Auto Insurance

Whether your car is older, has very high mileage, or is more worn & outdated, the bottom line is that if your car doesn’t have a high re-sale value, comprehensive collision coverage can be a...

Whether your car is older, has very high mileage, or is more worn & outdated, the bottom line is that if your car doesn’t have a high re-sale value, comprehensive collision coverage can be a waste of money. If the annual insurance premium is more than 10% of the current value of the vehicle, consider removing this coverage option. Since claims occur at an average of once every 11 years, you are likely to pay more for comprehensive coverage in all these years than you might see back on any claim on an older, less valuable car.

The nice part about making changes like this to your insurance policy is that the savings can go into effect right away, you don't have to wait until your next renewal. If you've prepaid your premium that means the insurance company now owes YOU money for the portion of the coverage you are dropping. If you ask, they should send you a check on the spot to reimburse you. Of course all this depends on your policy and carrier, so be sure to check with them

Many insurance companies offer “multi-line” discounts to cover multiple drivers and cars in one household or to insure a customer's home or life insurance along with car insurance. Purchasing...

Many insurance companies offer “multi-line” discounts to cover multiple drivers and cars in one household or to insure a customer's home or life insurance along with car insurance. Purchasing more than one policy from the same company can add up to savings on insurance. In addition, military families, safe drivers, mature drivers, and members of certain organizations like AAA may be eligible for other specific discounts, so ask your agent what insurance discounts you might be eligible for.

Car insurance coverage laws vary by state. Find out what the minimum state requirements are for your state, and use those minimums as a starting point. If you're not sure of your state's...

Car insurance coverage laws vary by state. Find out what the minimum state requirements are for your state, and use those minimums as a starting point. If you're not sure of your state's minimum, check with the state insurance commissioner (see About.com for a list of the websites and phone numbers by state). 

Once you know the minimum, consider the other variables that will influence the final cost of your car insurance: how much your car is worth, how much coverage you think you need on top of the minimum and how much you are willing to pay for your policy. This will help you determine exactly the type & amount of insurance you need.

Simple ways to reduce the cost of your premium include skipping roadside assistance and foregoing replacement rental car coverage.

For more tips on lowering your costs, see all of LOZO's car insurance tips.