Reader’s Question:

I have collision coverage insurance on my policy. I want to keep it but I would like to know if there is any way I can lower the cost of my collision coverage.

Viktor

Omaha, NE

If you want to lower your collision coverage insurance, you can raise your deductible on your policy. You should also choose a less expensive car so you can get lower car insurance rate. Ask for any discounts that you may be eligible of to reduce the cost of your car insurance.

Car insurance deductible is what you pay out of your own pocket before your insurance policy kicks in. If you choose the highest deductible that you can afford, it will lower your premium. For instance, a $500 deductible will lower your car insurance payment. The rule of the thumb is: the higher the deductible, the lower your premium.

If you have an older car it may not be worth it to buy collision coverage insurance on it. So it is best to determine the actual cash value of your vehicle. If you ever file a claim for significant damages, your insurer will likely declare your car a total loss rather than have it repaired. That’s because the cost of repairing your car exceeds its actual cash value.