto insurance isn’t the most exciting topic. But knowing what’s in your policy (and what’s not) can make all the difference when life throws you a curveball. At Purse Strings, we believe that all money is smart money—and that includes the money we spend to stay safe and protected on the road.

In a recent Money Talks session, we sat down with Purse Strings Approved Professional Leslie West, an agent with State Farm, to unpack the often-confusing world of auto insurance. What she shared left many of us saying, “I wish I’d known that sooner.” So let’s dig into the essentials—minus the jargon and overwhelm.

What Does Auto Insurance Really Cover?

Your auto policy is more than just a piece of paper in your glove box. Leslie walked us through the two big categories:

• Liability coverage – This protects other people if you cause an accident (think: medical bills, car repairs). In most states—including Illinois—it’s legally required.
• Physical damage coverage – This protects your vehicle. It breaks down into:
  • • Collision coverage – For accidents when you’re driving.
    • Comprehensive coverage – For non-driving damage like hail, theft, or vandalism.

Depending on your car’s age and your comfort level, you might not need both. But knowing what’s what helps you choose wisely—not just what’s cheapest.

What If the Other Driver Isn’t Covered?

Uninsured and underinsured motorist coverage steps in when someone hits you and their policy doesn’t cover your medical expenses. It’s often overlooked—but absolutely essential. Leslie reminded us this is one of the most protective parts of your policy. You don’t want to be without it.

Little Extras That Make a Big Difference

Ever been stuck on the side of the road with a flat tire or needed a rental after an accident? Add-on coverages like:

• Roadside assistance
• Rental reimbursement
• Loss of income coverage

These can help turn a bad day into a manageable one. They’re not always included—so ask.

Why Your Premium Might Be Higher Than Expected

Insurance companies look at more than your driving record. Things like:

• Credit score
• Claim history
• Where you park your car

These can all influence your rate. Leslie’s advice? Don’t rush to file small claims—sometimes it’s more cost-effective to pay out of pocket than risk a rate hike.

Ways to Save (Without Cutting Corners)

• Bundle your home and auto coverage.
• Ask about safe driver programs.
• Compare quotes regularly—even if you’ve been with the same provider for years.
• Loyalty is great, but knowledge is power—and savings.

 Watch Out for These Common Mistakes

Leslie shared a surprising fact: even a call for roadside assistance (like a tow or battery jump) can sometimes count as a claim. And if you rent a car, don’t assume your policy covers it fully—call your agent first to be sure.

Oh—and if you ever get a letter from the Secretary of State about insurance verification? Don’t ignore it. A missed response can lead to serious consequences like suspended registration.

Here’s What We Know for Sure

Auto insurance might not be glamorous—but it’s a powerful way to protect yourself, your finances, and your future. The more you understand your policy, the more confident you’ll feel behind the wheel.

At Purse Strings, we’re here to make these conversations easier, clearer, and centered around you. So if you’re ready to feel more in control of your money—and your coverage—start by reviewing your policy, asking better questions, and connecting with trusted pros like Leslie.

And don’t forget—join us next week as we dive into budgeting for the unexpected, because being financially fearless means being prepared for anything life throws your way.

Make sure you register for the next Money Talks session. To connect with a Purse Strings Approved Professional, check out our directory to find an expert!