All these types of coverage can really add up. Besides not buying some of the types, what else can you do to cut costs?
First, you can accept a higher deductible. As with health insurance, the deductible is the amount you pay for an event before your insurance kicks in. The higher your deductible, the lower your premium will be. That said, if you can’t afford a high premium, you may not be able to afford a high deductible either. Don’t choose a deductible that’s higher than you will be able to pay in the event of an accident.
Second, look for discounts. If you have a good driving record, many insurance companies will give you a lower rate. If not, you might be able to lower your rate by taking a defensive driving course.
Car owners who drive more miles a week pay more, so taking mass transit can save you money on insurance. So can buying a smaller car. Some insurance companies have discounts for owning a hybrid.