Save Money by Adjusting Your Car Insurance

There are lots of ways to cut money out of your monthly family budget. One of the easiest-and least painful- is to adjust your car insurance. Making some small changes in your auto insurance policy can make a big difference in the amount you’re spending, giving you more to save or use for other budgetary items.

Consider these ways you could adjust your auto insurance:





  • Switch to PLPD. This isn’t an option for everyone, but if your car is paid off and you have enough in savings to buy a comparable replacement, there’s little point in paying for full coverage insurance.  This is also a good option if the current value of your car is low enough that the amount your insurance would pay to replace it doesn’t justify paying for the extra insurance.
  • Raise your deductible. None of us wants to pay out of pocket if we have an accident, but if you consider the difference you pay for a low deductible and the likelihood of totaling your car, it generally isn’t worth the extra premium. Consider raising your deductible as long as you have enough in savings to cover the new deductible without wiping out your nest egg.
  • Be disloyal. Very few insurance agents regularly review clients’ policies to make sure they are getting all the discounts they deserve. If anything, insurance agents generally review policies to see if they can sell you more insurance. Keep your insurance agent honest by shopping around once in a while to make sure you’re getting the best rates possible.
  • Bundle insurances. If you have life insurance or privately purchased health insurance, consider bundling policies with an insurance company which handles all types of insurance. Insurance companies sometimes offer multi-line discounts for doing this. Make changes to your insurance thoughtfully, though, and closely compare the benefits to the drawbacks of switching insurance carriers.

Of course, it’s important to make sure that you’re still insured adequately. If you don’t have the savings on hand to cover a $1,000 deductible, be very cautious about raising your deductible higher than that. As much as we all want to save money, leaving yourself inadequately insured opens you up to the risk that you could lose everything you have over an accident. Are you over-insured? If so, what better uses could you put the extra money to?


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