How to think about your auto insurance limits

The number on a policy isn't the whole story

An auto policy combines several decisions: how much protection to carry for others, whether and how to insure your own vehicle, and what amount you would pay before some coverages apply. Looking at the premium alone can hide meaningful differences.

Liability limits matter when you are legally responsible for someone else's injuries or property damage. Think about the size of a serious claim, not only a minor fender bender. State minimum requirements are a starting point, but they are not necessarily the right limit for your finances or circumstances.

Your vehicle and your out-of-pocket amount

Collision coverage generally addresses damage to your vehicle in a covered collision, while comprehensive coverage generally addresses certain noncollision losses, subject to terms and exclusions. Your deductible affects what you pay out of pocket on a covered claim. A higher deductible may change the premium, but it also changes the amount you need to have available after a loss.

It is also worth asking about uninsured or underinsured motorist protection and who is listed as a driver. If your household, vehicle, commute, or usage has changed, make sure your policy conversation reflects it.

A short checklist for your review

• What liability limits do you have now, and why were they chosen?
• Could you comfortably pay your deductibles if you had a claim tomorrow?
• What is your vehicle worth, and what coverage would help replace or repair it?
• Has anyone been added to your household or started driving your car?

An agency conversation can help connect these answers to actual policy terms. To discuss your situation, request an auto insurance quote or contact us. This is general information; coverages and availability depend on the policy.