Should You Cut Auto Coverage To Cut Costs?

Marilyn Katz (SubmitYOURArticle.com)
May 19, 2011

Most of us accept that our car insurance premium is part of the cost of owning a vehicle. In order to drive, we have to have an auto policy.

Different vehicle owners will need different types of policies. For example, a housewife who only needs to drive to the store and soccer matches will have different coverage needs than a sales person who put hundreds of miles on his or her car every day. We just have to find the right one. We want the right coverage, but we do not want to pay more than we have to pay.

With today's economy in a slump and the price of gasoline rising, it is tempting to buy very cheap car insurance in order to save some money on that particular bill.As I said above, nobody should pay too much for coverage, but is the cheapest policy always the best deal.

Of course, this thought returns us to thinking about our coverage needs. The housewife who only puts a few miles on her car every day may find a company that offers a low mileage discount. This can cut her premium without cutting her coverage. The sales person, who cannot claim to be a low mileage driver, and uses a vehicle for business, may not be well served by trying to pay the rock bottom price.

A business owner, for example, may use a car for business, but only keep minimum coverage on that car. If that business owners needs to use a vehicle to carry equipment of inventory, a minimum policy will probably not be enough. In this case, that business owner may want to be very wary of very cheap vehicle policies. He or she will want to be sure that any damage, because of an accident or theft, is covered.

Some auto insurance companies will advertise that customers can name their own price. They suggest eliminating some coverage to save money. This may work in some cases. A person with an older car that has been paid off, may be smart to cut out comprehensive coverage. However, in the long run, we will have to pay any damage claims out of our pocket that are not covered in the policy. If there is an accident, the cheap policy may not save us money!

It is best to think about the way you use your vehicle to decide if a policy will provide enough coverage for you. Comparing a few different companies is one of the best ways to find lower prices. Some insurers may offer discounts that you can qualify for, that are not on the menu at your old company. These discounts may save you money without having to cut out any coverage at all.

It used to take days to really do a good job of comparing policies and premiums. With the Internet, you can simply get quotes on your computer. To complete these forms, you simply have to answer a few questions. This is the simplest way to find local insurance companies that are eager to compete for your business!

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