How to Reduce Car Insurance or Drop Coverage
Reducing or dropping insurance coverage on your car can be a way to save money on your insurance premium. There are typically three types of coverage coverages in an automobile insurance policy: collision coverage, comprehensive coverage, and bodily injury or liability coverage. By choosing wisely, you may be able to find coverage in the insurance that you can limit or drop, and save money.
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Instructions
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Contacting your Agent
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Review your existing automobile insurance policy to see the coverage amounts or limits that apply to your vehicle.
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Determine if lowering the coverage amounts or dropping coverage is warranted for one or more vehicles on the policy. As a vehicle gets older it and is worth less, it may not need as much or any comprehensive and collision coverage. You may also be able to save money by increasing the deductible (the amount you must pay out-of-pocket before the insurance company covers the rest) on a policy; generally, the higher the deductible, the lower the premiums.
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Contact your automobile insurance agent or insurance carrier representative and request a change to your automobile insurance policy.
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Tell your agent or company representative that you want to reduce the amount of coverage for a vehicle and to drop coverages that you no longer need.
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Give your agent or company representative the new limit amounts or the coverages that you want to drop from the policy. The agent or company representative will be able to tell you what coverages, if any, that you can reduce or drop on your policy, and then tell you what the new premium will be.
You can also ask your agent or company representative about other ways to save on premiums. Many companies offer incentives that cut the cost of a policy. Some of these include proof of driver training for teenagers, and "good customer" discounts for buying other lines of insurance from the company.
Changing Options Online
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Log onto your account or policy at your insurance carrier's website.
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Access your policy information and go to the coverages section.
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Enter a different amount for the amounts or limits that you want to change for comprehensive or collision coverage. You can also remove optional coverages, such as roadside assistance, if you have them.
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Save the changes you made to your policy and then log out your account.
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Tips & Warnings
Lowering the amount of coverage or dropping coverage will reduce the premium and save you money on the cost of the policy.
Insurance is regulated by states, and all states have a minimum amount of liability coverage that is required on all insurance policies and cannot be reduced or dropped.
If you try to adjust your coverage onlinle, a warning or error will appear on the screen if you try to remove or reduce coverage amounts that cannot be changed or modified online.
You cannot reduce or drop coverage that is required by law.
Be careful how much you reduce your insurance. Coverage that is too low may not pay enough to replace your vehicle or pay for medical bills if an accident occurs.
