California Drivers Save Money by Switching to PLPD: Unless you’re one of those people who buy brand new cars with cash, you’re probably better off switching to PLPD insurance as soon as you can. We know, your insurance agent disagrees with this. Of course he does. His commission is based on a percentage of the premiums you pay. So for him, the more you pay, the better. Here are some things to consider while you’re browsing through online insurance quotes:

• PLPD Insurance in cheaper. Most people already know this, but it bears saying anyway. Unless you like giving your money away, you probably don’t need to be convinced that, all else being equal, less expensive is better.
• The replacement value of your car is probably not what you think it is. We know the car is valuable to you. We also know that you’re probably not in a position to pay cash to replace it. But the fact is that the insurance payout probably won’t replace it after the adjusters are done anyway. The value of your car is figured on its current Blue Book value, not the purchase price.
• If you put aside the difference between what you pay for full coverage and what you would pay for PLPD, you will (usually) end up ahead. Of course, this assumes that you won’t total your car. While you do need to consider the possibility that you would need to replace your car if you have PLPD insurance and total it, you should also consider the fact that the numbers are in your favor on this one. Chances are, you can save enough to buy a car, or at least put a hefty down payment on one, before you get into an accident.

Of course, there are plenty of valid reasons to continue with full coverage insurance if you want to. If you live in an area where auto theft is common, it’s not a bad idea to keep your car insured against theft. If you’re prone to accidents, you might not want to be without full coverage. Barring that, though, the amount of money you save by switching to PLPD is enough that it’s silly for most people to continue full coverage on a vehicle which is five years old or older.

Don’t take our word for it, though. When you’re getting auto insurance quotes, run the numbers both ways and see for yourself. Imagine all that extra money back in your hands (or, better yet, drawing interest in a savings account). We think you’ll agree that if your car is paid off, it’s silly to pay more for insurance.