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Auto Insurance

Lowering Your Auto Coverage – Is it Really Worth It?

On the surface, lowering your coverage – like comprehensive or collision – to the lowest legal level might seem like a good way to lower your premium. But it could also put you at significant risk. For example, if you lower or eliminate your collision coverage, you could end up paying out-of-pocket for expensive repairs resulting from an auto accident. To help avoid a situation like this, it’s important to learn the basics of auto insurance protection.

Determining Which Coverage You 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.
  • Underinsured motorists coverage pays for property damage and bodily injury caused by another driver whose coverage is insufficient to cover damages suffered. 

Selecting the correct liability limits is fundamental. 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. While it may lower your premium, reducing your liability limits and/or dropping underinsured motorists coverage could open you up to substantial risk.

Collision Insurance – Know the Value of Your Car

Your policy will not pay for repairs that exceed the value of your vehicle. For this reason, if you are driving a vehicle that isn’t worth more than a few thousand dollars, it may not make sense to purchase collision coverage. VTC Insurance Group can help you determine whether or not collision insurance makes sense for you. 

Top Ways to Save on Your Auto Insurance Premium

The best ways to lower your auto insurance premium are also the easiest. Here are some tips designed to help you save without lowering your coverage:

  • 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 and airbags.
  • Install an anti-theft device.
  • Ask about our multi-policy discounts. 

Talk to an Auto Insurance Expert

Navigating the world of auto insurance can be a daunting task. But the auto insurance experts at VTC Insurance Group are here to lend a hand. We’ll help you determine which automobile insurance coverage is needed and what limits to buy. To contact a VTC agent near you, call 248.828.3377 or visit vtcins.com.

This Auto Insurance blog is for informational purposes only and is not intended as legal advice.

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