I want to continue to offer ways for you to save money on your insurance premiums today. Keep checking for updates to see if you can find a way to trim your costs.
Stop Paying for Out of Date Coverage
Last week I talked about raising your deductibles to save some money, but why not drop your deductibles altogether?
One of the biggest areas that people overpay for their auto insurance is in their comprehensive and collision coverage. Comp and collision make up about 40% of your premium, but sometimes you are better off just dropping the coverage.
A good rule of thumb in this case is if your car is worth less than 10 times your premium, it may not be cost efficient to pay for comp and collision coverage. Since your insurance only covers for actual cash value (depreciated value) of the vehicle, the amount of money you would be saving by self insuring the comp and collision coverages will usually keep you economically ahead.
Remember, comp and collision coverage is for accidents that happen to your vehicle that are your own fault. Other drivers are supposed to carry liability insurance to fix your vehicle if they hit you, and in case they don't, you always have your underinsured motorist coverage.
Take a look at your insurance policy, how much are you paying for your compehensive and collision coverage, what would your insurance bill be if that number disappeared?
P.S. One thing I always suggest to my clients when they decide to drop their comprehensive and collision coverage is to make sure you purchase high underinsured motorist property damage coverage. $25,000 of UIM coverage will usually cost about 5% of a $500 collision deductible.
____________________________________________________________________
Thanks again to The Motley Fool (http://www.fool.com/) and The Insurance Information Institute (http://www.iii.org/)
Stop Paying for Out of Date Coverage
Last week I talked about raising your deductibles to save some money, but why not drop your deductibles altogether?
One of the biggest areas that people overpay for their auto insurance is in their comprehensive and collision coverage. Comp and collision make up about 40% of your premium, but sometimes you are better off just dropping the coverage.
A good rule of thumb in this case is if your car is worth less than 10 times your premium, it may not be cost efficient to pay for comp and collision coverage. Since your insurance only covers for actual cash value (depreciated value) of the vehicle, the amount of money you would be saving by self insuring the comp and collision coverages will usually keep you economically ahead.
Remember, comp and collision coverage is for accidents that happen to your vehicle that are your own fault. Other drivers are supposed to carry liability insurance to fix your vehicle if they hit you, and in case they don't, you always have your underinsured motorist coverage.
Take a look at your insurance policy, how much are you paying for your compehensive and collision coverage, what would your insurance bill be if that number disappeared?
P.S. One thing I always suggest to my clients when they decide to drop their comprehensive and collision coverage is to make sure you purchase high underinsured motorist property damage coverage. $25,000 of UIM coverage will usually cost about 5% of a $500 collision deductible.
____________________________________________________________________
Thanks again to The Motley Fool (http://www.fool.com/) and The Insurance Information Institute (http://www.iii.org/)
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