How Choosing Low Liability Coverage Will Not Get You The Lowest Quote and May Actually Cost You A Lot More?

We receive calls and quote requests just about everyday from people looking for auto insurance with just the state minimum required liability limits.  Most of the time the calls are from younger drivers with high insurance rates.  They are trying to find affordable insurance.  Some of the calls are from people looking for cheap insurance. The first thing they do is start shopping for a policy with lower limits – which is risky and offers the least savings.

 Here are some reasons – beyond the obvious low liability limits is a bad idea and cost you more.

1. One of the questions insurers ask is what were your previous liability limits?  Most carriers will actually provide lower quotes for those having the higher limits.  Basically, drivers with higher limits have proven to be more responsible and less apt to be involved in a costly lawsuit.  The insurance carriers will place you in a better rating tier for having higher limits. 

2. People don't consider or realize the substantial amount of money involved in a death or injury suit.  There are costs in the judgement and to defend the case.  The current liablity limits in this state were established in the 1970's and are no where near enough to cover even a minor accident with injuries - let alone a major acciedent.  The same is true if some fool injures you and is under or unisured.  You likely won't have enoungh money to cover rehab, lost wages, and damages.  Carrying low liability limits is foolish – especially when you consider it cost less to carry the higher limits.

3.  Inconsistent limits.  People will carry $300,000 liability limits on their home and then have $50,000 on their auto insurance..  This is foolish as they are protecting the the same income and monetary assets.  It is impossible to know where someone may get hurt.  If they are injured in your home $300,000 is available.  if injured by your auto $50,000.  This seems to be more prevelant today with people purchasing auto insurance online. 

There are many other reasons for carrying higher limits and having your insurance with one carrier or agent – like eliminating gaps, getting free advise, and all the discounts.  However, the three above are most common mistakes. 

Get quotes and put in the prior limits at state min. -  then get another one with having the higher limits.  We think you will be surprised.  It is usually less.

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