Automobile Insurance Facts
EVERYONE wants cheaper auto insurance! Even if you are paying what you feel are the lowest possible rates, wouldn't you like to save a few dollars while still getting insurance from a reputable company? Do you know WHAT types of coverage you HAVE to have, and what is optional coverage? Here are some facts to know about auto insurance.
Ways to Save on Auto Insurance
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Don't Carry Excessive Coverage
- Insurance companies only pay claims equal to a cars actual cash or market value. This means if you have an older car, comprehensive and collision coverage may not be worth keeping. If the cash value of your car is, say less than $1,000, the cost of the coverage may not be worth the benefit. Understand though, if you waive this coverage, your car is not covered in the event of a collision.
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Raise your Deductible
- According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your collision and comprehensive cost by 15 to 30%.
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Drop Rental Reimbursement Coverage
- Rental reimbursement coverage that pays for some or all of your car rental expenses while your car is being repaired or until you buy a new car. Policies and costs vary for this type of insurance, but it always has strict terms and limits on the extent of the coverage. If you are able to make other arrangements while your car is being repaired, you can drop this.
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Make sure your current policy accurately reflects you
- It is important you update your insurance company about you, your car, and your driving record. You may be eligible for a rate deduction by moving, getting married, no longer insuring a younger driver like a child, installing an anti-theft device, or if it is over three years since your last violation, or if your credit history has improved.