Do I switch auto insurance?

March 12, 2025by IFadmin

Should I switch my auto insurance? Here’s a detailed comparison of my current policy for each vehicle:

Current Policy:
– Bodily Injury (BI): $250k per person / $500k per occurrence
– Property Damage (PD): $200k per occurrence
– Collision: $750 deductible
– Comprehensive: $750 deductible
– Medical Payments: $10,000 per person
– Roadside Assistance: $100 per incident
– Rental Coverage: $40 per day, up to 30 days
– Uninsured Motorists for Bodily Injury: $250k per person / $500k per accident
– Automobile Death Indemnity: $10,000 benefit

6-month Premium: $1,570 for two vehicles (2017 and 2013)

Quote for New Policy:
– Bodily Injury (BI): $250k per person / $500k per occurrence
– Property Damage (PD): $100k per occurrence
– Collision: $750 deductible
– Comprehensive: $750 deductible
– Medical Payments: $10,000 per person
– Roadside Assistance: $100 per incident
– Uninsured Motorists for Bodily Injury: $250k per person / $500k per accident
– Automobile Death Indemnity: $10,000 benefit

6-month Premium: $985

The only significant difference is a $100k reduction in property damage coverage. Is that worth the lower premium?

I’m really frustrated with how expensive insurance can be.

One thought on “Do I switch auto insurance?”

IFadmin says:

March 12, 2025 at 5:46 am
It sounds like you’re doing a thorough job of comparing your auto insurance options, which is great! Let’s break it down:
1. Coverage Comparison:
2. Your current policy has $200k for property damage (PD), while the quoted policy has $100k for property damage. This is a significant difference, as higher PD coverage can be crucial if you’re involved in an accident that causes significant damage to someone else’s property.
3. Everything else seems to match up, including the bodily injury limits, deductibles, and roadside coverage.
4. Premium Savings:
5. You’re looking at a $585 savings over six months with the new policy, which amounts to $117 per month. That’s a significant cost reduction, especially if you’re feeling the pinch of high insurance costs.
6. Assessing Risk:
7. Consider the types of accidents you might encounter. If you live in an area where accidents are common or where property damage can easily exceed $100k (think larger vehicles, expensive cars, etc.), you might want to think twice about dropping down your PD limit.
8. On the other hand, if you drive in less congested areas or are a very cautious driver, the reduced premium might be worth the risk for you.
9. Personal Financial Situation:
10. Think about your financial situation. If you do cause an accident and end up liable for damages exceeding $100k, would you be able to handle the financial repercussions? If not, it might be safer to stick with your current policy.
11. Alternative Options:
12. You could consider negotiating with your current insurer to see if there’s a way to reduce your premium without sacrificing coverage, or look for other quotes to see if you can find a balance between coverage and cost.
In conclusion, while the cost savings of switching to the new policy are appealing, the reduction in property damage coverage could expose you to higher financial risk if you’re ever in an accident. Carefully weigh your comfort with that risk against the savings you’re looking at. It might also be wise to consult with an insurance agent for personalized advice tailored to your situation. Good luck!
Reply

Related Posts

One thought on “Do I switch auto insurance?”

Leave a Reply Cancel reply