Increase your deductible to over $1000. You may decide that keeping your comprehensive and collision coverage is important, but you can still save money if you increase your deductible. Again, this will mean more money out of your pocket, though not as much as if you dropped your comprehensive and collision coverage altogether.
Reduce your liability limits. Most insurance companies recommend liability limits of 100/300/50. This means you carry $100,000 in bodily injury liability coverage with a $300,000 limit. Depending on the specific requirements of your state, you may be able to reduce your liability limits to as low as 25/50/10. Be aware that some states require you to have more than this and some states allow you to go even lower, so check with your local agent.
Eliminate your uninsured motorists coverage
. As with reducing your liability limits, dropping your UM coverage will increase your risks in the event of a serious accident, but it will also save you money.
Before you run out there and cut back your auto insurance policy, you should be aware that reducing your coverage should be viewed as a last resort. If you maintain low liability limits and get into an accident that causes serious bodily injury, you could become personally liable for those costs. If you have significant assets like a house, you could lose those if you are sued.
Think carefully about how much risk you are comfortable assuming before undertaking any of these steps. But if the choice is between paying your rent or reducing your car insurance coverage, these suggestions can help. Also remember to always maintain some level of coverage for your vehicle. Driving without insurance is one of the worst financial decisions you can make.