You buy any kind of insurance to cover those costs you could not cover out of pocket. But there’s no need to pay more for it than necessary. Here are four ways to curb car coverage.
1. Comparison shop and pump discounts – It’s easy to let your current policy ride but you likely are missing better deals. Once a year, ask Ascentra Insurance Services Representative Angela Byrge to shop your policy around and see if a different insurer offers the same coverage for lower premiums. Be sure to ask about and use any discounts you might be eligible for such as safe driver, low mileage, good student(s), multiple cars, or the use of safety equipment like anti-lock brakes. It will also cost less if you bundle car coverage with your homeowner policy, too.
2. Boost deductibles – Share some of the insurance burden by keeping a pot in your savings account to cover increased deductibles. This is a one-time expense versus a recurring expense as you make claims, and it underpins your general emergency fund at the same time.
3. Choose safe vehicles – Make safety features part of your buying decision when you buy a vehicle. It will protect you and yours and also contribute to a lower car insurance premium.
4. Park unneeded coverage – It makes no sense to pay for collision coverage on a vehicle too old to make it pay. One guideline: Drop it once the premium for collision coverage is one-tenth the car’s market value, which you can find from Kelley Blue Book or Edmund’s Automotive Buyer’s Guide.
Another way to save money on your vehicles is to finance for less at Ascentra. Talk to one of our account officers for help valuing your current car to determine insurance coverage or to see what your options might be for a new car loan.