Sky High Insurance Rates

Barbara wants to keep her car insurance rates down with her 16-year-old daughter, but doesn't know if a bare bones policy is the way to go.

QUESTION: Barbara’s daughter is 16, has her own job and does her own budget. Now that she is driving, the car insurance rates are through the roof. The daughter pays her portion of the insurance, but Barbara wants to know what other things they can do to lower the insurance cost. Should they use a bare bones policy?

ANSWER: You need good high-liability amounts. Liability is the best buy in all of insurance. It doesn’t change your price very much to run high-liability limits. The only things you can do to lower insurance costs are driver education, being an honor roll student, and getting a high deductible.