Should I switch my auto insurance?
Here’s a summary of my current policy for my two vehicles:
- Bodily Injury (BI): $250,000 per person / $500,000 per accident
- Property Damage (PD): $200,000 per accident
- Auto Collision: $750 deductible
- Auto Comprehensive: $750 deductible
- Auto Medical Payments: $10,000 per person
- Roadside Assistance: $100 per disablement
- Rental Car Coverage: $40 per day, up to 30 days
- Uninsured Motorists for Bodily Injury: $250,000 per person / $500,000 per accident
- Automobile Death Indemnity: $10,000 benefit
My 6-month premium for both vehicles (2017 and 2013) is $1,570.
I received a quote for coverage on each vehicle as follows:
- Bodily Injury (BI): $250,000 per person / $500,000 per accident
- Property Damage (PD): $100,000 per accident
- Auto Collision: $750 deductible
- Auto Comprehensive: $750 deductible
- Auto Medical Payments: $10,000 per person
- Roadside Assistance: $100 per disablement
- Uninsured Motorists for Bodily Injury: $250,000 per person / $500,000 per accident
- Automobile Death Indemnity: $10,000 benefit
The 6-month premium for this quote is $985.
The main difference is a reduction of $100,000 in property damage coverage. Is that worth the significant decrease in premium?
It’s so frustrating how high these costs are!
It looks like you’ve done a thorough breakdown of your current auto insurance policy and the quote you’re considering. Here are a few key points to help you decide whether switching makes sense:
Property Damage Liability (PD) Coverage: The significant difference in coverage is the reduction from $200,000 to $100,000 per occurrence. If you were to cause an accident that results in damage exceeding $100,000, you’d be personally responsible for that excess amount. Depending on your financial situation and the likelihood of causing an accident, this could be a risk. In many cases, higher PD coverage can protect your assets.
Premium Savings: A savings of $585 for six months is substantial, but you need to weigh that against the potential risks. If you have a solid driving record and would feel comfortable with the lower PD limit, the savings might justify the switch.
State Minimum Requirements: Check your state’s minimum insurance requirements for property damage liability. If $100,000 meets or exceeds what is legally required, it might be sufficient for your needs, though having additional coverage can provide peace of mind.
Overall Coverage: Consider what other types of coverage you may want or need. If you have comprehensive coverage and high liability limits for bodily injury and uninsured motorists, you may still be adequately protected even with slightly lower property damage coverage.
Personal Financial Situation: Think about your financial stability. If you’re involved in an accident that causes significant damage, a higher PD limit might be worth the extra premium if it protects your assets.
Consult with an Agent: It could also be helpful to have a conversation with an insurance agent who can give personalized advice based on your driving habits, financial situation, and area of residence.
In summary, while the premium difference is significant, the lower property damage limit could pose a risk if you’re in an accident that causes costly damages. Weigh those factors carefully, and make the decision that feels right for your situation!