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Risks of Lowering Auto Coverage 2021

After the many ups and downs of the past year, many people are searching for ways to reduce spending. Some are looking at insurance premiums as a method of tightening their wallets. This may work well for certain circumstances but you’ll want to guard against becoming underinsured or creating insurance gaps in the process. Do you know what insurance coverages you can part with safely? Don’t worry, you’re not in it alone! Explore with Nowell Agency insurance experts as we investigate some tips on lowering car insurance, as well as potential risks of lowering car insurance in 2021. Our main goal is for everyone who drives to get great rates that meet your needs while keeping you safe on the roads too!

Factors that Affect Car Insurance Rates

When you’re attempting to determine how to lower car insurance premiums, it’s important to consider what auto insurance coverage your state requires you to maintain legally as well as what liability limits you need to keep versus what you can drop to cut auto insurance costs. Knowing the minimums of your local legal car insurance coverage requirements ensures that you remain in compliance when you reduce insurance premiums. Minimum automobile insurance requirements also vary by state. For example, Mississippi minimum auto insurance includes Bodily Injury and Property Damage at 25/50/25. This means the auto minimum liability limits required up to $50,000 for all persons injured in an accident, subject to a limit of $25,000 for one individual, and $25,000 coverage for property damage.

While each state has different coverage minimums and various compulsory coverages, common coverage on auto insurance may include:

  • Bodily injury
  • Property damage
  • Uninsured motorist and/or underinsured motorist
  • Physical damage
  • First-party (policyholder) medical expenses
  • Personal injury protection

Does this sound like a lot of confusing jargon? Don’t worry, you’re not in this alone! The best auto insurance agencies in Mississippi, like the Nowell Agency, and others across the United States, can walk you through exactly what your state requires and what liability limits are most vital for you to keep. We can also discuss what auto insurance coverage to drop to save money on car insurance.

how to lower car insurance rates

How to Determine What Auto Coverage You Need

Every situation is different, so you’ll want to talk to your agent. However, most will advise you not to drop the following coverages, regardless of legal requirements:

  • Property coverage (pays for damage to or theft of your car)
  • Liability coverage (pays for your legal responsibility to others for bodily injury or property damage)
  • Medical coverage (pays for the cost of treating injuries, rehabilitation, and sometimes lost wages and funeral expenses)
  • Underinsured motorists coverage (pays for property damage and bodily injury caused by another driver whose coverage is insufficient to cover damages suffered)

How to Reduce Car Insurance Costs Safely

A lot of people are looking for ways to spend less this year and some may be considering reducing car insurance premiums. If you’re careful, lowering your auto or car insurance could save money in the long run but there’s always a risk that it won’t work out as planned- you may end up spending more on post-accident payments if your limits aren’t set properly – so speak with an expert! With ideas from Nowell Agency staff on what auto coverages are safe to drop, you’ll successfully weigh tips on lowering auto insurance AND risks associated with lowering car insurance coverage. Call our helpful Mississippi auto insurance agents today or click to learn more about saving on car insurance in MS! Nowell Agency is here to get you on the road to success!

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