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With the economy making it difficult for many Americans to pay bills, many drivers may be looking for ways to cut corners on their car insurance premium. While reducing your coverage on your car insurance may leave you vulnerable to paying higher deductibles should you get into a collision, you can save money now when you need it most. Here’s how.
Reduce, Eliminate and Assess Your Coverage
Take time to really look at your car insurance premium. Do you truly need that car rental coverage? If not, you could save $20-50 per six months if you remove it. Consider having higher deductibles for your collision coverage. You will see a substantial drop in what you pay for car insurance now, but be aware you may get sticker shock if you damage your vehicle and have to pay a $1500 deductible to get it fixed.
Look into your state’s requirements for the minimum amount of insurance you must carry. If you are able, drop your coverage to only Liability. You should be able to get liability coverage for about $50 a month. Having only Liability means if you cause an accident you won’t be covered for your own vehicle’s damages or personal injury under the Comprehensive or Collision coverage your insurance offers. If you have money saved up and can afford to pay for any damage to your vehicle (including replacement in the event that you total it), you may be fine with only the basics of Liability coverage.
Look at Discounts
If it’s been a few years since you looked at your car insurance policy, see what types of discounts your car insurance company offers. You may be a member of an organization that gets a discount, or you may qualify for a reduction in rate based on your driving record, age or military status. If you have considered adding other types of insurance to your policy, like homeowner’s or RV insurance, chances are high that your auto insurance company offers a discount to car insurance policyholders with multiple insurance policies.
You Better Shop Around
Car insurance companies are suffering in this economy too. They are coming up with incentives to keep current customers and convert others to become customers. Start by contacting your car insurance agent to see if your company is offering any new programs that would make you eligible for a discount on your car insurance rate. Car insurers would rather go great lengths to make you happy and keep you than to lose you and have to find a new customer to take your place.
If your car insurance company doesn’t go the extra mile to keep your business, look online for car insurance quotes and see who’s got the best deal out there. You may be surprised to find that you can save $300-$500 just by switching car insurance carriers: and that’s a cost you will appreciate when it’s time to shop for Christmas presents!
