In these trying economic times, people need to cut back wherever they can and still maintain as much of their normal lifestyle as possible, one great place to try and save a lot of money is on your car insurance. Even though you are required by law to carry insurance, there are certain things you can do to save money without incurring a lot of extra risk let’s take a look at some of those ways to save now.
There are three different ways that you can save money on your car insurance (I compare car insurance quotes), you can decrease your coverage, increase your deductibles, or decrease your risk to be insured. By decreasing your coverages you could end up in a bad accident and not have enough coverage. In other words if your limit of liability on medical coverages is $100,000 and your bill ends up being $150,000 after serious accident, you could then owe $50,000 in out-of-pocket expenses. If you’re not a person that has a lot of car accidents, and don’t participate in a lot of risky behaviors, then this is possibly a viable option for you, but let’s take a look at another option instead.
Instead of cutting back on your coverages, where you could save a couple dollars but maybe end up holding the tab for hundreds of thousands of dollars, it’s sometimes better to increase your deductibles instead. Many times just by increasing the deductible on your collision insurance, the part that covers your car in case you have an accident that is your fault, you can save a considerable amount of money. So take a look at your collision and comprehensive insurance and see if there’s a way to increase the deductible and save money there.
Another way to save money on your car insurance is to decrease your risk of having a claim overall. You’ll need to sit down with your insurance agent and find out all the different ways that they’re rating you and your car. In other words, people who don’t smoke cigarettes have fewer accidents and get a better rate, people who drive fewer miles to and from work also have fewer accidents and get a better rate. Many times all you have to do is carpool to work three days a week with several other people and you could considerably lower your insurance premiums. Taking the bus to work several times a week would also achieve the same purpose, you just need to find out how much you need to reduce your weekly mileage, to and from work, in order to save money. So in this particular instance you’ll need to contact your insurance agent to find out all the facts and figures from him.
As you can see, saving money on your car insurance doesn’t need to be a complicated procedure. Once you’re armed with all the right information you can reduce your risk, reduce your coverages, or increase deductibles in order to save many different ways.