When Should You Choose Lower Auto Insurance Coverage?

The coverage that you elect to have on your policy when you begin your coverage should be well thought out because of its potential impact on your life. You open yourself up to potential liability every time you get behind the wheel of your car and you must be aware of it at all times. When you are choosing the coverage you want on your policy you must think of what coverage you need and how much of it you should get. The question is, when do you want to have lower coverage on your vehicle?

Before we get too much into the limits you should choose and why we should discuss the role of an insurance agent. Many people have started to view agents similar to car salesmen in that they do not trust a word that they say. It is true that almost all insurance agents work off of commission, but they are also (mostly) educated and informed individuals. Consider all information provided to you by an agent and be aware that their recommendations are good, but may be based on the amount of commission they receive.

With that all being said, it is very important that you consider what type of coverage you are getting and what limit you should get. Here are a few things to think about with different types of coverage:

Collision Coverage: This is the coverage that will pay for the damage to your vehicle if you are responsible for an accident. You should question whether to get it or not if your vehicle is 10 years old or older as paying for the coverage may be cost prohibitive. If you do elect to get collision coverage you should spend a decent amount of time considering the amount of the deductible. You will have to pay this amount before the car insurance company begins paying for your damage.

Liability Coverage: This is what your insurance company will pay if you are responsible for an accident. It is usually broken into three sections (ex. 100/300/100). The first number is the amount of medical coverage provided for an individual who is injured due to your negligence. The second number is the amount of medical coverage provided for all parties you may have injured total. The third number is the amount of coverage provided to pay for property damage to a vehicle or other kind of property.

You should consider getting at the very least, 25/50/25 coverage on liability, but 100/300/100 is what most companies recommend. Remember that all of this is to protect you and your family in the event of a loss.