If you're like most people, your car insurance premium is one of your biggest bills. Auto insurance is often more expensive than some utilities or phone bills making it difficult for the average person to afford. Are you trying to cut back on your expenses? If so, you'll need to take a careful look at your insurance policy. Insurance companies often tack on unnecessary add-ons and expenses that can add a significant amount to your bill each month. Here are ways to trim that hefty bill.
Get Rid of Collision Insurance
Collisions insurance is a smart move and a necessary one if you're still making payments on your car. You can do away with this insurance if your car is paid in full, though, and most insurance companies never tell you that. The older a vehicle gets the less value it holds. When your car is so old that it would be best to replace it rather than repair it if you're involved in an accident, it's time to let the collision insurance go.
Lose the Emergency Assistance Add-on
Members of AAA and similar programs don't need additional car insurance add-ons for emergency assistance. That would mean that you're essentially paying for the same services twice. Your insurance limits the number of times you can use these services such as towing and getting your door unlocked. There are also price limits set for these. You may have better coverage for such incidents through your membership programs.
Increase Your Deductible
It's not uncommon for insurance agents to use scare tactics to talk you into lowering your deductible. It sounds good at the time because it means that you'll pay less out of pocket if you're in an accident. These low deductibles come at a high monthly price, though. You're better off putting money in a savings account to use to cover a higher deductible in case of an accident than you are by paying exorbitant insurance fees.
Car insurance is an essential expense for drivers in most states, but you don't have to pay expensive premiums to get reasonable coverage. Eliminate unnecessary services and save for emergencies to be able to afford the higher deductible. You'll see significant savings each month if you do these things.