You should lower your car insurance coverage when you can no longer afford your current rate or you no longer need certain types of insurance, like collision or comprehensive. As long as you are still satisfying your state’s minimum insurance requirements, you can reduce your limits or drop extra coverage altogether. But before you lower your car insurance, you should weigh the benefits of a lower premium against the loss of protection.
Rules & Regulations to Consider
In most states, you’re allowed to have liability-only insurance, which just covers other people’s expenses in accidents that you cause. However, several states require drivers to have additional types of coverage such as personal injury protection or uninsured/underinsured motorist.
If your car is leased or financed, your lender or lessor likely requires you to have collision and comprehensive coverage, too. You won’t be able to drop either without violating your contract.
Other Ways to Save on Car Insurance
If reducing your coverage limits or dropping coverage isn’t an option for you, then there are other ways to lower your rate. For example, you should consider raising your deductible for a cheaper premium, as long as you can afford the new amount. You may also want to think about switching to another insurer who can give you the same amount of coverage for a lower price.
To learn more, check out WalletHub’s guide for how to lower your car insurance.
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