Dropping some of your coverage—like comprehensive or collision—to the lowest legal level can cut your premium, but it could also put you at serious risk.
Determining Which Coverage You Need
An automobile insurance policy is designed to provide you with a level of protection against property, liability and medical costs if you are involved in an accident.
- Property coverage pays for damage to or theft of your car.
- Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
- Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
- Underinsured motorists coverage pays for property damage and bodily injury caused by another driver whose coverage is insufficient to cover damages suffered.
Selecting the correct liability limits is fundamental. 100/300/50 means you are covered for up to $100,000 in bodily injury coverage per person, $300,000 in bodily injury coverage per accident and $50,000 in property damage per accident.
Many states have minimum liability limits of 25/50/10, although some states are higher or lower than this. While it may lower your premium, reducing your liability limits to minimum legal levels and dropping underinsured motorists coverage could open you up to substantial risk.
Collison Insurance – Know the Value of Your Car
Your policy will not pay for repairs that exceed the value of your vehicle. For this reason, if you are driving a vehicle that isn’t worth more than a few thousand dollars, it may not make sense to purchase collision coverage. EHD can help you determine whether or not collision insurance makes sense for you.
Top Ways to Save on Your Auto Premium:
- Consider raising your deductible.
- Keep up your good driving record.
- Drive less to qualify for a low-mileage discount.
- Drive a car with safety features such as anti-lock brakes and airbags.
- Install an anti-theft device.
- Ask about our multi-policy discounts.
Have a question? Get an answer. Learn more at ehd-ins.com or call us toll-free 1-800-544-7292. Our experienced insurance and risk management professionals would be happy to answer your questions, help you explore your options and develop a customized strategy for you and your organization.
About EHD
Established in 1896, Engle-Hambright & Davies, Inc. — now EHD — is one of the most respected insurance brokers and advisors in Pennsylvania and one of the largest and most reputable full-service insurance brokers in the United States. We have offices in Exton, Lancaster, Pittsburgh and Reading and offer commercial insurance, employee benefits, personal insurance and risk management services to businesses, non-profit organizations, public agencies and individuals throughout Pennsylvania, New Jersey, Delaware, Maryland and Ohio.
EHD has access to all regional, national and international markets, holding preferred status contracts among many insurers, which provide the leverage to negotiate the most favorable coverage and financial terms for our clients. We are absolutely committed to client service, and our staff of over 100 insurance professionals is among the most experienced and knowledgeable that you will find anywhere. It is no wonder why we are the partner-of-choice for over 5,000 organizations, with a client retention rate that approaches 100%.
Learn more at EHD-Ins.com or call 1-800-544-7292. Note: not intended to be exhaustive, nor construed as legal advice. Readers should contact legal counsel and/or an EHD insurance professional for appropriate advice. Original content source: © Zywave, Inc. All rights reserved.
