When is it Okay to Slash My Coverage For Better Auto Insurance Rates?

Would you agree that it is a good idea for someone to drive on roads without any auto insurance? Most likely not. We all know that people drive like madmen these days. It’s not something you want to do. But, thanks to our current economic woes, hundreds of drivers are driving on the roads unprotected every day. According to studies, the number of drivers who are not insured on the roads could reach record levels by 2010.

What are you going do about it?

There should never be a choice between food and adequate auto insurance. But that’s what is happening across America as foreclosures continue to dominate the housing market and unemployment continues to rise. It’s important that we find a way that auto insurance rates can be brought back to a reasonable cost for average drivers.

Sometimes that means cutting through the fluff.

We don’t mean to say that you don’t want insurance. Everyone will be happier if there is more cushion between your bank account, and any potential disaster. This doesn’t mean that you have to go to the extreme to get it done. Here are some ways to lower your auto insurance premiums.

What are you paying for that isn’t necessary? Most auto insurance companies today assume that you need more coverage. This keeps them ahead of their competition (who doesn’t want to feel that they’re getting more for their money?). It doesn’t do much to lower costs. Although things like rental insurance, extra medical coverage, and emergency roadside assistance are useful in an emergency, they are not essential.

It is much easier to come up with the funds for a towtruck than it was to come up with thousands of dollars to pay medical bills.

Let’s now see how much coverage you have after you’ve eliminated that amount from your budget. There is a minimum level of liability required by most states. You absolutely need to ensure that your auto insurance policy includes at least that amount. Experts will tell you that too much is not enough. A $15,000 bodily injury claim is not going to get you very far, especially when ICU visits start at $5,000 per day. Your liability should be increased to $100,000 per person and $300,000.00 per accident. There is also an additional $100,000 for property damage. This will help you to make sure your car insurance rates are affordable and protect you when you’re on the road.

Let’s look at your liability now. They are not necessary if your budget isn’t able to cover it. However, they can be useful if you have the means to pay for them. It is cheaper to have your auto insurance company replace your car, than to do it yourself. Uninsured motorist insurance is also available.

Keep in mind that not everyone is as safe behind a wheel as you. It is important to be prepared.