One of the things you can do to maximize your insurance coverage while reducing insurance costs is to hold on to your old car for a little longer. Many owners feel compelled to do this because of the high price of a new car, but this strategy also helps you to accept a greater degree of risk since most of the car has already depreciated over the years.

Owners of new cars usually have no choice but to pay for full insurance coverage because this may be required by the leasing agency. Full insurance coverage includes both liability insurance as well as collision insurance. The former compensates the car owner in the event of damage caused to another vehicle while the latter is aimed at compensating for damage sustained to the car owner’s own vehicle. Another type of insurance is comprehensive insurance which has a maximum limit up to the full value of the insured vehicle. Read More: