The Wrong Way to Save Money on Your Auto Insurance By Mike McDonough At Isnare.com Ezine Articles

Are you looking for a way to save money on your auto insurance? Of course you are. We all are. Anyone who says they wouldn't love to have a little extra money in their pocket each month is probably lying through their teeth! It's tempting, then, to scale back by selecting "non-essential" expenses like your auto insurance and paring them down as far as possible. Saving money on your auto insurance is a great idea; however, there's a right way and a wrong way to save money on your auto insurance. Make sure you're doing it the right way!

So, what shouldn't you do to save money on your auto insurance? First and foremost, never give in to the temptation to purchase the first cheap auto insurance policy that comes your way just because it's cheap. Your auto insurance has to do a lot more than sit around looking pretty, and let's face it-when you're talking insurance you get what you pay for! It's worth a little extra money in premiums every month to make sure that if you're in an accident you've got all the protection you need.

The second thing you shouldn't do is pare your liability insurance down to the bare minimum. You'd be amazed at how many people out there are driving around with only minimum liability coverage! Lowering your insurance coverage levels is a simple, easy and 100% effective way to save money on your auto insurance; however, this is one of those times when it's vitally important to consider the consequences.

Minimum liability insurance generally offers less than $100,000 worth of protection if you're involved in an accident, which sounds like a lot more than it is when you consider that the average fender bender costs $1,200 to fix, and replacing an entire car can range from $5,000-50,000 or more. Then add in emergency room visits at $1,000 per person, hospital stays at $2,000-2,500 per day and ICU expenses of $5,000 or more per day and you begin to understand why that $100,000 isn't going to go as far as you think it will. Is your bank account strong enough to take the hit?

Comprehensive, collision and uninsured motorist insurance are another place where you can save money on your auto insurance-mainly by NOT having them. The question is, what are you going to do if your windshield is destroyed by hail? Or vandals trash your car? Or you slide off a snowy road, flip twice and land in the ditch? Without comprehensive and collision you're going to be left holding the bill-not to mention what's going to happen if you have an accident with an uninsured driver. Chances are good that if they can't afford auto insurance they're definitely not going to be able to afford to pay your medical bills and repair your car.

Finally, let's talk deductibles. Raising your deductible is a great way to lower the premiums on your auto insurance-and most insurance agents know it. That's why many insurance providers are able to save you money by lowballing their insurance quotes. What they're not telling you is your deductible is going to put you into the poorhouse-and if you can't pay your deductible your auto insurance coverage isn't going to do you much good anyway.

As you can see, there's a right way and a wrong way to save money on your auto insurance. Save money the right way. Your financial assets will thank you!

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