3 Coverage’s you Can go Without Next Time You Renew Your Car Insurance

If you’ve ever clipped (and used) a coupon, entered a discount code, shopped the bargain bins or you refuse to go out, except for ladies’ night when you get free drinks – you probably already know quite a bit about saving money. What you may not be familiar with is: how to save money on your auto insurance policy. While it may seem confusing – it doesn’t have to be, when you know the basic necessities of car insurance and what YOU will need when you renew your policy.

1. Driving an Older Car or Clunker? Just Say No to Collision — While you may often hear about comprehensive/collision coverage (otherwise known as, total coverage), this type of insurance is the priciest type of coverage available. In some cases, new car owners are required to have total coverage. However, there is another type of coverage you can choose, if not otherwise required to have comprehensive coverage by your bank, lending company or other funding source.

The most basic type of insurance is what is known as, liability insurance. This type of car insurance doesn’t pay for bodily injury or property damage for the policyholder (you) or your passengers, but it does cover these types of liability for anyone else (or anyone else’s property) that was involved in a collision or in the event that the policyholder would need to make a claim. Liability insurance is also the cheapest car insurance you can get, while still abiding by state law. Every state has a different required minimum in relation to car insurance, in order to operate a motor vehicle. Find out what the minimum requirement is in your state and, if you can choose liability over comprehensive coverage.

2. Got Great Health Coverage? Pass on Personal Medical Insurance – While some agents may not want you to know – if you or your spouse, receive great health benefits from your job OR you purchase coverage from another source, you can probably skip Personal Medical Insurance coverage the next time you renew your policy. This is because Personal Medical Insurance coverage basically, works in the same way as your health insurance. Therefore, if you have health coverage, PMI coverage is usually, not necessary.

3. Trying to Save Money? Boot Towing Coverage off your Policy – While towing and labor costs can be a nice addition to your policy, they can also be an expensive addition (that you may never need to use). If you drive a vehicle that has On Star, you will have access to towing assistance. Companies like, AAA and CAA (in Canada) provide reasonable rates for a certain number of tows, per year. Many times, cell phone companies offer plans that allow free towing when you have your cell phone through their company, as well. Of course, if you have no other towing option and your car is not exactly up to par, you might want to go ahead and get this coverage. However, if you can avoid paying for towing and labor coverage each month – in can save you a lot of money that can really add up!

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