Can I lower my insurance rates by assuming more risk?

Is assuming more risk a wise choice?

You can potentially lower your car insurance costs by assuming more risk. This can be accomplished in various ways.

Drop collision insurance on older cars

If your car is older and only worth a limited amount of money, you may be spending more on auto insurance than the car is worth. You may wish to consider dropping your collision policy and putting monthly payments into a savings account instead.

Accept a higher deductible

Many people think that if they are have a lower deductible, they are definitely saving more money. Sometimes, the opposite is true. If you end up rarely filing a claim, you can save more money in the long run by having a higher deductible and lower monthly premiums.

Keep in mind that assuming more risk can result in more cost under certain circumstances. Be sure to carefully examine the specifics of your situation before deciding whether assuming more risk is a wise choice or not.