Car Insurance: I cut mine in half!

I had another cost cutting win today. I called up the insurance agent and found out that by dropping down to the legal minimum on my car I can save $448 per year. That is roughly $35 per month!

My car is a 2003 Honda Civic worth roughly $5,000 to private buyer--hardly worth $448 more per year for insurance. I can bank that money myself instead, earn the interest, have flexibility with that money, and save towards a replacement car if the need should arise.

The savings on insurance each year represents 10% of the value of my car. If I did have a crash and it was totaled I wouldn't even get $5,000 as the insurance company gives you the trade-in value. The blue book has that at around $3,000. Between all the above numbers this decision was a no-brainer for me!