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Save Money on Liability Auto Insurance

Liability auto insurance is the foundation of a car insurance policy. Some form of liability insurance is required in virtually every state across the country. The specific type depends on the laws of that particular state. Liability coverage is generally the cheapest major component of an auto insurance plan. Even so, this type of coverage can get costly for drivers. To counteract these expenses and reduce your premiums on your liability policy, try some of these strategies and see how much money you could save.

Increase Liability Deductible to Save

One of the most common ways drivers choose to cut down on their auto premiums is by increasing their deductibles. This is an effective strategy for your liability plan as well as for every other part of your car policy. Increased deductibles allow insurers to lower rates considerably because they save these providers so much in the way of smaller claims and the overall cost of larger ones.

By electing a higher deductible, you are in effect foregoing your right to file a smaller claim. This saves you money off your policy because many auto claims are of the smallish variety. Your provider can save big on both payouts and the cost of administering these claims (i.e. the work of adjusters and claims representatives) on your behalf. In turn, they can share some of this savings to you as a customer. Both sides benefit in a way, although there are limits to the benefits drivers enjoy from taking on higher deductibles.

Higher deductibles equate to higher rates of self insurance. You pay less money for your policy because you are getting less coverage for your money. Small claims can add up over time, from fender benders in parking lots to minor cases of vandalism or storm damage. If you are continually paying out of pocket for things your insurer would ordinarily be paying for, that cheap liability policy just got a whole lot more expensive. For this reason, higher liability deductible limits should only be elected in certain circumstances, and only up to a certain point. If you set them too high you limit your policy to the point where the cost savings is outweighed by the loss of protection. Setting your deductibles higher is not the best solution most cases to save money on your liability policy.

Get Discounts to Lower Premiums

A better option that does not compromise the level of protection included in your policy is to look for discounts that can drop the prices you pay for your coverage. There are many such discounts available, and these discounts can save you money on all areas of your policy, not just your liability plan. Check with your insurer or look online to get more information on the discounts you might qualify for.

One common example is the safe driver discount. If you have been claim free and free of citations for the past several years and you are not already getting some sort of safe driver or preferred driver discount, ask about it with your insurer or contact some competitors to see if they would offer this kind of rebate to you as a covered driver.

Another discount very easy to qualify for is a multi policy discount. If you carry your auto liability insurance with the same insurer who provides your renters or homeowners plan, you can get a discount on both plans and save great money. You might already be getting this discount, of course, and some drivers get it and don't even know it. This is a lesson to all drivers: that we should pay better attention to the policies we enroll in and pay for. We should be aware of the coverage we have and of the rebates we may be receiving to get it.

Comparison Shop to Save Big

Finally, possibly the best way to save money on your auto liability plan is to shop around for the best price. Many of us auto owners across the country fall into a trap with our coverage, renewing our plans each year and not even checking what else may be out there. If you don't at least take a look around, you can never know whether the price you are paying for your policy is in line with the market.

Shop around for auto liability insurance. Get online and compare prices from reputable insurers selling coverage in your area. Take a good look before you renew your current plan and find out one way or another whether your current policy stacks up to what's out there in the marketplace. Don't be content to renew without making sure you're getting a fair deal. Make the most of your investment in auto liability insurance and get more for your money.


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