General Auto Insurance Information – How Much Cover Does General Auto Insurance Provide?

Q: I’m thinking about recalibrating my general auto insurance policy. I want to know what the standard coverage is recommended and if I should lower my policy limit so that my insurance premium goes down and I can meet my savings goal this year.

A: Your policy limit is the maximum amount the insurance company is legally obliged to pay under normal circumstances. Lowering the policy limit lowers the insurance company’s liability and increases your own. In most general auto insurance policies, the policy limit is set to the estimated value of the car, plus any additional coverage for the driver.

In general, you should have insurance coverage that protects you against third-party claims, theft and collision damage. You can also take out PIP (Personal Injury Protection) cover if you want to protect the driver, but it’s really not essential if your country doesn’t require it.

Ask your agent to prepare general auto insurance for your car, then negotiate the price with them. Today, all insurance companies are under pressure to get more buyers, so negotiating becomes easier than it used to be.

Finally, we highly recommend that you search some more auto insurance quotes from different providers. Comparing quotes online is one of the easiest ways to lower the cost of your insurance premiums and you might be shocked at how much money you could save on your coverage.

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