Should I consider switching my auto insurance? Here’s a breakdown of my current policy for each of my vehicles:
Current Policy:
– Bodily Injury (BI): $250,000 per person / $500,000 per occurrence
– Property Damage (PD): $200,000 per occurrence
– Collision: $750 deductible
– Comprehensive: $750 deductible
– Medical Payments: $10,000 per person
– Roadside Assistance: $100 per incident
– Rental Reimbursement: $40 per day, up to 30 days
– Uninsured Motorists (Bodily Injury): $250,000 per person / $500,000 per accident
– Auto Death Indemnity: $10,000 benefit
6-month premium: $1,570 for two vehicles (2017 and 2013).
Quote for Potential New Policy:
– Bodily Injury (BI): $250,000 per person / $500,000 per occurrence
– Property Damage (PD): $100,000 per occurrence
– Collision: $750 deductible
– Comprehensive: $750 deductible
– Medical Payments: $10,000 per person
– Roadside Assistance: $100 per incident
– Uninsured Motorists (Bodily Injury): $250,000 per person / $500,000 per accident
– Auto Death Indemnity: $10,000 benefit
6-month premium: $985.
The main difference here is a reduction of $100,000 in property damage coverage. Is the savings worth the decrease in coverage?
It’s so frustrating how expensive auto insurance can be!
It sounds like you’ve done a thorough job of comparing your current auto insurance policy with the quote you’ve received. Here are a few points to consider as you decide whether to switch:
Property Damage (PD) Coverage: The new quote offers $100k less in property damage coverage, which could be significant if you’re involved in an accident that results in substantial property damage. Depending on the kind of driving you do and the areas you drive in, having higher PD coverage might be worth the extra cost in your current policy, especially if you live in an area with a lot of accidents or expensive repair costs.
Premium Savings: The savings of nearly $600 over six months is substantial. If you’re confident that the lower PD coverage is adequate for your situation and you have other ways to cover potential gaps (like savings for unexpected expenses), switching could make sense.
Financial Comfort: Evaluate your own financial situation. If the potential exposure from lower PD coverage is manageable for you (meaning you can cover costs out-of-pocket if necessary), switching to save money could be smart.
Claims History and Risk: Consider your driving record and history of claims. If you haven’t had many incidents in the past, the lower PD coverage may be less of a risk for you. However, if you have had claims or live in a high-traffic area, it might be better to err on the side of caution.
Other Coverages: Ensure that you’re comfortable with the other aspects of the new policy, as they appear to be comparable. Look at any other potential differences in coverage limits, exclusions, or customer service reputation of the new insurer.
Ultimately, the decision will come down to your personal comfort with the risk of lower PD coverage versus the financial benefits of the lower premium. It may also be helpful to reach out to your current insurer to see if you can negotiate a better rate or coverage to match what you’re considering. Good luck!