|
How to
Save on your Auto Insurance
Auto insurance rates can vary dramatically
depending on the insurance company, the
agent or broker you choose, the coverage's
you request, and the kind of car you drive.
Here are a few tips on how you can make
significant savings on your insurance
coverage.
1. Higher deductibles
Deductibles represent the amount of money
you pay before you make a claim. By
requesting higher deductibles on collision
and comprehensive (fire and theft) coverage,
you can lower your costs substantially. For
example, increasing your deductible from
$200 to $500 could reduce your collision
cost by 15% to 30%.
2. Drop collision or comprehensive
coverage on older cars
It may not be cost-effective to have
collision or comprehensive coverage on cars
worth less than $1000 because any claim you
make would not substantially exceed annual
cost and deductible amounts. Auto dealers
and banks can tell you the worth of cars.
3. Eliminate duplicate medical coverage
If you have adequate health insurance, you
may be paying for duplicate medical coverage
in your auto policy. In some states,
eliminating this coverage could lower your
personal injury protection (PIP) cost by up
to 40%. |
4. Buy a low profile car
Before you buy a new or used car, check into
insurance costs. Cars that are expensive to
repair, or that are favorite targets for
thieves, have much higher insurance costs.
Write to the Insurance Institute for Highway
Safety, 1005 North Glebe Road, Arlington, VA
22201 and ask for the Highway Loss Data
Chart.
5. Consider area insurance costs if you
are going to move
Costs tend to be lowest in rural communities
and highest in center cities where there is
more traffic congestion.
6. Take advantage of low mileage
discounts
Some companies offer discounts to motorists
who drive fewer than a predetermined number
of miles a year.
7. Find out about seat belt, air bag, and
side impact discounts
You may be able to take advantage of
discounts on some coverage if you have
automatic seat belts and/or air bags.
8. Inquire about other discounts
Some insurers offer discounts for more than
one car, no accidents in three years,
drivers over 50 years of age, driver
training courses, anti-theft devices,
anti-lock brakes and good grades for
students. See the following page for a guide
to these and other discounts. |
from several top insurance companies. Doing this online will help
you to compare coverage and prices. However, don't just shop price
alone, you need to compare auto insurance coverage to get an idea of
exactly what you are paying for. The auto insurance company you
select should offer great competitive prices and good service.