Car insurance is mandatory for all drivers in order to protect them against financial losses that can occur from car accidents or other perils, such as fire theft, vandalism, or animal collisions. Different people with different vehicles will have different insurance needs. Because of this, car insurance limits will vary from individual to individual. If you think you are paying too much for your can insurance coverage, you may be considering lowering your limits. You should think this decision through very carefully before dropping any coverage.
Liability insurance is required in most states but you only need to have a minimum limit of insurance to legally drive. Of course, the higher you place your limits, the higher your premiums will rise. If you are concerned about the affordability of your car insurance, then you may want to look at reducing your car insurance limits in other areas. Liability insurance will protect you against financial losses if you are responsible for damaging someone else's vehicle or injuring another person. If your limits are not adequate, you may have to pay for some of these costs out of your own pocket. Discuss lowering your liability limits with your insurance agent to see if it is a good idea.
Instead, take a look at your other coverages. Collision and comprehensive insurance will pay for damages to your own vehicle if you are involved in an accident or must file an insurance claim due to fire, theft, or vandalism. Newer vehicles and those that are financed or leased must have this coverage. However, if you have an older vehicle, you could consider removing this coverage. In some cases, the cost to repair or replace a damaged vehicle may far exceed the vehicle's actual worth. You may find yourself paying more in premiums than you will receive back from any claim.
Some people decide not to drive their vehicle during winter and instead opt to take public transit. They will park their vehicle on their personal property. In order to save money on premiums, you could remove liability insurance and keep only comprehensive insurance to protect against fire, theft, or vandalism. This must only be done if you have no intention of driving the vehicle at all.
Whether you want to save money on your auto insurance coverage, you don't feel that certain coverages are required, or you have changed vehicles, you may be considering lowering your limits of insurance. Before you do this, talk to your insurance agent to ensure that you are making a decision that will be beneficial to you and not cost you more in the long run.