A blanket policy: how it will help you pay less for superior auto insurance

Buy a blanket policy and reduce your bodily injury liability coverage to the minimum stipulated by law. The more substantial your asset, the truer this recommendation will be for you.

What are you buying bodily injury liability coverage for? It is to take care of the passengers involved in an accident together with the other driver. If you don’t have coverage like this, your assets could be used to compensate accident victims.

However, you are urged to go for a blanket policy because even the most comprehensive liability coverage within an auto insurance policy would not be adequate if you are at fault for a fatal accident. This means that your personal assets will be liable if your liability coverage cannot handle the resulting bills and damages incurred.

But if you have a blanket policy, you are almost certain that you can handle the most extreme case. Plus, not only do you save on car insurance, but you also have coverage that takes care of any other types of liability issues that may come up in your life.

Price wise, you get a lot more coverage for every dollar of premium with a blanket policy …

If a 35 year old man living in New York City wants to increase his bodily injury to $ 100K / $ 300K from $ 25K / $ 50K, his rate will increase by $ 300! However, with a blanket policy, you will spend less than that to get $ 1 million coverage.

And if you choose to increase the amount of your blanket policy coverage to $ 2 million, you’ll only have to pay just $ 75 more. After the $ 2 million mark, you will only need to add $ 50 to your rate for every $ 1 million additional coverage amount. If you want more for less, a blanket policy will do you more good.

Now, go ahead and keep your liability coverage to a minimum. But make sure your general policy is in effect before doing so.