The Leaner, The Meaner

Comparison shopping for auto insurance is supposed to save money. We know that’s why you’re here, so in return, we pledge to save you more than any other auto insurance carrier, service, broker or agent. One of the ways we keep it lean is by helping you know when to say “no” to unnecessary coverage. Of course, not all unnecessary coverage is going to be equally unnecessary to everyone, otherwise it wouldn’t be offered at all. But there are three places in the typical auto insurance policy where most people do not need to spend money but do anyway. Don’t be one of them:

• Rental car coverage. This is a nice convenience for people who rent cars on a regular basis. But if you need a rental car less than once a year, you’re probably better off keeping your money. It adds up. 
• Low deductibles. Sure, you don’t want to pay a lot of money out of pocket after you’ve been in an accident. Lots of auto insurance policyholders choose low deductibles on their plans for that reason. But the truth is, you don’t want to be in an accident, period. Choosing a lower deductible doesn’t magically reduce your odds. What it does is reduce your savings account. Fact: The best way to lower the cost of your auto insurance is by raising your deductible. Here’s a good way to think about it: If worse came to worse and you had to use your credit card in the wake of an accident, how much could you afford to put on that card? $1,000? $1,500? $2,000? That’s the amount you should claim as your deductible. The move could save you hundreds every year. 
• Coverage for older vehicles. Are you driving an older car that’s worth a couple grand or less? If so, check the coverage level on your policy. You may have it set too high. It is not as expensive to fix a car that’s old and already dinged up a little. An advantage to driving an older car is the money you can save on your auto insurance. Take advantage of that. The money you save now may one day help pay for a much better car.