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Tuesday, October 22, 2013 - 2:16pm
(CNN Money) — If the price of your car insurance slowly gone up over the year, you are not alone. Many people are seeing their premiums rise.
Car insurance has never been cheap, and recently prices have skyrocketed. However, when looking for a new insurance plan, experts advise against skimping on the protection just to save a few bucks. What may be good for your wallet, may be bad for your safety.
Insure.com reports that car insurance premiums have gone up 23-percent over the past five years. If you are one of those with rising premiums, you may be looking to lower your monthly payments
CNN money spoke to the experts and they recommend a few areas where you should avoid slimming down too much:
First: Don't cut out too much liability. According to experts, this is an easy category to cut, and you will see huge savings, but it's not a good idea to cut too much. One expert told Insurancequotes.com that you should buy insurance protection that is equal to your non-retirement savings.
Second: Don't skimp on the uninsured motorist coverage. According to the Insurance Research Council, one in seven drivers is uninsured, so experts at Data Firm, ISO recommend having a limit of $100,000 per person and $300,000 per accident.
Third: Read the fine print on repairs. Not all policies pay for new parts for your car when it needs repairs. Experts recommend you review the "Limit of Liability" portion of your insurance policy to make sure that new, not used, parts are covered.
Ultimately experts say it is important to shop around to different insurance companies to see what sort of policy you can get, but make sure that any policy you choose keeps these three areas largely intact in order to best protect yourself and your loved ones.