Is lowering the liability limits on my auto policy a good way to save money?

I have had pretty bad luck the last few years and have more than my share of fender benders. The rate of my policy is getting really high, and I am thinking of lowering my coverage to save money, but my brother says not to. Why not?

Answer provided by
Shannon Martin
Answered on Apr 29, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
“In this case your brother is right! If you tend to be accident-prone, you never want to lower your liability coverage; you may actually want to look at increasing it.
Having high bodily injury liability and property damage liability limits protects you from having to pay for these accidents out of pocket. Also, drivers who carry low limits on their policies are viewed as higher-risk drivers, so they don’t save as much money on their policy as you would think.
Drivers that carry higher limits, 100/300/50 or greater, are deemed lower-risk drivers, so the cost to increase your limits is usually minimal.
If you want to save money, look at taking a defensive driver course so you can benefit from a discount.
Another way to save money on car insurance is to sign up with Jerry. This free app shops with over 40 carriers and ensures you are always getting the lowest rate. “

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