Make A Collision Revision
Do you have an older car? Is your car worth less than $2000? If so, and if you have collision coverage on your insurance, you should consider dropping this coverage. You can save a ton of money by doing this. By going with liability only, which is what most states require, you will be able to keep a lot more of the money you would normally be sending to the insurance company. I know that when I did this a while back, I saved hundreds per month. The car had 180,000+ miles on it and was 10 years old. There was no reason to maintain full coverage.
If you are thinking that you’ll need the help if your car is totaled, think about it this way; If you are a relatively good driver, there is less of a chance of you causing the accident. If the other person causes the accident, their insurance company will take care of the damages. Meanwhile, start a savings account and put in what you would have put towards the collision coverage. This way, there will at least be something there, if you get into an accident.
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I just got out my auto insurance policy, I’m only paying $21.50 every 6 months for collision coverage on a 1989 car. By paying this it is a “full coverage” policy and includes towing, loss of use, etc. If you really are saving hundreds per month, you really should change companies. My total bill is only $204.20 every 6 months, and this is for 500K liability.
Thanks for the comment, Al.
One point that probably needs to be made here is that each person’s situation is unique. I happen to know Al, and I know that he does not work outside of the home. His insurance agent knows this also. Since Al does not drive very many miles during the year, his chances of getting into an accident are lower, which means his premium will also be lower.
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