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Auto Insurance Phoenix – 2 Traps to Avoid!

Posted on: February 17th, 2010 by admin

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When you are developing a budget usually it requires cutting back on things in order to reduce your overall expenses. When reviewing your monthly expenses most people can find areas that they can cut back on that would be considered luxuries, things like going out dinner versus eating in, impulse purchases, habits like smoking, etc. The problem that many people make is that instead of cutting out the luxuries in their budget they cut back on other areas that would not be considered luxuries but rather necessities. One area that is commonly being cut back in this great recession is auto insurance Phoenix. Many people look for ways to reduce their auto insurance bill and two common ways of doing this are by lowering the liability limits and dropping collision coverage. Lowering your liability coverage on your auto insurance Phoenix can be very dangerous, because if you are in the unfortunate situation of being involved in an accident were you are deemed at fault you become very susceptible. The liability limits are in place to protect your assets you have accumulated in situations like these. If your limits are low and you have a lot of assets then you could be in trouble if you are being sued by the party who was the recipient of your car crash. The goal is to make sure your liability limits are high enough to protect your current assets and future assets/income. This is one area where you should not be cutting back on. The second area is if you have a newer vehicle dropping collision coverage on it. Again if you are involved in an accident which you are deemed at fault then you have chosen to self insure yourself with the damage of your vehicle. If the accident is bad and the damages are high be prepared to pay for the full amount to fix it. A better way of reducing your auto insurance bill is raising your deductibles, then in this case you are essentially self insuring yourself for the minor damages to your vehicle and the bigger damages you will be covered. As always remember to speak with your auto insurance agent Phoenix about properly insuring yourself and consult a lawyer for the exact rules of liability limits and at fault accidents.

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