There is always some good news and that's the best way to start off an article like this. There are ways in which you can save money when you insure your vehicle(s). But not all the ways make good sense. In fact, some can be seriously dangerous to your financial health. So, here are the things you should not do. No matter how big the temptation, do not save money simply by buying less coverage. Take the time to work through the issues and make a reasoned decision. As to deductibles, the quickest and easiest way to get a discount is to self-insure part of the risk. That's works well so long as you are lucky. With no accidents, there is nothing to pay out. But suppose you have elected to pay the first $1,000 on all claims and you have two or three claims in a year. Can you afford this? Sure, this is a worst case scenario and you all hope it will never happen...
If you decide to look at whether to continue with the comprehensive and collision coverage, can you drop the cover? It's a standard requirement in auto loan agreements and leasing deals that you carry full insurance. But assume you can and that the value of your vehicle has been falling, it looks a good way to save some money. Except the fact that the resale value has dropped has nothing to do with the cost of repairing any damage. Replacement parts and the cost of labor have been going up. Of course, it might be cheaper to throw your old vehicle away and buy another secondhand. In that case, the only thing to worry about is the liability insurance. It's all very well to reduce the insurance on your own vehicle but can you deal with a claim against you for repairing the other party's vehicle (and that's before you get all the medical bills). If you do not own your own home, have a negative housing equity and no assets worth chasing, no-one is going to sue you to recover anything more than your basic insurance minimums. But if you have assets worth pursuing, it's worth a few extra dollars in liability insurance to keep the bailiffs away.
Finally, there are an alarming number of people on the road who are either not insured or carry too little insurance. In some states, there's a high risk the other driver in your traffic accident will not be adequately insured. Spending a few dollars covering that possibility saves real financial pressure on your savings and credit card. In all this, looking for the cheapest car insurance is not wise. You get what you pay for in life. Cheap is not often good value. Look for affordable cover that gives you the protection you and your family need.
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