Protecting Your Beloved Possessions

Save Money With These Car Insurance Coverage Adjustments

The coverages, limits, and deductibles that your car insurance policy has greatly influence the rates that you pay. While you can (and should) take advantage of available discounts, adjusting coverages can have an even larger impact on your rates. Here are some ways you can adjust your auto insurance coverages to save money without taking on too much additional risk.

Skip Any Riders That You Can

Most car insurance policies offer optional riders, which add a specific benefit for a small additional cost. Your policy might offer riders roadside assistance, a replacement rental car, or even trip interruption coverage. While these might be nice to have in some situations, they aren't always necessary and add to your car insurance policy's premiums.

Skip any of these extra riders that you're able to. What you can safely skip will depend on your personal situation. For example, you might not need:

  • Roadside assistance if you have emergency roadside service through a club membership
  • Rental car reimbursement if a friend or family member has a vehicle you could borrow while yours is repaired
  • Trip interruption coverage if a credit card already offers a similar benefit in its terms and conditions

Many people end up paying for a few riders that are useful to them, but think carefully before you pay for any of these extras. Forgo any that you have an alternative solution for.

Decline Comprehensive and Collision Coverage

You should only decline comprehensive and collision coverage if you have a low-value vehicle that you could afford to replace out of pocket. If you're in this situation, declining these coverages could result in a large premium reduction.

Both coverages protect your vehicle against damage. Comprehensive coverage protects against non-accident damage (e.g. a tree falls on your car, or someone breaks into the car). Collision protects against damage that occurs during accidents.

In the event of a claim, either coverage will pay you up to the fair market value of your vehicle.

You probably want to carry these two coverages if you drive a new and expensive vehicle, as such a payment would be substantial. Replacing a new car out of pocket isn't something that many drivers can afford to do. 

If you have an inexpensive vehicle that's older, however, these coverages might not provide a large payment — your car simply might not be worth very much. Decline the coverages, and you won't have to pay the premiums associated with these specific protections.