Q: I am thinking of re-calibrating my general auto insurance coverage. I want to know what is the standard coverage recommended, and if I should lower my policy limit so that my insurance premium will fall and I will be able to meet my savings target this year.
A: Your policy limit is the maximum amount that the insurance company is required to pay by law in usual circumstances. If you lower the policy limit, you’re lowering the insurance company’s liability and increasing your own. In most general auto insurance policies, the policy limit is set to the estimated value of the car, plus any additional coverage for the driver.
Generally, you should have insurance cover that protects you against third-party claims, theft, and collision damage. You can take out a Personal Injury Protection (PIP) cover too if you want to protect the driver, but it’s really not vital if it’s not mandatory in your state.
Ask your agent to chalk out a general auto insurance policy for your car, and then negotiate the price with him. These days, all insurance companies are under pressure to get more buyers, so negotiating is going to be easier than it used to be.
Lastly, we strongly recommend that you shop around for some more car insurance quotes from different providers. Comparing quotes online is one of the easiest ways to drop the cost of your insurance premiums and you may be shocked at just how much money you could be saving on your coverage.
Source by David Ackland