Being Smart About Car Insurance

Insurance Blog

Everyone is interested in saving money.  However, saving money is often easier said then done.  It can prove to be very difficult to find areas in your budget where you can cut back.  Auto insurance is one line item in your budget that can easily be adjusted to accommodate your budget.  Consider these factors when thinking about adjusting your car insurance. 

State Regulations

The first step in determining the coverage of your insurance is to review laws and regulations, as minimal requirements vary from state to state. You will want to assure that you have met your state's minimal requirements before tweaking your premium-to-coverage ratios. 

Liability Coverage

Liability coverage determines the extent to which your insurance will pay, should you be at fault in an automobile accident. It might be tempting to decrease the limits of your coverage for a lower monthly premium.  However, you will want to carefully consider all benefits and risks to this decision, as you will be held personally responsible for any damage incurred beyond the limits of your liability coverage.  

According to, the amount of liability coverage that you carry should be based upon your personal assets.  For example, if you are not a homeowner or have not accumulated much wealth, you do not have much to lose as would a multi-millionaire.  For this reason, lower premiums with lesser coverage might be a better option for you.  If you have accumulated wealth and assets, it might be very much worth your while to invest in higher liability coverage.   

Comprehensive and Collision Insurance

While liability insurance is most certainly not the area to scrimp, comprehensive and collision insurance can provide more wiggle room in your budget. Comprehensive insurance covers damage incurred by acts of God, theft, or vandalism. Collision insurance covers damage caused to your own car while you were at fault. 

If you are financing your car, it is likely that your state will require this type of insurance. If you car is paid in full, the decision to purchase comprehensive or collision insurance is dependent upon your ability to purchase a new vehicle should catastrophe befall to your car. Can you afford another car note or to purchase a car outright? If not, you might find it comforting to have collision and comprehensive coverage until you are back on your feet. However, if your car is of little value, you might consider skipping out on the collision and comprehensive premiums to save for a new car. 

Making the Commitment

Once you have reviewed your state laws and personal assets, you can determine the amount of coverage you prefer.  Having made this decision, feel free to shop around.  Request quotes from multiple competing companies .  This way, when you finally make the commitment to purchase your car insurance, you can be sure that you have made an educated and informed decision. Speak with experts like Smiley Insurance Services for more advice.


9 February 2015

Auto Insurance:  Even High Risk Drivers Need It

About ten years ago, my auto insurance was cancelled. This took place after one too many accidents. I was now a high risk, and my provider was not willing to keep me on any longer. Since there was no way that I was going to get behind the wheel without coverage, I started checking out plans with high-risk insurers. Some were not all that great, but others offered benefits that were very close to my old plan. I soon found a provider who would accept my application, and I began to be a little more careful with my driving. If you are having trouble buying auto insurance, let me help. I'll tell you what to look for in a high-risk provider, and how to find the best one in your area. In no time at all, you'll be covered and ready to get back on the road again.