Car Insurance - Ways to Save
Tip #1: Assess Your Insurance Needs - if you don’t have ample savings to repair or replace your car if it were destroyed or stolen, then you definitely need collision and comprehensive coverage. But if you have an older car that’s paid for, then consider dropping collision and comprehensive. Depending on the cars value, you might pay more in premiums than you could ever collect in benefits. However, no one should go without liability coverage. If you’re in a serious car accident you could be sued for a huge amount of money. Each state has minimum requirements for how much liability coverage you must have—but depending on how much you have to lose, it's a good idea to have more.
For instance, if you live in Ohio, your insurance must pay up to:
Tip #2: Maintain Good Credit and a Clean Driving Record - You might be surprised to know that your credit plays a big factor in the rates you’re quoted for car insurance. Insurers use credit scores as a tool to help gauge how risky a customer might be. So that’s just one more reason to maintain good credit scores by paying your bills on time and managing responsibly. Another factor car insurers use to gauge risk and set premiums is your driving record. Having multiple moving violations and accidents on your motor vehicle record generally will cause you to pay higher insurance premiums.
Tip #3: Raise Your Deductible - A deductible is the amount of money you must pay before insurance benefits begin. For auto insurance, you typically can choose a deductible such as $200, $500 or $1,000. The higher your deductible, the lower your premium will be. But the tradeoff with a higher deductible is that if you have a car accident, you’ll have to pay more of the repair cost out of your own pocket. So never raise your deductible unless you’re confident that you’d have enough cash to cover it if you ever needed to make a claim.