Want to save money on your car insurance? Here are
suggestions from the Insurance Information Institute (III).
1. Comparison shop. Use consumer guides online from your
state's insurance department. These guides tell you what
coverages you need and show you sample auto insurance
rates, usually from the biggest companies. Get auto
insurance quotes from at least three insurers.
2. Ask for higher deductibles. When you file a claim, a
deductible is the amount of money you pay before your auto
insurance company pays for the rest of the damage. Higher
deductibles mean lower premiums. For example, increasing
your deductible from $200 to $500 on collision and
comprehensive coverage could reduce that portion of your
premium by 15 to 30 percent, according to III.
3. Drop collision and/or comprehensive coverages on old
cars. If your car is totaled in an accident, you receive
the actual cash value of the car. Although auto insurance
companies use their own criteria to determine fair market
value for vehicles, you can get a ballpark estimate from
Kelley Blue Book. For older cars, it may not make financial
sense to pay premiums over many years to maintain collision
and comprehensive coverage.
4. Buy a "low-profile" car. Cars that are expensive to
repair or that have a high theft rate have higher car
insurance rates.
5. Take advantage of low-mileage discounts. Some auto
insurance companies offer discounts to drivers who put
fewer than a predetermined number of miles on their
vehicles each year. And with the high price of gasoline,
driving less makes financial sense.
6. Consider auto insurance rates when making a move. Car
insurance rates tend to be lowest in rural communities and
highest in cities, where more traffic congestion occurs and
the likelihood of theft increases.
7. Ask about discounts for air bags and other safety
features. Your insurance agent can tell you know about
these discounts when you purchase your coverage. Most
policies give discounts for air bags.
8. Ask about antilock brake discounts. Some states require
insurers to give discounts for cars equipped with antilock
brakes. Some auto insurance companies give the discount no
matter where you live.
9. Ask about other discounts. Some insurers offer
discounted auto insurance quotes for insuring more than one
car, having no accidents in three years, being a driver
over age 50, taking driver-training courses, having
antitheft devices and being a long-time customer. Plus,
remember good-student discounts when you are insuring a
student who drives.
10. Buy your home and auto policies from the same insurer.
This will entitle you to a multiline discount.
11. Find out about group discounts. Sometimes group auto
insurance policies are available through large employers,
professional groups and other organizations.
12. Maintain good credit. Your credit rating may affect
your car insurance rates. Use of credit scores in setting
auto insurance prices varies by state and insurance
company, but statistics show that drivers with good credit
records tend to have fewer accidents.
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Amy Danise is a staff writer for http://insure.com . Visit
http://insure.com for a comprehensive array of comparative
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