Archive for December 16th, 2009
These days, everyone is looking for ways to cut costs. Everyone is looking at their outgo every month and trying to reduce it by as much as possible to help keep a little more of their hard earned money in their pocket. One place that is definitely worth a look is their car insurance bill. It always seems like the cost far outweighs any benefit we ever get from the insurance. Let’s take a look at some of the different coverage types that make up a car insurance bill and see if they are really necessary.
If you get out your insurance policy, you’ll typically see different coverage types and the amount each one contributes to the total bill. The first thing to look for is something called rental coverage. This type of insurance will pay for a rental car in the event your car is in an accident or breaks down. If you already have a secondary source of transportation for instance another car or someone you can carpool with, dropping this coverage can definitely save you some money.
Next, look for towing coverage. This takes care of the paying the tow truck driver if you have an accident or break down. If you feel you can live without this coverage or if you are already covered through membership in the AAA or a similar organization, you can save yourself some money by dropping this coverage.
Next, is your car paid for? If so, you should consider dropping either collision coverage or comprehensive coverage or both. Collision pays to fix your car when it hits or is hit by another car. Comprehensive coverage pays if your car is stolen or damaged by a flood, fire or storm. If you have an older car that you don’t care too much about, dropping either or both types of insurance can save you a bundle. If you don’t want to drop the coverage completely, consider raising the deductible to $1000 or more; you’ll still save a lot.
Finally, consider lowering the limits on your liability/property damage coverage. This type of coverage pays for things like lawsuits, medical bills and loss of income. If you currently have $500,000 in coverage, consider lowering it to $250,000. It could save a lot of money on your premium. Be careful though, lowering the coverage amount too much may mean that in the event a really serious accident, you may be responsible for a big bill if the amount of damages you owe exceeds the limits of your insurance coverage.
To get more great Car Insurance Advice be sure to visit http://www.GetCarInsuranceAdvice.com/ where you can find great advice on finding The Cheapest Car Insurance and much more!