In times like this everyone is looking to save money. Taking some time to reevaluate your auto insurance coverage is one step you can take to save money immediately. Here are a couple of things to look out for.
- Deductible: The deductible is the amount you are required to pay out of pocket before your insurance company starts paying on any claim. The higher your deductible, the lower you insurance cost will be. If you are currently carrying a low deductible consider raising it to lower your insurance premiums. If might be prudent to consider this if you rarely make claims and you have sufficient funds in the bank to cover a higher deductible.
- Coverage Limits: How much coverage you carry is directly linked to how much you pay for insurance. Higher coverage limits carry higher premiums. Almost all states have minimum levels of required coverage that you must maintain. Many times people take out high levels of coverage without a specific need for that level of coverage. Over the years paying for higher levels of coverage than you need can get expensive. Consider lowering your coverage if you have relatively few assets.
- Collision Coverage: Collision coverage pays for damages caused to your car in the event of an accident. Often times when you buy a new car this coverage is desirable since an accident can be very expensive to repair. But over time as your car ages the value of this coverage may not be as important to you. If you are involved in an accident you may not be concerned about getting the car back to perfect condition as it may have deteriorated over time anyway. Consider dropping your collision coverage if your car is getting older and you are no longer concerned with fixing it to brand new condition.
- Shop Around: Finally the best advice to save money on car insurance is to shop around for less expensive coverage. Many times people take out insurance with a specific company and then never reevaluate it. Most companies offer online shopping tools that make it incredibly simple to compare prices among several insurance companies. Depending on your driving record, what type of car you drive and where you live you could save significant money just from switching companies. Consider this if you haven’t shopped around in several years, you bought a different car or you have changed locations.
Just knowing the different variables involved can help you make better decisions on your car insurance coverage. Take a few moments to look in to it and you may find you can save yourself some money.