"Should I drop my liability coverage if money's tight and I'm struggling to pay my bills? "

"I am a single mom working two jobs and I can hardly make ends meet. Right now, the coverage on my auto policy is 25/50/50.

I found out I can save about $20 per month if I drop the coverage to 15/30/10. I know it is a lot less coverage, but I could use the money. What should I do?"

Answer
“Times are hard for a lot of people right now, and I can understand that you may have to make a lot of hard choices. If you can avoid lowering the coverage of your auto policy, then you should.
Before changing your coverages, see if there are any discounts that are available for your policy. If you are carrying comprehensive coverage or collision coverage, see if the deductibles can be raised to a higher amount. This may save you more money than changing the liability coverage.
Having the lowest liability limits will put your financial future at risk. If you are at fault in an accident, any loss over your policy limits you will have to pay yourself.
If your insurance premium is still too high, you will want to shop for car insurance online and look for a new carrier.
Give the free Jerry app a try! Jerry can get the lowest quotes from over 40 carriers and will even help you switch companies. “
avatar
Shannon Martin
Answered on May 14, 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.
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