State Minimum Coverage
- Every state in the country imposes minimum coverage levels that all drivers must carry. Before you start shopping for a new or replacement car insurance policy, it is important to first find out how much coverage you need to stay legal. The insurance companies themselves can give you that information, as can the department of insurance or department of motor vehicles for your state. Keep in mind that some states have very low minimum coverage levels, and those limits might not fully cover you in the event of an accident.
- You might be able to save on both the cost of your car insurance and your homeowner or renter insurance by combining those policies with the same company. Many insurance companies provide discounts for policyholders who keep their car and homeowner's insurance with the same firm. If you want to see how much you can save, contact the company handling your car insurance and your homeowner and renter insurance. Ask how much you could save by moving both policies to the same firm.
- If you have an older vehicle that is fully paid for, you might be able to save some money by dropping collision insurance coverage. If the cost of that additional coverage is more than 10 percent of the value of your car, it might be time to carry liability coverage only on that vehicle. You can find out how much collision coverage is costing you by looking at the declaration page on your most recent car insurance policy.
- Simply shopping around can save you a great deal of money on car insurance. Do not assume that the rate you are currently paying is really the lowest around. Even if you already have affordable car insurance, it does not hurt to gather quotes from other competitors to see if you can save even more money. Before you start seeking out quotes, find a copy of your current policy so you know what your liability limits and deductibles are. Then start by calling all of the car insurers doing business in your area and comparing the rates they quote to your current rates. Do not forget to ask about discounts to which you might be entitled, including discounts for garage-kept vehicles, anti-theft systems and defensive driving courses.