Credit Cards Tips for You

How often do you find yourself in need of emergency towing? Not too often, but it is nice to know that you are covered when you need it. The organization that has done the best job of making the public aware they offer this service is AAA. However, emergency towing is actually a feature on many car insurance policies. If you joined AAA because you like their services in general, you already have emergency roadside coverage through AAA and you could save yourself some money by dropping the emergency road assistance coverage from your car insurance policy. However, if you arent already a member of an organization like AAA and dont plan to join one, you may find that the coverage is actually cheaper as a part of your car insurance.

Rental Car Coverage

This coverage used to be included in many car insurance policies, but has become rarer. For a while many credit card companies would include this coverage with their premium cards if you used their card to rent the car. If you have one of those credit cards, you certainly dont need to pay for it with your car insurance. Credit card companies have cut back on this benefit in the last few years, so make sure they are still offering it before you cancel your coverage. Another reasonably priced rental car insurance is being offered as an add-on to credit cards. If that is available, you should check which one turns out to save you money based on your rental patterns. Personally, I have saved hundreds of dollars using the premium car rental insurance offered by American Express.

Collision Coverage and Comprehensive Coverage

These coverages pay for damage to your vehicle in an accident. If you own a fairly new vehicle and are accident prone this coverage is indispensable. However, if you missed the government subsidized program to trade your old gas guzzler in for a new vehicle, your vehicle may not be worth as much as the annual premium for collision and comprehensive coverage. Check with your agent. Assuming you have the appropriate coverage to cover the other vehicle in an accident you may cause, you may not want to carry the coverage for your own vehicle and save the money to purchase a new vehicle instead. Just make sure you are saving the money you are not spending on insurance, because you will need it if you have an accident.

Many of us pick up car insurance when we first purchase our car and never look at it again until we sell the vehicle or trade it in. What we forget is that our circumstances change, our cars age and we join clubs, associations and add new credit cards to our collections. Even some professional associations offer insurance coverages to their members. Membership dues in many of these organizations arent cheap, but if you are joining it anyhow, because it is beneficial for your job, then you might as well look into what else is included in the membership and potentially reduce your insurance premiums somewhere else. The point is to keep up with your coverages and avoid duplication.

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