The rough seas of the current economy have caused many insured’s to take a look at their auto insurance policy, and many times take out a hatchet instead of a scalpel to trim their premium down to size. It is understood that insurance premiums are a good place to look when trimming down household expenses, but don’t chop off your most important coverage of all: your liability coverage.
Your liability coverage, bodily injury & property damage coverage (BIPD) protects you in so many ways and caution should be used when considering lowering your coverage. While your comprehensive & collision coverage are important in order to replace your vehicle, your liability coverage protects your financial house from a lawsuit. A lawsuit could cause much more harm and cost you a great deal more than the cost of your vehicle. What is someone else’s life worth? What is someone else’s ability to create income for their family worth? If you kill or disable the breadwinner of a family in an accident, will they hold you responsible? You better believe it. You could lose your savings and have your wages garnished for years for a measly savings in your premium.
One option is to adjust your secondary coverage such as comprehensive and collision deductibles upward, and consider removing full glass zero deductible and rental car reimbursement coverage. Remember, the liability coverage is primary.
Another option available is to shop your insurance around and compare rates with the same or better coverage. Be familiar with your policy and do not settle for less coverage as many insurance companies provide a better insurance rate if your current liability coverage is higher. Consider moving your coverage higher and see how little it costs to improve your coverage. The win win situation is finding better coverage for less money.
Don’t settle for the state minimum coverage constantly advertised in the media. This coverage could end up costing you way more than you will ever save. Avoid it like the plaque!