What not to trim

Last updated: 12/10/2009 2:51:12 PM

Don’t cut back on insurance coverage during difficult economic times. Reducing or eliminating your auto or home coverage may save you a few dollars today but could end up costing you hundreds or thousands of dollars if you have a claim that exceeds your policy limits.

Here are better ways to save money on your insurance:

Avoid accidents and violations. Tickets and accidents can significantly increase the cost of your premium. Remember to ask for a good-driver discount if you have a clean driving record for the past three years.
Keep all of your cars on the same policy.
When comparison shopping, make sure you are comparing similar levels of coverage. Look at coverage terms and service, as well as price.
Keep auto and homeowners insurance with the same company to take advantage of the auto/home discount.
Seek out discounts. You may save money if you made home improvements or took a driver safety course.
Stay with a higher deductible. Higher deductibles can lower your costs substantially. For example, if you increase your deductible from $250 to $500, you could potentially reduce your premium by 15% to 30%. However, make sure the deductible you choose is an amount you can easily manage in the event you have to pay it.

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