I get lots of people that come in or call my office and their number one objective is to reduce the cost of their auto insurance. I am able to meet that expectation most of the time. However, what I find is, people really do not understand auto insurance coverages and limits. We really try to explain with every customer what liability is (when you cause damage to another person or vehicle or other property) what comprehensive coverage is (your vehcile is not moving and something happens to it– tree falls on it, it is stolen or vandalized) and collision coverage (when your vehicle is damaged in an accident and vehicle was moving).
A couple of tips are in order– the amount of liability coverage you carry should protect your personal assets from being exposed to loss. Ugh! That is insurance talk– if you have $200,000 net worth you should have that much in auto liability protection. If you don’t have that much but may be growing into it– get the highest amount of liability protection you can afford.
Another important thought– comprehensive coverage (something happens to your vehicle) try to have the lowest deductible you can afford. Windshield losses are the most typical– costs about $300 to get your windshield replaced, a $500 deductible will prevent you from getting insurance to pay for it. The difference between a $0 deductible and $500 is very little, often less than $10. And, this is the good news you do not get “charged” for the glass loss– your premium will not go up because of a glass or windshield loss. So– go with lower comprehensive deductible, higher collision deductible and as much liability coverage as you can afford. Mary Schur
