Save on Your Auto Insurance by Skipping Options You Don't Need

No one is more irritated by a high car insurance bill than a safe driver. You drive the speed limit, always obey traffic rules and have never been in an accident, but you still have to look that big bill in the face every month. Even the best drivers can find ways to save even more on their car insurance, on top of discounts for being a good driver. By planning a head and using your savings wisely, you can save a bundle on that annoying bill. Here's how. 

Pay Off Your Loan

If you still have a  loan on your car, you need to scrape together every penny you have, sell off whatever you can, to get the money to pay it off. Until your car is paid off, the lender will require you have full coverage on the car, which is costing you hundreds every year. As soon as the car is paid for, you need to find out how much your car is worth on the open market.

Get Your Car's Value

Go to Kelly Blue Book for the most accurate value. What you are looking to do here is find out how much money you would need to replace your car if it were totalled in an accident. If your car is worth $5,000, then you would set money aside in a savings account until you had enough. Once you have that $5,000 in case of a total loss accident, you can start to free yourself from insurance premiums.

Drop the Extras

Dropping collision coverage will save you the most money, often several hundred dollars. You can save a few more hundred by dropping comprehensive coverage. If the car is in an accident or sustains a broken windshield, no big deal, you have the cash. Just be sure to negotiate with the shop for a better deal. They take lower rates from insurance companies, so you may have to barter. Other coverage you can live within includes rental coverage ($30-$50 per year) and towing coverage ($20-$40 per year).

Keep High Limits on Important Coverage

There are some kinds of insurance you should never skimp on, however. These include liability insurance and property damage insurance. That's because you can never know how much damage you might cause the one time you do get in an accident. With collision coverage, you are only worried about one car and one car only. In an accident, you could cause damage to many cars, adding up to tens of thousands of dollars. You could injure several people whose claims could add up to millions. Most states will require certain minimum limits on your liability and property damage coverage, but you should always buy more than the minimum. Going up from a minimum limit to $250,000 or even $500,000 is comparatively cheap. You may end up only paying another $60 per year for an additional $250,000 worth of coverage.