Ways to lower your auto insurance costs
the best ways of keeping down your auto insurance costs is to have
a good driving record.
Listed below are a number of other things you can do right now to
lower your insurance costs.
vary from company to company, so it pays to shop around. Get at
least three price quotes. You can call companies directly or access
information on the Internet. Your state insurance department may
also provide comparisons of prices charged by major insurers. (State
insurance department phone numbers can be found on the back cover.)
You buy insurance to protect you financially and provide peace of
mind. It's important to pick a company that is financially stable.
Check the financial health of insurance companies with rating companies
such as A.M. Best (www.standardandpoors.com/ratings) and consult
Get quotes from different types of insurance companies. Some sell
through their own agents. These agencies have the same name as the
insurance company. Some sell through independent agents who offer
policies from several insurance companies. Others do not use agents.
They sell directly to consumers over the phone or via the Internet.
But don't shop price alone. You want a company that answers your
questions and handles your claims fairly and efficiently. Ask friends
and relatives for their recommendations. Contact your state insurance
department to find out whether it makes available consumer complaint
ratios by company.
You should pick an agent or company representative that takes the
time to answer your questions. Remember, you'll be dealing with
this company if you have an accident or other emergency.
You can use the checklist on the bottom page to help you compare
you buy a car, compare insurance costs
Before you buy a new or use car, check into insurance costs. Your
premium is based in part on the car's sticker price, the cost to
repair it, it's overall safety record, and the likelihood of theft.
Many insurers offer discounts for features that reduce the risk
of injuries or theft. These include air bags, anti-lock brakes,
daytime running lights and anti-theft devices. Some states require
insurers to give discounts for cars equipped with air bags or anti-lock
Cars that are favourite targets for thieves cost more to insurer.
Information that can help you decide what car to buy is available
from the Insurance Institute for Highway Safety (www.iihs.org).
for higher deductibles
Deductibles represent the amount of money you pay before your insurance
policy kicks in. By requesting higher deductibles, you can lower
your costs substantially. For example, increasing your deductible
from $200 to $500 could reduce your collision and comprehensive
coverage cost by 15 percent to 30 percent. Going to a $1,000 deductible
can save you 40 percent or more.
coverage on older cars
Consider dropping collision and/or comprehensive coverage's on older
cars. It may not be cost effective to continue to buy these coverages
on cars worth less than 10 times the amount you would pay for the
coverage. Any claim payment you receive would not substantially
exceed your premiums minus the deductible. The average claim occurs
only once every 11 or 12 years. Auto dealers and banks can tell
you the worth of cars. Or you can look it up online at Kelley's
Blue Book (www.kbb.com). Review your coverage at renewal time to
make sure your insurance needs haven't changed.
your homeowner and auto coverage from the same insurer
Many insurers will give you a break if you buy to or more types
of insurance from them. Also you may get a reduction if you have
more than one vehicle insured with the same company. Some insurers
reduce the rates for long-time customers. But stop! You may save
money buying from different insurance companies despite the multi-policy
advantage of low mileage discounts
Some companies offer discounts to motorists who drive a lower than
average number of miles a year. Low mileage discounts can also apply
to drivers who car-pool to work.
about group insurance
Companies offer reductions to drivers who get insurance through
a group plan from their employers, through professional, business
and alumni groups or other associations. Ask your employer and inquire
of any groups or clubs you belong to.
out safe driver discounts
Companies offer discounts to policyholders who have not had any
accidents or moving violations for a number of years. You may also
qualify for a cut if you have taken a defensive driving course recently.
about other discounts
You may get a break on your insurance if you are over 50, or in
some cases 55, and retired or if there is a young driver on the
policy who is a good student, has taken a drivers education course,
or is at college out of the area.
When you comparison shop, inquire about these discounts*
Company A Company B Company C
More than 1 car
No accidents in 3 years
No moving violations in 3 years
Drivers over 50-55 years of age
Driver training course
Defensive driving course
Low annual mileage
Daytime running lights
Student drivers with good grades
Auto and homeowners coverage with the same company
College students away from home
discounts listed may not be available in all states or from all
insurance companies. But don't forget that the key to savings is
not the discounts but the final price. A Company that offers few
discounts may still have a lower overall price.
Get an online car insurance