Auto insurance covers you from loss or injury as a result of an accident. A large accident could easily exceed low insurance limits, putting your house, savings and investments at risk. If you’ve dropped underinsured motorist coverage, you could be risking even more. Accidents happen to cautious drivers, too, make sure you have enough coverage to avoid a serious financial burden should an accident happen to you.
If you have your eye on expenses, you may be tempted to trim your auto insurance bill by dropping or lowering your coverage—especially if you have not recently had a claim. Dropping some of your coverage—like comprehensive or collision—to the lowest legal level can cut your premium, but it could also put you at serious risk. Study the following guidelines and work with your Bremer Insurance Agent to ensure that the coverage you purchase is enough to protect your assets.
Which coverage do I need?
An automobile insurance policy is designed to provide you with a level of protection against property, liability and medical costs if you are involved in an accident.
- Property coverage pays for damage to or theft of your car.
- Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
- Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
- Underisured motorist coverage pays for property damage and bodily injury caused by another driver whose coverage is insufficient to cover damages suffered.
Selecting liability limits
Most states require car owners to purchase a minimum of bodily injury and property damage liability insurance. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets, such as your home and savings.
Selecting the correct liability limits is fundamental.For example, 100/300/50 means you are covered for up to $100,000 in bodily injury coverage per person, $300,000 in bodily injury coverage per accident and $50,000 in property damage per accident. Many states have minimum liability limits of 25/50/10, although some states are higher or lower than this. While it may lower your premium, reducing your liability limits to minimum legal levels and dropping underinsured motorists coverage could open you up to substantial risk.
By purchasing liability limits to account for both your current assets and future net worth, you can help protect yourself against this risk. Your Bremer Insurance Agent will help you determine which limits best meet your unique needs.
Strategies for lowering your premium
- Consider raising your deductible
- Keep up your good driving record
- Drive less to qualify for a low-mileage discount
- Drive a car with safety features such as anti-lock brakes, airbags, etc.
- Install an anti-theft device
- Ask your Bremer Insurance Agent about our multi-policy insurance package discounts
- This content is provided for informational purposes only. The information provided herein is not intended to be exhaustive, nor should it be construed as advice regarding coverage. Eligibility for coverage is not guaranteed and all coverages are limited to the terms and conditions contained in the applicable policy. © 2008, 2013 Zywave, Inc. All rights reserved.