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Review Auto Insurance Coverage to Save Money

Last Updated: July 29, 2009

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A guiding principle when reviewing insurance coverage should be to answer “How would a change in coverage affect my family’s health and well-being?”

Released July 27, 2009

ST. PAUL, Minn. — If you’ve lost a job or your income is reduced for another reason, it’s good to review insurance coverage. A guiding principle should be to answer the question “How would a change in coverage affect my family’s health and well-being?”

Let’s focus on auto insurance. Minnesota auto owners are required by the state to carry minimum limit liability insurance, no-fault insurance and Uninsured/Underinsured Motorist Protection. Other optional coverage includes collision, comprehensive, towing and rental reimbursement.

If your car is not new, one way to reduce auto insurance premiums is to increase the deductible for comprehensive and collision. If the car’s value is low, consider dropping collision and assume the potential of loss yourself.

Minimize your premium by checking rates from several companies, raising your deductible, and insuring all family cars with one company. In addition, some company’s charge less if they insure both your home and your vehicles. Check if you are eligible for reduced rates because you are a nonsmoker, have a good driving record, a student driver with a good grade point average, or because of driver’s education courses.

The Minnesota Department of Commerce regulates insurance sales. For more information go to their website http://www.commerce.state.mn.us and search for auto insurance.

If you have vehicles that you and your family drive, they need to be insured. Check if your coverage is at the level you need at the most affordable cost.

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http://www.extension.umn.edu/extensionnews/2009/review-auto-insurance.html

Rosemary Heins is a family resource management educator with University of Minnesota Extension.

Contact: Catherine Dehdashti, U of M Extension (612) 625-0237, ced@umn.edu

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