Nine Ways To Lower
Your Auto Insurance Costs
You may not realize it, but the insurance rates you pay for your
car can vary dramatically depending on the insurance company, agent or
broker you choose, the coverages you request and the kind of car you
drive. Listed below are a number of things you can do right now to lower
your insurance costs.
1. COMPARISON SHOP
Prices for the same coverage can vary by hundreds of dollars, so it
pays to shop around. Ask your friends, check the yellow pages or call
your state insurance department (phone numbers are on back page). You
can also check consumer guides, insurance agents or companies. This will
give you an idea of price ranges and tell you which companies or agents
have the lowest prices. But don't shop price alone.
The insurer you select should offer both fair prices and excellent
service. Quality personal service may cost a bit more, but provides
added conveniences, so talk to a number of insurers to get a feeling for
the quality of their service. Ask them what they would do to lower your
costs. Check the financial ratings of the companies too. Then, when
you've narrowed the field to three insurers, get price quotes.
2. ASK FOR 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%.
3. DROP COLLISION AND/OR COMPREHENSIVE COVERAGES ON OLDER CARS.
It may not be cost-effective to have collision or comprehensive
coverages 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.
4. ELIMINATE DUPLICATE MEDICAL COVERAGES.
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%.
5. 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.
6. CONSIDER AREA INSURANCE COST IF YOU
ARE MAKING A MOVE.
Costs tend to be lowest in rural communities and highest in center
cities where there is more traffic congestion.
7. TAKE ADVANTAGE
Of LOW MILEAGE DISCOUNTS.
Some companies offer discounts to motorists who drive fewer than a
predetermined number of miles a year.
8. FIND OUT ABOUT
AUTOMATIC SEAT BELT OR AIR BAG DISCOUNTS.
You may be able to take advantage of discounts on some coverages if
you have automatic seat belts and/or air bags
9. 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.
Inquire About Discount For: |
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Company A |
Company B |
Company C |
| $500 deductible |
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| $1,000 deductible |
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| More than 1 car |
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| No Accidents in 3 Years |
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| No Moving Violations in 3 Years |
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| Drivers over 50 Years of Age |
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| Driver Training Course |
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| Anti-Theft Devices |
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| Low Annual Mileage |
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| Automatic Seat Belt |
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| Air Bag |
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| Anti-Lock Brakes |
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| Good Grades for Students |
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| Auto and Homeowners Coverage with the Same
Company |
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| College Students away from Home without a Car |
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Other Discounts
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