If you're shopping for affordable auto insurance and
looking to save money, there are many variables to
consider. The price of auto insurance varies depending on
the car you drive, your driving record, and the insurance
company you choose. This guide has information to help you
choose the best auto insurance policy for your goals.
Shop Around
It's easy to shop around and get price quotes from various
companies now that most of this information is online.
Insurance Information Institute (www.iii.org) suggests
drivers get at least three price quotes. You can get an
online auto insurance quote from an insurance Web site or
call them directly. Sometimes, your state insurance
department has charts to compare auto insurance
(http://www.iii.org/media/companies/state_org/insur_departme
nts). Be sure to compare quotes from different types of
insurance companies. For example, some companies sell
policies through their own agents, while others sell
through independent agents who offer policies from various
insurance companies. Sometimes policies are sold directly
online or by phone. Depending on the sales method, prices
may vary.
Remember, though, you shouldn't shop by price alone. Make
sure the company as a whole satisfies you. Do they answer
your questions and handle claims effectively and fairly?
Talk with friends, family, and co-workers, or check
consumer magazines. State insurance departments also
provide consumer complaint ratios for various companies.
Ask for Higher Deductible
A higher deductible can lower the price of your auto
insurance considerably. According to www.iii.org,
"Increasing your deductible from $200 to $500 could reduce
your collision coverage and comprehensive coverage premium
by 15 to 30 percent. Going to a $1,000 deductible can save
you 40 percent or more." These are substantial savings;
however, you need the deductible on hand in case something
happens to your vehicle.
Compare Insurance Costs Before Buying Car
The price of auto insurance depends greatly on the type of
car you drive. Factors include the sticker price, costs for
repair, overall safety record and the likelihood of theft.
Often insurers offer discounts to drivers who take measures
to reduce the risk of injuries or theft.
Purchase Home and Auto Insurance from Same Provider
If you buy two or more types of insurance from one insurer,
you will often receive a multi-policy discount. You may
also pay a lower price if you insure more than one vehicle
with the same insurance company. Often, long-time customers
are offered reduced premiums.
Take Advantage of Low-mileage and Safe-driver Discounts
Some motorists receive a low-mileage discount from their
insurers for driving a lower than average number of miles
per year. These discounts also often apply to drivers who
carpool. And, if you're a safe driver, and you have not had
any accidents or moving violations in a number of years,
many companies will reward you with a safe-driver discount.
If you've recently taken a defensive driving course, you
may also receive a price reduction.
To save money on, business auto insurance is something to
ask about. You may be eligible for insurance through your
employer, or through professional or business groups and
other associations you are involved in. You should also
closely monitor your credit rating because your credit may
affect the price you pay for insurance. No matter what,
always shop around and compare prices. This is the most
effective way to save money on auto insurance!
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Ryan Patterson is president of US Insurance Online, based
in Austin, TX. He graduated in 2000 from the University of
Texas with a combined business and computer science degree,
and started US Insurance Online in May of 2005 with fellow
entrepreneur Jim Waltrip. Visit
http://www.USInsuranceOnline.com for help shopping for
insurance and for free insurance quotes.
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