It is prudent to have insurance, but it is also smart to have the right amount of insurance for your needs. If your car is over-insured, you are simply giving away money to the insurance company, and regardless of how nice your insurance agent is, you can probably find a better use for that cash.
Over-insurance can be hard to determine because it depends on subjective criteria — specifically, your tolerance for risk. However, in the field of auto insurance it is a little easier to determine a good balance of risk.
Consider the different types of insurance that make up a typical auto policy:
In general, you can save money by eliminating areas of dual coverage and reducing or eliminating coverage where the potential reimbursement is inadequate.
Try giving your auto insurance policy a review before your next bill is due. You may be able to maintain a reasonable coverage while saving money — and if you can do so, why wouldn't you?
Originally Posted at: https://www.moneytips.com/5-ways-you-could-be-over-insuring-your-car
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