I currently have my car at state minimum insurance rates. I recently called a local insurance agent who told me the reason I’m getting higher quotes while trying to shop around is the fact that I have state minimum right now and I should raise my liability limits to get better quotes.
Is there any truth to this? I don’t drive my car a lot plus I live in Brooklyn so insurance is crazy.
Auto insurance at state minimum giving me higher rates?
byu/banallthemusic inInsurance
Posted by banallthemusic
5 Comments
Yes, it can be more expensive at lower coverage levels..
Insurance companies do not want minimum insurance insureds. If you rent, ask your insurance broker if buying a renters insurance policy will give you a multiple policy discount.
Yes. This is absolutely true. Think about it from an insurance company’s perspective. “This client doesn’t really care that much about coverage, which likely means that they are careless about other things in their life, too”
It may not make sense to you, but if you went maximum coverage 250k/500k liability coverage it will give you better rates at the new company.
Personally, I never understood it since the company would only be on the hook for state minimum coverage… But what do I know!
Youre more of a risk to the company with minimum limits.
A lot of companies give a better rate if your prior insurance is at higher than state minimum limits.