Liability Limits and Your Car Insurance Premium

Many drivers fail to put considerable thought into the liability limits on their car insurance policy.  Three major issues should weigh in the decision on how high to set one's liability limits:
1)  How much can you afford to lose in a lawsuit should you cause an accident?
2)  What factors in your household and surroundings lead to increased risk exposure - young drivers, sports cars, dangerous zip code, etc...
3)  Many carriers will actually charge you more for carrying lower liability limits with a previous carrier.  So carrying the state minimum liability can actually end up costing you more money if you later decide to switch!  And some carriers will even charge less for higher liability limits.  You read that right - it can be cheaper to carry higher liability limits with some carriers!

Insurance carriers know which factors lead to more claims, and they charge accordingly.  Be sure to review your liability coverage with your agent before you ever need to use it.

On a related note, Kiplinger carried a good Q&A recently pointing out the need to make sure a father had sufficient liability coverage given his young son is now driving.  They link to some good tips on saving insurance and point out the importance of shopping the market to make sure you always have the best rates. 

http://www.kiplinger.com/columns/ask/archive/teenage-drivers-auto-insurance-liability.html

If you would like to check to see if you can save money, our agency represents over a dozen home and auto carriers and can shop the market for you to help you find the best rates!  We represent carriers like Progressive, Safeco, Travelers and Mercury among others.  Just click http://www.wekeepuinsured.com/
to see what we are all about. We'll spend about 5 minutes on the phone with you making sure we get you qualified for all the discounts that you're eligible for!