Ways To Lower Your Auto Insurance
Costs
From: Insurance Information Institute
One of the best ways to keep your
auto insurance costs down is to have a good driving record.
Listed below are other things you can do to lower
your insurance costs.
1. Shop Around
Prices 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
and Web sites can be found here.)
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 (http://www.ambest.com)
and Standard & Poor’s (http://www.standardand
poors.com/) and consult consumer magazines.
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.
Don't shop price alone. Ask friends and relatives
for their recommendations. Contact your state insurance department
to find out whether they provide information on consumer complaints
by company. Pick an agent or company representative that takes
the time to answer your questions. You can use the checklist on
the back of this brochure to help you compare quotes from insurers
and on the same coverage.
2. Before You Buy a Car, Compare Insurance
Costs
Before you buy a new or used car, check into
insurance costs. Car insurance premiums are based in part on the
car’s sticker price, the cost to repair it, its overall
safety record, and the likelihood of theft. Many insurers offer
discounts for features that reduce the risk of injuries or theft.
These include daytime running lights and anti-theft devices. To
help you decide what car to buy, you can get information from
the Insurance Institute for Highway Safety (www.iihs.org).
3. Ask for Higher Deductibles
Deductibles are what 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 to 30 percent. Going to a $1,000 deductible
can save you 40 percent or more. Before choosing a higher deductible,
be sure you have enough money set aside to pay it if you have
a claim.
4. Reduce Coverage on Older Cars
Consider dropping collision and/or comprehensive
coverages on older cars. If your car is worth less than 10 times
the premium, purchasing the coverage may not be cost effective.
Auto dealers and banks can tell you the worth of cars. Or you
can look it up online at Kelley’s Blue Book (http://www.kbb.com).
Review your coverage at renewal time to make sure your insurance
needs haven’t changed.
5. Buy your Homeowners and Auto Coverage
from the Same Insurer
Many insurers will give you a break if you buy
two or more types of insurance. You may also 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 it
still makes sense to shop around! You may save money buying from
different insurance companies, compared with a multi-policy discount.
6. Maintain a Good Credit Record
Establishing a solid credit history can cut your
insurance costs. Insurers are increasingly using credit information
to price auto insurance policies. To protect your credit standing,
pay your bills on time, don't obtain more credit than you need
and keep your credit balances as low as possible. Check your credit
record on a regular basis and have any errors corrected promptly
so that your record remains accurate.
7. Take 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.
8. Ask about Group Insurance
Some 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 with groups or clubs you are a member
of to see if this is possible.
9. Seek Out Other Discounts
Companies offer discounts to policyholders who
have not had any accidents or moving violations for a number of
years. You may also get a discount if you take a defensive driving
course. If there is a young driver on the policy who is a good
student, has taken a drivers education course or is at a college
out of the area without a car, you may also qualify for a lower
rate.
font: www.pueblo.gsa.gov
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