Auto insurance is mandatory and if you have to drive legally, you will require at least the minimum coverage that is prescribed by the state. Most states require the motorist to have the minimum liability coverage on their vehicles. Due to the rising costs, and the cost cutting measures, more and more people wish to know how to save on their auto insurance premiums without breaking the law. There are many who think purchasing auto insurance is an unnecessary expense, but that is absolutely inappropriate. Auto insurance is a part of every household budget, but this can also be an area where you make a considerable savings as well. If you follow a few simple tips, you can easily keep the costs down. The cheapest policy need not always be the best though.
The lower the liability limits, the lower would be the costs. The minimum liability limits vary from one state to another. Each state has its own limits and they are usually around $25,000 for a single person’s bodily injury. It would be $50,000 per bodily injury per occurrence, and $25,000 on property damage. Although, these limits will not be not enough in every situation it is usually sufficient. The basic way to cut costs is to keep the coverage levels within the minimum prescribed by the state.
The no-fault coverage is prevalent in quite a few states in the US and this is a coverage that will provide for some of the medical costs and loss of wages that is caused due to the accident. This is generally given to the injured parties regardless of who is at fault. This is a coverage that is fairly expensive and can be eliminated if you wish to save money. However, this is mandatory in states that have no-fault laws. Under such circumstances the motorist will have to purchase this cover.
Uninsured or underinsured motorist coverage is optional. It pays for the bodily injuries that are sustained by the motorist or the other passengers in the car, where the collision is caused with another motorist who is uninsured. This coverage will take care of the expenses if the driver at fault is not insured. This is also an expensive feature and it will pay only under certain circumstances. So, if you have a fairly decent health insurance, it would be unnecessary.
The rental car coverage, collision and loss of use are all optional features where you will be provided with a rental car in case the insured vehicle cannot be driven after a crash. So, eliminating this will also help in saving at least $100 annually.
If you adjust the liability limits and eliminate other optional features from the policy, you can quickly save quite a huge sum of money. These are methods that are completely within reach for the customer. But there are also other ways to cut costs on auto insurance but that will depend on other factors such as driving records, credit history, installation of safety devices etc. You can also avail discounts by combining policies.
