Seven tips for saving on auto insurance | InsuranceQuotes.com
Before you even look for a policy, you need to evaluate your needs. With too little coverage, you could be putting your assets — such as cash or investments — at risk. But with too much coverage, you could be throwing money away on high premiums.
Auto insurance has a number of components, the most common being liability (bodily injury and property damage), comprehensive and collision. At the very least, you’ll need liability coverage meeting the limits that are required by your state. Then there’s collision, which covers the cost of repairs or replacement of your car after an accident. Comprehensive coverage covers your vehicle damage or loss follow natural disasters, theft or vandalism.
Go over each element of your policy and evaluate what you really need.
2. Drop collision, comprehensive on older vehicles
The older your vehicle is, the less comprehensive and collision coverage pays off. In general, you should carry only comprehensive and collision if the annual premium is no more than 10 percent of your car’s Blue Book value.
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