The Best Way to Save on Car Insurance …

By Kennedi Rose / March 1, 2013

There are plenty of ways to save money on car insurance: you could get a bigger deductible. You could shop around for different premiums. You can devote yourself to being a safer driver, who doesn’t get tickets.

But here’s my favorite tactic: drive a car that is so cheap, the only type of insurance that’s worth having on it is the minimum amount required by law. Then save a “car replacement fund” so you can buy a replacement car in cash, if you need to do so.

My car is 15 years old. It’s resale value is probably about $1000. Maybe $2000, maximum. It’s just not worth insuring (other than the legally-mandated amount.)

So when personal finance experts start talking about how to save money on car insurance, I tune out. The only insurance I need is the kind it’s required by law. No more.

It’s yet another benefit of driving a cheap car. I highly recommend it!

 

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Kennedi Rose

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