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How to Save Money on Your Auto Insurance

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 coverage 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. You can also check consumer guides, the Internet, 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 talked 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 have 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 coverage, you can lower your cost substantially. For example, increasing your deductive from $200 to $500 could reduce your collision cost by 15% to 30%.

3. Drop collision and/or comprehensive coverage on older cars

It may not be cost-effective to have collision or comprehensive coverage on cars worth less than $1000 because any claim you make would not substantially exceed annual cost and deductible amounts. Auto dealers, bank or Internet sites can give the value of the car.

4.Eliminate duplicate medical coverage

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 a favorite target for thieves, have much higher costs. Write to the Insurance Institute for Highway Safety, 1005 North Glebe Road, Arlington, VA 22201 and ask for the Highway Loss Data Chart or click on the link we have provided here.

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 coverage if you have automatic seat belts or air bags. Ask your agent, you may be pleased to find that it does give you a break on the rates. Also, consider this type of equipment when you are purchasing a replacement vehicle.

9. Inquire about other discounts

Some insurers offer discounts for more than one car, combing your home owners with your car, no accidents in three years, drivers over 50 years of age, driver training courses, antitheft devices, anti-lock brakes and good grades for students.

10. Drive in a reasonable manner

The best way to get a good deal on the cost of insurance is to drive carefully and not get speeding tickets. A good driving record is the single best way to drive down your insurance cost. Insurance companies are interested most in those customers that cost them the least.