How to Save Money on Your Insurance – Full Coverage vs. liability only

One way people want to try to save money on their insurance is by getting rid of some of the coverage’s and/or lowering the amount of coverage’s. This CAN work for you, or it can work against you. As we discussed before, if your car is older, is not worth much, then you may not care to have collision on your policy. If it is new, and has a lien, then certainly you need collision. For certain, if you are paying for collision on a car that has little resale value, you may want to yank it off your policy. Speaking with your agent can really help you to determine how you want your policy to cover you.

As far as OTHER coverage’s go, here is a quick  breakdown:

  • Liability-NEVER lower these limits are choose state minimums. Your car can still do massive damage and kill people. Make these limits as high as you can afford.
  • Comprehensive-makes sense to have on pretty much every policy. Does your car have a windshield? Get comp. No matter what, keep the deductible low.
  • Road Service-it is cheap, you won’t save much by getting rid of it, and having it on there will usually save you money and aggravation at some point in your driving career

  • Car Rental-if you have an extra car to use in the event your car is in the shop due to a covered claim, you may not need this coverage. Otherwise, keep it.
  • Uninsured motorist liability-same as regular liability. This coverage protects YOU, so make it mirror your regular liability limits.

Photo credit/Flickr/tehusagent

Photo credit/Flickr/beltzner

This entry was posted on Saturday, July 25th, 2009 at 3:05 pm and is filed under article. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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