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Study: More Americans are saving money by cutting back on insurance coverage

Posted On Wed, March 30, 2011

The tough economic climate the country is currently experiencing has many families cutting back on discretionary purchases, but a new report has found that Americans are also pinching pennies for their necessary buys.

Quality Planning, a statistical analysis company that provides policyholder information for auto insurers, has found that an increasing number of people are buying the bare minimum amount of auto insurance coverage their state requires.

The main way policyholders are saving, according to the study, is by not purchasing optional coverage plans, such as collision and comprehensive. This was especially prevalent among policyholders with older vehicles, as between 2006 and 2010, the average percentage of older vehicles without the two coverage options increased from 53 percent to 63 percent.

The study estimates that policyholders saved $229 per year by cutting back on coverage.

This was not the case among new car owners, as the study found that most policyholders opted for complete coverage over the four-year period.

Most states require at the very least liability insurance coverage. Some governments have increased the amount of liability coverage a motorist is required to carry, but others - like Wisconsin - have reduced the required limit.

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