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Understand your insurance deductible and limits
of liability

Car insurance coverage should fit your needs – and your budget

To create the auto insurance policy that's right for you, think about what you'd like covered, what you can afford to pay for that coverage and how much you can pay out of pocket if an accident occurs.


Your car insurance deductible is the amount you'll pay out of pocket before your insurance kicks in. The lower the deductible, the less you'll pay out of pocket if an accident occurs. Selecting a higher deductible may lower your auto insurance premium.

For example, if you choose a $1,000 deductible and have an accident causing $2,000 in damage, you would pay the first $1,000 of a covered loss before insurance kicks in.

Limits of liability

Your car insurance coverage limits, also referred to as limit of liability, is the most your insurance will pay if you have a claim. Choosing a higher coverage amount provides you additional protection if an accident occurs.

The available coverage limits may vary by coverage type and state. It is important to choose limits that meet your needs.

Even more protection with a personal liability umbrella policy

You may want to consider additional liability coverage over and above the basic limits in your automobile policy. For example, if you're in a serious accident involving medical bills or litigation, umbrella insurance pays after you have used up the underlying auto insurance. Typical policies provide $1 million in additional coverage.

Weigh budget and risks

At Travelers, we understand your need to obtain thorough coverage while keeping your premiums reasonable. That's why we recommend that you carefully weigh your budget considerations against your exposure to potential risks as you select your coverages and limits. You can consider different scenarios with our online Auto Coverage Guide, or call us and a Travelers representative will help.

Be confident in your insurance choices. Contact your agent or Travelers representative today. We'll work with you to develop an auto insurance policy that fits your needs and your budget.

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The information on this site is general in nature. Any description of coverage is necessarily simplified. Whether a particular loss is covered depends on the specific facts and the provisions, exclusions and limits of the actual policy. Nothing on this site alters the terms or conditions of any of our policies. You should read the policy for a complete description of coverage. Coverage options, limits, discounts, packages, deductibles, repair options, billing options and other features are subject to availability and to individuals meeting our underwriting criteria. Not all features available in all areas.

Insurance is underwritten by The Travelers Indemnity Company and its property casualty affiliates, One Tower Square, Hartford, CT, 06183. For a complete list of personal insurance underwriting companies, click here.

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