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We don't have any maxes on our insurance and our deductibles are not too bad so it seems like carrying personal injury protection on our car insurance is a waste. I want to lower it to the min 20/40k instead of what they recommend 250/500k.

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That depends on your health insurance. PIP will often cover your missed work as a result of an injury - which isn't a problem if you health insurance also does this but there is a chance it does not. What would you and your wife do for money if you became paralyzed?

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  • We both have disability insurance through our jobs too which I think covers 80/60% of salary for life where the PIP would only be one small lump sum.
    – Ryan Detzel
    Commented Jan 27, 2016 at 13:42
  • In that case I see no reason why you would need it, other than to line the pockets of the car insurance company.
    – Will
    Commented Jan 27, 2016 at 13:44
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In all probability, having lower coverage levels will result in higher premiums.

As my insurance agent explained to me, the higher your coverages, the lower the insurance company believes your risk to be - because you think about insurance smartly, you're less likely to make spurious claims.

I have my coverages run at various levels every 18-24 months, and it is almost always true that higher coverages result in lower premiums.

Also, there is no guarantee you'll still be employed by the same company if an injury happens. Or that they'll continue to offer the same plans every year.

Insurance is a calculated risk on the part of the insurer, and a means of sharing/deflecting risk (at a cost known as your premium) on the part of the insured.

Even if your premiums are slightly higher (on the order of a couple dollars per month, for example), do you really want to save a couple dollars and then be surprised when your health insurance company doesn't want to cover something?

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    Did your insurance agent also explain to you that they want more of your money? There is no way lower coverages is higher premiums. You got scammed.
    – Comptonburger
    Commented Jan 27, 2016 at 22:35
  • @Comptonburger - I didn't get scammed, but nice try. It has been true at every insurance company I've ever had.
    – warren
    Commented Jan 28, 2016 at 0:12
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    Go look for literally any major insurance company that offers a premium calculator on its website. Reducing coverage means lower premiums. They'll let you sign up at those quoted rates then and there, so it's not just a ploy. Lower coverage is lower premiums. The higher your coverages the lower the risk is to you, precisely because the risk is higher to the insurance company. Of course that translates to higher premiums.
    – Comptonburger
    Commented Jan 28, 2016 at 0:16
  • @Comptonburger - I've gone through this literally dozens of times. Every time I've looked at higher coverages, my premiums quoted have dropped.
    – warren
    Commented Jan 28, 2016 at 1:57
  • Warren, You mean "deductible", not "premium". The higher they are, the lower the premium. If you have to pay out $1000 vs $500, you're less likely to file a claim for something minor.
    – Kim G
    Commented Apr 14, 2018 at 16:08

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