Car insurance tinkering
April 23, 2008, 7:59 pm
Filed under: Money Basics

For the past month or so, I’ve been meaning to take a look at Jake’s and my car insurance policies to see how raising our deductibles would affect our premiums. Jake has been worried financially about the coming weeks because he’s expecting to receive a less than normal paycheck at the end of this week (he’s paid mostly on commission) and I figured this would be an ideal time to give our policies a once over.

My policy is pretty much bare bones right now and my comprehensive and collision deductibles were only $500. I raised those to $1,000 and my premium went down $10 a month for doing so. Total yearly savings: $120.

When I looked over Jake’s policy, I was surprised to see that he was paying for a few options he didn’t need. He had chosen to have rental car reimbursement, loss of income coverage, and additional medical coverage. His comprehensive and collision deductibles were $500. I put all of the extras to zero and raised his deductibles to $1,000. His premium went down $17 a month. Total yearly savings: $204.

Over the next couple of years, I’m going to keep a close eye on the value of my car. Once it drops down to less than $3,000, I’m going to pull my collision coverage completely to save a few hundred dollars a year on my insurance.

For only a few minutes of my time, I managed to save us $27 a month or $324 a year. Not too shabby!