Kyle’s Corner (FYI) Cut insurance cost - same coverage

January 8, 7:42 AMAutomotive ExaminerKyle Busch

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In these tight and uncertain economic times, it is a
good idea to protect valuable assets including vehicles.
After all, not only does a ride provide ongoing enjoyment
for the enthusiast but it helps to bring in the bacon by
getting us to work!

Sometimes it is hard to “protect” and “save money” at
the same time. However, you can possibly save on your
vehicle insurance and keep the same protective coverage.

So, do you need to make all kinds of phone calls and
Switch insurance companies? No! You can keep the
same company (unless you are unhappy with the
company) and the insurance adjuster.

The first thing you can do is possibly combine your
homeowner’s insurance with your auto insurance.
Insurance companies provide discount rates when
policies are combined. Also, if you have had a stellar
driving record, ask for a “safe driver” discount.

Furthermore, be sure to make your adjuster aware
of any and all safety equipment on your vehicle – ABS,
all-wheel drive, traction control, stability control, lane
change warning systems, air bags, active braking,
theft protection systems, etc., etc.

If you have comprehensive coverage on your vehicle,
consider increasing the deductible from say $250 or
$500 to $1,000. If you go from a deductible of $250
to $1,000, your annual insurance could be cut by almost
one-half. Yes, if you get into an accident “that is your
fault,” you would pay an extra $500-$750. However,
it the accident is the other driver’s fault, you would not
pay the deductible. Thus, by being a defensive driver,
you can limit your “at fault” risk.

If an accident were your fault, you would be out the
$500-$750. However, if you save almost one-half on
your insurance per year, the money is recovered quite
fast! Most drivers are able to drive substantial periods
of time without having an accident, and many drivers
have never had an accident at all!

The idea is not to reduce coverage, especially if you
own a vehicle that has a high value (if you have a
loan on the vehicle, the bank may not allow you to
reduce insurance coverage), but to reduce the cost
of the coverage!

If you own an older vehicle (6-7 years old), you might
want to consider dropping comprehensive coverage
(your vehicle would not be covered from an accident
regardless of who is at fault). Even replacing an older
car can be expensive, therefore, in these tight economic
times, comprehensive insurance may be well worth it.

Concerning an older vehicle, you might even raise the
deductible to $2,000. Thus, you would be on the hook
for $2,000 rather than spending say $4,000-$5,000
for a used car replacement. Again, if the accident is
not your fault, the other driver’s insurance should
cover your car.

If you need to comparison shop for vehicle insurance,
visit the following links:

Wikipedia's list of US insurance companies

The National Directory of the best insurance companies

As they say in these economic times, protect and preserve capital!

Kyle Busch is the author of “Drive the Best for the Price…” He
welcomes your comments or car questions at his auto web site:
www.DriveTheBestBook.com.