A few quick steps could cut your car insurance bill in half
You can reduce your premium by 40% or more by getting rid of collision and comprehensive coverage. Trouble is, it's not always easy to determine when it's time to ditch this coverage. These days, even a 5-year-old car that originally cost $50,000 could still be worth a lot of money, says Brad Cooper , senior vice president for InsWeb.
Here's a good rule of thumb from the Insurance Information Institute: Drop collision and comprehensive coverage if your vehicle is worth less than 10 times the premium. You can get an estimate of your vehicle's current value at Kelley Blue Book , www.kbb.com.
•Raise your deductible. Increasing your deductible to $1,000 from $250 could reduce your monthly premiums by up to 40%, InsWeb says.
"You have to ask yourself, based on your current financial position, how likely can you come up with $500 or $1,000 in the event of an accident," Cooper says. "If you can do it fairly easily, and you're a safe driver, you're probably better off raising your deductible."
