These days, most of us our tightening our belts, scrutinizing our budgets with a magnifying glass and trying to cut costs wherever and whenever we can and sometimes that includes looking at our automobile policies a little more closely and trying to decipher if it’s worth it to cut corners in ways that help protect themselves and their families. While I agree that it’s important to save money anyway we can, we should be careful not to cut too sharply when it comes to car insurance  – we don’t want to find ourselves under-insured, unable to pay for auto repairs or for liabilities in case of an accident down the road.

Since insurance is designed to help protect consumers against the unknown, it can sometimes be difficult to know how much protection we need. I found this handy guide through Allstate and thought it had some great tips for keeping us protected while still saving us money:

• Slow Down: Drivers who have had accidents or serious traffic violations usually pay more than those with clean driving records, so consider safe driving a financial investment.

• Buy the Right Car: A car’s value, age, safety record and repair costs, as well as the likelihood that it could get stolen, all help determine insurance premiums. Also, certain car features may generate insurance savings. For example, a car equipped with factory-installed anti-lock brakes, airbags or motorized seatbelts could reduce your premium.

• Pay Your Bill Through Automatic Withdrawal: Many insurance companies offer payment choices through automatic withdrawal. In addition to the convenience, some plans offer automatic withdrawal from your account and may provide a discount of up to 5 percent or more. 

• Insure Your Property and Car With the Same Insurer: Drivers who do this may qualify for lower auto insurance premiums and could also save on their property insurance, as well.

• Study Hard: In most states, full-time students who meet GPA requirements could save on auto insurance premiums with a nice 10 or 20 percent discount.

Five Things To Know:

1. Your Deductible
The higher the deductible, the lower the premium; however, you should make sure you can afford to pay your deductible if you have an accident. Raising a deductible higher than you can afford could prevent you from being able to fully repair your car after an accident.

2. Your Liability Limits
If you’re at fault in an accident, you could be held legally responsible for the medical and repair costs of others. Liability coverage can help protect you from what could potentionally be a devastating expense.

3. Uninsured Motorist Coverage
Uninsured Motorist Coverage can protect you if you are injured in an auto accident caused by someone with no insurance. A recent report by the Insurance Research Council (you can view the PDF by clicking here) predicts that the percentage of uninsured motorists will increase nationally from 13.8 in 2007 to 16.1 percent in 2010, so be sure to review your auto insurance policies to be certain you have the coverage amounts you need.

4. Personal Injury or Medical Payments Coverage
As we know, accidents are never planned, but planning ahead with the right insurance coverage can make a huge difference following an accident with injuries. Medical Payments Coverage helps pay for medical treatment for accident-related injuries. Personal Injury Protection helps reimburse people for lost income, child care expenses, medical expenses, and other costs that may result from accident injuries. 

5. Comprehensive Coverage
Comprehensive Coverage helps protect cars in situations that don’t necessarily involve other drivers or vehicles, such as damages from a storm, natural disaster, vandalism, or even a falling tree. Since policies typically cap coverage at the actual cash value of the car, the older your car is, the more you might consider dropping this coverage.

Still need more info?  Check out the Cars for Girls article, 9 Ways to Save Money on Auto Insurance for even more great money-saving tips!

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