By Jordan Lair, MBG Insurance — Springfield, MO
Most people shop auto insurance by looking at one number: the total premium. But the smarter question isn’t “what’s the cheapest policy?” — it’s “where can I get the most protection for the smallest price difference?” When you actually compare limits side by side, the answer is often surprising. Here are two real examples.
Scenario 1: A Family of Four Drivers
A husband and wife with two teenage drivers and four vehicles came in looking at their options. Here’s what the numbers looked like:
- 250/500 bodily injury liability, 250/500 UM/UIM, $1,000 comp/collision deductible: $541/month (about $6,500/year)
- 100/300 liability, 100/300 UM/UIM, $500 deductible: $533/month — only $8/month cheaper than the top-tier coverage above
- 50/100 liability, 50/100 UM/UIM, $500 deductible: $500/month
Look at the gap between the bottom and top of that list. Going from 50/100 limits all the way up to 250/500 limits — five times the liability and uninsured/underinsured motorist protection — only cost this family $41 more per month. That’s about an 8% increase in premium for five times the coverage.
For a household with two brand-new teenage drivers, that’s not a hard call. The cost of being underinsured in a serious at-fault accident, or an accident caused by someone with little or no insurance of their own, is enormous compared to $41 a month.
Scenario 2: An Older Couple, One Car
A retired couple with a single vehicle showed an even more dramatic version of the same pattern:
- 50/100/50 liability with matching UM/UIM, $500 deductible: $95/month
- 100/300/100 liability with matching UM/UIM, $500 deductible: $106/month — $11 more for double the liability and UM/UIM coverage
- 250/500 liability with matching UM/UIM, $1,000 comp/collision deductible: $104/month
That last option is the one worth pausing on. By raising their comp/collision deductible from $500 to $1,000, this couple was able to jump from 100/300 limits all the way to 250/500 limits — and their premium actually dropped by $2 a month compared to the 100/300 option. Far more liability and UM/UIM protection, for less money.
The Takeaway: Deductibles Are Your Lever
In both examples, the deductible — the part of the policy you have the most control over — is what made the higher limits affordable. Comp and collision deductibles apply to your own vehicle damage, which is usually a manageable, one-time cost. Liability and UM/UIM limits apply when you’re at fault for someone else’s injuries, or when you’re hit by a driver who doesn’t carry enough coverage to pay for what happened — and that’s a cost that can follow you for years if your limits are too thin.
Raising your deductible by a few hundred dollars is a decision you control and can plan for. Being underinsured in a serious injury accident is not.
Before you renew your policy based on premium alone, it’s worth running the actual numbers on your own coverage. In many cases, a small deductible adjustment opens up meaningfully more protection for only a few dollars a month — and that’s the kind of insurance decision worth making on purpose, not by accident.
Have questions about your own limits and deductibles? Reach out to MBG Insurance — we’re happy to run the comparison for your specific situation.