How NOT to Save Money on Your Arizona Auto Insurance Policy

How NOT to Save Money on Your Arizona Auto Insurance Policy

Sure, everyone in Arizona wants to save money on their auto insurance. They'd be

In today's tough economy it's tempting to take any opportunity you can find to save money. After all, how often does a chance like that come your way? Usually everyone wants to take your money, not the other way around! The problem is, there's a right way to save money on your auto insurance and there's a wrong way to save money on your auto insurance, and if you don't know the difference it's all too easy to find yourself up the proverbial creek without the proverbial paddle!

So what's the wrong way to save money on your auto insurance?

Lowering Your Coverage Levels

And do you really need uninsured motorist insurance?

The catch is, with emergency room visits starting out at $1,000 a pop and ICU expenses rolling in at $5,000 per day that $30,000 for bodily injury coverage isn't going to go as far as you think it will. And it doesn't take long for two or more cars to rack up $10,000 in repair costs. That immediately leaves you at a loss for what to do if you're in a major accident-something you don't need when you're going to have bigger legal and medical issues on your plate to deal with.

Add on to that the fact that there are more drivers than ever hitting the road without auto insurance in an attempt to save money for trivial things like food and clothing and the fact that you're going to be left holding the bill if your car is damaged in an accident you caused (or as a result of a freak accident at the hands of Mother Nature) and you can see why slashing and hacking your insurance coverage is a bad idea.

Buying a Policy Because It's Cheap

Step right up folks, you're the next contestant! The game? Russian roulette-cheap auto insurance style. It's cliché, it's overdone, but let's face it-you get what you pay for. While cheap auto insurance premiums might sound like a good idea, these companies are giving something up to be able to offer you rates that low.

When you buy dirt cheap auto insurance you're going to get dirt cheap coverage. That means you're either going to have to take your chances on a company with a so-so success rate that may or may not be able to pay your claims or accept inferior coverage, neither one of which is going to give you the protection you need when you've been in an accident. It's worth a little extra each month to make sure you're ready to deal with whatever life and Route 66 throw your way.

Raising Your Deductibles

Raising your deductibles is a safe, easy, insurance-savvy way to save money on your auto insurance policy-to a point. Once your deductible crosses the point where you can easily pay it and slips into "small fortune, going to have to sacrifice an arm and a leg" land you've just lost a whole lot more than you've gained. Raise your deductibles if you're able, but be realistic. Remember, you might have to actually pay up one of these days!

Remember, no matter where you live in Arizona there's a smart way and a…not-so-smart way to save money on your auto insurance. Be an insurance savvy shopper and save money the right way, because when you've been in an accident and you've got great insurance coverage you know you can walk away, if not happy, at least secure in knowing that your financial assets are still intact.

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• How NOT to Save Money on Your Arizona Auto Insurance Policy - Apr 29, 2009 - 3:39:50 AM