reduce insurance
This is the eighth installment of “10 Ways to Save Money on Your Auto Insurance”, which can be downloaded for FREE from www.culbertsonagency.com.

How long has your current car been under the same insurance policy? Five years? Ten? You may have forgotten that as your car gets older and decreases in value, you don’t necessarily need to be paying as much as you would for a new car. Depending on the age of your car and your personal circumstances, you may want to reduce your coverage to save money on your auto insurance. For collision and comprehensive coverage (see Tip #5 for definitions), you really need to examine the replacement value of your car. That’s the amount you’ll receive if your car is totaled and isn’t worth repairing.

First, research the current value of your car. Use these sites as a reference:
  • Kelley Blue Book (http://www.kbb.com/)
  • Edmunds Inc. (http://www.edmunds.com/)
  • National Auto Dealers Association (http://www.nada.com/)
Let’s say your car really old and is only worth $1200. Calculate 10% of the value of your car (in our example: $120). Is your yearly premium for collision and comprehensive more than that number? If so, you might want to consider dropping those types of coverage. The 10% rule doesn’t work for everyone, but it’s a jumping off point. You’ll want to talk to your insurance agent before making the decision to reduce your coverage. 10 Ways to Save on Money on Your Auto InsuranceYou may find out that dropping collision and comprehensive coverage means that other types of insurance won’t be available to you. For example, some insurance companies won’t provide rental car coverage. If you have an older car, talk to your insurance agent about the right level of collision and comprehensive coverage. If you would like to learn more about how you can save money on your car insurance and don't feel like waiting for the next post, simply click the eBook on the right and download it for FREE! If you have further questions, please feel free to contact us online or call us at (239) 210-7700. ~ Brian