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Your family's budget is not necessarily a flexible thing. After all, it's likely that your income is fixed, and most of your bills--car payment, house payment, rent, electricity, cable--are probably fixed as well. That leaves a very small and often inflexible space in your budget for car insurance. This reality forces many families to chase after the lowest price, which often leads them to choose minimum car insurance coverage. As long as you aren't involved in an accident, that might be fine, but minimum car insurance coverage can really come back to bite you if you do have an accident.
When you choose your limits and deductibles, make sure they're reasonable for both your reimbursement and your wallet, because limits that are too low and deductibles that are too high are probably going to wreak more havoc on your budget than a higher insurance premium might. This could put your family at risk for both reduced savings and limited automobile use after an accident.