Why do you buy Auto Insurance?  “I have to” may be your response and that is so true.  Most states require auto liability insurance and almost all lenders require collision and other than collision coverage (the so-called “Full Coverage” option) on your car insurance. So, “I have to” is a great reason but there is an even better reason….

Before the days that politicians told us to buy insurance, people still purchased insurance.  In fact, the first car insurance policy was issued by one of HIA’s carriers, The Travelers back in 1895.  That’s way before you “had” to get car insurance.  Buying public liability coverage for hitting other people and damaging property was a way for the owners of these machines to reduce their risk.   That’s still the primary reason that you should purchase car insurance today.

So, what’s all this about saving money?  You save money by increasing your deductibles!  Yep, when you raise your deductible, your premium goes down because you were willing to assume a larger portion of the risk for damage to your car.

So, how can risk be reduced?  You buy MORE liability coverage.  Many people can double the amount of  liability coverage on their policies for $5 per month per car.  If you have an accident, there’s a greater chance of the claim being fully covered by their insurance policy with the higher limits.

SO….you take the money you save by raising your deductibles and use a portion of the money and buy higher liability limits.  You take the little risk and pass the bigger risk onto the insurance company.  Great Deal.  Why not let the car insurance company take the bigger risk on your auto insurance, right?

If you would like to know how this advice applies to your situation, give us a call at 806-798-7800