dcsimg
Prefer to talk to someone? Call a licensed agent: 1-855-289-9175
Car Insurance Quotes
Get Personalized Car Insurance Quotes
ZIP

Valid zip code required

AGE

Please enter valid age between 16-100.

CURRENTLY INSURED?

Please select your current insurer.

MARRIED?
HOME OWNER?
SERVED IN MILITARY?
Shop - Auto insurance comparison shopping made easy!
COMPARE COMPANIES
Get matched instantly with up to 20 insurers in your area. Shopping made easy.
COMPARE QUOTES
We suggest choosing at least 3 companies to find one that works best for you.
SAVE MONEY
Comparison shopping can save you hundreds of dollars or more.

How to cut your car insurance bill in half

Read the Spanish version: ¿Cómo reducir a la mitad la cuenta del seguro de tu auto?

How to read liability limits
Example: 100/300/50 translates to $100,000 in bodily injury coverage per person, $300,000 in bodily injury coverage per accident and $50,000 in property-damage coverage per accident.

If you're looking to trim your expenses as much as possible, you might be eyeing your auto insurance bills. There are many ways to tinker with your car insurance to chop your premium down to a bare minimum. You could call your insurance company and:

  • Drop your liability limits to the minimum level allowed by state law
  • Drop your collision and comprehensive coverage
  • Keep collision and comprehensive but increase your deductible to $1,000 or more
  • Drop your uninsured motorists (UM) coverage

How low can you go? You can likely chop your car insurance bill in half by dropping your liability limits from "recommended" limits of 100/300/50 down to 25/50/10, and dropping rental, collision and comprehensive coverage (see chart below for average savings). Many states have minimum liability limits of 25/50/10, but others are higher or lower. In our savings experiment, we kept UM coverage when we reduced our liability limits -- you could save even more by dropping it.

How low can you go?
Average insurance savings by reducing coverage
VehicleCoverage of 100/300/50, UM at the same level,  comprehensive & collision, and rental coverageCoverage of 25/50/10, UM at the same level, no comprehensive or collisionSavings
Cadillac Escalade ESV$1773$62265%
Chrysler Town & Country LX$1142$53054%
Toyota Camry LE$1233$58353%
Hyundai Santa Fe GLS$1232$58952%
Ford F-150 pickup$1263$63250%
Source: Insure.com research, data from September 2010.
Average premiums were calculated for a 40-year-old single male driver. Policy limits of 100/300/50 with comprehensive and collision carried a $500 deductible. Model year 2005 was used for all quotes because collision and comprehensive are often dropped on older cars. We used states with liability minimums of 25/50/10; some states require higher minimums.

But remember this: Dropping your car insurance to a bare minimum opens you up to substantial risk.

"You want to consider that very carefully. You’re trying to protect the assets you have," says Robert Passmore, spokesperson for the Property Casualty Insurers Association of America (PCIAA), an industry trade group. If you have a house, savings and investments, they could be put at risk if you cause a large accident where damage exceeds your insurance limits. And if you've dropped your UM coverage, a driver with no or inadequate insurance could wreck your finances too.

Passmore notes that the most expensive coverage dollars are the first dollars. In other words, $100,000 in coverage does not cost twice the price of $50,000 in coverage. "It’s like getting a volume discount," says Passmore.

Another quick way to save money is to comparison shop and change companies based solely on price. Before you leap to another insurer, check its track record. You won't receive more value for your insurance dollar if your new company has poor customer service. Many states release "complaint ratios" showing the relative number of consumer complaints against each company. Insure.com conducts and publishes an annual consumer survey on the best car insurance companies.

More from

Ready to get a quote?

Get quick and easy auto insurance quotes

Valid zip code required

Age?

Please select your Age.

x

Please select your current insurer.

Yes
No
Yes
No
Yes
No

Comments
Tell us your thoughts
0 Responses to "How to cut your car insurance bill in half"

No Comments

What do you think? You can add a helpful comment to this page by filling out the form below.