7 You usually pay a lower premium if you choose a higher deductible. Example: Let’s say that your Comprehensive coverage has a $500 deductible. If a storm causes $1,500 of damage to your car, you must pay the first $500. Then your Comprehensive coverage pays the rest—$1,000. Limits Each kind of coverage has its own limits. The limit is the total amount the insurance company will pay for a single accident or claim. The insurance company will not pay any costs above the limits. Example: Let’s say that your auto liability coverage has a $50,000/$100,000 limit on bodily injury for one accident. In this case, your insurance will not pay more than $50,000 for one person. It will not pay more than $100,000 for one accident. Do I pay a fee to my agent or broker? Agents are paid by insurance companies, not by you. If you work with a broker, you will usually pay a broker’s fee. Do all insurance companies have the same costs? No. Costs vary, even in the same area. When you shop for auto insurance you should compare costs and coverage from several companies. I cannot afford my premiums. What can I do? California has a Low Cost Automobile Insurance Program for drivers who are income eligible.