Getting insurance should really depend on a lot of factors. Many swear by a comprehensive insurance since it will ultimately shield you from a lot of liabilities just in case you meet that “You’ve really done it this time” situation. However, as time goes by, your car depreciates and repair costs would vary. and if you’re pretty much a safe drive who just drives his car a few miles to work, you might just be paying insurance that might be enough to buy you a newer car.

Customize your coverage. Depending on how old your car is, you might just want to drop certain aspects of coverage. Repair costs also vary for different makes and models so these may also affect your insurance premium. So better check the fair market value of your car and ask your broker to factor these too.

Bundle your insurance. Scout out offers. Sometimes insurance companies would have attractive discounts when you get different insurance policies from them. Say you have an existing life policy with them. They may offer you further discounts if your trust them with your other needs like you home and car insurance. Just be sure to do the math to check whether you’re getting the best buck per bang.

Drive safely. Many insurance companies have a no-claim deductible when you renew your insurance for another year. No-claim means, you’ve never been in an accident for the past year so you didn’t claim anything from the company. It’s like a safe driving bonus you get. A good track record of your safety may also be factored in by your insurance company when computing your premium.

Beef up security. In a previous post on car security, we didn’t mention it but having these devices might even drive your insurance premium down. Low profile vehicles also fetch lower insurance premium costs since there’s a lower chance for these cars to get stolen.

Check your policy. Some people neglect this but have your broker or agent discuss every line with you to make sure that you understand your policy. Try checking the policy for clerical errors too. A typo on the year of your car’s make and model (say a 2003 becomes 2002) will definitely impact the computation of both claims and premiums because of the depreciation factored in.