As a vehicle owner, your car insurance premium is not set in stone. There are many different ways you can adjust the coverage you have and save a little money in the process.
Way #1: Change Your Deductible
One of the easiest ways to reduce your premium is by playing with your deductible. Increasing your deductible by just a hundred dollars can help you save some money on your premium, and increasing your deductible by a few hundred dollars can give you a noticeable discount on your car premium. Ask your insurance provider how your premium would change if you changed only your deductible; you may be surprised at how little changes to your deductible can impact your premium.
Way #2: Get Rid of Rental Reimbursement Coverage
Rental reimbursement coverage is essential if you only have one vehicle, and public transportation is not good where you live. If, however, you own multiple vehicles and would have access to one if your vehicle was totaled or damaged, it doesn't make sense to carry rental reimbursement coverage. Or if you have a friend or family member who you know without a doubt will lend you a car if you need it, you don't need this type of coverage.
Way #3: Skip on Roadside Assistance
As a driver, roadside assistance is a must-have. However, if you already have roadside assistance through work, your credit card, as part of your vehicle's warranty, or through an auto club membership, you don't need to carry a policy with your insurance company as well. Don't pay twice for roadside assistance; one membership is all you need to take care of your needs.
Way #4: Medical Payment Coverage & Personal Injury Protection
A handful of states require you to carry personal injury protection (PIP) or medical payment coverage; however, most states don't require you to carry this type of coverage. If you have good health insurance, you really don't need to pay for PIP or medical payment coverage. However, if you don't have health insurance or have a really high deductible, you may want to pay for this type of coverage.
Way #5: Reconsider Collision and Comprehensive Insurance
Once your vehicle starts to get up there in terms of age, it may not make sense to continue to carry collision and comprehensive coverage. Eventually, you could pay more for that coverage than you would ever get back if your vehicle was damaged or totaled. If your car's value has dropped significantly, cancel your collision and comprehensive insurance, and put that money into a fund for car repairs or a new vehicle instead.
If you feel like you are overpaying for car insurance coverage, get out your policy, sit down, and give it a closer look. You may be paying for coverage you don't need, or you may have your deductible set too low. Making small adjustments to your coverage can help you save a little money on this necessary expense.