10 Ways People Waste Money On Their Cars Every Day

5) Carrying unnecessary collision insurance

Many people fall victim to this money trap. You are required by law in most states to have basic insurance. Requirements for basic coverages do, however, vary from state to state and certain additional coverages may be mandatory by your car loan lender. That doesn’t mean you should pay more than is needed or required. While you should never compromise your (basic) liability and comprehensive, collision insurance isn’t always needed for every type of car, especially older cars that have depreciated in value to the point where it’s not worth spending the extra money. There are also simple ways to cut costs on your insurance. Switching providers, or making sure to inform your insurance carrier of your car’s security features, such as anti-lock brakes (ABS) or anti-theft devices, can lower your rates substantially. Another way insurance companies will lower your rate is if you take a defensive driving course, which are available online.