Wednesday, March 18, 2009

How to cut your car insurance

By JieYing Peng

With the U.S. economy in a crisis state, we are looking to cut costs whenever possible. One auto-related expense that could offer room for a trim is car insurance. According to insurance-industry experts, there are various ways to squeeze your coverage to yield up to a 50 percent cut in your annual insurance costs.
1) Take advantage of discounts:
* short commute to work or school
* good student grades (above "B" average)
* multiple-car discount (2 or more vehicles on the same policy)
* prior coverage (having another policy in effect within the last 30 days)

2) Dropping your collision and comprehensive coverage. Cutting collision coverage is not so full with risk, however, especially if you own an older vehicle. As cars get older, their values obviously decline, and you may reach a point where the actual cash value is low enough that it is no longer makes economic sense to maintain that collision coverage

3) Keeping collision and comprehensive, but increase your deductible to $1,000 or more.

4) Dropping your uninsured motorists (UM) coverage.

5) Dropping your liability limits from "recommended" limits of 100/300/50 down to 25/50/10. (Many states have minimum liability limits of 25/50/10, but some require higher or lower minimum coverage depending on where you live). The trick is knowing how low you can go without leaving yourself vulnerable, with too little protection in the event of an accident.

6) Some consumers find that a good way to cut their insurance premiums is to just do their due diligence and comparison shop and switch from one insurance company to another based only on price.


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