How to Evaluate Car Insurance Coverage

Protect yourself with the right car insurance.

No matter what kind of car or truck you drive, you need to have sufficient auto insurance coverage in place. Driving without car insurance is not only dangerous -- it is also illegal. It is not enough to simply purchase car insurance. You also need to review your coverage from time to time to ensure you have adequate protection.

Things You'll Need

• Car insurance policy

Instructions

1. Review your policy and look at the cost of collision and comprehensive coverage. Compare the cost of that coverage to the value of your vehicle. If the cost of comprehensive and collision coverage is 10 percent or more of your vehicle's value, you should consider dropping that coverage.

2. Compare the cost of your coverage at several different deductible levels. You might be able to save money on your car insurance premiums by raising your deductible. Call your insurance company and ask them for a quote at a $250, $500 and $1,000 deductible. Consider raising your deductible and funneling the premium savings into a savings account you can draw on to cover the increased deductible.

3. Turn to the discounts page of your car insurance coverage and compare the discounts you are getting to those for which you are eligible. You could be eligible for discounts if your car has an anti-theft device or side curtain airbags. You could also get a discount if your car is kept in the garage or if you have successfully completed a defensive driving course.

4. Review the liability limits of your insurance and compare it to the average value of cars on the road. For instance, some states require as little as $10,000 in liability coverage, and that limit is not sufficient to cover the cost of most new cars on the market.

5. Request quotes from several different car insurance companies and compare those quotes to what you are currently paying. Continuing to shop around even after you have coverage in place is one of the best ways to save money without sacrificing the protection you need.

References

• FCIC.gov: 9 Ways to Lower Your Car Insurance Costs