How to Reduce Car Insurance or Drop Coverage

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Reducing your car insurance is also known as finding a way to drop your premium. Reduce your car insurance or drop coverage with help from a fee-based insurance and risk management consultant in this free video clip.

Part of the Video Series: Auto Insurance
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Video Transcript

Hi, I'm Dan Weedin. I'm a nationally-recognized insurance consultant, and today we're going to talk about how to reduce car insurance. Reducing car insurance is, is kind of a strange way of putting something because the reality is that what you're really trying to do is find a way to drop your premium. Right? I mean bottom line is by reducing your car insurance you're paying less on your premium. There's a couple of different ways to do that, one of them is by dropping coverage. Dropping coverage yourself means, I'm going to eliminate a certain part of my auto insurance, take it on my self and then take on that full risk while my insurance premium goes down. For instance, dropping coverage to your comprehensive and collision means that I am now going to the insurance company for my, any damage to my vehicle. That's good news for the part that your premium is now going to be substantially less, the trade off is that anything that happens to your vehicle, now you are fully responsible for. I've heard people talking about dropping uninsured motorists coverage to save some money. Again, you loose a little premium off of that, off of that monthly amount that you're paying, however if you are hit by somebody who is uninsured or under insured, you're now taking on that full responsibility. You can't drop liability coverage, I believe most states say it is a requirement, so one thing that you have to have, it's required. So you can't drop that. Reducing car insurance premium can come by dropping coverage, but you want to be very careful. I'd never recommend that you drop uninsured motorist coverage. However as your vehicle does get older what you get in return for it gets less and so you might take a hard look at dropping ether comprehensive and collision. To save a little money, but knowing that you are now become basically the insurance company, a self funded insurance company on that. Anytime you drop coverage it's now on you because the risk is still out there. Just know that as you look at trying to find ways to reduce your insurance premium that with that comes the, the challenge of having something now fall on to your lap. Bottom line be careful of what coverages you drop because you're now going to be responsible for them. The good part is your premium is less, the bad part is that you might have to take it out of your pocket. Again, my name is Dan Weedin, and we talked about ways to reduce your coverage and to drop coverage. Thanks for watching.


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