2 Tips to Lower Auto Insurance Premiums

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2 Tips to Lower Auto Insurance Premiums

Submitted by: anonymous 08/27/2009 9:10 AM

1) From my insurance agent: If you can afford it, increase your deductible to $1000 for a savings of over $100/year.

2) From Consumer Reports: If you car is older than 10 years old, it is usually worth it to drop collision coverage because your car's worth is probably less than your deductible.

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Comments:

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To add to that, use a local agent. You'll save tons!

Posted by anonymous on September 10, 2009 3:08 PM

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Check the value of the car on Kelley Blue Book (KBB) (<http://www.kbb.com>) before deciding to drop comprehensive and collision coverage, even if the car is more than ten years old. The trade-in value is probably at or below the wholesale value (less deductible) that you'd be given if the car was totaled.

Comprehensive and collision insurance for one of our cars that's 12 years old (in excellent condition with low miles) costs about $160/year with a $1,000 deductible, but the car has a current KBB trade-in value of $3,000. That value is $2,000 over the deductible, so it only costs 8% of the estimated return if totaled ($2000 / $160) = 8%) for the added coverage.

Posted by G. E. Swain on September 10, 2009 6:43 PM

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so what was the decision? Our Honda Civic has a KBB trade in value of $4150 (while retail is $7500) and our deductible is $1000 and the comp = 149 and collission is $376 = total of $525.

Any recommendations?? Just drop collision and keep comprehensive?? or wait another year?

Posted by anonymous on October 08, 2009 3:00 PM

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Call your agent and tell them that you can't afford the insurnace, they have ways of dropping the insurance a lot.

They have loyalty discounts through State Farm and medical coverage can be extra cost.

Pay the premium in full to get a discount.

A good deal is tell them you drive less than 6000 annually. This will save you $20+ a month alone.

Posted by Michelle on December 01, 2009 2:54 AM

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