Mar 26 2008

Saving on car insurance: We were over-and-under-insured!


In my last post on car insurance, I mentioned that I’d be making sure we weren’t over-insured or under-insured in certain areas.

After taking a closer look at our first-party benefits, I realized that thanks to benefits from my husband’s employer, we were already covered in these areas.

I called our health insurance company to confirm that the HMO would pick up where our car insurance company left off, with regard to medical expenses. Since that’s how they do it, we’re able to take the minimum $5,000 medical expense coverage on the car.

We determined that we won’t need car insurance coverage for lost wages, accidental death or funeral expenses, as we are already insured in those areas.

So, lowering that aspect of our car insurance will save us $34.40 over six months.

I feel silly–I wish I understood our car insurance policy when we bought it six months ago! I could have saved even more. Oh well. Better late than never!

Next, we decided to increase our property damage liability insurance to the maximum $500,000. The likelihood that I drive into someone’s house is small (I hope!), but if I do, having a half million in coverage is nice to have. Increasing our policy in that area adds about $8 to the six-month premium. Not bad.

In a comment on my last post, Cromely mentioned looking into umbrella insurance to add more liability coverage for about the same price. I’m gunna check that out. Thanks for the tip!

I’m shopping around for better rates, but I doubt any company can come close to our current quote of less than $400 for six months. We’ll see.

2 Responses to “Saving on car insurance: We were over-and-under-insured!”

  1. We got the highest level of property coverage because so many people have *really* expensive cars here. I’m always afraid to park next to one and accidentally hit it with a car door. Yikes!

  2. When I finally got around to insurance-shopping, I discovered that I didn’t have insurance I needed (uninsured driver) and was paying for insurance I probably didn’t need (collision).
    My new plan is saving me hundreds of dollars a year. That makes me feel foolish for not having made insurance-shopping a priority.
    Remember, too, to get a new rate quote every few years — life changes such as marriage or reaching a crucial birthday can make you eligible for a lower premium.
    Best regards,
    Donna Freedman
    MSN Money/Smart Spending

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Hey! I'm Kacie, wife and mother of 3. I write about my family's finance: how we save money, improve our spending, and plan for the future.

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