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:
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
Many 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.
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