Lowering Your Comprehensive Car Insurance Premium

Reader’s Question:

Well, you all know we’re in a recession, so I’d like to know how you guys got to save on your comprehensive car insurance?

Daniel

St. Paul, MN

Yup, we’re in rough times, no question about it. The good news is there are several ways to save on your comprehensive car insurance.

First of all, I suggest that you review where you are right now. Check how much have you been paying for your comprehensive car insurance versus how much coverage your premium is getting you.

Second, do you know how much your vehicle is worth right now? This will help you gauge how much insurance you actually need for your vehicle. If you’re driving an old car, maybe it’s time to lower your insurance coverage. After all, it will not cost as much to replace or repair your car now than it would have if it were brand-new.

You might also want to check out your options for your deductibles. The deductible is the part of the bill you will have to shoulder if something happens to your car. For example, if your deductible is pegged at 10% of the cost of repairs, and the shop sends a bill for $1000.00, you have to pay $100 while the car insurance company pays for the remaining $900.00.

If you’ve been signing on with the same company for your comprehensive car insurance and have made no claims against your policy, I think it’s about time you ask for a discount. Some car insurance companies also give discounts to policy holders whose vehicles have security devices installed. If you have a car alarm or tracking device on your car, be sure to let your car insurance company know about this and negotiate for lower premiums.