3. Don't Skimp on Coverage
As you receive quotes, make sure the insurance coverage and deductibles mentioned are satisfactory. Just because a rate quote may be lower than what you're currently paying doesn't mean it's a better deal if the coverage is lacking. If you're not sure how much coverage you need, discuss your needs with insurance company representatives and ask for guidance.
For example, if you have significant assets, you may need more than just the state minimum for bodily injury liability insurance. The same is true for property damage coverage. The retail price for an average new vehicle could easily top $30,000, but in many states the minimum property damage coverage required is only $25,000. If you were responsible for a loss and did not have enough insurance coverage, you'd likely be on the hook for the difference.
Though it's important to have ample liability coverage, if you drive an older model vehicle that is paid for, you may choose to skip some optional types of coverage, such as collision and comprehensive insurance, to keep premiums low.
Collision insurance pays for the physical damage your vehicle receives if it collides with another object, such as a tree or another car. Comprehensive insurance pays for damage to your car from causes other than a collision. This could include vandalism, broken glass, fire and theft. If this coverage is more than your vehicle is worth, you could skip it to lower your rates. Just understand that you would then be paying for these losses out of your own pocket if such damage occurs. People who live in areas prone to such natural disasters as floods, high winds and earthquakes might want to think about retaining their comprehensive coverage, experts say.
Another way to get a lower premium is to ask for a higher deductible. If you are willing to pay $1,000 out of pocket for a claim instead of $250, you could lower your rates. But make sure you can afford the higher deductible in the event that you suffer an insurable loss.