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Reduce Auto Insurance Payments

Recue auto insurance payments and create more breathing room in your monthly budget. Most all of us around the country are in the same boat these days, trying to do the best we can to survive from month to month and keep up with our various financial obligations. Auto insurance is one of those obligations that can sometimes present the biggest challenge for consumers. Some months we look at that bill and wonder just exactly how we are ever going to come up with the money to pay it. The stress of bill juggling is hard on families. But there are things we can do as policy holders to save money and take away at least some of that stress. If you know some basic strategies to lower your auto insurance payments, it can help control expenditures and leave free cash open to take care of other bills or set aside for savings.

Inspect Auto Insurance Coverage

The first and probably the simplest method to try and squeeze out some savings for your auto insurance premium is to take a good look at your coverage. This might sound like cheating to some people, but it really can be effective, and sometimes it is actually necessary. For those of us who haven't reviewed our policies in ages, it could be a way to catch on to unnecessary or duplicitous coverage, such as medical payments coverage, we've been paying for without even realizing it. Anything that fits under this category can simply be cut from the policy to save you money.

One great example that sounds more obvious than it actually is to a lot of people is in collision and comprehensive coverage. Let's say you own a five or six year old car that's paid in full. When you first purchased the vehicle, in all likelihood you included these areas of coverage at least partially because you had to. Most of us finance our new cars because very few consumers really have the cash lying around in the bank to plunk down on a new car. And most lenders require borrowers to purchase comprehensive and collision during the entire course of repayment so that their original investment in the vehicle is protected.

Well, in many cases it gets to be year four or five and that car loan gets paid off. And oftentimes we decide to just keep our collision and comprehensive policies because we figure they're protecting us and we're used to paying the premium by now anyway. Well, they still protect policyholders but only to the extent of the vehicle's value. In other words, that five year old car that is now worth maybe $5,000 is only protected to that maximum value. In the event that the car is totaled, you won't get a new car bought for you, but maybe a down payment on one. This is something to keep in mind in the context of saving money on auto insurance. If you don't tend to make claims and you have a good record, your care older than four or five years of age really can't justify the expense of this extra coverage based on the cost versus actual financial protection.

Increase Insurance Deductibles

Now that you're warmed up to tear into that policy to save yourself some money, let's talk about the level of deductibles you're paying. Again, a safe driver with few or no claims should take a close look here and think about increasing their deductibles. If you eliminate comprehensive and collision, you still have a liability deductible. Increasing it even by $500 can save you some money off your premium. The worst case scenario is that your out of picket cost goes up by that same amount in an at fault accident. And this is not the end of the world, not to mention the fact that it's not even all that likely if you are a good driver and always pay close attention behind the wheel.

Online Car Insurance Savings

Looking at the specifics of your policy and cutting out things you don't need or that you can live without is certainly one easy strategy to save money. But what if there isn't anything you can really cut out? If your deductibles are already high and you're married to a full coverage policy while you work to pay off that new SUV, the next best thing to do is go policy shopping. Take a good look at some other insurers and see what their prices are like for home and car insurance. Online auto insurance is generally more affordable than policies sold by traditional insurers. This site allows users to solicit quotes from multiple local providers.

It is difficult sometimes to manage all the expenses of running a household. Saving on car insurance when you reduce auto insurance payments can help give you breathing room.


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