How to Balance Your Car Insurance Budget and Coverage Needs
Sticking to a budget is on everyone’s mind these days. Many consumers are stretched to the limits, and every penny counts. When you’re scrutinizing monthly payments on everything, the best way to save money could be reducing your car insurance premium. Sadly, many do so without considering the ramifications of lower premiums that result in less coverage in the event of an accident or other property damage. As the adage says, don’t be penny-wise and pound-foolish. Here’s a simple guideline of what to consider when deciding on automobile insurance premiums versus the actual coverages needed.
See what your state requires
Research your individual state’s requirements for minimum coverage to be carried by vehicle owners. No-fault states (there are 12 in the U.S.) have different types of policies and liability coverage amounts required than states who aren’t no-fault.
Find out the lienholder’s requirements
It’s important to familiarize yourself with the requirements of your lienholder for minimum insurance needs as coverages vary based on the financial institution holding the title on the vehicle. If the vehicle is owned outright, the state’s requirements will still apply.
Consider insurance when car shopping
Remember that insurance rates are dependent on the make, and model year of the vehicle. Newer vehicles typically incur higher repair costs because of newer technology. However, they typically require fewer repairs and have better safety features. This may lead to lower insurance premiums.
Look for discounts
Check with the insurance company to see if they offer safe driver discounts. Accident and traffic-violation-free drivers reap a discount on their car insurance premiums. If you carry coverage for a minor child, check into discounts for achieving good grades in school. Check low mileage discounts if you commute less than 7,500 miles per year. Most of these discounts can significantly impact premiums.
Bundle insurance policies
Bundling car, home, and even recreational vehicles can result in lower premium costs. So can multiple car discounts even if you don’t own a home.
Consider increasing your deductibles
Agreeing to pay more out of pocket per incident will reduce the monthly premium due. Safe drivers may be willing to take a calculated risk and pay less out of pocket monthly in order to remain within budget and not sacrifice coverage.
Make a list of the car insurance coverage options you are required to have, and know your budget limits for a monthly premium. Don’t be afraid to include options of what you might like to incorporate into your policy. Then visit Nsure to compare policies from 50 of the most reputable insurance carriers in the US. Know before you choose and make the right choice.