How to Save Money on Auto Insurance

After working in the insurance industry for seven years, I learned a few tips about saving money on auto insurance. The following are just a few tips from my personal knowledge of the subject.

Here are a few tips that might help you save money when buying auto insurance or making changes to your existing policy. First of all, examine liability limits. This is the coverage that will be paid out to the other person in the event of an accident where you are at fault. What do you have to lose if you are involved in a wreck and sued? If you do not have a large amount of assets, then go with the lower limits. You will need to check with your agent to find out what your state requires. $25,000 up to $50,000 is the lowest Tennessee offers, for example.

How much do you need on medical payments? Medical payments cover your ambulance, hospital bills, etc, if you are involved in a wreck. If you truly think that $2000 would cover your bills, then you may decide to lower that limit.

If the vehicle is older and paid for, you do not necessarily need comprehensive and collision coverage. Weigh the pros and cons of having this coverage by asking yourself if the car is worth enough to pay for that coverage. Would the collision coverage pay enough for your vehicle in the event the car was totaled in a wreck?

Comprehensive coverage will pay out for fire, theft, vandalism, and glass breakage. How likely is your vehicle to get stolen or vandalized? If you want to keep comprehensive and collision coverage and save money, you may opt to increase the deductible. Increasing comprehensive coverage usually does not save a whole lot of money. But changing the collision deductible can save you quite a bit. If you happen to have a $100 deductible, consider the possibility of changing it to $500.

Ask your agent to run you a quote with that change and see if it would be worth it. Be sure to compare different companies and research them to find out if they pay well on claims. If your vehicle is paid for and older, you may not even need comprehensive and collision coverage. Taking that coverage off could save you some money.