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How to Save Money on Car Insurance
Shopping around, keeping a good driving record and using a car insurance calculator are the first steps of saving on car insurance. However, they are usually not enough – there is still lots of money on the table. This article will give you some advice on how to deal with insurance carriers and what kind of coverage to choose in order to estimate your auto insurance coverage expenditures.
Rental reimbursement is sometimes to be avoided
How badly do you need to drive? Can you live without a car for a few days, or do you have a spare car you can use while yours is being repaired? Evaluate your needs and see if you really need rental reimbursement coverage – granted, it’s not expensive (it costs less than a meal per month), but it could get you some nice savings over the long run.
You may find better deals than roadside coverage
Roadside assistance might be cheaper or may even come for free with an auto club membership. If you are a member of AAA or a similar club, you may consider dropping roadside insurance altogether. The same goes if you have a new car which is highly unlikely to break down in the middle of the road. Shop around and see who can get you the best rates.
Notify the insurer if your driving needs have changed
If you are driving less than you used to, you will want to notify your insurer. Yearly mileage is one of the factors that impact your premium, and the less you drive, the lower your bill will be. The reasons are obvious – if you drive less, the odds of being involved in an accident are proportionally lower. If you don’t drive at all, there are zero chances you will crash your car (of course, there is still the risk of it being stolen or vandalized, but that’s another story). A select few insurers offer the pay-as-you-drive system, and if you drive less than 5,000 miles a year you will want to give it a look.
Don’t try to save by cutting back on liability limits
Liability with some safe limits will come in handy if you cause an accident with high damages and injuries. You will be liable for reinstating everyone’s property to its previous state, as well as cover medical bills for all injured passengers. If the liability policy doesn’t cover everything, you will be sued for the difference. A safe (also called as “standard”) limit is of 100/300/100: $100,000 in medical payments per injured passenger, up to $300,000 for the whole accident, and $100,000 in property damage.
Drop collision and comprehensive on older and cheaper cars
If your premium is higher than 20-25% of the current market value of the car, you will be spending more on insurance than you will ever get back if your car is damaged or even totaled. Drop collision and comprehensive policies and pay for the eventual damages out of your pocket.