insurance

5 car insurance tips for clunker coverage

Jack up your deductibles
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Jack up your deductibles

The deductible, that portion you pay out of pocket before your car insurance kicks in, may be costing you more than it should if you haven't adjusted it upward to reflect the declining value of your car and your financial ability to shoulder more of the repair cost.

The Insurance Information Institute estimates that raising your deductible from $200 to $500 could reduce your collision and comprehensive premiums by 15 percent to 30 percent. Take it up to $1,000 and you could save 40 percent or more.

"Every dollar you give an insurance company, you get back about 60 cents," says Hunter. "Even for new cars, raising your deductible is a good thing to look at. It has become a hidden money maker for insurance companies."


 

 

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