The recession has been difficult all around, but one area many don’t consider for saving money is insurance. If you’re driving habits have changed you might need to seriously revaluate your insurance needs to be certain you’re maximizing the coverage your need without paying any more than you absolutely have to.
Carpooling
If you’ve started carpooling to save on gas money, you will have additional passengers in your car at a time, and you might want to reconsider your automobile insurance. Your liability is much higher with others in the car so an umbrella coverage package might make sense. Ask an insurance professional about the best ways to protect yourself completely in the case of a serious accident with many others in the car.
Shop around for the best rates you can get with higher coverage. You might be surprised at how much rates vary between companies. Talk to representatives from a handful of companies to see how much you can save over the next year, even with a larger policy. Insurance rates fluctuate every day and checking back every six months to a year can land you serious savings.
Laid Off
If you’ve been laid off, you’re likely not driving into the city or the next county to reach your former place of employment. If your car is simply sitting in the driveway, why carry a large amount of insurance on it? Call your insurance company and ask for a rate that includes only the minimal amount of coverage required. Update your information as well to state you drive your car for personal use rather than commuting purposes as this can affect how much you pay in insurance premiums.
Before you settle in with your current insurance company, visit an online comparison company that will show you the rates you can be getting from other companies. Smaller companies located in your area might give you a lower rate than the bigger names as you’ll need less coverage and are far less of a risk. When you land another job, however, be sure you update this information and increase your coverage again to resume commuting.
Reducing Bills
If you’re still employed and nothing else has changed, you might still be eyeballing your budget to find ways to cut back. Raising your deductible on insurance is a nice way to cut back on your spending by reducing your premiums. The higher your deductible, the less expensive your insurance policy will be. Raise it up as high as possible so long as you’re comfortable with that level and can afford to pay the deductible should something arise.
Again, any time you’re considering changing your coverage or deductibles, it’s worth your time to do a quick search of other companies to be sure you’re getting the best bargain. When raising deductibles, be sure you’re still completely covered in the event of an emergency.
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