Once you understand the minimum requirements to meet the law, you can choose a policy based on your needs and preferences. When you’ve selected your coverage, the next step is to decide whether you want a split vs. single limit policy.
A split limit policy includes three numbers:
- Maximum bodily injury payment per person
- Maximum bodily injury payment for all people involved in the entire accident
- Maximum total property damage payment for all property in the accident, which cannot exceed the bodily injury payment per person
A single limit policy, on the other hand, is one number that includes the total limit of property damage and bodily injury insurance. In other words, a single limit policy combines all of the coverage for injuries or property damage.
Split limit coverage is more common because it is more affordable than single limit coverage, especially for those with lower-cost cars.
How Much Does Auto Insurance Cost?
Once you’ve chosen your coverage and limits, it’s time to choose your deductible and premium and find out what your auto insurance costs.
Most of the time, you’ll be able to choose your deductible, but remember that a lower deductible usually means a higher premium, and vice versa. Unfortunately, your insurance provider will set the cost of your premium, taking into account factors such as your age, gender, driving record, credit score, and how much you drive.
How to Save on Auto Insurance
While some things that impact the cost of your auto insurance, like your age, are out of your control, you can save on auto insurance in a few ways:
- Adjust your deductible. Raising your deductible will mean lower premiums.
- Drop coverage. If you have an older car, you could get rid of your collision or comprehensive coverage. Additionally, all drivers can save money by dropping medical payments coverage, rental reimbursements coverage, and the like.
- Bundle your insurance. If you have home insurance or another type of insurance, you can bundle it with your auto insurance to save money.
- Take a safe driving course. Most insurers offer discounts if you take a driver’s safety course, as well as other promotional deals.