Whether you have California auto insurance, California homeowners insurance, or both, if you are thinking of taking action to temporarily lower your insurance costs, you better think twice. If you cut back on your coverage, you are adding to the risk and may expose yourself to higher out-of-pocket expenses in the event of an accident that results in bodily injury or property damage.
In today’s difficult economy, many people are struggling just to be able to pay their regular monthly bills. If you are thinking of raising your deductible or temporarily cancelling some optional insurance in order to save some money on your monthly premium, you could be making a bad decision.
Imagine what would happen if you cut back on your coverage on your automobile insurance and then got in a serious accident. Trying to save $100 or $200 per month can wind up costing you thousands of dollars because of inadequate coverage or high deductibles. Instead of cutting back on insurance, maybe it would be better to give up the premium TV subscription or cut back on some other non-essential expenses.
California homeowner insurance can protect you if your home is damaged by fire, wind, or other forces of nature. Depending on the type of coverage you have, you will be reimbursed for theft, vandalism or other types of contingencies that might occur on your property. Temporarily lowering your insurance costs can wind up costing you a lot of money. If a tree falls through your roof and you do not have coverage, it could cost you thousands to repair.
Why take a chance? If you have a house, you do not want to lose it because you were trying to save a few dollars. As hard as it may be to pay the extra premium amount, it is the responsible and right thing to do.
Many consumers are looking into temporarily lowering their homeowners or automobile insurance costs by eliminating some services, such as high deductibles they feel they can do without. Every dollar they save adds to being able to pay a mortgage down more quickly or do more with their family.
Here is some information that may assist you with saving:
- Increase your comprehensive and collision deductibles from $250 to $500 and see what you save. If not enough, ask the agent how much a $1,000 deductible would save. Since you are a careful driver and if the accident is the other party’s fault, your insurance company will most likely get your deductible back anyway.
- If you just got married, let your car insurance company know this as your rates are lower when married.
- Take a defensive driving course and also have security alarms on your vehicle.
- If you pay your car off, you may consider switching to liability insurance instead of having full coverage.
- If your teenager attends college in another state and leaves the car behind, your insurance rates may be lower.
- If you move from the city to a rural area, this may also lower your automobile insurance rate.
- If you change jobs and work from an office inside your home, you have eliminated much traveling, so your risk of accident is much less.
- Many auto insurance companies give you a percentage off when you also insure your home with them.
Talk to your agent and go over both your homeowners and your auto insurance so that he can save you money.
You might be able to temporarily cut your Texas car insurance costs in half if you aren’t financing or leasing your car. Liability insurance is a requirement in Texas, so you’ll have to maintain a liability policy to keep your car registered. Check with your loan or lease provider before making any changes to your auto insurance policy to avoid defaulting on your contract. Keep in mind that accidents are never planned, so having an adequate policy in place can protect your finances in the event of an accident. Increase your car insurance coverage again when you can afford to do so.
- Increase your deductible. A deductible is your out-of-pocket responsibility for vehicle repairs or market value replacement if you’re at-fault in an accident.
- Drop your collision coverage. A collision policy is the most expensive you can purchase. This change alone significantly decreases your cost.
- Decrease your bodily injury and property damage limits. If your policy has increased limits, drop them to Texas state minimums.
- Remove policy add-ons. Optional items, such as windshield replacement, rental car coverage or roadside assistance cost extra money.
- Shop providers. Make sure your current insurance company is providing you with a competitively priced policy. If not, switch to a provider that offers more discounts or cheaper policy cost.
- Ask for discounts. You might be eligible for a discount if you’re a homeowner, college graduate or if you insure more than one policy with the same company.
- Take a defensive driver course to reduce license points or to obtain an automatic car insurance discount.