car insurance premiums increase

When reviewing your auto insurance policy, take a look at the following ten areas that offer the potential for premium reductions to help you achieve your goal of obtaining inexpensive car insurance.

· Towing and rental insurance – you may want to eliminate these entirely. If you should have an accident, these two expenses are relatively minor.

· Medical coverage for you – here is an area that can be cut down, but before you do so, be sure you are aware of the minimum coverage requirement for your state.

· Personal injury protection – if you put very few miles on your car, this can be reduced, particularly if you have health insurance.

· Collision coverage – if you have an older car, it probably has little market value and it makes little sense to pay insurance premiums for that value.

· Insured amounts in general – if you live in a low incident area (country as opposed to big city, for example) or you just don’t drive very much, consider reductions in several areas.

· Increase deductibles – you can raise deductibles on comprehensive coverage, collision coverage, and/or uninsured, underinsured motorist bodily injury. You are taking the same approach as with homeowner’s insurance, health insurance, etc. in increasing deductibles to lower premiums. For example, you may consider a deductible of $1,000 in case you should ever have an accident. Hopefully you never have an accident, but in the meantime, significant savings can be achieved on premiums.

· Discounts – ask about multiple car discounts, safe driving records, low annual driving mileage, non-smokers, combination auto/homeowner policies, and others.

· Price comparison – get quotes from at least three insurance companies for a comparison, making sure each policy offers the same coverage.

· Annual price comparisons – do not fall in the habit of not checking prices on an annual basis, particularly if you have received a price increase.

· State requirements – If you truly want bare bones inexpensive car insurance simply to get your car on the street, be aware of the minimum coverage required by your particular state. This will guide you in your coverage cuts. Sometimes insurance agents may not give you those figures in order to sell you a higher premium policy. States typically have minimums for bodily injury liability and property damage liability.

Massaging the above areas should give you some significant reductions in premiums. Achieving inexpensive car insurance is simply a matter of applying common sense to a subject on which far too many people are wasting their hard earned money.

Go to inexpensive car insurance to view the author’s blog where he discusses “understanding car insurance terminology” and “finding and obtaining an auto insurance policy”.