Cut Car Insurance Costs, Not Coverage

Having adequate car insurance is one of the most important things you can do to protect yourself and your family. Not only should your insurance policy cover your liability, medical, and car repairs; but your policy should be with a company you can trust. There are so many different options for car insurance, it is easy to get lost in the proverbial jungle of competing companies and policies.

But, you may be happy with your current level of coverage or insurer. If that is the case, there are some simple things you can do that will reduce your annual car insurance rates, while sticking with your current insurer.

Shop around and compare. Even if you are happy with your current car insurance agency, shopping around can give you an idea of a fair price, and allow you to negotiate with your insurance agency. Remember, they don't want to lose you as a customer either.

Increase your deductible. Having a lower deductible normally costs a premium. You are much better off with a higher deductible on your policy while maintaining enough to cover the deductible from your emergency fund. After all, that's what the emergency fund is for.

Reduce coverage. Knowing what you are covered for, and what is legally required is the first step in being able to intelligently choose your level of coverage. Especially if you move states frequently, your current insurer may have maintained the previous level of coverage without explicitly asking you, which may result in paying for coverage that you don't need.

Combine Policies and take advantage of multi-car discounts. If you are happy with your insurance company as an automotive insurer, you may be happy with them as a provider of homeowners, renters, health, or life insurance. Many agencies will offer a multi-policy or multi-vehicle discount. If you are interested, be sure to ask your agent.

Drive less. Insurers often offer a low mileage discount if you drive your vehicle less than a certain number of miles annually. If you don't drive much, use public transport, or carpool, this may apply to your policy.

Seek out discounts. There are a number of discount programs that may apply to your policy, such as good driver discounts, good student discounts, and discounts for participating in state safety courses.

Be prepared for the worst: Always be prepared for the worst. Ensuring an adequate level of coverage is the first step. Keeping your vehicle maintained, wearing your seat belt and doing things like keeping your insurance agent's number programed in your phone, and having an emergency contact list are all steps that prepare you for the possibility of a car accident.