Car insurance can be so expensive. There are ways in which you can save money on this expense though. One way is by rewriting your policy. When you do, here are some things that you should keep in mind.
Raise Your Deductible
Your deductible is the amount of money that you pay out of your pocket before your insurance company begins paying off on a claim that you have filed. The main way in which you can save money on your car insurance is by raising your deductible. This will actually lower your car insurance premium (the amount of money that you pay for your car insurance policy) by as much as 40%.
Eliminate Collision Coverage
Collision coverage is the amount of money that you will receive in order to fix your car if you should happen to get into an accident. Another way in which to lower the cost of your car insurance policy is to eliminate the collision part of your policy. This is something that you will especially want to consider if you are driving an old car because it doesn’t make any sense to pay for insurance to replace this vehicle. However, if you have a classic car that has a lot of sentimental value attached to it, you may want to actually increase the amount of coverage that you have in this area. So, as you can clearly see, you are going to need to weight the extra cost against the potential benefit that you will receive if you do actually get into an accident.
Have Good Credit
While you may not even think that it is important, you really do need to keep your credit in good standing. This does play a really big role in just how much money you will be paying for your car insurance. If you have a high credit score, you are going to find that you will be able to qualify for a lower rate on your car insurance. The reason for this is that the insurance company will use a risk score, which is based upon your credit history, which will determine just how high of a risk you are for filing a claim.
Make sure that you ask what all your options are when you talk with your insurance agent. Many of them may not tell you all of your options unless you ask. Make an appointment and take some time to learn about the insurance you are paying for, what it covers, etc.