Risks of Lowering Auto Insurance Coverage

Accidents are unpredictable—both in timing and severity. Even the most careful, experienced drivers can be involved in a crash caused by someone else, and without the right coverage, a single incident could lead to significant financial strain or lasting debt.

Understanding Your Auto Insurance Coverage

Auto insurance is there to help protect you financially if something goes wrong. Here’s a quick refresher on the main types of coverage:

• Property Coverage helps pay for repairs or replaces your car if it’s damaged or stolen.

• Liability Coverage covers costs if you’re responsible for someone else’s injuries or property damage.

• Medical Coverage can help with medical bills, rehab, lost wages, and even funeral expenses after an accident.

• Underinsured Motorist Coverage kicks in if another driver causes an accident but doesn’t have enough coverage to pay for the damage.

Each of these plays a role in making sure you’re not left footing the bill after something unexpected.

Liability Limits: What Do Those Numbers Mean?

You might have heard numbers like 100/300/50 when talking about liability coverage. That breaks down to:

• $100,000 for injuries per person,

• $300,000 total per accident,

• $50,000 for property damage.

Many states only require 25/50/10, which might seem like enough—until there’s a serious accident. Medical bills and repair costs add up quickly, and if your coverage falls short, you could be responsible for the rest. It’s a tough spot to be in, especially when the difference in premium between basic and more robust coverage can be surprisingly small. The premium difference to increase your limits to 250/500/250 can be well worth it when you consider what can happen in a major accident.

Collision Insurance – When Does It Make Sense?

Collision coverage pays for repairs to your vehicle after an accident, regardless of who’s at fault. But it won’t pay more than the value of the car. If your car is older and worth just a few thousand dollars, collision coverage might not be worth the cost. However, for newer or more valuable vehicles, dropping collision insurance can be a costly mistake. We can help you take a look at your car’s value and assess whether this coverage is still a smart investment.

Smart Ways to Save on Auto Premiums Without Cutting Coverage

If you’re looking to reduce your premium without exposing yourself to major risk, consider these safer strategies:

• Raise your deductible slightly to lower monthly costs.
• Keep a clean driving record.
• Ask about low-mileage discounts if you don’t drive much.
• Choose a car with safety features like airbags and anti-lock brakes.
• Install anti-theft devices.
• Bundle your auto policy with homeowners, condominium owners, or renters insurance for a multi-policy discount

We’re Here to Help

Accidents happen—even to the most cautious drivers. Having the right coverage in place can make all the difference in protecting your finances and your peace of mind. At Murphy Insurance Agency, we’re here to help you review your policy and find the right balance between protection and cost.

Let’s make sure your coverage fits your needs.