Author: Brian Higdon
Source: articlesbase.com
Time was when most people got a car insurance policy and kept it for the life of their car. Few people took the time for a car insurance review to find out if they were getting the best rate on their policy. Well no more. With the cost of living going up every year and most people’s wages stagnant or even going into reverse, it is time to review your car insurance policy and save every penny possible. The first thing to do is to pull out your existing policy. Look for something called the declarations page, or deck page. It has all of the coverage amounts for your current policy. The price you pay for insurance is a sum of all of the different types of coverage you have. Some coverage types are optional while some are mandatory, and to make things a little more interesting, some are mandatory in some states while others are optional. Let’s start with the easy stuff. Look for add on items like towing and rental car coverage. These are completely optional in all states and are a great way to save some money. Granted, the amounts these items contribute to your overall policy amount aren’t huge, but a few bucks here and there can add up. Next, look for you comprehensive and collision coverage. These items are generally optional too, unless you still have a lien on your car either because you are still paying for it or the car is leased. If your car is paid for, you can either drop these items completely from your coverage or you can raise your deductible. Raising the deductible can save you as much as 40% on the amount you pay for your overall policy. Keep in mind that dropping these coverage items means that you will be responsible for fixing your car should you hit someone and it is your fault. Also, you will have no coverage in the event your car is stolen or damaged by a hailstorm for example. If you can live with the risk, drop the coverage; otherwise just raise your deductible. Finally, look at your coverage limits for liability. Liability coverage is mandatory pretty much everywhere. Lowering the amount of liability coverage can save you a substantial amount on your bill. The downside is that if you should be sued by another driver or if you have to pay their medical bills, once your coverage limit is exceeded, you will be responsible for the additional amount. The wisest course is probably to not skimp on liability coverage. Even though it can save you some money in the short term, it exposes you to a lot of financial risk should you be involved in a major accident.
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