How to Pay Less for Car Insurance

With prices going up and salaries going down or staying the same, it is important that you cut costs in your budget wherever possible.  Many people look at their car insurance plans as a way to save money on a monthly basis.  Remember that in order to pay less for your current car insurance, you may be reducing your coverage.  Make sure the reduction is worth the price.

1. Access your car insurance policy.  You may have a paper copy of this plan or many companies will allow you to access your policy online.


2. Look at your current coverages for comprehensive and collision.  The minimum amount of coverage in these areas is $25,000 and $50,000.  Most people carry 50/100 or 100/300.  If you absolutely must decrease your payment, lower these coverages.


3. Check your liability amount.  Most states require that you have at least $10,000 to $25,000 in coverage.  Know your state’s requirement and decrease your coverage to this amount.  Use caution when decreasing this amount as you will be required to pay any damages caused by you over this amount out of your own pocket.


4. Review your deductibles.  This is a good way to decrease the amount of your premium without reducing coverage.  Higher deductibles equal lower premiums; whereas, lower deductibles create higher premiums.


5. Eliminate any extra coverage like towing or rental reimbursement.  These additional coverages are not essential and can save you some money over time.


6. Pay your insurance in one lump sum rather than spread out in monthly payments.  Most companies will reduce the cost of your premium nearly 20 percent by paying the entire premium upfront.


7. Consider changing insurance companies.  You can get quotes from other companies and compare prices.  You may be able to find a lower policy from a different company.


8. Talk to your insurance agent and let him or her know that you need to reduce your car insurance price.  Your agent is trained to help you get the best policy for the right price.