Auto Insurance Limits and Deductibles

What are auto insurance limits and deductibles?

Auto Insurance Limits—An Auto Insurance Limit is a figures that represents the amount of coverage that will be paid to you in a loss.  For example, if your collision limit is $100,000 that is the maximum amount of funds you will receive in case of a collision. 

Auto Insurance Deductible—An Auto Insurance Deductible is the amount you choose to pay before you receive any funds from your insurance company.

Why are limits and deductibles important to know about?

It is important to understand limits and deductibles before you choose a car insurance policy because they are two factors that help determine how much you will have to pay, and how much money you will receive from your insurance company in case of an accident.

How can I change my deductibles and limits so my premiums are lower?

If you choose high deductibles, your premiums will decrease.  Experts recommend that you save the funds that you would have used on your deductibles, in case of an accident.  If you lower your limits you premiums will decrease as well.   

What are the trade-offs of deductibles and limits to lower premiums?

Even though you will pay less on your monthly premiums, if you choose high deductibles and low limits you will have to pay more in the event of an accident. 

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