Saving money is on everyone’s mind. Cutting corners and trying to get the most for your money has become a way of life. One expense that’s costly until you need it is car insurance. If you drive, you need it, but making the right decision about coverage and amounts can save you money in the long run.

First, consider your deductible. Some people pay extra for a low deductible and carry the minimum in liability coverage. Think about it this way: Is it easier to pay for a $500 deductible or a $500,000 lawsuit? Instead of taking this risk, raise your deductable and thus lower your premium. Then take the money you saved and apply it to the cost of higher liability coverage. It is simply a matter of shifting your money around to give yourself the most protection and security.

Personal injury coverage is another thing to consider. This coverage is also known as medical payments coverage. Do you already have health insurance for you and your family? If you have an accident, will that coverage pay your medical expenses? If so, you could be paying twice for the same thing.

Take a look at your liability coverage. You may have up to $500,000 in liability coverage, but the policy may state you have coverage of $100,000 per person. If someone were to file a $200,000 lawsuit, you’d be on the hook for half. Make sure your agent makes the total amount paid per accident and per person the same so that $500,000 means $500,000.

Make sure your insurance company will pay for a rental car while your car is being repaired. A week in the body shop may not seem long to your mechanic, but try getting around a week without a car. If you don’t have another car to drive, you’ll have to rent one and that could cost hundreds of dollars.

Take the time to shop around. Start by calling for quotes and then narrow down your search. Once you have the best prices, make appointments and get down to brass tacks. Get all of your questions answered and determine prices for the same coverage. You want to compare apples to apples, because some companies will charge more for the same coverage that is cheaper somewhere else.

Look for every discount and take it. There are a plethora of things that qualify you for a discount. They can range from your spotless driving record to your car’s airbags. Find out what discounts are available and make sure your agent knows your qualify.

This next one takes some thought and math skills. If you drive an older car, consider dropping your collision coverage. First, determine the car’s value. Say your car is 10 years old iand s worth $2,000. If you total it, you would get $2,000. But is it worth the risk of not having the coverage and banking the money you would have paid? If you do forgo this coverage, can you get your hands on the money it would take to buy a replacement car tomorrow?

Finally, choose the right insurance company. Unfortunately, not everyone has your best interest at heart. There are plenty of companies that will take advantage of you. Make sure you go with someone you trust that will explain your policy to your satisfaction.

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