By taking on some more risk when it comes to car insurance, you may be able to lower your insurance bill by as much as half with companies like Donegal Insurance. Fox Business recently posted an article entitled “How to Cut Your Car Insurance Bill in Half” to explain how to go about it. First you’ll have to research your individual state’s minimum coverage requirements because they do differ. Many states have minimum coverage of 25/50/10, which translates to $25,000 of bodily injury coverage per person, $50,000 of bodily injury coverage per accident, and $10,000 of property-damage coverage per accident. However most insurers set you up automatically with 100/300/50 coverage which is significantly more than the minimum in most states.
By reducing your liability limits to the minimum you can save a lot of money. Other ways to save include getting rid of your collision and comprehensive coverage, increasing your deductible to at least $1,000, and dropping your uninsured motorists (UM) coverage. By using all or a combination of these changes, you have the ability to lower your car insurance payments by half. In the article’s financial example, they lowered their minimum coverage to 25/50/10, eliminated their comprehensive, collision, and rental coverage, but left their UM coverage there. Payment reductions were 35% for a Cadillac Escalade, 46% for a Chrysler Town & County, 47% for a Toyota Camry, 48% for a Hyundai Santa Fe, and 50% for a Ford F-150.
You have to understand that reducing coverage like this will add a lot of risk to your car insurance needs. Be sure to speak with an agent or multiple agents to see what type of risk and coverage is best for your individual situation. Another good way to lower your car insurance payments is to shop around and see what pricing you can get from a company like Farmers auto insurance. Look for deals and make sure that the company has a good reputation from the BBB and lacks a lot of complaints. You can save a lot of money by shopping around.