Reader’s Question:

How can I reduce the cost of collision coverage?

John

Boise, ID

You may be able to raise your deductible, pick a less expensive car or determine if any other discounts could apply for your car insurance policy.

What you pay out of your own pocket is called deductible before your car insurance policy kicks in. The higher the deductible, the lower your car insurance rate. For instance, increasing your deductible from $200 to $500 on collision coverage could lower your auto insurance premium.

Generally, collision coverage is not worth buying for older cars with high mileage because if you ever file a claim for significant damages, your insurance providers will likely declare your car a total loss rather than fix it. That’s because the cost of fixing your car far exceeds its market value or actual cash value. The value you get for the car in the total loss may not justify the car insurance premiums you pay for the collision coverage.

Tags: auto insurance, autos, car insurance rate