Is the Economy Causing A Reduction in Coverage?

There is no question about it, whether the case may be unemployment or a career on the rocks, the issues striking our economy do have an effect on how we spend money. It’s only natural for us to continue looking for more ways to tighten up our spending habits during these harder times. One of the first ways we reduce spending is by reducing our habits of eating out, unnecessary trips to the store and those very tempting impulse purchases. These three things alone can become very expensive.

Some people take it a step further and begin reducing coverage. Before you decide to do this remember, the coverage you selected is most likely the coverage you need. If you must drop coverages in order to keep up with your finances,it may be a good choice to first comparison shop your current coverage to see if you can obtain a better premium. If your goal is only to drop your premium down a couple hundred, this is very possible with a comparison quote alone. If you need to save even more than this and cannot avoid reducing coverage, you should first start by dropping collision and comprehensive on your less expensive vehicles. It’s much better to suffer a $5000 property loss than $20,000 in a liability lawsuit. As you may know, you can only do this if the vehicle is paid off. Most leinholders will not allow this coverage to be dropped since they have an insurable intrest in the vehicle as well. Read more about how to get lower auto insurance rates.

What does your insurance company need from you?

If you are working with a local Agent, one thing you will need to do in order to reduce coverage is first get a quote with the coverage taken off. If the quote comes out to what you need it to be, the next step you will need to do is send in writing a a specific request to reduce the coverage. Without documentation from you, insurance companies are hesitant to reduce coverage for legal reasons. Simply write the request and faxing it to your agent, this is most likely the best way to quickly get this change in force.

If you would like to comparison shop for an auto insurance quote to see if we can save you more, simply begin an online quote.

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