Avoid Costly Extras on Car Insurance

After a little thought, you may decide some auto insurance options may not be worth the cost. For example, some companies provide "accident forgiveness" coverage; if you have an accident, your rates won't go up, even if you are at fault. Paying more now − often between 10 and 20% - may not be worth avoiding higher premiums later. That's especially true if your insurer forgives the first accident if you have been a customer for more than a certain number of years. (Ask your agent for specifics.) Also think twice before accepting "new car replacement" insurance; while you may be worried about how much you'll receive since cars lose value over time, your premiums will be higher and most new car replacement policies don't kick in unless the car is considered to be totaled.