Your auto insurance coverage limit is the highest dollar amount we will pay in case of a claim on a covered loss this means that the insurance company would be responsible of any losses within the bound of the policy.
The higher your coverage limit is the more you are safe regarding any payment caused by any loss.
Typically, higher deductibles mean lower premiums, lowering your coverage limit is a good way to bring your premiums down and save money now, even if you may need to pay more out-of- pocket later if an accident takes place. But, keep in mind that each situation is different. Be sure to consider your own needs before lowering your coverage
Setting a higher deductible amount can help keep your auto insurance premiums down. But a lower deductible (with higher premiums) means you’ll pay less out-of-pocket when you make a claim.