Nine ways to lower your auto insurance costs | III

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 policy 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 indemnity department may besides provide comparisons of prices charged by major insurers .
You buy indemnity to protect you financially and provide peace of take care. It ’ randomness significant to pick a company that is financially stable. Check the fiscal health of policy companies with rate companies such as AM Best ( www.ambest.com ) and Standard & Poor ’ randomness ( www.standardandpoors.com/ratings ) and confer consumer magazines.

Get quotes from different types of insurance companies. Some sell through their own agents. These agencies have the same name as the policy company. Some sell through mugwump agents who offer policies from several insurance companies. Others do not use agents. They sell directly to consumers over the earphone or via the Internet .
Don ’ thyroxine shop by monetary value alone. Ask friends and relatives for their recommendations. Contact your state indemnity department to find out whether they provide data on consumer complaints by company. Pick an agent or caller representative that takes the time to answer your questions. You can use the checklist on the back of this booklet to help you compare quotes from insurers .

2. Before you buy a car, compare insurance costs

Before you buy a fresh or use car, check into indemnity costs. Car insurance premiums are based in part on the car ’ randomness price, the cost to repair it, its overall safety record and the likelihood of larceny. many insurers offer discounts for features that reduce the risk of injuries or larceny. 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 model, increasing your deductible from $ 200 to $ 500 could reduce your collision and comprehensive examination coverage cost by 15 to 30 percentage. Going to a $ 1,000 deductible can save you 40 percentage or more. Before choosing a higher deductible, be sure you have adequate money set digression 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 agio, purchasing the coverage may not be cost effective. car dealers and banks can tell you the deserving of cars. Or you can look it up on-line at Kelley ’ s Blue Book ( www.kbb.com ). Review your coverage at refilling time to make certain your indemnity needs haven ’ thyroxine 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 besides get a reduction if you have more than one vehicle insured with the like ship’s company. Some insurers reduce the rates for long-time customers. But it still makes feel to shop around ! You may save money buying from unlike indemnity companies, compared with a multipolicy discount .

6. Maintain a good credit record

Establishing a solid credit history can cut your indemnity costs. Most insurers use credit information to price car insurance policies. inquiry shows that people who efficaciously manage their credit have fewer claims. To protect your credit stand, pay your bills on time, don ’ thymine obtain more accredit than you need and keep your credit balances a low as potential. Check your credit record on a unconstipated 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 act of miles per class. Low mileage discounts can besides 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 alumnus groups or from other associations. Ask your employer and ask 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 total of years. You may besides get a dismiss if you take a defensive drive course. If there is a young driver on the policy who is a good scholar, has taken a drivers education course or is away at college without a car, you may besides qualify for a lower pace .
When you comparison shop, investigate about discounts for the follow : *
Antitheft Devices
Auto and Homeowners Coverage with the Same Company
College Students away from Home
Defensive Driving Courses
Drivers Ed Courses
Good Credit Record
Higher deductibles
moo Annual Mileage
Long-Time Customer
More than 1 cable car
No Accidents in 3 Years
No Moving Violations in 3 Years
Student Drivers with Good Grades
*The discounts listed may not be available in all states or from all policy companies .
The key to savings is not the discounts, but the final price. A company that offers few discounts may silent have a lower overall price .
Reviewed by:

Federal Citizen Information Center
www.pueblo.gsa.gov
National Consumers League
www.nclnet.org
cooperative State Research, Education, and Extension Service, USDA
www.csrees.usda.gov