Are you having an auto insurance policy or are you planning to apply for one? In either case, it is necessary to be well aware of all the particulars of the policy. If you read between the lines and take an informed decision, you can actually save thousands of dollars on your car insurance. Here are a few guidelines that will help you do so:
1) Ask for Higher Deductibles:
The 'deductible' refers to the sum of money that you are required to fork over before the policy comes to the rescue. The entire cost of the collision and comprehensive coverage can be brought down by 10% to 40% by merely increasing the deductibles from $200 to as much as $1,000. So, before signing off any deal, make sure you ask for higher deductibles.
2) Abstain from unnecessary coverage:
If you have a second-hand or an old car with a very less market value, it is better to do without collision and comprehensive coverage. In short, make sure that the coverage value does not exceed your vehicle's current market value. You can evaluate the market values of different automobiles online on automotive websites.
3) Do not buy a high-status car:
If you are really keen at saving some dollars on your auto insurance policy for your future, do not get tempted into buying high-profile cars. Most of these expensive automobiles are light and delicate, owing to which they do not have a great safety record. Moreover, they are also expensive to repair. This is the reason why it is so costly to get these vehicles insured.
4) Do Without a Duplicate Medical Coverage:
Apart from buying the minimum personal injury protection that is mandatory, you can also duplicate your medical coverage if you wish. However, you should forgo such duplicate coverage if you are already enjoying a good health or disability insurance.
Following the above guidelines will help you save a lot on your auto insurance policy by avoiding unnecessary costs and coverage. However, there are several other ways to save money on such policies. To know more, go through the Part 2 of this article that discusses several other ways to cut costs on auto insurance policies.