While some insurance agents may tell you that you cannot have too much insurance, the fact is that if you are paying for coverage that you really donâ€™t have a use for, you are paying too much for your insurance. By taking a close look at your policy, you may be able to find a number of ways to save money without leaving yourself vulnerable.
For instance, parking your car in a private garage and living in a relatively crime free area means that you probably donâ€™t need the same theft and comprehensive coverage that someone living in a high crime neighborhood might need. Similarly, if you rarely drive on high traffic roads, your collision coverage may be less important, and a cost that you might be able to do without completely.
It is important that you tailor your auto insurance policy to match your individual needs. A brand new car probably doesnâ€™t need roadside assistance as much as an older car that is prone to mechanical problems. And an older car that can be replaced for about the same amount as your collision deductible wonâ€™t benefit much from the coverage. Once you understand what your policy covers specifically, you are better able to make decisions regarding what coverage is important and what is just an extra insurance cost.
Another way to lower your premiums is to increase your deductibles. If you are financially able to pay $500 or $1000 towards vehicle damages, raising the deductible will reduce your premiums by a considerable amount, Be careful not to set the deductible higher than you can afford, though, because you will have to pay that amount before your insurance policy will kick and pay the remainder of the costs.
If you feel like you are paying too much for your car insurance, you can use free online insurance quotes to shop around for better coverage at more affordable prices. And online quotes will let you compare prices on the same policy between more than one company, so you can tell right away if one company is charging you more than you are comfortable with paying.